The Africa Enterprise Challenge Fund (AECF) has launched a new initiative aimed at bolstering Small and Medium Enterprises (SMEs) in Sudan in the wake of conflict that has curtailed economic activities.
The initiative, which targets SMEs transitioning from conflict-ridden zones to more stable regions within the country, is backed by an initial €12.5 million injection from the German Federal Ministry of Economic Cooperation and Development (BMZ) via KfW.
SMEs are integral to Sudan's economic fabric but have grappled with substantial setbacks including capital depletion, market disruptions, and supply chain disturbances due to the ongoing war.
Despite adversities, these SMEs have showcased resilience, positioning themselves as key agents capable of mitigating the prevailing crisis through enhanced provision of essential goods and services, alongside generating income and employment opportunities for low-income households.
The initiative extends grant finance and business advisory services to facilitate SMEs in reinstating production and processing activities, revamping business protocols, and tapping into new market segments and supply channels.
Priority sectors encompass agriculture and renewable energy technologies, thereby augmenting fundamental service delivery for Sudanese citizens.
Employing a challenge fund framework, the program will identify independent enterprises through a competitive selection process, ensuring equitable access to available investment and technical support. Emphasis will be laid on innovative ventures demonstrating tangible social impact.
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"The role of the private sector in conflict situations has not yet been fully recognised by humanitarian responses, but they have crucial ability to provide goods and services to difficult places. They have a unique understanding of local situations, connections to a wide range of actors and ways of getting into markets that foreign agencies cannot," said Victoria Sabula, CEO AECF.
"We see the private sector as an important part of not only complementing the humanitarian response but building the basis for sustainable economic development. We thank the German Federal Government for supporting this innovative approach at this critical time."
Sudan grapples with entrenched conflict, leaving swathes of territory, mainly around the capital Khartoum, ravaged, and prompting mass displacement exceeding eight million individuals both internally and externally.
Over 25 million inhabitants contend with escalating rates of food insecurity and malnutrition. Despite the pervasive turmoil, certain regions have remained relatively unscathed, emerging as havens and business hubs for Sudanese entrepreneurs.
A diaspora of companies and innovators have migrated to these safer locales, aiming to reinstate their commercial operations.
