Economy of Sudan

Sudan has a developing economy that relies mostly on farming and selling oil, with some money also coming from mining and making things. In 2006 and 2007, its economy grew very fast, by more than 10% each year. By 2019, Sudan’s total money from all its work and products, called gross domestic product (GDP), was about $30.873 billion. The country has been working with the International Monetary Fund (IMF) to improve its money rules, like letting the value of its money change slowly.

Farming is still a big part of Sudan’s work, giving jobs to 80% of people and making a third of the country’s money. However, problems like the War in Darfur, the effects of a long war in the south called the Second Sudanese Civil War (1983–2005), poor roads and tools in many places, and many people only growing enough food for their families mean that lots of people stay poor. Even though the average person’s money has gone up quickly, many still live with very little. In January 2007, Sudan started using a new kind of money called the Sudanese pound. Today, Sudan is still considered a least developed country by the United Nations.

History

Main article: Economic history of Sudan

Sudan's economy grew quickly in the 1960s and 1970s, but then slowed down in the 1980s and 1990s. In the 1970s, Sudan started exporting food and cash crops, but falling prices caused problems. The government tried to fix the economy, but faced many challenges.

Since April 2023, a civil war has caused big problems for Sudan's economy. Economic activity dropped a lot, and many important areas were damaged. The value of Sudan's currency fell, and trade decreased. Much of the farmland could not be used, making it hard to grow food. Both sides in the conflict have used money from selling gum arabic to support their efforts.

Sectors

Main article: Agriculture in Sudan

Sudan’s economy relies heavily on agricultural resources. Important crops include cotton, peanuts, gum arabic, and sesame seeds. Cotton and peanuts are key exports, while sorghum is the main food crop, and wheat is grown for local use. Livestock such as cows, sheep, and camels are also important and often exported. However, Sudan still needs to import food due to challenges in investment, production, and transportation.

Sudan has plenty of usable land, with major farming projects underway to grow more food locally. The country grows many valuable crops like sugarcane, dates, and citrus fruits in irrigated areas. Cotton is especially important, making Sudan a leading producer of sesame worldwide.

Main article: Manufacturing in Sudan

Sudan has been growing its industry quickly. Factories process farm products, make electronics, plastics, furniture, and sugar. There are also factories for meat and other light goods. Recently, Sudan has been working to become a center for medical supplies in East Africa. Some factories now build small cars and trucks, as well as tools and equipment. The country also has valuable minerals like gold, which is mined and sold to help the economy.

Main article: Petroleum industry in Sudan

Sudan began finding oil in the 1970s, and started exporting it in 2000. Today, oil is a major export, making up most of Sudan’s sales to other countries. Japan, China, South Korea, Indonesia, and India are the biggest buyers. Most of Sudan’s oil comes from fields in the south, and pipelines carry it to refineries in Khartoum and Port Sudan for processing.

Main article: Mining industry of Sudan

Before oil was found, mining did not add much to Sudan’s economy. Today, besides oil, Sudan has many useful minerals such as gold, chrome, copper, and others that are being explored and used for export.

Employment

See also: Labor unions in Sudan

It can be hard to know exactly how many people work in Sudan because there isn't always good information. Many women and girls in rural areas help with jobs like farming but might not always be counted.

In 1989, it was estimated that more than 7.9 million people had jobs in Sudan. Later, many workers returned from places like Kuwait and Iraq after the 1991 Persian Gulf War, which changed the job situation. By 2000, about 12 million people were part of the labor force, with 9.6 million having jobs. About 30 percent of these workers were women.

Unemployment

Unemployment was made harder by a severe drought in the 1980s. Many people moved to cities like Khartoum looking for work, which added to unemployment and underemployment in urban areas. By 2009, the government thought about 20 percent of people were unemployed, though this might not be completely accurate because many people worked in small farms or informal jobs.

Labor force by sector

For a long time, most people in Sudan worked in agriculture, such as farming, raising animals, or fishing. In the 1950s, about 86 percent of workers were in these jobs. By 1998, this dropped to about 70–80 percent. The services sector, including government jobs, became more important, and by 1998 it employed about 13–22 percent of workers. Industry jobs, like manufacturing and construction, made up about 7–9 percent.

Child labor

Although laws said the minimum working age was 18, these rules were not always followed. Many children aged 10 to 14 worked, sometimes in factories making things like edible oils. Children also commonly helped on family farms from a young age. Laws to protect children from hard work existed but were not well enforced, especially in smaller, informal jobs.

Forced labor

Main article: Slavery in Sudan

Although laws said forced labor was not allowed, some people, especially women and children, were still treated unfairly and made to work against their will. The government tried to help by forming a committee to find and free people who were taken, but these efforts were not always effective. Even years later, some people were still being forced to work in certain areas.

Infrastructure

Transport

Main article: Transport in Sudan

Two major roads cross Sudan, one running from north to south and the other from west to east.

Sudan has about 4,700 kilometers of railway tracks that connect different parts of the country. The main railway line goes from the border with Egypt to the capital, Khartoum, and continues to several cities in the south and west.

Energy

Main article: Energy in Sudan

In 2010, Sudan's main energy sources included wood, charcoal, hydroelectric power, and oil.

Sudan is trying to increase its electricity production, which was around 300 MW, with most coming from hydroelectric power. Some European investors are helping with this effort. Most of Sudan's hydropower comes from a dam on the Blue Nile. Plans exist to build more power sources, but getting the money for these projects has been difficult. Another dam opened in 2008 adds more electricity to the grid.

Currency and banking

Main articles: Sudanese pound, Inflation in Sudan, and Banking in Sudan

Sudan uses the Sudanese pound as its money. The country has worked with groups like the International Monetary Fund to help manage its money and economy better. This includes changes to how the value of the Sudanese pound is set compared to other currencies.

Trade, sanctions, and foreign aid

Main articles: Foreign trade of Sudan and Foreign aid to Sudan

See also: Foreign relations of Sudan

In 1997, the U.S. government placed restrictions on trade with Sudan and froze the country's assets. The U.S. felt Sudan supported harmful activities and treated people poorly. Because of this, American companies could not invest in Sudan's oil industry. Instead, businesses from China, Malaysia, and India became the main investors.

Traditionally, Sudan received help from countries like the United States, the United Kingdom, the Netherlands, Italy, Germany, Saudi Arabia, Kuwait, and members of the Organization of Petroleum Exporting Countries. Sudan also worked as a bridge between Arab and African nations, with important offices in its capital, Khartoum. The World Bank used to be a big source of loans for Sudan's development.

Macro-economic trend

See also: Inflation in Sudan

The following table shows the main economic indicators in 1980–2024. Inflation below 5% is in green.