Sudan and South Sudan Country Risk Report

Published 27 May 2015 | Quarterly

  • 38 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
Sudan and South Sudan Country Risk Report

Core Views:

  • April's election and a recent cabinet reshuffle have strengthened the Sudanese ruling regime and the position of President Bashir in particular. In light of this we see little chance of meaningful concessions being made on key issues such as political reform or the ongoing conflict in Darfur and other trouble spots.

  • A sharper than expected fall in inflation has prompted us to revise up our 2015 real GDP growth estimate for Sudan to 3.8% from 3.5% last quarter. Looking ahead, our outlook is unchanged and we expect growth to average 4.1% annually between 2016 and 2019 compared to the Sub-Saharan African (SSA) average of 4.8%.

  • In South Sudan, there growing evidence that the protracted nature of the civil conflict - which began in December 2013 - is leading to a hollowing out of state capacity and civil society and a breakdown of the formal economy.

Major Forecast Changes:

  • No major forecast changes

Key Risks To Outlook:

  • Political risk remains the most salient threat to our outlook, as a further deterioration of the security situation could further threaten the economic stability and long-term outlook for both countries.

Forecast Tables:

Macroeconomic Forecasts (Sudan 2013-2016)
Indicator 2013e 2014e 2015f 2016f
National Sources/BMI
Nominal GDP, USDbn 60.3 67.1 78.4 84.4
Real GDP growth, % y-o-y 2.9 3.0 3.7 4.3
Consumer price inflation, % y-o-y, eop 41.9 25.7 12.5 12.0
Exchange rate SDG/USD, eop 5.98 5.75 6.50 6.75
Budget balance, % of GDP -2.3 -2.6 -4.5 -4.5
Current account balance, % of GDP -7.4 -7.1 -9.2 -8.7
Macroeconomic Forecasts (South Sudan 2013-2016)
Indicator 2013e 2014e 2015f 2016f
National Sources/BMI
Nominal GDP, USDbn 20.4 21.9 22.2 22.9
Real GDP growth, % y-o-y 31.6 7.0 6.3 6.7
Consumer price inflation, % y-o-y, eop -8.8 11.9
Executive Summary
Core Views
Key Risks To Outlook
Chapter 1: Political Outlook
SWOT Analysis
BMI Political Risk Index
Sudan Domestic Politics
Rubber Stamp Elections To Dash Political Reform Hopes
South Sudan Domestic Politics
Crisis May Worsen Before It Gets Better
Chapter 2: Economic Outlook
SWOT Analysis
BMI Economic Risk Index
Sudan Economic Activity
Growth Picking Up, But Conditions To Remain Challenging
Table: Economic Activity
South Sudan Economic Activity
Economic Crisis To Deepen
Table: Economic Activity
Regional Economic Activity
After The Commodity Boom: The New Growth Path
tab le: Structura l Economic Wea knesses
tab le: 10 Outperf orming Economies - Rea l GDP Growt h, %
Chapter 3: 10-Year Forecast
The Sudanese Economy To 2024
Secession Poses Key Risk For Long-Term Growth
Table: Long-Term Macroeconomic Forecasts
The South Sudanese Economy to 2024
Violence Greatest Threat To Growth
Table: Long-Term Macroeconomic Forecasts
Chapter 4: Operational Risk
SWOT Analysis
Operational Risk Index
Operational Risk
Tab le: Operati onal Risk
Legal Environment
Tab le: Sub -Saharan Africa - Legal Risks
Costs Of Labour
Tab le: Sub -Saharan Africa - Labour Cost Risk
Tab le: Regulations governing flexibilit y of workforce
Chapter 5: BMI Global Macro Outlook
Global Outlook
EMs Still Slowing
Table: Global Assumptions
Table: Developed States , Real GDP GrowtH , %
Table: Emerging Markets , Real GDP Growth, %

The Sudan and South Sudan Country Risk Report helps businesses with market assessment, strategic planning and decision making to promote growth and profitability in Sudan, South Sudan. It is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market.

An influential new analysis of Sudan, South Sudan's economic, political and financial prospects through end-2019, just published by award-winning forecasters, BMI Research.

Key Uses

  • Forecast the pace and stability of Sudan, South Sudan's economic and industry growth through end-2019.
  • Identify and evaluate adverse political and economic trends, to facilitate risk mitigation.
  • Assess the critical shortcomings of the operating environment that pose hidden barriers and costs to corporate profitability.
  • Contextualise Sudan, South Sudan's country risks against regional peers using BMI's country comparative Risk Index system.
  • Evaluate external threats to doing business in Sudan, South Sudan, including currency volatility, the commodity price boom and protectionist policies.

The Sudan and South Sudan Country Risk Report by BMI Research includes three major sections: Economic Outlook, Political Outlook and Operational Risk.

Economic Outlook:

How will the Sudan, South Sudan' economic policy-making and performance impact on corporate profitability over 2015-2019?

BMI provides our fully independent 5-year forecasts for Sudan, South Sudan through end-2019 for more than 50 economic and key industry indicators. We evaluate growth, and also forecast the impact of economic management.

Economic Outlook Contents

The Sudan and South Sudan Country Risk Report features BMI's forecasts with supporting analysis for 2015 through to end-2019, set against government views and BMI's evaluation of global and regional prospects.

Key Areas Covered:


  • Full 10-year forecasts with data - for key macroeconomic variables including GDP (real growth and per capita), population, inflation, current account balance and the exchange rate.
  • BMI's comprehensive Risk Index system - rates each country worldwide for economic and political risk, and rates the business environment, within a global and regional context.

Written Analysis:

  • Economic Activity - real GDP growth, employment, inflation, consumption (retail sales and confidence).
  • Balance of Payments - trade and investment, current and capital account.
  • Monetary Policy - interest rate trends (bank lending and deposit rates) and inflation (producer price and consumer price).
  • Exchange Rate Policy - currency controls, foreign investment flows, exchange rates and foreign exchange reserves.
  • Fiscal Policy - macroeconomic strategy and policies, government finance and tax reforms.
  • Foreign Direct Investment - approvals, inflows and climate.
  • External Debt - debt profile (short and long-term plus public and private sector obligations).
  • Global Assumptions - forecasts for each year to end-2019 covering: major commodities, growth in key regions, inflation, and interest and exchange rates, in the United States, Japan, China and the eurozone.

Key Benefits

  • Rely upon BMI's 100% independent forecast scenarios for Sudan, South Sudan and underlying assumptions - we take no advertising and are privately-owned.
  • Exploit the benefits of BMI's comprehensive and reliable macroeconomic database on Sudan, South Sudan, sourced and fully maintained by BMI from an extensive network of private sector, government and multilateral contacts.
  • Gain key insights into the current and future direction of government economic policy, which could significantly affect your company's business prospects, from BMI's team of analysts and economists.

Political Outlook:

What are the political risks to doing business in Sudan, South Sudan over the next 5-years?

BMI's Sudan, South Sudan country Risk Index evaluates the short- and medium-term threats to political stability.

Political Outlook Contents

  • SWOT Analysis for the Sudan, South Sudan Market - Political Strengths, Weaknesses, Opportunities and Threats facing Sudan, South Sudan.
  • Political Stability and Risk Assessment - BMI's Risk Index assesses explicit short- and long-term risks to political stability; latest positioning and trends for Sudan, South Sudan's risk are compared with regional and global averages.
  • Current Administration and Policy-making BMI assesses the threats to the continuity of economic policy, and likely changes to the business operating environment.
  • Long-Term Political Outlook BMI examines the structural risks to the stability of Sudan, South Sudan’s political system and the dominant public policy issues likely to affect decision-makers, and outlines scenarios for how the state could evolve in the medium to long term.

Key Benefits

  • Benchmark Sudan, South Sudan's risk profile against its neighbours, the global and regional average, allowing easy comparison of risks between key business markets.
  • Identify, evaluate and anticipate political and security risks to the business environment, and to your company's current operations and future plans.
  • Gain valuable insights into government and policy-making, through BMI's specialist team of analysts and economists, and their network of private and public sector sources.

Operational Risk

What are the current operational risks and difficulties associated with doing business in Sudan, South Sudan?

The Operational Risk section gives an evaluation of current risks and difficulties associated with operating in the market. It also provides a brief overview of the regional Operational Risk Index which benchmarks Sudan, South Sudan against its neighbours.

Operational Risk Contents

The chapter provides a summary of the main threats in the country, within:

  • Labour Market Risk (Education; Availability of Labour; and Labour Costs)
  • Logistics Risk (Market Size and Utilities; Quality and Extent of the Transport Governance)
  • Trade and Investment Risk (Economic Openness; Government Intervention; and Legal Risks)
  • Crime and Security Risk (Crime; Terrorism; and Interstate Conflict risks).

The report also drills down in greater depth to address key issues in one of the following segments most critical to the market:

  • Transport network, economic openness, cost and availability of labour, crime risks, bureaucratic environment, market size and utilities, and interstate conflict.
  • Assess your company’s exposure to country specific operational and business risks, using BMI’s insight on the current dangers of operating in the market.
  • Evaluate Sudan, South Sudan’s risk profile against its regional peers, helping you understand the market’s strengths and weaknesses in relation to other countries.

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