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Factors Encouraging Investment in Sudan
The following are the key factors that characterize the investment climate in Sudan and represent attractive elements for investors:
Sudan's Strategic Location
- Sudan serves as a gateway to the African continent from the eastern side, bordered by seven African countries; for several of these, Sudan provides their primary maritime outlet.
- The location overlooks the Red Sea, positioning Sudan centrally between global markets in the Middle East and the Far East in Asia, as well as Europe and the United States, while receiving ships traversing the Red Sea via the Suez Canal.
- Sudan is linked to neighboring countries through air and land routes, and is also connected to others via maritime navigation and river transport.
Abundant Natural Resources and Potential
- This includes vast agricultural lands and freshwater resources from multiple sources such as rivers, rainfall, and groundwater, in addition to forests, pastures, livestock, and mineral wealth (including gold, precious metals, and petroleum).
- Sudan is characterized by an abundance of raw materials for most industries.
- Availability of human resources, including technical and trained labor at wages significantly lower than in other countries.
Infrastructure and Service Facilities
- Existence of basic infrastructure and service facilities capable of modernization and development under serious government policies.
- Enhancing the investment environment to keep pace with the expected renaissance following oil discoveries and the establishment of peace, including projects for roads, railways, seaports, international airports, telecommunications, power plants, water purification, and sewage networks.
- Existence of Free Zones in the cities of Suakin and Al-Jaili, offering investors numerous promotional incentives.
- Availability of a banking sector, insurance sector, and auditing, financial, legal, and technical consulting services.
- Presence of advanced educational and health facilities that contribute to providing appropriate services for both citizens and foreigners.
- An advanced construction sector that has provided an abundance of housing and office spaces to meet investor needs.
Political Stability
- Represented by the federal system of government, which divides the country into three levels (Federal, State, and Local), granting participation opportunities to all citizens.
- The country is managed by a central government based in the national capital, Khartoum, and is divided into eighteen states, each with its own government.
- Sudan features an independent judiciary capable of resolving disputes. Sudanese justice systems and legislation are characterized by a lack of discrimination between Sudanese citizens and foreigners.
Economic Policies
The economic policies included the following:
- Economic liberalization.
- Development of the stock market.
- Economic restructuring (privatization of public enterprises and ending state monopolies in certain productive and service sectors).
- Modernization of investment encouragement laws and regulations.
- Establishment of a flexible investment law that provides all encouraging incentives for investors, such as:
- Full exemption from customs duties on capital equipment.
- Freedom of capital movement.
- Freedom to transfer project profits.
- Simplification of investment procedures via the Single Window (One-Stop Shop)
- Granting projects exemptions from business profit taxes ranging from five to ten years for investment projects.
- Granting full customs exemptions for both strategic and non-strategic projects on capital equipment.
- Granting strategic projects the necessary land free of charge.
- Granting non-strategic projects land at an incentive price.
- Freedom for the investor to operate independently without the requirement of a Sudanese partner.
Basic Guarantees for the Investor
- No nationalization, confiscation, or expropriation of property except by law and in exchange for fair compensation.
- No seizure, confiscation, freezing, or attachment of invested funds, nor placing them under sequestration, except by judicial order.
- The investor's right to re-transfer invested capital in the event of non-execution or liquidation of the project.
- Transfer of profits and financing costs in the currency of import at the maturity date (after settling legally due obligations).
- Automatic registration of the project in the Exporters and Importers Register.
Market Size
Sudan is characterized by a local consumer market of 33 million consumers. This market expands through Sudan's commercial dealings with neighboring countries, especially after signing trade agreements with them, bringing the actual market size to approximately 400 million consumers.
Regional and International Agreements
To enhance the investment climate, the Sudanese government has entered into regional and international agreements aimed at encouraging investment and increasing trade exchange:
- Signing a number of agreements with neighboring countries in the field of bilateral trade and commercial protocols.
- Sudan's accession to the COMESA (Common Market for Eastern and Southern Africa).
- Sudan's efforts to join the World Trade Organization (WTO).
- Strengthening cooperation with regional and international organizations and institutions interested in investment affairs.
