US Department of State. (Photo: Courtesy).

The US government has said the trade and investment climate in South Sudan has slightly improved in the past few years.

The U.S. State Department attributes the gains to the interim government’s efforts to implement public financial management reforms, including stabilizing the South Sudanese Pound.

Washington said in the statement that despite the reforms in the public finance sector, many setbacks remain unadressed.

“Trade and investment conditions in South Sudan improved slightly in the past year, but many challenges remain. The (unity) government continues to implement the 2018 Revitalized Agreement….although key provisions on security, governance, and transitional justice remain outstanding.”

According to the assessment, South Sudan’s economy is highly dependent on oil-revenue, and the transitional government did not institute any new programs in the past year to diversify the country’s economy.

The report, however indicated that South Sudan’s oil sector is fraught with corruption and mismanagement.

The U.S went on to say, the corruption and malfeasance in the country go beyond the oil sector.

According to the statement, the country’s oil-producing firms, and the Petroleum Ministry remain on the U.S. Department of Commerce Bureau of Industry and Security Entry List.

In 2021, Transparency International ranked South Sudan as the world’s most corrupt country.

In September 2021, the UN Human Rights Commission said there was a link between corruption in South Sudan and human rights violations and economic crimes.

The report cited arbitrary and conflicting regulations, multiple layers of taxation, and airport and border obstructions.

It also cited labor harassment and looting as hindrance to a conducive investment climate.

Others, the statement said, include government failure to enforce laws equitably or consistently, citing corrupt officials operating with impunity.