Agribusiness in Sudan: High potential and low productivity
Michel Sweeney, Senior Resercher, Farrelly & Mitchell, explores how investment in Sudan’s agricultural sector offers the potential for lucrative returns. However, due consideration should be given to the fact that it is a high-risk country for businesses.
Key Takeaways
Having undergone a decade of oil fueled expansion, the economy suffered a significant shock in 2011.
Despite declining at a CAGC of 45% in the period 2011-2014, fuels and mining products still account for 56% of the value of merchandise exports. Agriculture products and manufactures account for 38% and 6% of exports
Recognition of agriculture’s increasing importance in the economy: The government has targeted agriculture, mining and enhanced oil production as sectors for development
Sudan’s economy is highly dependent on agriculture, which contributes 29% of its GDP
FAO estimates Sudan produced 18 million tonnes of crops in 2014:Sorghum and sugar cane dominate, accounting for 67% of production
Investment in Sudan’s agricultural sector offers the potential for lucrative returns. However, due consideration should be given to the fact that it is a high-risk country for businesses
Michael is a senior agri-food economist with Farrelly & Mitchell and has consulted on numerous assignments across Europe, Middle East, Africa and globally.
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