Research and consulting in Sudan

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Research and consulting in Sudan

Country overview:

IOA has long been a trusted source of research and consulting on Sudan, offering in-depth analyses of this Horn of Africa nation now gripped by one of 2023’s most severe global crises. Following the overthrow of a decades-long dictatorship, Sudan faced challenges transitioning to democratic governance, only to be plunged into open warfare between rival generals. In 2023, the conflict between Sudan’s Armed Forces (SAF) and the Rapid Support Forces (RSF) escalated dramatically, with RSF forces looting Khartoum and a resulting famine threatening millions, with projections of hundreds of thousands of deaths in 2024.

Sudan, a landlocked country, is highly susceptible to climate change-driven droughts. While foreign investment has heavily targeted the oil sector over the years, Sudan’s position as the least economically free nation in Sub-Saharan Africa deters broader investment. Its industrial sector remains underdeveloped, primarily centered on oil processing facilities.

Key opportunities in Sudan:

  • Agricultural and mineral resources offer significant potential for developing a robust industrial sector
  • The oil industry remains a vital pillar of the economy and continues to show economic viability
  • Sudan boasts more ancient pyramids than Egypt, presenting substantial opportunities for growth in the tourism sector

Key concerns/risks in Sudan:

  • The conflict between rival military factions, which began in April 2023, has caused widespread death, destruction, and famine
  • Ongoing violence has led to severe human rights violations and a worsening humanitarian crisis
  • Climate change has intensified the frequency of droughts and floods, resulting in recurring natural disasters
Sudan

Tips on doing business in Sudan:

Starting a business:

  • Sudan has traditionally maintained a cautious stance on foreign land and business ownership. While foreign ownership is allowed, it is generally restricted to specific sectors. Foreign investors are prohibited from entering industries such as transport (railways, freight, inland waterways, and airport operations), most telecommunications and media (including television broadcasting and newspaper publishing), electrical power generation, and financial services. Additionally, many other sectors are dominated by government monopolies. Property ownership is similarly limited, with foreigners only able to obtain leaseholds in designated areas
    (Read more at: https://sudanembassy.org/invest-in-sudan/)

Doing business:

  • The ongoing armed conflict in Sudan significantly disrupts business operations due to security threats, leading to a broad economic downturn across all sectors. Many companies have lost access to logistics networks, and a large portion of potential consumers no longer have income. Even before the conflict, the local economy was challenged by high inflation and an inefficient state bureaucracy, plagued by internal government factionalism
  • The imposition of foreign sanctions presents a compliance risk when engaging in business with local government officials

Culture and society:

  • Arabic is the primary language for both administrative and business communications, meaning that non-Arabic speakers will likely need an interpreter for local dealings
  • Establishing social rapport and exchanging gifts are common practices; however, foreign investors should avoid any involvement in bribery. As Sudan is a Muslim-majority country, it is important to respect local customs and avoid actions that may be seen as offensive, such as dressing modestly, refraining from alcohol consumption, and avoiding public displays of intimate physical contact
  • The ongoing armed conflict presents significant safety risks for individuals considering permanent residence in the country

A sample IOA research report on Sudan: