Table of Contents
- Executive Summary: The Investment Case for Sudan
- Key Economic Indicators and Growth Sectors (2025–2030)
- Government Policies and Strategic Initiatives
- Legal and Regulatory Framework: Business Laws and Taxation
- Compliance Essentials: Navigating Sudanese Regulations
- Foreign Direct Investment (FDI) Trends and Entry Strategies
- Risks, Challenges, and Political Landscape
- Infrastructure, Technology, and Innovation Outlook
- Case Studies: Success Stories and Lessons Learned
- Future Outlook: Projections and Emerging Opportunities
- Sources & References
Executive Summary: The Investment Case for Sudan
Sudan presents a complex but potentially rewarding investment landscape in 2025, shaped by its vast natural resources, strategic location, and an evolving regulatory environment. Following years of political transition and conflict, the country remains in a state of flux, but ongoing reforms and regional engagement signal new opportunities for foreign and domestic investors.
Sudan is endowed with significant agricultural potential—over 200 million acres of arable land and favorable access to the Nile. The country also boasts substantial mineral reserves, notably gold, which has become its largest export since the secession of South Sudan in 2011. According to the Central Bank of Sudan, gold accounted for over 40% of Sudan’s exports in 2023. The government has prioritized revitalizing agriculture, mining, energy, and infrastructure, with an eye toward diversifying the economy and reducing dependence on gold.
Recent legislative developments have aimed at improving the business climate. The Investment Encouragement Act (amended 2021) grants foreign investors rights to own and repatriate profits, and offers incentives such as customs exemptions and tax holidays. The Ministry of Investment has streamlined licensing procedures and established one-stop investment windows to reduce bureaucratic hurdles. In 2024, the Sudanese Transitional Government reaffirmed commitments to further liberalize key sectors and enhance protection for foreign investors, including commitments to the Multilateral Investment Guarantee Agency (MIGA) and bilateral investment treaties.
Compliance and due diligence remain critical concerns. Sudan has made progress in aligning with global anti-money laundering and counter-terrorism financing standards, with recent assessments by the Central Bank of Sudan highlighting increased regulatory oversight of banking and financial services. However, significant risks remain, including political instability, internal conflict (notably in Darfur and Khartoum), and periodic disruptions to infrastructure and logistics.
- GDP growth is projected to remain modest, at 2-3% annually through 2026, according to the Ministry of Finance and Economic Planning.
- Inflation, while declining from its 2022 peak, remains a challenge, but price stability is a key policy target for the Central Bank.
- Efforts to re-engage international financing are ongoing, with Sudan’s external debt relief process progressing under the Heavily Indebted Poor Countries (HIPC) Initiative.
Outlook for 2025 and beyond is cautiously optimistic: sectors such as agribusiness, renewable energy, telecommunications, and infrastructure offer growth potential, contingent upon continued reforms and stabilization. Investors are advised to closely monitor legal and security developments, and to engage proactively with government authorities to ensure regulatory compliance.
Key Economic Indicators and Growth Sectors (2025–2030)
Sudan’s investment landscape in 2025 is marked by both significant challenges and emerging opportunities, shaped by ongoing political transitions, ambitious economic reforms, and a renewed focus on key growth sectors. As the country seeks to stabilize and revitalize its economy, investors should closely monitor economic indicators, sectoral developments, and regulatory frameworks.
Key Economic Indicators
Sudan’s GDP has experienced volatility in recent years, largely due to internal conflict and international isolation, but reforms are underway to restore macroeconomic stability. The Central Bank of Sudan reports that inflation, while still high, is projected to gradually decrease through tighter monetary policy and fiscal discipline. The exchange rate has been unified, and foreign reserves are slowly recovering, supported by increased gold exports and remittances.
Private sector activity remains constrained by limited access to finance and infrastructure deficits. However, the government targets an average GDP growth rate of 3–4% per annum between 2025–2030, conditional on political stabilization and improved security. Unemployment is high but expected to decline as investment in key sectors increases.
Growth Sectors for Investment
Several sectors are prioritized for investment and are central to Sudan’s economic recovery strategy:
- Agriculture: Sudan possesses vast arable land and water resources. The Ministry of Agriculture and Irrigation highlights ongoing efforts to modernize production, attract agribusiness investment, and expand value-added processing. Export crops such as gum arabic, sesame, and cotton offer competitive advantages.
- Mining: Gold remains a critical export. The Ministry of Minerals actively seeks foreign investment to boost production and formalize artisanal mining. There are also untapped reserves of chromite, manganese, and other minerals.
- Energy: The Ministry of Petroleum is encouraging partnerships in oil and gas, as well as renewable energy projects, to address domestic shortages and foster regional exports.
- Infrastructure: Initiatives to upgrade transport, telecommunications, and power networks are underway, with the Ministry of Infrastructure and Urban Development facilitating public-private partnerships.
Regulatory and Compliance Outlook
Investment incentives, including tax holidays and customs exemptions, are available under the Ministry of Investment and International Cooperation. The Investment Encouragement Act is under revision to improve investor protections, streamline licensing, and enhance dispute resolution mechanisms. Sudan is also working to align its anti-money laundering (AML) and anti-corruption frameworks with international standards, a process overseen by the Central Bank of Sudan.
Overall, while risks remain, Sudan’s economic trajectory for 2025–2030 presents targeted opportunities in agriculture, mining, energy, and infrastructure, provided reforms continue and the political environment stabilizes.
Government Policies and Strategic Initiatives
Sudan’s government policies and strategic initiatives for attracting investment in 2025 are strongly shaped by ongoing economic reforms, evolving regulatory frameworks, and the country’s efforts to stabilize after prolonged periods of political uncertainty. Following the 2023 Jeddah Declaration and ongoing peace-building measures, the transitional government continues to prioritize economic recovery, private sector development, and foreign direct investment (FDI) as key pillars of its national agenda. The Sudanese Ministry of Investment leads these efforts, providing regulatory oversight and facilitating investor support through a streamlined one-stop-shop mechanism.
- Legal and Regulatory Framework: The Investment Encouragement Act (latest amendment 2021) remains the primary legal instrument governing FDI in Sudan. It guarantees equal treatment of domestic and foreign investors, allows full repatriation of profits, and provides customs exemptions for qualifying projects. In 2024–2025, the Ministry of Justice and the Ministry of Justice are reviewing further amendments to strengthen protections for investors, clarify dispute resolution mechanisms, and enhance transparency.
- Sectoral Priorities: The government’s 2025–2027 development plan, stewarded by the Ministry of Finance and Economic Planning, prioritizes investment in agriculture, mining, energy, and infrastructure. Special Economic Zones (SEZs) are under development to attract manufacturing and logistics firms. New public-private partnership (PPP) guidelines issued in 2024 aim to facilitate infrastructure investments, particularly in energy and transport.
- Compliance and Oversight: Investors are required to register with the Ministry of Investment and comply with sector-specific regulations. Sudan’s Anti-Money Laundering and Counter-Terrorist Financing Act (AML/CFT) was updated in 2023, aligning with standards set by the Financial Action Task Force, and enforced by the Central Bank and Central Bank of Sudan. Due diligence and reporting requirements have increased, particularly for foreign investors and financial institutions.
- Statistical Outlook: Despite ongoing challenges, FDI inflows increased modestly in 2024, with the Ministry of Investment reporting over $700 million in new investment commitments, mainly in agriculture and mining. The government aims to double annual FDI by 2027 through improved security, regulatory reforms, and targeted investment promotion.
- Strategic Initiatives: Sudan is working with the African Continental Free Trade Area (AfCFTA) and regional organizations to harmonize investment policies and expand market access. The government is also developing digital platforms to streamline permits, licensing, and investor services, supported by the Ministry of Investment and international partners.
While Sudan’s investment climate remains complex, the government’s recent legal reforms and targeted initiatives in 2025 signal a commitment to greater openness, compliance, and long-term economic growth. Continued progress will depend on political stability and the implementation of these strategic policies.
Legal and Regulatory Framework: Business Laws and Taxation
Sudan’s legal and regulatory framework for investment is primarily governed by the Investment Encouragement Act (IEA) of 2021, which was enacted to attract both domestic and foreign investors. The IEA provides guarantees against expropriation, enables foreign ownership in most sectors, and offers incentives such as customs exemptions on capital equipment and tax holidays for qualifying projects. The law also streamlines registration, licensing, and dispute resolution procedures, centralizing these through the Ministry of Investment and International Cooperation. The Sudanese government continues to update regulatory provisions in line with its pursuit of economic liberalization and reintegration into the global economy.
- Company Formation: The Companies Act governs company formation, requiring registration with the Ministry of Justice and the Commercial Registrar. Foreign investors may establish wholly owned subsidiaries or joint ventures, although some sectors (notably extractives and strategic industries) may require local participation.
- Taxation: Corporate income tax rates generally range from 15% to 35%, depending on the business sector, with agriculture and manufacturing often benefiting from lower rates or exemptions. The Ministry of Finance and Economic Planning oversees tax policy, while the Taxation Chamber administers tax compliance and collection. Sudan imposes a value-added tax (VAT) of 17% on most goods and services, with some essential goods exempted.
- Investment Compliance: Investors must comply with national labor laws, environmental regulations, and sector-specific licensing. The Ministry of Investment and International Cooperation serves as a one-stop shop for approvals, but investors should also be aware of compliance requirements from sectoral ministries such as the Ministry of Energy and Petroleum and Ministry of Agriculture and Forests.
- Foreign Exchange and Repatriation: The Central Bank of Sudan regulates foreign exchange. While the IEA guarantees repatriation of capital and profits, currency shortages and ongoing macroeconomic instability have at times led to delays in transfers. The government has pledged to further liberalize foreign exchange policies over the next few years to improve investor confidence (Central Bank of Sudan).
Looking ahead to 2025 and beyond, Sudan’s outlook for legal and regulatory reforms is closely tied to political stabilization and efforts to re-engage with international financial institutions. Ongoing amendments to investment and tax laws are expected as part of a broader economic reform agenda. However, investors should closely monitor the evolving regulatory landscape, compliance demands, and the impact of any new bilateral or multilateral agreements. Engagement with official channels and professional legal counsel remains critical for navigating Sudan’s complex and transitioning business environment.
Compliance Essentials: Navigating Sudanese Regulations
Sudan’s regulatory environment for foreign and domestic investment is shaped by recent political transformations and ongoing legal reforms. As of 2025, investors must navigate a complex framework of laws, sectoral requirements, and compliance protocols aimed at fostering economic revival while ensuring national interests are protected.
The cornerstone is the Investment Promotion Act of 2021, which provides for equal treatment of foreign and local investors, repatriation of profits, and protection against expropriation except for public interest and with fair compensation. The Act also establishes the Ministry of Investment and International Cooperation as the key authority overseeing investment licensing and dispute resolution. Investors must seek project approval through a streamlined process coordinated by this Ministry, which also issues investment certificates granting customs and tax exemptions for qualifying projects.
Sector-specific regulations apply, particularly in mining, agriculture, and telecommunications. For example, foreign participation in mining is governed by the Ministry of Minerals under the Mining Act 2015, requiring compliance with environmental and local content requirements. The Central Bank of Sudan sets rules on foreign exchange and capital repatriation, and all foreign investors must register with the Central Bank of Sudan and open accounts in authorized local banks.
Sudan’s anti-money laundering (AML) and combating the financing of terrorism (CFT) framework was updated in 2023 via amendments to the AML Act, bringing compliance closer to international standards. Financial institutions and companies must file regular reports and conduct enhanced due diligence on transactions above statutory thresholds, overseen by the Central Bank of Sudan. Violations can result in significant penalties or license revocation.
- Foreign ownership is generally permitted, though in certain strategic sectors (e.g., oil, telecommunications), joint ventures with Sudanese entities or government participation may be required (Ministry of Investment and International Cooperation).
- Tax incentives and customs exemptions are available for priority sectors, but compliance with local hiring and technology transfer requirements is strictly monitored.
- Sudan’s business registration system is being digitized, with the Ministry of Justice responsible for company incorporation and intellectual property registration.
Despite ongoing instability, the Sudanese government continues to prioritize legal reforms to attract investment. Key statistics indicate foreign direct investment inflows remain modest but are projected to rise if the security and regulatory environment stabilizes. The outlook for 2025 and beyond is cautiously optimistic, provided investors stay abreast of evolving compliance requirements and maintain close engagement with Sudanese authorities.
Foreign Direct Investment (FDI) Trends and Entry Strategies
Sudan’s foreign direct investment (FDI) landscape has been shaped by a combination of significant political, economic, and legal developments, especially since the country’s removal from the United States’ list of state sponsors of terrorism in late 2020. This change opened the door for renewed international engagement and has influenced FDI inflows and entry strategies through 2025 and beyond. According to the Central Bank of Sudan, FDI inflows remain modest compared to regional peers, largely due to ongoing political instability and security concerns arising from the conflict that escalated in April 2023. Despite these challenges, sectors such as agriculture, mining (notably gold), and telecommunications continue to attract interest from investors seeking long-term opportunities.
The regulatory framework governing FDI is primarily established by the Investment Encouragement Act of 2021, which aims to facilitate foreign participation by offering incentives such as tax exemptions, customs duty reductions, and guarantees of capital repatriation. The Ministry of Investment and International Cooperation is the principal authority responsible for FDI promotion, licensing, and compliance oversight. Notably, in light of the ongoing conflict, the government has prioritized investment projects that support reconstruction, infrastructure, and essential services, with some streamlined procedures for initiatives aligned with these national priorities.
Compliance with Sudanese regulations remains critical for foreign investors. The government requires adherence to anti-money laundering (AML) and anti-corruption standards, with ongoing reforms to align with regional and global best practices. Companies must obtain approvals from multiple ministries, particularly for investments in natural resources or sectors deemed strategic; land acquisition and ownership are subject to additional scrutiny and require clear documentation. The Taxation Chamber of Sudan administers tax compliance, and recent reforms have focused on simplifying processes to attract more FDI and expand the tax base.
In terms of statistical outlook, Sudan’s FDI inflows remain subdued; the Central Bank of Sudan reported inflows of under $1 billion in 2024, with projections for 2025 remaining uncertain due to security risks and macroeconomic volatility. However, if the political situation stabilizes, the government expects a gradual uptick in FDI, particularly from Gulf countries and regional partners. Entry strategies in the current environment increasingly favor joint ventures and strategic partnerships with local entities to mitigate risk and navigate regulatory complexity.
Looking ahead, the outlook for FDI in Sudan will be closely tied to progress on peace and stability, the effectiveness of ongoing economic reforms, and the government’s commitment to transparency and investor protection. Investors are advised to conduct thorough due diligence, engage with local partners, and monitor evolving regulatory requirements to capitalize on Sudan’s long-term potential while managing near-term uncertainties.
Risks, Challenges, and Political Landscape
Investing in Sudan in 2025 is marked by significant risks and challenges arising primarily from ongoing political instability, security concerns, and an evolving legal and regulatory environment. Following the outbreak of armed conflict in April 2023 between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), the country remains in a state of profound uncertainty. Multiple ceasefire attempts have failed, and widespread violence has led to severe disruption of economic activity, displacement of populations, and destruction of critical infrastructure. This conflict has exacerbated already existing challenges for investors, including currency volatility, limited access to foreign exchange, and insecurity of assets and personnel.
Legally, Sudan is governed by the Investment Encouragement Act, which aims to attract foreign direct investment by offering incentives such as tax exemptions and guarantees against expropriation. However, the practical application of these laws is hampered by the lack of an effective central government, weak rule of law, and frequent changes in local authority control. The transitional government established in 2019 was dissolved following the military coup in 2021, and since the 2023 conflict, no unified regulatory authority has been able to enforce business or investment regulations consistently. Investors face heightened compliance risks, with due diligence complicated by unclear land titles, shifting regulatory requirements, and the absence of reliable dispute resolution mechanisms. The Ministry of Justice – Republic of Sudan remains the nominal legal authority, but its operational capacity is limited in much of the country.
International sanctions and export controls pose further compliance challenges. The United States and European Union maintain targeted sanctions against individuals and entities associated with human rights abuses or the conflict, and anti-money laundering (AML) requirements have intensified. Sudan remains on the Financial Action Task Force’s list of jurisdictions under increased monitoring, making cross-border transactions subject to enhanced scrutiny (Financial Action Task Force). Investors must conduct rigorous due diligence to avoid inadvertently engaging with sanctioned parties or violating international trade controls.
Key statistics underscore the challenging climate: Sudan’s GDP contracted sharply in 2023 and is expected to remain negative or stagnant in 2025, with inflation rates among the world’s highest and the Sudanese pound depreciating rapidly (Central Bank of Sudan). The World Bank classifies Sudan as a fragile and conflict-affected situation, and the United Nations estimates that more than half the population will require humanitarian assistance in 2025.
The outlook for investing in Sudan over the next few years is highly uncertain. While the country possesses significant agricultural, mineral, and energy resources, the political and security situation is likely to deter all but the most risk-tolerant investors. Any improvement in the investment climate will depend on the restoration of political stability, progress toward a negotiated settlement, and the re-establishment of credible legal and regulatory frameworks.
Infrastructure, Technology, and Innovation Outlook
Sudan’s infrastructure, technology, and innovation landscape are in a state of significant flux as the nation navigates ongoing economic and political challenges. The civil conflict that escalated in 2023 has severely impacted investment, particularly in major urban centers such as Khartoum, but also highlighted the acute need for resilient and decentralized infrastructure. Nevertheless, government efforts—alongside international organizations—are shaping a cautious outlook for 2025 and the years ahead.
The Sudanese government has recognized infrastructure rehabilitation as a national priority. The Ministry of Finance and Economic Planning continues to coordinate with multilateral partners to restore transport corridors, energy grids, and water facilities disrupted by conflict. According to the Central Bank of Sudan, public capital expenditure on infrastructure accounted for nearly 14% of the national budget in 2024, with a projected moderate increase in 2025 as stabilization efforts take hold.
In technology, Sudan’s digital connectivity lags behind regional peers. Internet penetration stood at just over 30% in 2024, hindered by both conflict-related outages and limited rural coverage. However, the National Telecommunications Corporation has initiated regulatory reforms to encourage private sector investment, streamline licensing, and improve spectrum management—measures expected to yield gradual improvements through 2025. Notably, mobile money and fintech solutions have seen rapid adoption in displacement-affected regions, showcasing the potential for leapfrogging technologies in financial inclusion.
On innovation, the Ministry of Higher Education and Scientific Research has renewed support for university-led incubators, focusing on agricultural technologies, renewable energy, and water management. These efforts are aligned with Sudan’s National Adaptation Plan to climate change, which prioritizes innovative solutions to food security and resource scarcity. Compliance with intellectual property regulations, overseen by the Intellectual Property Office of Sudan, has been strengthened since 2023 to protect inventors and encourage foreign technology transfer.
Despite these initiatives, compliance risks remain significant. Investors must navigate non-uniform enforcement of contracts, evolving procurement rules, and ongoing security threats. The Sudan Investment Promotion Agency has updated guidelines for foreign investors in 2024, emphasizing due diligence, local partnership requirements, and mandatory environmental and social impact assessments.
Looking ahead, Sudan’s infrastructure and technology sectors present both urgent needs and potential for high-impact investment, particularly as reconstruction accelerates. Success will depend on the stabilization of governance, improved transparency, and the ability of both public and private actors to implement resilient, scalable solutions amid ongoing uncertainty.
Case Studies: Success Stories and Lessons Learned
Investing in Sudan has long presented both opportunities and challenges, with recent years marked by significant shifts due to ongoing political transitions and economic reforms. Case studies from key sectors—agriculture, mining, and telecommunications—offer valuable insight for potential investors as Sudan seeks to stabilize and attract foreign direct investment (FDI) in 2025 and beyond.
One notable success story is the expansion of Sudatel Telecom Group, a state-linked enterprise that has driven digital transformation despite the broader economic headwinds. Sudatel’s ability to attract regional investment partnerships, modernize its infrastructure, and expand services across Sudan demonstrates the potential for returns in the telecommunications sector. This success is attributed to regulatory reforms initiated by the Ministry of Communications and Digital Transformation supporting market liberalization and technology upgrades.
The agricultural sector, Sudan’s economic backbone, has also seen international partnerships yield positive results. A key example is the revival of large-scale irrigated farming in Gezira State through joint ventures between Sudanese entities and Gulf-based investors. These projects leverage Sudan’s vast arable land and favorable climate, and benefit from tax incentives and land lease guarantees under the Investment Encouragement Act, as administered by the Ministry of Investment. Nonetheless, ongoing lessons highlight the need for robust compliance with land tenure laws and transparent local engagement to avoid disputes.
The mining sector, particularly gold extraction, illustrates both promise and pitfalls. Companies such as Sudamin Company Ltd. have expanded output and attracted foreign technical expertise. However, lessons learned include the importance of adhering to evolving environmental regulations set by the Ministry of Environment, Natural Resources and Physical Development, and maintaining rigorous anti-corruption compliance in line with Sudan’s anti-money laundering framework, as enforced by the Central Bank of Sudan.
Statistically, FDI inflows are recovering from a low base, with the Central Bank of Sudan reporting modest year-on-year increases since 2023, though still below pre-2017 levels. The outlook for 2025 is cautiously optimistic: ongoing peace efforts and plans for an inclusive constitution may boost investor confidence, while new investment laws aim to streamline procedures and reduce bureaucratic barriers.
In summary, successful investments in Sudan hinge on understanding the regulatory landscape, prioritizing compliance, and building resilient local partnerships. Recent case studies underscore the critical role of adaptive strategies and legal due diligence as Sudan works to restore its position as a destination for responsible and profitable investment.
Future Outlook: Projections and Emerging Opportunities
As Sudan navigates a complex geopolitical and economic landscape, the future outlook for investing in the country through 2025 and beyond is shaped by both significant challenges and emerging opportunities. The transitional government continues to prioritize legal and institutional reforms aimed at attracting foreign direct investment (FDI), though the ongoing security situation and evolving sanctions regime remain central concerns.
Recent legislative developments signal intent to foster a more conducive environment for investors. Sudan revised its Investment Law in 2021, guaranteeing equal treatment for foreign and domestic investors, repatriation of profits, and protection against expropriation. The Sudanese Investment Promotion Act and the creation of the Ministry of Investment and International Cooperation underscore the government’s goal to streamline investment procedures, reduce bureaucratic hurdles, and provide incentives—particularly in agriculture, mining, and energy.
Compliance with international standards is also a focus. Sudan has made efforts to address anti-money laundering (AML) and counter-terrorist financing (CTF) concerns, in line with recommendations from bodies such as the Financial Action Task Force (FATF). The Central Bank of Sudan has issued updated guidelines for financial institutions, including enhanced due diligence for foreign investors and stricter reporting obligations, to foster greater transparency and accountability in the financial sector.
Despite these reforms, the investment climate remains volatile. The World Bank estimated Sudan’s FDI inflows at approximately $825 million in 2023, a modest increase but still far below pre-2011 levels. The country’s removal from the U.S. list of State Sponsors of Terrorism in 2020 opened new avenues for international engagement, but internal conflict, currency instability, and infrastructure deficits continue to impede large-scale investment. The Central Bank of Sudan reports ongoing fluctuations in inflation and exchange rates, which can complicate investment planning and repatriation of profits.
Nevertheless, key sectors present substantial opportunities. Agriculture remains a priority, with the government offering incentives for large-scale farming and agro-processing projects. The mining sector, particularly gold, continues to attract interest, while recent discoveries in oil and gas are positioned as potential growth drivers. Green energy and infrastructure, including telecommunications and transport, are increasingly emphasized in national development plans, as outlined by the Ministry of Investment and International Cooperation.
Looking ahead to 2025 and the following years, Sudan’s investment prospects hinge on the stabilization of its political landscape, enforcement of new legal frameworks, and continued progress on economic reforms. While risks persist, proactive investors who monitor regulatory developments and engage with local partners may find considerable rewards in Sudan’s evolving marketplace.
