Table of Contents
- Executive Summary: Sudan’s Investment Landscape in 2025
- Key Economic Indicators and Growth Sectors
- Legal and Tax Framework: What Investors Must Understand
- Regulatory Compliance and Foreign Ownership Rules
- Political Stability and Security Considerations
- Infrastructure, Technology, and Logistics Developments
- Financing, Banking, and Currency Exchange Essentials
- Case Studies: Successful Investments and Lessons Learned
- Risks, Challenges, and Mitigation Strategies
- Future Outlook: Projections for 2025–2030 and Strategic Recommendations
- Sources & References
Executive Summary: Sudan’s Investment Landscape in 2025
Sudan’s investment landscape in 2025 is shaped by both persistent challenges and emerging opportunities, largely influenced by the country’s ongoing political developments, regulatory reforms, and resource potential. The nation, endowed with significant agricultural land, mineral resources, and strategic location, has historically sought to attract foreign direct investment (FDI) to drive economic growth and post-conflict reconstruction. However, the business environment remains complex, affected by security concerns, evolving legal frameworks, and the need for improved governance.
Key legislative frameworks governing investment include the Investment Act 2021 and subsequent regulations issued by the Ministry of Investment and International Cooperation. These laws offer incentives such as tax exemptions and land concessions, especially for projects in priority sectors like agriculture, mining, and infrastructure. The government is also pursuing reforms to streamline licensing, enhance transparency, and reduce bureaucratic delays, as evidenced by ongoing updates to digital registration systems and the establishment of specialized investment courts under the judiciary (Sudan Judiciary).
Compliance remains paramount for investors, with requirements spanning anti-corruption, local content, environmental standards, and currency repatriation. Sudan’s membership in regional organizations like the Common Market for Eastern and Southern Africa (COMESA) further influences its trade and investment regime, offering access to broader markets and preferential treatment.
In 2023, FDI inflows were estimated at less than $1 billion, a figure suppressed by internal conflict and external sanctions. Nonetheless, the lifting of some international restrictions and the resumption of donor engagement have begun to unlock new commercial possibilities (Central Bank of Sudan). The agricultural sector remains a major draw, accounting for over 30% of GDP and employing more than 60% of the population, while gold and mineral mining have also attracted significant interest.
Looking ahead, the outlook for investment in Sudan is cautiously optimistic. The transitional government’s commitment to legal reform and economic liberalization could stimulate FDI, provided that stability improves and investor protection mechanisms are strengthened. International partnerships and development finance are expected to play a critical role in rebuilding infrastructure and supporting private sector growth. However, political risks and regulatory unpredictability will continue to require careful due diligence and robust compliance strategies.
Key Economic Indicators and Growth Sectors
Sudan’s economic landscape in 2025 remains shaped by ongoing political transitions, macroeconomic reforms, and the aftermath of internal conflict. The country’s GDP contracted sharply in the early 2020s, but international organizations anticipate gradual stabilization if peace efforts hold and reforms continue. According to data from the Central Bank of Sudan, the economy is projected to see modest growth, largely driven by agriculture, mining, and telecommunications. Inflation, which exceeded 350% in 2021, has slowed but remains a significant challenge.
Agriculture remains the backbone of Sudan’s economy, contributing an estimated 30-35% of GDP and employing over 60% of the workforce. Key exports include sesame, gum arabic, sorghum, and livestock. The government, through the Ministry of Agriculture and Forests, has prioritized modernization initiatives and the expansion of irrigated areas, aiming to attract foreign direct investment (FDI) and boost productivity.
Mining, especially gold, is Sudan’s second-largest sector. The country is Africa’s third-largest gold producer, with the sector accounting for roughly 40% of total exports in recent years, according to the Ministry of Minerals. Regulatory reforms, including the establishment of the Gold Exchange Market and efforts to formalize small-scale mining, are intended to improve transparency and increase state revenues.
Oil production remains below pre-2011 levels due to the secession of South Sudan, but efforts are ongoing to rehabilitate existing fields and infrastructure. The Ministry of Energy and Petroleum is seeking joint ventures and partnerships to revitalize the sector and enhance downstream capacity.
Telecommunications and digital services are emerging as high-growth sectors. Investment incentives and regulatory support from the National Telecommunications Corporation have facilitated the expansion of mobile networks, fintech, and digital payment systems, presenting opportunities for investors targeting Sudan’s young and increasingly connected population.
Legal frameworks governing investment are anchored in the Investment Encouragement Act of 2021, which offers tax holidays and guarantees against expropriation. Compliance with local content requirements and anti-money laundering regulations, as set by the Central Bank of Sudan, is essential for foreign investors. Ongoing reforms aim to harmonize Sudan’s investment climate with international standards and attract sustainable capital inflows in the coming years.
Legal and Tax Framework: What Investors Must Understand
Investing in Sudan in 2025 presents both opportunities and challenges, with significant developments in the country’s legal and tax framework. Sudan’s investment climate is shaped by ongoing political transitions, economic reforms, and efforts to encourage foreign direct investment (FDI). Understanding the evolving legal and tax environment is essential for investors seeking to operate in this market.
Sudan’s primary legal instrument guiding investment is the Investment Act of 2021, which replaced previous legislation and aims to streamline procedures, offer tax incentives, and enhance investor protections. The Act establishes the Ministry of Investment as the principal authority for investment registration, licensing, and dispute resolution. Foreign investors are generally allowed 100% ownership in most sectors, with some restrictions in sensitive areas such as land and natural resources.
Taxation is governed by the Ministry of Finance and Economic Planning through the Income Tax Act (amended 2022) and related regulations. Corporate income tax rates typically range from 15% to 35%, depending on the sector. Investment projects approved under the Investment Act may qualify for tax holidays of up to 5 years and exemptions on customs duties for imported capital goods. However, investors should note that the precise scope and duration of these incentives are subject to periodic review and require formal approval.
Sudan has also made efforts to align with international anti-money laundering and compliance standards, overseen by the Central Bank of Sudan and the Sudanese Financial Intelligence Unit. In 2023, updated regulations on anti-money laundering (AML) and combating the financing of terrorism (CFT) were implemented, requiring enhanced due diligence for cross-border investments and reporting obligations for financial institutions. Compliance with these standards is critical given Sudan’s ongoing efforts to reintegrate with the global financial system and attract international partners.
Investors should be aware of recent reforms in commercial law, particularly the Companies Act (amended 2023), which introduced clearer requirements for corporate governance, financial reporting, and minority shareholder protection. Dispute resolution mechanisms have been strengthened, with the Sudan Judiciary designating specialized commercial courts to expedite investment-related cases.
Key statistics indicate that FDI inflows, while still modest, have shown gradual recovery since 2022, with the Central Bank of Sudan reporting annual inflows of approximately $1.1 billion in 2024, a 12% increase over the previous year. Sectors attracting the most interest include agriculture, energy, and infrastructure.
Looking ahead, the outlook for investment in Sudan is cautiously optimistic. The government continues to prioritize legal and institutional reforms, but risks related to political stability and regulatory enforcement persist. Investors are advised to monitor ongoing legislative updates and ensure robust compliance frameworks to navigate Sudan’s evolving legal and tax landscape.
Regulatory Compliance and Foreign Ownership Rules
Sudan’s regulatory landscape for foreign investors is shaped by evolving laws, recent political developments, and ongoing efforts to attract international capital while ensuring national interests. As of 2025, the principal legal framework governing foreign investment is the Investment Promotion Act of 2021, which replaced earlier statutes and consolidated investment-related provisions. This Act provides guarantees for foreign investors, including protection against expropriation except for public interest and with fair compensation, as well as the right to repatriate profits and capital in foreign currency, subject to compliance with Sudanese laws and tax obligations (Ministry of Investment and International Cooperation).
Foreign ownership is generally permitted across most sectors, although certain strategic industries—such as mineral resources, telecommunications, and defense—remain subject to restrictions or require joint ventures with Sudanese partners. The 2021 Act formalized the “negative list” approach, where all sectors are open to foreign participation unless explicitly prohibited. Investors must obtain pre-approval and register with the Sudanese Investment Authority, which acts as a one-stop shop for licensing, incentives, and compliance oversight (Sudanese Investment Authority).
Compliance requirements include adherence to anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations, as enforced by the Central Bank of Sudan and the Financial Intelligence Unit. Foreign investors are also subject to Sudanese labor laws, environmental regulations, and sector-specific licensing where applicable. In recent years, the government has introduced digital platforms to streamline registration and reporting processes, though ongoing political instability and security considerations can affect implementation timelines (Central Bank of Sudan).
Recent statistics show foreign direct investment (FDI) inflows remain modest, estimated at around $500 million annually in 2023–2024, with agriculture, mining, and infrastructure as the leading sectors. The government continues to revise investment incentives, including customs exemptions and tax holidays, to bolster inflows, but challenges such as economic sanctions, currency instability, and intermittent conflict persist as material risks (Central Bank of Sudan).
Looking ahead to 2025 and beyond, Sudan’s investment climate is expected to gradually improve, contingent on stabilization of its political situation and further integration with global economic systems. Ongoing legal reforms and regional cooperation initiatives may enhance investor protections and ease compliance burdens. However, foreign investors must closely monitor regulatory changes, sanctions status, and compliance requirements to successfully navigate Sudan’s complex business environment.
Political Stability and Security Considerations
Investing in Sudan in 2025 is profoundly shaped by the country’s political stability and security climate. The nation has experienced significant turbulence since the ousting of President Omar al-Bashir in 2019, followed by a fragile transitional government and, most recently, ongoing armed conflict that erupted in April 2023 between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF). This conflict has resulted in widespread humanitarian crises, economic disruption, and the displacement of millions of people, casting a long shadow over the investment environment.
The legal and regulatory framework for investment is governed by the Investment Act of 2021, which aims to attract foreign direct investment (FDI) by offering incentives such as tax exemptions, customs duty exemptions on capital equipment, and guarantees against nationalization and expropriation. However, the current security situation has hampered the effective functioning of these laws, with many government agencies operating at limited capacity or from outside the capital, Khartoum. The Ministry of Investment and International Cooperation continues to promote Sudan as an investment destination, but acknowledges the challenges posed by the ongoing conflict.
Compliance and due diligence have become critical for investors. In 2025, enhanced Know Your Customer (KYC) and anti-money laundering (AML) procedures are required, as stipulated by the Central Bank of Sudan’s updated regulations. These measures are designed to address increased risks of illicit financial flows and corruption during periods of instability (Central Bank of Sudan). Investors are also advised to heed travel advisories and security updates from their home country’s foreign ministries, as several regions—including Khartoum, Darfur, and Kordofan—remain high-risk due to ongoing hostilities.
Key statistics highlight the scale of the challenge: according to the Humanitarian Aid Commission, over 8 million people have been displaced internally, and the World Bank estimated Sudan’s GDP contracted by more than 12% in 2023. FDI inflows have sharply declined, and several major international companies have suspended operations. Infrastructure damage and disruption to logistics, banking, and telecommunications further complicate business continuity.
Looking ahead to the next few years, the outlook for political stability and security remains highly uncertain. Several peace initiatives, including those supported by the African Union and the Intergovernmental Authority on Development, are ongoing but have yet to yield a durable ceasefire. Investors considering Sudan must be prepared for protracted instability, conduct rigorous risk assessments, and monitor developments closely. Should a comprehensive peace agreement be reached and implemented, Sudan’s long-term potential—given its natural resources and strategic location—could be unlocked, but this remains a dependent on political will and security guarantees (Ministry of Foreign Affairs).
Infrastructure, Technology, and Logistics Developments
Sudan’s infrastructure, technology, and logistics sectors are pivotal to the country’s economic transformation and are of significant interest to prospective investors in 2025 and beyond. The nation’s strategic location bridging Africa and the Middle East, along with its resource wealth, positions it as a potential logistics hub; however, the realization of this potential hinges on overcoming longstanding challenges and leveraging recent reforms and initiatives.
Ministry of Communications and Digital Transformation has prioritized digital infrastructure expansion, with ongoing projects to extend broadband connectivity and upgrade mobile networks. As of early 2025, mobile penetration rates have exceeded 70%, and broadband coverage continues to grow, particularly in urban centers. The government’s “e-Sudan” strategy aims to increase digital transactions, e-government services, and foster a digital economy, all of which are expected to attract both domestic and foreign tech investment.
In logistics, the Ministry of Transport has embarked on modernizing the vital Port Sudan and improving key transport corridors. The 2023–2025 National Transport Plan emphasizes public-private partnerships (PPPs) to upgrade port facilities, rehabilitate railways, and expand road networks. These efforts are designed to reduce bottlenecks, lower transportation costs, and enhance regional trade flows. Notably, international stakeholders have expressed interest in concessional arrangements for port and rail management, subject to compliance with Sudanese investment and labor laws.
Legal reforms are underway to streamline and protect investment. The Sudan Investment Promotion Agency oversees the implementation of the Investment Act (amended 2023), which offers incentives such as tax holidays and customs exemptions for infrastructure and technology projects. Investors are required to adhere to local content regulations and environmental standards, with compliance monitored by relevant ministries. Additionally, the government has joined regional initiatives like the African Continental Free Trade Area (AfCFTA), aiming to harmonize trade and investment standards and expand market access.
Despite progress, challenges persist. Political instability and intermittent conflict have hampered some infrastructure projects and affected logistics reliability. Yet, international development financing and technical support continue to flow, and Sudan’s leadership signals commitment to regulatory transparency and investor protection. Looking ahead to 2025 and the following years, the outlook for investment in infrastructure, technology, and logistics is cautiously optimistic, with success contingent on continued reforms, security improvements, and the operationalization of ongoing projects.
Financing, Banking, and Currency Exchange Essentials
Sudan’s financial sector is undergoing significant transformation amidst ongoing political and economic challenges. For investors, navigating the country’s banking, financing, and currency exchange environment in 2025 requires a careful understanding of recent reforms, regulatory frameworks, and operational risks.
Following the establishment of the Central Bank of Sudan (CBOS) as the principal regulator of monetary policy and financial institutions, the banking system has faced periods of instability, particularly after Sudan’s removal from the U.S. State Sponsors of Terrorism list in 2020 and the subsequent reforms. However, recent internal conflict since 2023 has severely disrupted the formal banking sector, with many commercial banks’ operations curtailed or relocated. As of early 2025, only a limited number of banks are operational in select regions, and digital banking initiatives remain in nascent stages.
The government’s strategy for financial stabilization includes the modernization of payment systems and gradual liberalization of the foreign exchange regime. In 2022, Sudan moved to a “managed float” exchange rate system, attempting to align official and parallel market rates. Nevertheless, currency volatility persists, and the Sudanese Pound (SDG) continues to experience sharp depreciation and inflationary pressures. The CBOS regularly updates official rates, but disparities with black-market rates remain significant—posing risks for repatriation of capital and profit transfers.
Foreign exchange controls are enforced under the Foreign Exchange Act (last updated 2021), requiring that all foreign investments be registered with the Ministry of Finance and Economic Planning and the CBOS. Investors must channel hard currency transactions through licensed banks, though ongoing liquidity issues mean delays and restrictions are common. The government maintains regulations for profit repatriation, but approval timelines have lengthened amid currency shortages and capital controls. Investors are advised to seek advance clearance for large transfers and to monitor for updates on temporary restrictions or exemptions.
Sudan is a member of regional and international organizations such as the COMESA and the Middle East & North Africa Financial Action Task Force (MENAFATF), and has updated its anti-money laundering (AML) and counter-terrorist financing (CFT) laws to align with international standards. Due diligence and compliance procedures are enforced by the CBOS Financial Intelligence Unit, and non-compliance carries steep penalties.
- As of late 2024, inflation remains above 100% year-on-year (Central Bank of Sudan), complicating financial planning for investors.
- Banking penetration is low, with an estimated 15–20% of the population holding formal accounts.
- Sudan’s banking sector has around 35 licensed banks, though only a fraction are fully operational due to security and logistical challenges.
Outlook for 2025–2027: The financial sector’s recovery is contingent on improved security, macroeconomic stabilization, and further reforms. Investors should anticipate ongoing FX and banking disruptions, maintain robust compliance protocols, and closely monitor regulatory updates from the Central Bank of Sudan.
Case Studies: Successful Investments and Lessons Learned
Sudan’s investment landscape, despite significant challenges, has witnessed notable case studies reflecting both the potential and complexities of the market. Over the past decade, sectors such as agriculture, mining, and telecommunications have attracted foreign and domestic capital, shaped by evolving legal frameworks and shifting political dynamics.
One prominent example is the expansion of Kenana Sugar Company, a joint venture involving the Government of Sudan, regional investors, and international shareholders. Established in the 1970s, Kenana has grown into one of Africa’s largest integrated sugar complexes. The company’s recent investments in renewable energy and ethanol production have demonstrated how leveraging Sudan’s agricultural potential can drive both profitability and broader economic development. Kenana’s success is attributed to strong government backing, strategic international partnerships, and effective navigation of Sudan’s evolving regulatory environment.
In the mining sector, Sudan’s Ministry of Minerals highlights the entry of international gold mining companies such as Managem Group (Morocco) and La Mancha (France/Egypt), both of which have invested in exploration and extraction projects since the easing of U.S. sanctions in 2017. These projects illustrate the significance of legal clarity: Sudan’s 2015 Investment Act, amended in 2023 to improve investor protections and streamline licensing procedures, has been cited as critical for attracting multinational mining firms by providing clearer dispute resolution mechanisms and fiscal incentives.
However, investors have also faced cautionary lessons. For instance, the telecommunications sector, historically led by Sudatel and Zain Sudan, has encountered operational disruptions linked to political instability and foreign currency shortages. These experiences underscore the importance of comprehensive risk assessment, robust compliance strategies, and contingency planning.
Compliance with local content regulations and adherence to anti-corruption standards—monitored by the Sudan Investment Authority—remain critical. In recent years, the government has intensified scrutiny of investment contracts and increased transparency requirements, particularly after the 2021 military takeover. Investors are advised to maintain rigorous due diligence and to monitor changes in business law, given the ongoing constitutional transition process and the prospective introduction of new investment codes by 2025.
Looking ahead, Sudan offers high-reward opportunities in agriculture, infrastructure, and mining, but success hinges on adapting to an unpredictable regulatory and security environment. Effective engagement with local partners, clear legal compliance, and ongoing monitoring of reforms are essential for sustainable investment outcomes.
Risks, Challenges, and Mitigation Strategies
Investing in Sudan in 2025 presents a complex landscape shaped by persistent instability, evolving regulatory frameworks, and significant structural challenges. The country’s ongoing political transition, intermittent armed conflicts, and fluctuating macroeconomic conditions continue to impact investor confidence and operational security.
Key risks include political and security uncertainty. Since April 2023, Sudan has suffered from widespread armed conflict, especially between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), disrupting major economic centers and transport routes. This conflict has led to mass displacement, damage to infrastructure, and interruptions in commercial activities. The unpredictability of the situation raises concerns for asset safety, workforce stability, and contractual enforcement (Ministry of Investment).
Legal and regulatory risks are also significant. Sudan’s investment laws are in transition, with the 2021 Investment Act aiming to attract foreign direct investment (FDI) by offering incentives, repatriation guarantees, and streamlined licensing. However, the implementation of these provisions has been inconsistent due to administrative disruptions and shifting policy priorities. The legal system’s limited capacity to enforce contracts, protect property rights, and resolve disputes efficiently remains a challenge (Ministry of Justice).
Compliance challenges are acute. Sudan remains under certain international sanctions and faces ongoing scrutiny regarding anti-money laundering (AML) and counter-terrorism financing (CTF). Investors must ensure rigorous due diligence and compliance with both Sudanese regulations and relevant international frameworks. The Central Bank of Sudan continues to issue evolving guidance on financial flows, currency controls, and repatriation rules, requiring close monitoring (Central Bank of Sudan).
Key statistics highlight the challenging environment: according to official records, Sudan’s FDI inflows dropped sharply in 2023, and the World Bank’s 2024 Doing Business indicators (last accessible before the war) ranked Sudan in the lower quartile globally for ease of doing business and legal protection. Inflation, currency volatility, and logistical breakdowns further complicate operations (Central Bureau of Statistics).
To mitigate these risks, investors are advised to:
- Partner with local stakeholders and conduct extensive due diligence on counterparties and supply chains.
- Structure investments to allow flexibility in response to regulatory and security changes.
- Secure investment insurance from multilateral or regional institutions where available.
- Maintain strict compliance and monitoring mechanisms aligned with evolving Sudanese and international requirements.
- Closely engage with Sudanese authorities, embassies, and professional advisors for timely updates on policy, security, and regulatory developments.
While Sudan offers long-term potential in agriculture, mining, and infrastructure, the near-term outlook is dominated by risk management and adaptive strategies as the country strives for stability and reform.
Future Outlook: Projections for 2025–2030 and Strategic Recommendations
The investment climate in Sudan between 2025 and 2030 is expected to be shaped by political transitions, evolving legal frameworks, and ongoing efforts to stabilize and modernize the economy. After years of isolation, Sudan has taken significant steps to re-engage with the global market, most notably through the removal from the U.S. State Sponsors of Terrorism list and the signing of the Juba Peace Agreement. These changes have opened pathways for international investment and development aid.
The Sudanese government, through the Ministry of Investment and International Cooperation, continues to prioritize reforms aimed at attracting foreign direct investment (FDI). The Investment Encouragement Act (Amended 2021) remains the central legal framework, offering incentives such as customs exemptions for capital goods, profit repatriation guarantees, and land use facilitation. However, with Sudan’s ongoing constitutional transition, further regulatory updates are anticipated by 2026, especially in mining, energy, and agriculture—sectors outlined as national priorities.
Compliance with local and international standards is increasingly emphasized. The Central Bank of Sudan has introduced tighter anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations, aligning with recommendations from the Financial Action Task Force. Investors are also expected to observe new environmental and social responsibility guidelines, especially for projects impacting local communities or fragile ecosystems.
Key statistics underscore both the challenges and opportunities. According to the Central Bank of Sudan, FDI inflows rebounded modestly in 2024, reaching approximately $1.1 billion, after a period of contraction during the political crisis. The agriculture and mining sectors accounted for over 65% of new project approvals, reflecting Sudan’s comparative advantages in arable land and mineral resources. Despite inflationary pressures and currency volatility, the government projects annual GDP growth rates of 3–4% through 2026, contingent on continued macroeconomic reforms and improved security.
Looking ahead to 2030, strategic recommendations for investors include:
- Engage in thorough due diligence regarding land tenure, local partnerships, and regulatory compliance, given ongoing legal reforms and decentralization efforts.
- Prioritize sectors aligned with national development plans, especially sustainable agriculture, renewable energy, and value-added mineral processing.
- Monitor updates from the Ministry of Justice and Sudapet (for petroleum/mining) for legal changes and licensing opportunities.
- Integrate robust ESG (environmental, social, governance) standards to meet emerging compliance requirements and enhance project resilience.
While risks remain—particularly those associated with political uncertainty and infrastructure gaps—Sudan’s commitment to market reforms and regional integration offers a cautiously optimistic outlook for investors willing to navigate a dynamic, evolving environment.
