Unlocking Sudan’s Potential: A National Development Fund as a Catalyst for Private Investment

Sudan is emerging from years of conflict and political instability, presenting a rare opportunity for private equity investors to capitalize on a country poised for growth. While the conflict is not yet over, the liberation of Khartoum on March 21, 2025, marks a key milestone in Sudan’s path toward peace and stability. This moment signals that the rest of the country will soon follow, making it a critical time for investors to start thinking about Sudan as the next frontier for economic opportunity. With the right investment structures in place, Sudan could leverage its vast natural resources and strategic geographical position to become one of the most promising frontier markets in Africa.

The foundation for this transformation lies in the establishment of a National Development Fund (NDF)—a sovereign wealth fund designed to channel Sudan’s resource wealth into long-term growth and infrastructure. This fund would be a game-changer, insulated from political pressures, and providing a sustainable, transparent framework for investment. For private equity investors, the NDF presents an opportunity to partner with a government that is actively seeking to unlock the country’s untapped potential while ensuring the funds are managed with a focus on accountability and strategic growth.

A Wealth of Natural Resources

Sudan is richly endowed with natural resources that, if managed effectively, could drive sustained economic development:

• Gold: In 2024, Sudan produced approximately 64.4 tons of gold, valued at over $1.6 billion. However, discrepancies in reporting suggest a significant informal market, which indicates untapped potential for formalized trading and export operations. Gold exports alone make up about 50% of Sudan’s export revenue, and improving transparency in this sector could result in substantial financial returns for both Sudan and foreign investors.

• Oil: Despite challenges, Sudan remains a key oil producer, with crude petroleum exports valued at approximately $1.13 billion. The oil sector is poised for revival, especially with increased investment in infrastructure and regulatory reform to improve transparency and operational efficiency.

• Agriculture: Sudan is a major player in agricultural exports, particularly oilseeds like sesame and groundnuts. These products, along with cereals and horticultural crops, provide significant export revenue. The agriculture sector offers a diversified investment avenue, with potential for expansion and modernization to meet international demand.

The creation of the NDF could serve as a vehicle to channel investments into these sectors, driving growth, improving infrastructure, and enhancing overall economic stability. For private equity firms, this presents an opportunity to tap into a fast-developing market with high growth potential.

Key Features of the National Development Fund

The success of Sudan’s NDF hinges on a strong governance structure that ensures transparency, accountability, and long-term strategic planning:

1. Constitutional Protection: To safeguard against political interference, the NDF should be enshrined in the constitution. This would ensure its operations remain insulated from political cycles and short-term agendas, offering stability and predictability to investors.

2. Independent, Professional Management: The NDF should be managed by a team of financial and economic experts, not political appointees. The management team should focus on strategic investments that prioritize national development over short-term gains, building trust with international investors.

3. Transparency and Accountability: Regular public reports detailing revenues, expenditures, and project outcomes are crucial to building investor confidence. A robust auditing system, including third-party oversight by international firms, would ensure the integrity of the fund’s operations.

4. Long-Term Investment Focus: The NDF should operate with a vision similar to sovereign wealth funds like Norway’s, focusing on long-term investments in infrastructure, industrialization, and economic diversification. This approach will position Sudan for sustained growth and reduce reliance on fluctuating commodities like oil and gold.

Global Examples of Successful Sovereign Wealth Funds

Sudan can look to the success of other sovereign wealth funds as a model for its own NDF:

• Norway’s Government Pension Fund: With over $1.5 trillion in assets, Norway’s fund has successfully invested oil revenues into long-term projects, shielding the economy from short-term political pressures and creating a legacy of wealth for future generations.

• Saudi Arabia’s Public Investment Fund (PIF): As one of the world’s largest sovereign wealth funds with over $900 billion in assets, PIF is actively diversifying Saudi Arabia’s economy through investments in technology, infrastructure, and entertainment. PIF’s success in managing its vast resources offers valuable lessons for Sudan in terms of governance and diversification strategies.

• Indonesia’s Danantara Fund: Indonesia’s recent sovereign wealth fund, focused on high-impact projects, demonstrates how a country can leverage its natural resources to drive long-term development. Sudan could adopt similar strategies to attract foreign investment in key sectors like agriculture, infrastructure, and energy.

Attracting Private Equity and International Partners

Sudan’s NDF offers a unique opportunity for private equity firms and international investors looking for high-growth markets in Africa. By partnering with established sovereign wealth funds, such as Saudi Arabia’s PIF, Sudan can leverage the experience, capital, and expertise necessary to turn its resource wealth into sustainable development. These partnerships can help mitigate risks and ensure that investments align with international best practices for governance, transparency, and long-term value creation.

A Future Full of Potential

With its abundant natural resources, strategic location, and commitment to political and economic reform, Sudan is well-positioned to become a leading investment destination in Africa. The creation of a National Development Fund is not just an economic necessity; it is a strategic move to ensure that Sudan’s resources are managed effectively and transparently, creating lasting economic stability.

For private equity investors, Sudan offers a compelling opportunity: a country on the brink of transformation, with significant untapped potential in sectors ranging from gold and oil to agriculture and infrastructure. The establishment of the NDF could be the catalyst for this transformation, providing a solid foundation for sustainable growth and offering investors a chance to be part of Sudan’s economic resurgence. Though the conflict is not over, the liberation of Khartoum marks the beginning of a larger peace process, and it would be wise for investors to begin considering Sudan now, as the rest of the country is likely to follow suit in the coming months. The time to invest in Sudan is now—let’s build the future together.

Inspired by @Khalid Osman Alfeel short study “