Sudan’s farmers are ready to return – private investment could get them there

The roadmap for recovery, and the potential for some $155 million in external investment, were among the outcomes of a three-day dialogue held this week in Khartoum, organized by the UN Development Programme (UNDP) and Sudan’s Ministry of Finance. 

More than 300 participants from 20 countries – representing the Government, financial institutions, the national and international private sector, farmers’ and trade associations, as well as other stakeholders – registered for the event. 

A ‘stepping stone’ forward 

“This dialogue is a stepping stone towards moving forward in bringing more private sector engagement, which ultimately socioeconomic recovery depends on,” said Arvind Kumar, Team Leader for Recovery and Resilience at the UNDP Country Office in Sudan. 

He told UN News that focusing on the private sector is critical because it provides some 98 per cent of jobs. 

Speaking from the capital, Mr. Kumar described an economy that has been broken by war but not completely paralysed. Sudan’s farmers continue to grow crops, goods are still being transported, and markets still function in some areas. 

But the last two years have seen yields fall by 40 to 70 per cent in some cases, he said, while the cost of agricultural inputs such as fertilisers and fuel have increased due to the crisis in the Middle East and the Persian Gulf.

“The third and most key important aspect is that there is not much injection into the economy from the private sector,” he said. “And they are willing to come back.” 

Millions going hungry 

Mr. Kumar stressed that “food production is obviously not close to what Sudan needs,” highlighting the immense impacts of the civil war that erupted in April 2023. 

The brutal battle between the Sudanese Armed Forces (SAF) and former allies the Rapid Support Forces (RSF) has left more than 19 million people facing hunger. Nearly 35 million require humanitarian assistance and 13 million have been displaced.  

Before the war, Sudan exported gum arabic, sesame, cotton, hibiscus, sorghum and livestock, he said, and once accounted for a 12 to 13 per cent share of the global sesame market, now reduced to six per cent. 

Although livestock exports continue, the share of “high-value agricultural crops” has declined because most businesses have lost assets and lack access to capital, “therefore it is very difficult for them to come and rebuild, so it is taking time.” 

Meanwhile, UNDP analysis shows that 90 per cent of farmers cannot access financing, and “with the support only of aid, they will not be able to continue to improve food production.” 

Recognition, recovery and potential resources 

He said the dialogue in Khartoum concluded with “three key outcomes”: recognition of the need for continued engagement with the international and national private sector, adoption and endorsement of a private sector recovery roadmap for agriculture, and “an encouraging potential investment” of nearly $155 million from Pakistan, India, Türkiye, Egypt and Syria. 

Participants also discussed the need to re-connect farms with markets and ultimately buyers, while business owners raised concerns about regulatory barriers and the difficulty of linking up with international investors. 

Financial support for farmers 

UNDP is exploring measures to bring more support to farmers through the banking system, such as credit guarantees.  

It is also working with the national and international private sector to restore a warehouse receipt system – a process that would allow farmers to store produce in approved facilities and receive receipts that may be used to secure financing.  

Trade facilitation is another top priority. UNDP is engaging with the Sudanese authorities responsible for customs and ports, as well as UN trade and development organization UNCTAD, “to review the reforms that are needed for ease of business.” 

Mr. Kumar said people need education, healthcare, electricity and jobs to rebuild their lives, He insisted that development should begin alongside life-saving humanitarian assistance “and there is an opportunity and a space to bring development back on track.”