Sudan: Invertir

FDI in Figures

According to UNCTAD’s 2022 World Investment Report, FDI inflows to Sudan decreased by 35.5% to USD 462 million in 2021 (compared to USD 717 billion in 2020), well below the three-year average recorded before the pandemic (USD 1 billion in 2017-19). The total FDI stocks amounted to USD 29.7 billion in 2021, representing around 84.6% of the country’s GDP. Political instability, foreign exchange shortages and expensive banking channels constrain FDI in the country, despite the lifting of sanctions by the United States. 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 authorisation 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 labour 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 to foreign and domestic business owners, allowing foreign investors to own business enterprises in Sudan. However, the Act requires foreign investors to deposit at least $250,000 to obtain a business license. Overall, Sudan has a very weak business climate for foreign investors, as testified by the fact that it is ranked 173rd out of 176 countries in the 2023 Index of Economic Freedom and 162nd out of 180 in the latest Corruption Perception Index.

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Latest Update: December 2023