Introduction 

Sudan is the largest country in Africa with an area of 2.5 million square kilometres and lies within the African tropical zone, bordering nine countries – Egypt, Libya, Chad, Central Africa, Democratic Republic of Congo, Uganda, Kenya, Ethiopia and Eritrea. Sudan also borders Saudi Arabia across the Red Sea. Khartoum the bustling capital city lies at the confluence of two of the world’s great rivers – the Blue Nile and White Nile. The city boasts of first-rate hotels with adjoining conference centres, museums that portray all aspects of our glorious past, colourful markets, modern and historic architecture, a picturesque promenade along the bank of the Blue Nile, and a world-class international airport which acts as the gateway to the country for visitors from abroad.

The climate varies from equatorial in the most southern parts, savannah in central parts and continental in the northern region. The period from March to June is the hottest part of the year with temperatures up to 42º during the day and 27º at night. From July to October when the rainy season starts, the temperature starts to decline to between 16 and 30º from November to February. This is a period of warm sunshine during daylight hours.

Agriculture is the dominant sector of the Sudanese economy, contributing to 40 percent of the Gross Domestic Product (GDP). The total land suitable for agriculture is 84 million hectares of which only 14.7 million are currently utilised. The livestock population is over 125 million heads of cattle (36%), sheep (37%), goats (45%) and camels (3%), the largest animal resources in Africa. Cotton is the main cash crop of Sudan and is characterised with its high quality. Sudan is the largest supplier of gum Arabic, producing 80 percent of world demand. Other agricultural products of importance are sesame seeds, groundnuts and sunflower seeds. Fishery resources are available along the 800-kilometre Red Sea coastline and the approximate 42 billion square metres of fresh water consisting of lakes and rivers. Sudan is blessed with huge and diversified mineral resources such as gold, copper, iron ore, chromium, silver and zinc. Today, oil has emerged as an extremely important asset with the entry of Sudan to the ‘Club of Oil Producing Countries’.


Investment Climate


Sudan is a country with great potential for investment. For instance, opportunities that have not been fully exploited exist in the agricultural, industrial, energy and mining, and fisheries sectors. The country is home to a secure and stable environment and is an ideal climate for investors. The unprecedented Investment Encouragement Act of 1999 is most generous, transparent and clear. All procedures pertaining to investment in Sudan are prompt and simple. Investment regulations provide that transactions in hard currency shall not be restricted and there shall be an extraordinary freedom of trade with the outside world. With its strategic location, Sudan is also a gateway to African and Middle Eastern markets and beyond.

Sudan is the largest and a key member of COMESA in addition to membership in other international, regional ands sub-regional economic and financial institutions. An advanced telecommunications network and easy access to and from Sudan to any place in the world is available. With the availability of cheap labour, an organised business sector is ready for joint ventures.

Sudan’s investment system does not discriminate between foreigners and nationals and thus there can be complete ownership with guarantees against any form of nationalisation or confiscation. The Investment Act grants exemption fro business profit taxes for not less than ten years effective from the year that follows commercial production or commencement of activities. Freedom of movement, residence or transfer of the project’s expatriate employees is guaranteed in accordance with prevailing laws.

There are several Sectors of Immediate Investment. The production of Oil is currently 400,000 bpd and the first shipments commenced in 1999. There are also huge quantities of Natural Gas in the Red Sea. Opportunities exist in further exploration, petrochemical production, transportation and distribution. Energy is another extremely important sector of investment opportunity including petroleum and refining, thermal power generation, and renewable energy. Mining is another important sector and the government has introduced strategies to intensify exploration, to utilise undiscovered minerals and to increase production of present mines. The Services sector includes various infrastructure and economic services. Opportunities exist in both such as railroads, roads, inland waterways, civil aviation, river transport and shipping, warehousing and storage, housing and construction, communications, education, medical services, housing and construction, and information technology.


Sudan – India Relations 

India is one of the key trading partners of Sudan. Both countries are now determined to achieve once again, the highest possible performance in their bilateral dealings. The joint signing of various agreements on trade, economic, cultural and technological fields, the formation of the Joint Ministerial Committees, and the establishment of the Indo-Sudan Joint Business Council are all clear testimonies to their shared commitment and determination to consolidate their cooperation in all fields. Other agreements to be signed during the forthcoming meeting of the Joint Ministerial Committee shortly are under consideration.

A high level delegation led by the State Ministers of Commerce & Industry including economic institutions, business leaders and companies participated in both the 18th and 19th Session of the International Fair in Khartoum. Recently a high level delegation headed by H.E. the Minister of Science & Technology of the Republic of Sudan visited India and signed an Agreement on Co-operation in the fields of Science and Technology with his counterpart. Another Agreement of Co-operation in the field of Solar Energy was also signed between the two countries. There are major events scheduled to take place in the next few months including the holding of the Joint Ministerial Commission as well as the Indian Sudan Joint Business Council.

The visit to India by H.E. the 1st Vice-President of the Sudan, Mr. Ali Osman Mohammed Taha recently, accompanied by the Ministers of Foreign Affairs, Agriculture and Science and Technology gave a giant boost to the two countries’ bilateral relations. The entry of ONGC as a partner in the Sudanese Oil Consortium is a historic development with far-reaching implications.

The strong foundation of relations between the two countries is increasingly relevant to the growing bilateral needs of today, and is also relevant to the challenges of current international trading and economic systems. Sudan and India are determined to give their bilateral relations new substance and an investment and economic context.


Sudan Country Data