UNDP launches strategy to revive Sudan’s private sector amid economic slump

April 30, 2026 (KHARTOUM) – One in three businesses in Sudan has closed since the outbreak of conflict three years ago, prompting the United Nations Development Programme (UNDP) to launch a new strategy aimed at reviving the private sector to prevent further economic collapse.

The Sudan Private Sector Engagement Strategy 2026-2028, released this week, highlights that the country’s economy has shrunk by more than 40 per cent. It argues that supporting surviving micro, small, and medium enterprises (MSMEs) is critical to maintaining essential services and food supply chains.

Average revenues for MSMEs have dropped by 35.8 per cent, while nearly 88 per cent of businesses forced to relocate due to fighting have shut down. Despite these losses, the UNDP report found that 71 per cent of closed firms intend to reopen within a year if conditions improve.

“In crises, the response often leans heavily on aid, while the role of the private sector in sustaining food systems, jobs and essential services is underestimated,” said Luca Renda, UNDP Resident Representative in Sudan.

The strategy outlines five key interventions, including a community-based credit guarantee mechanism and the expansion of solar energy for agricultural and industrial use. These initiatives are designed to bypass the crippled banking system and address chronic fuel and electricity shortages.

UNDP also plans to establish a diaspora-linked recovery facility to channel investments from Sudanese living abroad into local enterprises. This follows findings that remittances have become a primary lifeline for households as formal financial institutions remain largely offline.

The report identifies agriculture, livestock, and gum arabic as the resilient sectors still underpinning millions of livelihoods. It calls for coordinated support from international donors and local chambers of commerce to scale up skills training and stabilize market functions.

While the strategy focuses on practical recovery, UNDP warned that long-term stability remains contingent on a political settlement to end the war, which has displaced approximately 13 million people and left 25 million facing acute hunger.