flag Sudan Sudan: Investing

FDI in Figures

According to UNCTAD’s 2021 World Investment Report, FDI inflows to Sudan decreased by 13% to USD 717 million in 2020 (compared to USD 825 billion in 2019), mainly due to the health economic crisis triggered by the Covid-19 pandemic. FDI stocks amounted to USD 29.2 billion in 2020. In 2021, global FDI flows rebounded strongly, but FDI flows to African countries (excluding South Africa) rose only moderately (UNCTAD’ Investment Trends Monitor). Political instability, foreign exchange shortages and expensive banking channels constrain FDI to 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 sector, business services and transport. China, Germany and Qatar are the country's largest investors (AfDB). Despite the military coup, 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. Sudan is ranked 171st out of 190 in the latest available Doing Business ranking published by the World Bank, down 9 places compared to the previous year. Sudan has decreased the reliability of the electricity supply, weakened access to credit and made resolving the insolvency more difficult. In August 2019, the companies China National Petroleum, Petronas (Malaysia) and ONGC Videsh (India) left the country, not receiving the dividends due by the government since 2011 (Coface).

 

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 201920202021
FDI Inward Flow (million USD) 825717462
FDI Stock (million USD) 28,493.929,210.829,727.6
Number of Greenfield Investments* 2.02.05.0
Value of Greenfield Investments (million USD) 78330102

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.

 

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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.

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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.

 
 
 

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Latest Update: October 2022