BACKGROUND: Opportunities and pitfalls for Sudan’s return to the maritime trade
Image: Wikimedia Commons
13 May 2021
Sudan is poised to return to the global markets it had been left out of since the 1990’s. Following the 2019 revolution that ousted former President Omar al Bashir, Sudan has accelerated its return to the international scene. This means that new opportunities for investment and trade are likely to follow.
By Kais Makhlouf, MENA Analyst
While Sudan may suffer from an underdeveloped economy and infrastructure, understandably limiting its attractiveness to foreign trade, change is underway. Investment programs from the Gulf, China and other economies are expected to boost production of export goods from Sudan’s coasts. The end of the Bashir regime also portends new economic opportunities.
Sudan does however have one advantage: its coast does not suffer from any particular security threats, and port calls are unlikely to be troubled by the threats that stifle trade along many African coasts. The increased military presence, brought on by the Turkish and Russian naval military involvement in the Red Sea, act as further deterrents to many of the threats vessels would expect to face when trading in the region
Sudan is currently undergoing a political transition from the former Omar al Bashir regime, overthrown by a military coup in April 2019 following months of civilian protests. The coup was led by military commanders belonging to the former regime, who later accepted to involve representatives of civil society in the political rebuilding of the country.
An important challenge to that transition will be the role of the Sudanese civilian government in running the country’s economy. As a consequence of 30 years of military dictatorship, large swathes of Sudan’s business are run by entities affiliated to the country’s armed forces, and under layers of sanctions. The armed forces themselves are reticent to hand over the control to civilians, which may yet disrupt Sudan’s re-emergence Perhaps the perspective of improved income will bring rivals to an agreement? Whichever solution Sudan choses, it is increasingly likely that foreign companies will be attracted by the possibility of trade through Sudan’s ports.