Investing

flag Sudan Sudan: Investing

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.

 

Country Comparison For the Protection of Investors

  Sudan Sub-Saharan Africa United States Germany
Index of Transaction Transparency* 3.0 5.5 7.0 5.0
Index of Manager’s Responsibility** 1.0 3.5 9.0 5.0
Index of Shareholders’ Power*** 6.0 5.5 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

 
Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) 717523574
FDI Stock (million USD) 29,210.829,727.630,301.1
Number of Greenfield Investments* 2.05.02.0
Value of Greenfield Investments (million USD) 33499174

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

 

Return to top

Tax Rates

Value Added Tax (VAT)
17% (standard rate) - 40% for telecommunication
Company Tax
Various rates
Withholding Taxes
Dividends: 0% (1% stamp duty applies to dividends), Interests: 0 (residents)/15% (non-residents), Royalties: 0 (residents)/15% (non-residents).
Social Security Contributions Paid By Employers
17%
Other Domestic Resources
Ministry of Finance and Economic Planning
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 
 

Individual Taxes

Personal income tax Progressive rates from 0 to 30%
Up to SDG 3,000 0%
SDG 3,000 to 6,000 5%
SDG 6,000 to 10,000 10%
SDG 10,000 and above 30%
 
 

Country Comparison For Corporate Taxation

  Sudan Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 42.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 180.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 45.4 47.3 36.6 48.8

Source: Doing Business - Latest available data.

Return to top

Investment Opportunities

Tenders, Projects and Public Procurement
Fontier Market Network, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Sudan.
Useful Resources
Sudanese Investment Authority
Economic Developments and Prospects in Sudan - African Economic Outlook
Business Portal for Africa
 

Business Setup Procedures

Setting Up a Company Sudan Sub-Saharan Africa
Procedures (number) 10.00 7.51
Time (days) 34.50 21.30

Source: Doing Business.

 
 
 

Return to top

Any Comment About This Content? Report It to Us.

 

© eexpand, All Rights Reserved.
Latest Update: December 2023