Financing a business in Sudan in wartime
In Sudan, a business is financed through Islamic contracts such as musharaka, mudaraba or murabaha on stock, from banks that require a commercial register entry, a tax number and verifiable activity, often refocused on Port Sudan and the east since 2023.
Musharaka: the bank as a partner in the project
Under musharaka, the bank provides part of the capital for a deal and shares profits according to an agreed ratio, with losses following each party's contribution. This structure funds, for example, a sesame buying season or a batch of imported goods.
Mudaraba and profit sharing
In mudaraba, the bank provides the funds and the entrepreneur provides the work. Profits are shared, but the financial loss falls on the bank unless there is mismanagement. This contract is less common because it requires a high level of trust.
Murabaha on stock and equipment
To buy stock, a generator or a machine, murabaha remains the most common solution. Port Sudan traders use it to import goods, with the bank paying the foreign or local supplier directly.
The commercial register and tax number
The bank requires registration in the commercial register, a business licence issued by the locality and a tax identification number. A company must also present its articles of association and the resolution naming its authorised signatories.
Sectors banks are keen to finance
Gum arabic trading, sesame, livestock for export, agro-industry and building materials attract financing. Gold accounts for a major share of exports, but its trade is tightly regulated and closely monitored by the authorities.
Businesses relocating to the east
Many Khartoum businesses have moved their operations to Port Sudan, Kassala, Atbara or Egypt. The bank then asks for the address, local licence and accounts to be updated before considering any new financing request.
Guarantees required from SMEs
Banks ask for a mortgage, a pledge on stock, security cheques or the owner's personal guarantee. For very small businesses, microcredit in Sudan is often more accessible than standard bank lending.
Financing commercial vehicles
Transport and distribution firms can acquire pick-ups, trucks or tankers through ijara, a lease ending with transfer of ownership. How it works, the rents and takaful are explained on the page about vehicle leasing in Sudan.
Young graduates and start-up schemes
Public and bank programmes have targeted graduates and young entrepreneurs, often with group financing and prior training. Their current availability varies by state and by budget, which has been sharply reduced since the conflict.
Foreign currency and external trade
Importing requires foreign currency, access to which is controlled by the Central Bank. Gaps between the official and parallel rates complicate planning; a financing contract should state the currency and the rate applied at payment.
Bookkeeping and banking relationships
Regularly kept accounts, even simple ones, and turnover flowing through the bank account markedly improve the chances of approval. Transactions settled only through hawala or in cash are not taken into account by the analyst.
Doing business elsewhere in the region
Sudanese entrepreneurs who have taken refuge in Cairo or Kampala encounter conventional interest-based loans for the first time. For comparison, see business financing in South Sudan, where banks remain very cautious and demand high collateral.
The financing path for a Sudanese SME
- Bring the commercial register, locality licence and tax number up to date at the business's current address.
- Run your turnover through a bank account and keep simple books.
- Prepare a financing plan stating the contract you want: murabaha, musharaka or ijara.
- Gather pro forma invoices, quotes and evidence of contracts or orders.
- Offer guarantees: a mortgage, a pledge on stock or the owner's personal guarantee.
- Sign the contract and regularly send the bank reports on the financed activity.
Cost of business financing in Sudan
| Item | What it covers | What makes it vary |
|---|---|---|
| Murabaha markup | Fixed profit on buying stock or equipment | Term, sector, risk |
| Musharaka profit share | Contractual sharing ratio | Contribution and profitability of the deal |
| Assessment and management fees | File analysis and monitoring | Bank and amount |
| Guarantees and registration | Mortgage, pledge, legal fees | Type of security |
| Asset takaful | Insurance of stock and equipment | Value and location |
Documents required from a Sudanese business
- Commercial register certificate
- Locality business licence
- Tax identification number
- Articles of association and partners' resolution
- Company bank statements
- Financial statements or simplified accounts
- Pro forma invoices or customer contracts
Frequent mistakes by Sudanese entrepreneurs
- Keeping all cash flow in cash or hawala, which prevents the bank from measuring real turnover.
- Applying with a licence still registered in Khartoum when the business has moved to another state.
- Choosing musharaka without realising that the bank also shares decisions and asks for detailed accounts.
- Paying an intermediary who claims to guarantee approval of public financing for young entrepreneurs in return for a commission.
Lenders to contact
- Bank of Khartoum: Sudanese commercial bank offering Sharia-compliant financing, notably murabaha, for individual customers and businesses seeking transparent financing.
- Faisal Islamic Bank (Sudan): Pioneering Sudanese Islamic bank providing Sharia-compliant banking services and financing to individual customers and businesses across Sudan.
Business financing in Sudan: your questions
Can a start-up with no track record get financing?
It is difficult with a bank, which asks for accounts and guarantees. Graduate schemes, microfinance or a partner bringing in funds are more realistic at the start, before applying for a standard bank murabaha.
Is musharaka better value than murabaha?
It shares the risk, which protects the entrepreneur in case of loss. In return, the bank takes a share of the profits and closely monitors management. Murabaha is simpler, with a fixed cost known in advance.
Can you finance an import in foreign currency?
Yes, but access to foreign currency depends on Central Bank rules and the bank's liquidity. The contract must specify the currency, the conversion rate applied and how exchange rate risk is shared between the parties.
Do relocated businesses need new documents?
Generally, you need to obtain a licence from the new locality and update the address in the commercial register. Banks ask for these updated documents before processing a new financing application.