The economy of Sudan is one of the most dynamic and complex in the African continent. Sudan is a country with a population of over 40 million people, which is spread across an area of 1.86 million km2. It is bordered by Egypt to the north, Libya to the northwest, Chad to the west, Central African Republic to the southwest, South Sudan to the south, Ethiopia to the southeast, and Eritrea to the east. Sudan is the third-largest country in Africa and has a diverse economy that is heavily dependent on agriculture, oil, and minerals.
The economy of Sudan has been in a state of flux since the country gained independence in 1956. In the early years, Sudan adopted a socialist economic system that was characterized by a high degree of state control over the economy. This system led to a period of economic stagnation, and in 1989, the government adopted a new economic policy that liberalized the economy and opened it up to foreign investment. Since then, Sudan has seen a period of sustained economic growth, with the gross domestic product (GDP) increasing from US$8.5 billion in 1989 to US$129.2 billion in 2019.
The economy of Sudan is heavily dependent on agriculture, which accounts for around 40% of the country’s GDP. The main crops grown in Sudan are cotton, sorghum, millet, wheat, sesame, groundnuts, and sugarcane. Livestock production is also important, with cattle, sheep, and goats being the most important species. The agricultural sector has been affected by the ongoing civil war, which has caused displacement and disruption of production.
The oil sector is the second-largest contributor to Sudan’s economy, accounting for around 20% of GDP. Sudan has significant oil reserves, estimated to be around 5 billion barrels. Oil production has been increasing steadily since the 1990s, and Sudan is now the fourth-largest oil producer in Africa. In addition to oil, Sudan also has significant mineral resources, including gold, copper, iron ore, chromium, and uranium.
The manufacturing sector is a key contributor to the Sudanese economy, accounting for around 15% of GDP. The sector is dominated by food processing, textiles, and chemicals. Sudan also has a large informal sector, which is estimated to account for around 50% of the country’s GDP. This sector is dominated by small-scale activities such as retail trade, services, and crafts.
Sudan has a growing tourism sector, which is estimated to contribute around 2% to GDP. The country has a rich cultural and archaeological heritage, with sites such as the ancient city of Meroe and the pyramids of Nubia. Sudan also has some of the most spectacular wildlife in the world, with the country being home to the endangered African wild dog and the endangered white rhino.
The economy of Sudan has been severely affected by the ongoing conflict in the country. The conflict has caused displacement, disruption of production, and economic losses. The government has implemented several economic reforms to address these issues, including liberalizing the exchange rate, introducing a new tax system, and improving the business environment. Despite these reforms, the economy of Sudan remains fragile and vulnerable to external shocks.