Republic of the Sudan´s challenges and chances:
Tailwinds: With its new government coalition, Sudan presents under exploited opportunities that can reinvigorate economic growth. About 63% of Sudan’s land is agricultural, and only 15–20% of it is under cultivation, offering huge private investment opportunities. Large scale irrigated agriculture has the potential to create employment and increase national income and foreign exchange earnings. Nonfood agro-industry can accelerate growth by developing value chains that diversify the economy to compensate for loss of oil revenues.
Headwinds: Institutional weaknesses, unemployment that has remained at 14–15% for more than two decades (with 25% youth unemployment), external debt, climate change, and low labor and capital productivity are among the key domestic challenges. Political instability has also affected growth, with hardening economic conditions, such as the rising cost of bread and fuel and the shortages of cash.
Hurdles to overcome also include low productivity growth in manufacturing and agriculture due to inadequate infrastructure, power shortages, and an unfavorable macroeconomic environment. The private sector is constrained by limited access to finance, a low-skilled labor force, and an inadequate legal and regulatory framework. The October 2017 lifting of US trade and economic sanctions was seen as advancing the dialogue on political sanctions and debt relief.
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