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BMI View: Sudan and South Sudan continue to perform poorly for construction industry growth, as both
markets' high-risk operating environments deter significant foreign direct investment inflows and
government expenditure is funnelled into security expenditure rather than much-needed infrastructural
Forecast & Industry Developments
? Sudan and South Sudan remain the weakest performing markets in Sub-Saharan Africa, with dim growth
prospects the result of continued economic and political instability. Government expenditure, already
constrained as by persistently low oil prices - the lifeblood of both economies -will continue to be
directed primarily towards security expenditure.
? Sudan is projected to emerge from a recession in 2019 to record 0.6% real growth. Over our 10-year
forecast period between 2016 and 2025 the market will grow at an annual average of 1.8% in real terms.
The market is supported by Saudi foreign direct invest inflows and involvement from China, with
western businesses sidelined as US-led sanctions persist.
? An escalation in conflict in South Sudan will further weaken infrastructure development in the market
and we do not expect planned projects with the East African community to gain traction in the short term.