Washington: The United States has issued a stark warning to businesses regarding the potential risks associated with conducting operations in South Sudan. Citing the country's persistent political instability and violence, the US Departments of State, Commerce, and Labor jointly advised that South Sudan remains a "fragile and conflict-affected country with a high risk of violence, crime, and corruption."

This advisory urges businesses to exercise the utmost caution when contemplating ventures within South Sudan and underscores the imperative of meticulously evaluating potential risks prior to any commitments.

The advisory highlights several key risks associated with doing business in South Sudan:

• Political Instability: Since its declaration of independence in 2011, South Sudan has grappled with profound political instability, marked by two civil wars and the ominous potential for further violence.
• Violence: South Sudan ranks high in terms of violence, encompassing elevated crime rates and persistent armed conflicts. Kidnappings, robberies, and other forms of violence are pressing concerns for businesses.
• Corruption: Corruption prevails within the country's governmental institutions, posing a considerable risk of bribery and extortion for businesses.
• Infrastructure Challenges: South Sudan's infrastructure remains underdeveloped, characterized by limited roadways, telecommunications, and electrical resources. Operating in such an environment poses distinctive challenges.

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The advisory also offers mitigation strategies for businesses that elect to operate in South Sudan:

1. Conduct Comprehensive Due Diligence: Thoroughly vet potential partners and employees to minimize risks.
2. Enhance Employee Training: Ensure that employees are well-versed in security and safety protocols.
3. Obtain Adequate Insurance Coverage: Secure insurance coverage to address risks arising from political violence and other potential hazards.
4. Collaborate with Local Experts: Consider partnering with local entities that possess a deep understanding of the country's dynamics.

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Additionally, businesses are cautioned to be mindful of the US government's sanctions against South Sudan. These sanctions restrict US companies from engaging in business activities with specific individuals and entities within the country.

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This advisory serves as an imperative reminder of the multifaceted risks tied to conducting business in South Sudan. As businesses contemplate operations in the region, a comprehensive risk assessment is paramount to informed decision-making. The advisory underscores the significance of prioritizing the safety and well-being of employees while navigating the challenging landscape of South Sudan's business environment.