The Non-Governmental Organisations (NGO) bill, passed by parliament yesterday, means no more than a fifth of aid workers can be from abroad, a level many humanitarians believe is simply not viable.
Aid agencies must "ensure that not less than 80 percent of the employees are South Sudanese nationals at all managerial, middle and junior levels," the bill read, according to a copy seen by AFP today. It must still be signed by the president to pass into law.
They said there was also concern at a clause making the issuing of a "false statement" about the bill punishable by up to three years in prison, as well as a possible 50,000 South Sudan pound fine, over USD 2,000 or 1,790 euros at current rates.
Aid agencies already employ large numbers of South Sudanese - often far higher than the 80 percent level now required - but not at senior levels or among technical specialists.
Civil war began in December 2013 when President Salva Kiir accused his former deputy Riek Machar of planning a coup, setting off a cycle of retaliatory killings that have split the poverty-stricken, landlocked country along ethnic lines.
East Africa's IGAD bloc last week called on rival forces to allow food into conflict zones on the brink of famine, where aid workers have warned tens of thousands may be dying of starvation.
United Nations aid agencies, as well as the International Committee of the Red Cross, are exempt from the bill.
A similar bill was passed in May 2015, but was later sent back to parliament.
Foreign agencies often provide the only source of healthcare for vast areas of the country.
Fighting continues despite an August peace deal, and the conflict now involves multiple militia forces who pay little heed to paper peace deals, driven by local agendas or revenge attacks.
