Khartoum, May 2025

A new World Bank report paints a dire picture of Sudan’s economic and social landscape, two years into a devastating conflict that has triggered widespread humanitarian and fiscal crises, with over 61,000 deaths and nearly 13 million people displaced.

The Sudan Economic Update warns that the country’s GDP has shrunk by more than 40% over the past two years, poverty has doubled, and inflation soared to 170% in 2024. The economy is not expected to recover to pre-conflict levels before 2031, even under optimistic scenarios.

The war, which erupted in April 2023, has devastated infrastructure, led to mass unemployment (47% in 2024), and left 71% of Sudanese living under the poverty line. Food insecurity is acute, with famine confirmed in parts of Darfur and agricultural output plummeting due to insecurity, looting, and erratic rainfall.

The report highlights Sudan’s agriculture sector as the cornerstone for recovery, noting that it employs 40% of the labor force and contributes 35% of GDP. Despite significant challenges such as conflict, climate shocks, and poor infrastructure, the sector is seen as crucial to rebuilding livelihoods and economic stability.

The World Bank recommends a post-conflict strategy focused on:

  • Reviving the Heavily Indebted Poor Countries (HIPC) debt relief process.
  • Prioritizing agriculture investment and trade reforms.
  • Rebuilding basic infrastructure and services like health and education.
  • Advancing inclusive governance and national reconciliation.
  • Addressing landmine contamination to ensure safety and humanitarian access.

Shifting toward the demilitarization of the economy could unlock significant growth potential

By reallocating resources to social and productive sectors post-conflict. The 2019 revolution marked a critical turning point, with the government aiming to transition from a militarized to a more civilian-led economy. However, challenges persist as military institutions continue to wield considerable economic and political influence. This includes control of key state-owned enterprises and shadow budgets generated from various sources that are separate from the national budget. Redirecting resources to social and productive sectors lays the foundation for economic stability and poverty reduction. Additionally, increased transparency and reduced military involvement would create a more favorable environment for foreign investment. These reforms are crucial for supporting Sudan’s recovery and restoring public trust. The report also criticizes Sudan’s deep institutional weaknesses, warning that without comprehensive reform and international support, the country risks long-term collapse. Shifting toward the demilitarization of the economy could unlock significant growth potential