Sudão: Investir

FDI in Figures

According to UNCTAD’s World Investment Report 2023, FDI inflows to Sudan increased by 9.7% to USD 574 million in 2022 (compared to USD 523 million one year earlier), still well below the three-year average recorded in 2018-20 (USD 893 million). The total FDI stocks amounted to USD 30.3 billion in 2022, representing around 61.3% of the country’s GDP. Of the transition countries in the Horn, Sudan’s FDI flows are the highest. Investments are mainly directed towards the hydrocarbons and minerals sectors, business services, and transport. China, Germany, and Qatar are the country's largest investors (AfDB). Despite the military coup of 2021, when the country’s military, led by General Abdul Fattah al-Burhan, seized power and ousted the Civilian-Led Transitional Government (CLTG), investments are expected to continue in the oil, transport, and agriculture sectors (Coface).

Until recently, the factors that encouraged FDI were tax exemptions given to foreign investors, easy repatriation of profits by foreign companies, the development of a financial market, limited state monopoly in various industrial sectors, the allocation of free land to foreign investors for strategic projects, and the authorization to transfer foreign capital if the investor decides to withdraw from the country. The country is strategically positioned between the Middle East and West Africa, and it benefits from a huge unexploited agricultural potential. However, these advantages are offset by the lack of a qualified workforce, insufficient infrastructure, weak rule of law, rigid labor markets, an inefficient regulatory regime, corruption, and political instability. A lack of institutional capacity constrains efforts to diversify and develop the economy, and the private sector's long-term growth is significantly hindered by rampant corruption and inadequate protection of private property rights. The Investment Encouragement Act of 2021 establishes equal treatment for foreign and domestic business owners, allowing foreign investors to own business enterprises in Sudan. However, the Act requires foreign investors to deposit at least USD 250,000 to obtain a business license. Recently, the United States has imposed additional sanctions following a conflict between the army and the paramilitary Rapid Support Forces (RSF) that erupted in April 2024. The dispute revolves around political transition plans and the integration of the RSF into the army, occurring four years after the ousting of long-time ruler Omar al-Bashir in a popular uprising. Sudan ranks 162nd among the 180 economies on the 2023 Corruption Perception Index and 173rd out of 184 countries on the latest Index of Economic Freedom.

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Latest Update: May 2024