Practical Proposals for Reforming Sudan’s Economy

Prof. Hussein Suleiman Mohamed Ahmed
Strategic Exports and Essential Commodities
Strategic exports are products in which Sudan enjoys a comparative advantage. These include gold, livestock, oilseeds, cotton and gum arabic.
Essential commodities include petroleum products, wheat and flour, and medicines.
The government may intervene, through specialised public enterprises, in the export of commodities where Sudan has a comparative advantage if the private sector fails to conduct export and import operations in a manner that maximises national export earnings while securing the lowest possible prices for essential imports.
An assessment of economic performance during the war indicates shortcomings that justify such intervention.
The objective of government involvement is straightforward. Where exports are marketed through a single external channel, stronger bargaining power can secure higher international prices. Likewise, a unified import agency can negotiate lower prices for essential goods.
This issue is closely linked to monetary policy, whose principal instruments include the money supply and the cost of financing—whether through interest rates or, under Islamic finance, through Sharia-compliant financing mechanisms.
Since the abandonment of the gold standard in 1971, the principal benchmark for expanding the money supply has become the growth rate of Gross Domestic Product (GDP), reflecting overall economic growth and the value of goods and services produced annually.
Given that the money supply typically represents around 10 per cent of GDP, governments may legitimately expand the money supply in line with increases in national output. Accordingly, the government could issue additional currency to finance the purchase of strategic export commodities.
1. Gold
The government could issue currency to purchase domestically produced gold, which would then be deposited with the Central Bank of Sudan as part of the country’s official reserves, thereby strengthening the Sudanese pound against foreign currencies.
The Central Bank should be granted full authority to purchase gold at international market prices, eliminating incentives for smuggling.
When money creation is backed by real production, it does not necessarily generate inflation, particularly where key economic conditions are satisfied, including:
Full cultivation of planned agricultural land (typically around 33 per cent of Sudan’s arable land);
Full mobilisation of domestic savings into productive investment;
An unemployment rate of around 4 per cent or lower.
One important benefit of the government’s recent decision to assume responsibility for fuel imports is that it revealed the true scale of Sudan’s gold production.
During 2025, Sudan produced approximately 70 tonnes of gold, while only 14 tonnes were officially exported, resulting in an estimated loss of US$7.2 billion.
The government could have issued currency to purchase this gold and retain it as part of the Central Bank’s reserves.
The Central Bank of Sudan, the Sudanese Mineral Resources Company, and Omdurman National Bank could jointly implement such a programme.
2. Livestock
Livestock represents Sudan’s most readily exportable sector, whether exported as live animals or processed meat.
With the rainy season already underway in several states, natural grazing will substantially reduce feeding costs.
Livestock exports should therefore be coordinated through the Ministry of Trade and Industry, the Livestock Bank, and the Livestock Routes Company following its restructuring.
3. Cotton
The Sudan Cotton Company should be revitalised to manage cotton exports in coordination with the Agricultural Bank of Sudan and the Ministry of Trade and Industry.
4. Oilseeds
Oilseed exports should likewise be coordinated through the Agricultural Bank and the Oilseeds Company once it resumes operations.
5. Gum Arabic
The Gum Arabic Company should be re-established and entrusted with coordinating exports in cooperation with the Ministry of Trade and the Central Bank of Sudan.
Where financing permits, these commodities should increasingly be exported as processed products.
Where necessary, however, raw exports may continue during the transitional recovery period until economic stability is restored.
Essential Imports
A dedicated company could be established to import essential commodities, or the existing essential commodities mechanism could be strengthened.
This body would coordinate closely with commercial banks holding export proceeds to ensure efficient financing of priority imports.
Additional Recommendations
Increase the productivity of staple food crops, particularly wheat, millet and sorghum.
Mobilise international and national organisations, development funds, programmes, projects, the Zakat Chamber, and community financing mechanisms to provide small-scale farmers with improved seeds, agricultural machinery and support for small industries.
The private sector should continue playing its role. As it progressively demonstrates its ability to meet consumer demand, national economic priorities and state-building objectives, government intervention should gradually be reduced.
Nevertheless, state-owned companies should retain responsibility for promoting Sudanese exports internationally to secure the highest export prices and the lowest import costs.
Develop a clear strategy for expanding value-added manufacturing until 100 per cent of strategic exports are processed domestically:
Gold exported as refined bullion;
Livestock exported as processed meat;
Cotton exported as finished textiles;
Oilseeds exported as edible oils;
Gum arabic exported as mechanically processed powder and spray-dried products.
Artisanal gold mining currently plays an important role in maintaining social stability. While the sector must be properly regulated, integrating it into an official gold purchasing mechanism is essential until mining operations can gradually be formalised under licensed companies operating within Sudan’s mining laws.
Encourage wider adoption of electronic payment and collection systems.
Following the signing of the peace agreement between the United States and Iran, global supplies of petroleum products are expected to increase significantly, leading to substantial declines in oil prices.
Consequently, domestic fuel and energy prices should also fall.
This would likely strengthen the Sudanese pound against foreign currencies and expose speculative activity in the foreign exchange market.
For example, the wartime price of diesel, which reached approximately US$186 per barrel, could fall to around US$65 per barrel.
Similarly, the exchange rate could improve to approximately SDG 3,200 per US dollar, and potentially to SDG 2,500 should Sudan secure external deposits or financial support.
Encourage gold-for-import barter arrangements, allowing essential goods to be imported directly in exchange for gold without using the US dollar as an intermediary.
Promote barter trade between Sudanese exports and imported goods, again avoiding reliance on the US dollar.
Encourage bilateral trade settlements in national currencies through agreements with countries already pursuing such arrangements.
Establish free trade zones and preferential trading arrangements with neighbouring countries to reduce smuggling, formalise cross-border trade and increase access to freely convertible foreign currencies.

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