US Department of State. (Photo: Courtesy).

The U.S. government on Tuesday issued a new report highlighting “reputational” risks for American citizens and businesses doing business with institutions linked to the South Sudan government over an alleged failure to implement political and economic reforms.

The statement titled; Risks and Considerations for U.S. Businesses and Individuals Operating in South Sudan, names specific activities and sectors within South Sudan that are of concern to Washington investment.

These are government tenders, oil, and gold, contracts managed by government entities for the delivery of assistance, and Arms, military equipment, and related activity.

It said these risks continue to grow because of South Sudan’s transitional government’s failure to implement governance reforms.

The statement recommends that the country embraces transparency and public financial management and address alleged pervasive, endemic corruption and human rights violations.

The Department of State, the Department of Labor, and the Department of Commerce caution U.S. businesses, individuals, and other persons, including academic institutions, research service providers, and investors conducting or contemplating business in South Sudan.

“Businesses and individuals should be particularly wary of the associated illicit finance, reputational, economic, and potential legal risks of conducting business with ties to the South Sudanese government officials or their family members,” the joint statement said.

It further alleges that businesses and individuals that operate in the South Sudan oil and mining sectors are particularly exposed to reputational risks.

The U.S. government further says it does not seek to curtail or discourage responsible investment or business activities in South Sudan with civilian-owned South Sudanese counterparts that are independent of improper ties to government institutions or officials.

According to Washington, the transitional government in Juba is yet to meet significant commitments under the Revitalized Agreement to initiate reforms necessary for lasting peace and stability in the country.

The South Sudan government is yet to comment on the U.S. government statement. Eye Radio contacted Acting Foreign Minister Deng Dau Deng, but his phone went unanswered.