Sudan Eyes $155 Million in Private Investment for Agricultural Recovery

A Stepping Stone for Post-War Economic Recovery

More than 300 participants from 20 countries, including representatives from the government, financial institutions, and agricultural trade associations, gathered in the capital to chart a path forward. Focusing on private enterprise is essential because commercial entities generate approximately 98 percent of jobs in the country, according to Kumar.

While the civil war that erupted in April 2023 between the Sudanese Armed Forces and the Rapid Support Forces has severely damaged national infrastructure, the domestic economy has not entirely collapsed. Farmers continue cultivating crops, goods move along active transport corridors, and regional markets operate. However, agricultural yields have plummeted by 40 to 70 percent over the past two years. Soaring costs for essential farming inputs like fertilizers and fuel have compounded these pressures, driven by wider crises in the Middle East and the Persian Gulf.

Addressing Hunger, Export Declines, and Financial Barriers

Food production remains critically low relative to national requirements. The conflict has displaced 13 million people and left nearly 35 million requiring humanitarian assistance. Before the war, Sudan was a major global exporter of gum arabic, sesame, cotton, hibiscus, sorghum, and livestock. Its share of the global sesame market has dropped from between 12 and 13 percent down to just six percent. Although livestock exports persist, high-value crop yields have diminished because businesses lack working capital and have lost critical physical assets.

UNDP analysis indicates that 90 percent of farmers cannot access financing. Relying solely on humanitarian aid will not sustain long-term food production improvements, making private capital injection an absolute necessity. Business owners at the Khartoum dialogue voiced operational concerns regarding regulatory hurdles and difficulties connecting with international financiers.

Three Core Outcomes and Regional Investment Potential

The dialogue concluded with three explicit outcomes: formal recognition of the need for sustained engagement with both national and international private sectors, the adoption of an agricultural recovery roadmap, and an encouraging potential investment influx totaling nearly $155 million. Investors from Pakistan, India, Türkiye, Egypt, and Syria drove these commitments.

To turn these commitments into active operations, the UNDP is exploring banking sector mechanisms such as credit guarantees. Stakeholders are also working to restore a warehouse receipt system. This framework would allow producers to store harvested crops in approved facilities, issuing receipts that can serve as collateral to secure bank financing. Trade facilitation remains a parallel priority, with the UNDP engaging local customs and port authorities alongside the UN trade and development organization UNCTAD to review necessary regulatory reforms.

Sustainable recovery requires pairing life-saving humanitarian assistance with foundational development. Restoring reliable access to electricity, education, healthcare, and stable employment remains vital for communities looking to rebuild their lives and secure long-term agricultural stability across the region.