The US government has issued a business advisory to alert US companies and individuals of the potential risks of conducting or considering doing business in South Sudan. The advisory, which was jointly released by the State Department, the Labor Department, and the Commerce Department on August 14, 2023, highlights the issues of corruption, human rights violations, and lack of transparency in the country.
Corruption and Transparency Issues
According to the advisory, South Sudan ranks as one of the most corrupt countries in the world, with pervasive and endemic corruption in both the public and private sectors. The country’s leaders are accused of diverting resources from the oil and gold industries to fund and equip security forces and militias loyal to political elites implicated in human rights abuses. The advisory warns that US companies and individuals may face reputational, legal, and economic risks if they engage with entities or individuals associated with the South Sudanese government or its extended transitional government.
The advisory also notes that South Sudan has a weak regulatory environment and a lack of transparency in government tenders, contracts, and procurement processes. The advisory urges US companies and individuals to conduct due diligence and verify the legitimacy and qualifications of their potential business partners in South Sudan. The advisory also recommends that US companies and individuals consult the Department of Commerce’s Entity List, which identifies foreign entities involved in activities contrary to US security or foreign policy interests.
Human Rights Violations
The advisory also highlights the human rights violations committed by the South Sudanese government and its affiliated armed groups. The advisory cites reports of forced labor, child labor, human trafficking, sexual violence, extrajudicial killings, torture, and arbitrary detention in the country. The advisory states that US companies and individuals may be complicit in these violations if they do business with entities or individuals that support or benefit from them.
The advisory also points out that South Sudan is a party to the UN Convention on the Rights of the Child and has ratified the Optional Protocol on the involvement of children in armed conflict. However, the advisory states that the South Sudanese government has failed to implement its obligations under these instruments and has continued to recruit and use children in combat and support roles. The advisory warns that US companies and individuals may face legal consequences under US law if they knowingly provide material support or resources to entities or individuals that recruit or use child soldiers.
Arms, Military Equipment, and Related Activity
The advisory also cautions US companies and individuals against dealing with the South Sudanese armed forces or any armed group operating in the country. The advisory states that these entities are responsible for serious human rights violations and pose a threat to regional peace and security. The advisory also notes that South Sudan is subject to a UN arms embargo, which prohibits the direct or indirect supply, sale, or transfer of arms and related materiel to the country. The advisory warns that US companies and individuals may face sanctions or prosecution under US law if they violate or facilitate the violation of this embargo.
The advisory also advises US companies and individuals to avoid providing any services or assistance that could contribute to the development or use of weapons of mass destruction (WMD) or their delivery systems in South Sudan. The advisory states that South Sudan is not a party to any of the major international treaties on WMD non-proliferation and has not established any domestic legal framework or oversight mechanism for WMD-related activities. The advisory warns that US companies and individuals may face severe penalties under US law if they engage in any WMD-related activity in South Sudan.
The business advisory issued by the US government is intended to inform US companies and individuals of the potential risks of doing business in South Sudan. The advisory does not impose any new legal obligations on US companies and individuals, but rather encourages them to exercise caution and due diligence when considering or conducting business in the country. The advisory also provides various resources and guidance for US companies and individuals to comply with their existing legal obligations and ethical standards when dealing with South Sudan.
