Sudan Market Entry

Sudan Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

Basic info for entering the market, rating, distribution and sales channels, factors affecting sales, important legal standards and regulations, import conditions and documents, customs system, customs and foreign exchange regulations, export control, protection of the domestic market. Check smber for agriculture and fishing facts of Sudan.

The appropriate choice of sales and distribution channels is absolutely critical for a successful entry into the Sudanese market. Similar to many other countries in the region, choosing the right local representative/agent is crucial here. His ability to find solutions and overcome administrative obstacles is what in most cases decides the success or failure of a Czech exporter. In the case of state contracts or contracts related to local self-government, it is his contacts and their quality (having a “rich business card” even in these conditions does not mean that the representative is able to persuade the given official to do something). It is therefore advisable not to commit to exclusivity, especially at the time of market entry. If there is no need, then it is necessary to establish clear conditions regarding realized volumes, length of the contract, etc. The process of granting a work permit and the relevant visa is very non-transparent. It is therefore advisable to remember these matters when concluding the contract and transfer this responsibility to the Sudanese partner. Alternatively, specialized agencies can be used for this purpose, which will handle everything for a fee.

Both export and import policies are characterized by continued liberalization.

Import measures:

  • Importers do not need a license for most goods. Specific products that must be licensed can be found at http://customs.gov.sd/en/imports-procedures-2/
  • Sudan recognizes the so-called Brussels definition of the value of imported goods (BDV).
  • The importer must submit an import declaration, commercial invoice, certificate of origin, quarantine license (if required), Sudanese Standards and Metrology Organization (SSMO) documents and relevant bank documents.
  • An inspection certificate issued by an inspection organization registered with the SSMO may be required. The latter may request to carry out its own inspection.
  • Exemptions and exemptions from customs rates are given by the Investment Act and the Customs Act (Article 54).
  • Consumption tax of 10% is added to the value of imported goods. For some import items, this tax is calculated at only 2% (tea, coffee, milk, etc.) and some items are exempt from it. In addition, a tax of 2% is collected for shipping and 1.2% for air transport.

Prohibited products for importation include:

  • Potassium
  • Gambling tools
  • Arms, ammunition and explosives without a license
  • Used clothes
  • Used tires
  • Wines Narcotics with the exception of those permitted for medical research
  • Forged currency and paper used for counterfeiting
  • Unregistered creams at the Ministry of Health
  • Video recording media containing obscene images or immoral printed matter
  • Goods imported from Israel

Forms and conditions of operation on the market

Forms of operation and their advantages/disadvantages (sro, as, joint ventures…), use of local representatives, conditions for setting up an office, representation.

Despite the declared openness to cooperation and investment, foreign companies encounter problems typical for the given region, such as administrative obstacles complicating ordinary transactions, lengthy official acts of local administrative authorities, unavailability and unreliability of ordinary statistical and marketing information. It is therefore recommended to devote extra time to the preparation on site and, if possible, use a specialized agency to handle the formalities, or entrust this matter to a local agent, lawyer or partner company.

Marketing and communication

Traditional media (press, television, billboards) can be successfully used for promotion in Sudan, on the other hand, modern electronic advertising media (internet, social networks) are still not very effective due to the low availability of the internet, the unreliability of the telecommunications network and the low level of IT knowledge of the general population (with except for young people). On the other hand, the situation is rapidly improving and new possibilities are emerging in this direction. For a list of planned fairs, see Events Calendar, chapter 5.9.

However, many topics are inapplicable due to deeply rooted tradition or criminality, such as politics, foreign religion, sex, or the consumption of alcoholic beverages and pork. Furthermore, a number of methods from the field of direct marketing are not used – e.g. personal door-to-door sales (respecting the privacy of homes) and distribution of leaflets by mail.

Issues of intellectual property protection

WTO in brief, basic legislation, what are the risks and how to defend yourself.

Basic legislation for the protection of intellectual property rights is in force in Sudan, but it is a relatively new concept that has not yet fully penetrated into the consciousness of Sudanese society. In addition, the relevant laws are not up-to-date in terms of rapid technical developments. Therefore, in relation to the protection of intellectual property of entities operating on the Sudanese market, caution must be maintained and not relied on in the procedures common in the European environment.

Public procurement market

The public procurement regime is highly non-transparent and in general it can be stated that the probability of success depends to a large extent on the quality of the local representative. Information about government tenders should be followed in the local press or on international tender search engines, there is no single website for publishing government tenders.

Payment terms, payment ethics and resolution of commercial disputes

A brief description of the payment terms, the average period of maturity of the invoices and their reimbursement, who to contact in case of non-payment, information whether the residents of the country are prioritized in case of these disputes.

When entering the Sudanese market, it is necessary to know that the country is in debt and suffers from a chronic lack of foreign exchange. The state often does not cover its obligations at all or only to a limited extent. The interlinking of politics and the market is very intense, and the risks of a non-market nature that are strengthened in this way greatly reduce the transparency of the market and limit its normal functioning.

As a result of the weak activity of Czech companies on the Sudanese market in recent years, there is a lack of actual practical experience in resolving possible commercial disputes, but it can be assumed that it will not be possible to rely on the application of procedures common in countries with a developed legal culture. Therefore, it is necessary to appeal to the prevention of possible conflicts by selecting verified business partners, careful legal analysis of concluded contracts and the use of safe models for securing claims and their payment.

Visas, fees, specific conditions for traveling to the territory

Visa

The Embassy of the Republic of Sudan issues only one type of visa – a single entry visa. This visa is generally valid for a maximum of 1 month from issuance, during which time the applicant must cross the country’s borders. In Sudan, it is subsequently possible to obtain a visa extension for the required period after registering with the foreign police department of the Ministry of the Interior. A tourist or business visa can be obtained for 8 to 30 days. An extension must be applied for at the Passport, Immigration and Nationality Office in Khartoum. We do not recommend traveling to Sudan without a valid visa. After the closure of the Embassy of Sudan in Prague, the visa agenda falls to the Embassy of Sudan in Vienna. When departing from Sudan, the passport holder pays a special fee of US$20 – officially called police registration (does not apply to holders of diplomatic and service passports).

Services

  • The level of hotel accommodation in Sudan, with the exception of selected international hotels, does not correspond to the European standard. In good international hotels, you should expect a price of about 250 USD per person per night.
  • It is completely inappropriate for a European diner to consume fruit and vegetables that have not been washed sufficiently, as well as any food and meals sold on the street. Drinking water from the public water supply is also risky, including accepting ice to cool the served drinks.
  • Due to the still tense situation in a number of union states, especially in the peripheral regions of the country, Sudan is not yet very ready to receive tourists.
  • Tourist monuments are accessible only on the basis of a special permit, which can take several days to process.
  • The roads mostly have an unpaved surface, in the rainy season (June-September) most of them are completely impassable.
  • For transport in Sudan, it is recommended to hire a private taxi (preferably a 4×4 off-road vehicle). The price for a 24-hour rental with a driver without a limit on the number of kilometers is approximately USD 90.
  • Travel to the individual states of Sudan is possible only on the basis of a special permit issued by the Ministry of the Interior. The permit is valid for 1 month with the possibility of extension.
  • It is also not recommended to photograph military objects, persons in uniform, railway stations, government buildings, railway stations and similar strategic objects.
  • Current information on trips to Sudan can be obtained from the Embassy of the Czech Republic in Cairo (Egyptian Arab Republic).

Employment of citizens from the Czech Republic

How to get a work permit and who provides it, salaries, minimum wage (if any), social and health care and its provision.

The process of granting a work permit and the relevant visa is very non-transparent. It is therefore advisable to remember these matters when concluding the contract and contractually transfer this responsibility to the Sudanese side. Alternatively, specialized agencies or law firms can be used for this purpose, which will handle the matter for a fee. Practical information about expat life in Sudan can be found on the website: www.expatarrivals.com.

Fairs and events

List the most important fairs and events and a short comment on them.

All fairs are organized at the International Fairs Ground in Khartoum, which is 5 km from the international airport.

January 2023 – KHARTOUM INTERNATIONAL FAIR – International Trade Exhibition on all kinds of Building, Construction materials, Electrical, Lighting, Hardware, Safety & Security, Tools, Paints, Generators, Heating & Cooling products & machinery

March 2023 SUDAN BUILD & CONST EXPO – International Trade Exhibition on all kinds of Building, Construction materials, Electrical, Lighting, Hardware, Safety & Security, Tools, Paints, Generators, Heating & Cooling products & machinery

Sudan Market Entry