Sudan's Factories Face Uphill Battle to Rebuild Amidst Devastating Wartime Losses

Mansour Gaily surveys his factory in Omdurman, Sudan, a stark reminder of the devastation wrought by conflict. Once a thriving producer of sweets and an employer of many, Gaily’s factory, like thousands of other businesses across Sudan, ground to a halt in April 2023 when fighting erupted between the Sudanese Armed Forces (SAF) and the paramilitary Rapid Support Forces (RSF). More than three years later, Gaily is grappling with the monumental task of reviving his business. While production has recommenced, the factory is operating at a mere 40 percent of its former capacity. "Our losses are estimated at $1m," Gaily shared with Al Jazeera, detailing the loss of machinery, spare parts, and the necessity to rebuild significant portions of the factory. Gaily's predicament mirrors the struggles of Sudan's severely damaged manufacturing sector. Prior to the war, Khartoum was a pivotal industrial hub, housing factories for food, textiles, and various consumer goods. However, Khartoum became a primary battleground, and despite sporadic attacks since the army's recapture last year, the industrial sector remains largely unreconstructed. The Ministry of Industry in Sudan reports that approximately 1,800 industrial facilities sustained damage during the war, with 650 factories completely destroyed, underscoring the immense challenge for a sector vital to employment, domestic production, and economic recovery.

Abdulelah Mohamed, owner of a plastic products and recycling factory in Khartoum, described the situation as catastrophic. "Damaging, destroying and looting the factories was systematic. We lost everything," Mohamed stated, emphasizing the need for new planning and vision for Sudan's industrial future. The damage extends beyond physical structures; raw materials, finished goods, and equipment have been lost or looted. Furthermore, persistent electricity shortages, compromised transport networks, and escalating import costs hinder reopening efforts even for businesses whose premises survived the conflict.

Sara Elfatih Khalil, CEO of Al Teital Advance Industries, is among the manufacturers confronting these multifaceted challenges. Her company’s sesame oil factory in Khartoum, which once employed 300 workers, saw its warehouses looted during the fighting. With damaged buildings and a fractured supply chain, the factory remains closed. Khalil believes that industry is crucial for economic recovery and can rebound swiftly if basic conditions are met. "Restoring our confidence as investors requires security and political stability, clear and consistent economic policies, legal protection for investment and property rights, and reliable financing and infrastructure," she explained. She noted that less than 10 percent of factories in the sector are currently operational, and those that are function intermittently, facing costs that threaten their viability.

For Gaily, resuming production at his sweets factory hinges on a consistent supply of ingredients like sesame and sugar, alongside packaging, spare parts, electricity, and labor. Disruptions in any of these can halt operations. "We are operating at 40 percent of our production capacity because the damage was severe and capital is limited," he said, adding, "Despite the lost spare parts and the lack of labourers, we chose to continue because we don’t have any other options." Other manufacturers face similar hurdles, with some now compelled to import materials previously sourced locally, increasing costs and vulnerability to further supply chain disruptions. Financing remains a significant obstacle, as businesses that suffered losses in machinery, stock, and income often lack the capital to replace assets and cover expenses before sales resume.

The repercussions extend to workers like Mohamed Haj, who lost his job at a Khartoum North sweets factory and struggles to find new employment. "I lost my job at the beginning of the war, and the factory owner is unable to restore it," Haj said, highlighting that reviving the industrial sector could provide jobs for thousands.

At the consumer level, shopkeepers report a reduced availability of locally manufactured goods. Abdelgadir Mohamed, a seller in Bahri Central Market, noted that the scarcity of Sudanese-made products makes sourcing stock more difficult. While imported products can sometimes be cheaper, many customers express a preference for local goods. Imports, however, can lead to higher purchasing costs and uncertain supplies for traders, further straining household budgets already impacted by declining purchasing power. "The prices are changing every day," said Ahmed Mahmoud, a local consumer, noting that both local and imported products are expensive, but he prefers Sudanese-made tahniya.

Sudanese authorities are initiating efforts to address the damage. In August, a Ministry of Industry committee was formed to assess industrial facilities in Khartoum State and devise incentives for factory owners. The recovery plan also includes restoring essential services in industrial areas. However, factory owners stress that reconstruction requires more than just infrastructure repair; they need capital and practical assistance, not just promises.

Economist Mohamed Elnayer suggests that reconstruction presents an opportunity to rectify longstanding weaknesses in Sudan's industrial economy. "Rebuilding the industrial sector will require a broader strategy that addresses the structural weaknesses that existed even before the war," Elnayer stated. He proposes that rebuilding the industrial sector across Sudan, rather than concentrating it solely in Khartoum, could prevent future paralysis and distribute economic benefits more widely. "Sudan needs to consider, before reconstruction, whether to simply restore the industrial sector that existed before the conflict, or provide an opportunity to develop a more competitive and productive economy in other Sudanese states," he added.

For Gaily, these broader economic considerations are intertwined with the immediate challenge of keeping his factory operational. He aims to repair machinery, secure necessary ingredients, and rehire his former employees. "We need stronger support from the authorities by facilitating production, rehabilitating infrastructure and adopting stronger policies to encourage factory owners," Gaily urged. "Above all, the industrial sector needs financial support and coordinated efforts by stakeholders to sustain economic recovery."