Sudan’s government has embarked on reforms aimed at improving the business environment.

The country is making changes in nine out of the 10 indicators that are measured in the World Bank’s Doing Business index, which compare how easy or difficult it is to do business in a country.

Last year, Sudan was ranked 170 out of the 190 countries listed, indicating that it is difficult for the private sector to navigate its bureaucracy.

President Omar al-Bashir signed off the business reform laws and regulations drafted by Minister for Justice Idris Ibrahim Jameel.

Prime Minister Bakri Hassan Saleh issued a memo operationalising the reforms that focus on key impediments to business — starting a business, registering property, access to electricity, dealing with construction permits, getting credit, protecting minority investors, paying taxes, resolving insolvency and enforcing contracts.

Under the “Ease of Starting a Business” reforms, Sudan has eliminated the requirement for authorities to inspect business premises as a precondition for company registration. It has also removed the requirement, which was previously mandatory, of a company seal.

Access to information on land transactions has been made easier, transparent and less time consuming. Service charters are available on the government’s website and the Survey Authority has digitised the cadastral and mapping of all land plots in Khartoum.

Easing the cost, time and procedures of doing business is expected to stimulate Sudan’s economy, which has slowed down due to reduced oil revenues and foreign-exchange shortages.

The growth in GDP fell to a low of three per cent in 2016, before improving to 3.4 per cent in 2017. The modest recovery is expected to continue, with the GDP growth rate projected to rise to 3.6 per cent in 2018.

Removing cumbersome producers and improving the predictability of the legal and regulatory regime would benefit Sudan’s economic outlook, which was shored up when the US lifted sanctions last October. These actions would improve opportunities for Sudan to benefit from global trade and investment.

The reforms have generated interest from among the private sector and other stakeholders, who see great opportunities for Sudan’s competitiveness in regional and the global trade and investment.

Key representatives of these organisations participated in the technical sessions that prepared the reforms under the supervision of the Minister of the Presidency, and the chairman of the Doing Business High Level Committee.

“We appreciate the commitment to the reform process by various ministers, the Doing Business technical committee with representatives from government and private sector through the Sudan Business and Employers Federation, judges and advisors,” said Osama Faisal El-Sayed, the State Minister of Investment.

“Efforts will continue to ensure that the reform momentum is sustained towards a better doing-business environment in Sudan,” he added.

With a per capita income of $2,140 in 2016, Sudan is classified as a lower middle-income country in the World Bank’s ranking, but has the potential to improve the incomes and livelihoods of its people.

The government has embarked on an ambitious five-year Economic Plan that prioritises private sector-led growth to support economic growth and diversification.

Companies Act reviewed

The review of the Companies Act 2015 has reinforced the strength of the insolvency framework in Sudan. The law now allows debtors to reorganise a company and file for liquidation or voluntary arrangement. This enables an enterprise facing liquidation to continue operating.

The Act also facilitates continuity of contracts for a non-performing debtor and makes provisions for alternative procedures to bankruptcy, instead of foreclosure and distribution of assets. These administrative procedures protect a company from its creditors through a statutory moratorium.

The legal framework for protecting the rights of minority shareholders in publicly traded companies listed on the stock exchange has now been streamlined.

The laws and regulations, together with the Companies Act, Civil Procedure Act and the Public Corporate Governance Regulation 2018 have strengthened the approval process for business transactions, disclosure requirements, standards of duty and liability applicable to directors, rules of civil procedure relating to pre-litigation, and the regulations governing the internal affairs of companies including control and ownership, transparency and shareholders rights.

To facilitate faster and cheaper settlement of matters in commercial courts, the judiciary has introduced a consolidated chapter regulating voluntary mediation.

This alternative dispute resolution mechanism enables faster, more efficient and reconciliatory justice. The Judiciary has also introduced a simplified fast-track procedure for small claims to improve contract enforcement and reduce case backlog.

Service delivery to the business community has been consolidated under a new, modern one-stop shop, which has recently moved to a friendlier location.

It houses various government agencies including the Labour Office, and the Social Insurance and Tax Chamber. The one-stop office saves business people considerable time and effort, thus improving labour productivity.

Peter Warutere is a development economist and communications strategist.