Financial Crime World

Sudan’s Fight Against Corruption: A Complex Challenge

As the United States prepares to lift its sanctions on Sudan, the country faces a daunting task of eradicating corruption from its business sector. The implementation of the United States’ Foreign Corrupt Practices Act and the United Kingdom’s Bribery Act has had a significant impact on combating corruption globally by placing legal responsibility on multinational companies for the behavior of their suppliers and distributors.

Unique Challenges

However, Sudan’s unique situation presents a distinct challenge. Many of the country’s current business partners come from regions with little regard for combating corruption or observing business ethics. In fact, businesses that prioritize transparency and ethical practices are often viewed as lacking influential connections or being out of touch with reality.

Signs of Progress

Despite these challenges, there are signs of progress. The Sudanese government has taken steps to update its legal frameworks and prepare the scene for a more transparent and accountable business environment.

  • Repeal of the outdated Companies Act of 1925
  • Promulgation of the new Companies Act of 2015: streamlining company registration and scrutiny processes, reducing loopholes and technicalities that can be exploited by corrupt officials.
  • National Investment Encouragement Act of 2013: providing equal treatment between Sudanese and foreign investors, eliminating discrimination, and promoting a more attractive business environment.

Cooperation is Key

Dirdeiry M Ahmed, Managing Partner of Dirdeiry & Partners in Khartoum, Sudan, believes that the key to success lies in cooperation between the government and the private sector. “The business community cannot act alone,” he says. “It needs a helping hand from credible government institutions. If we work together, we can create a corruption-free business atmosphere in Sudan.”

Multifaceted Approaches Needed

However, Ahmed acknowledges that this is a complex goal that requires multifaceted approaches and partnerships with international organizations.

  • Committing to anti-corruption initiatives and making them enforceable
  • Addressing Sudan’s absence from the World Trade Organization (WTO) and lack of bilateral investment treaties

A Brighter Future

As Sudan prepares for its return to international trade and capital markets, it is essential that the government, private sector, and international community work together to combat corruption. By doing so, Sudan can create a more transparent and accountable business environment, attracting foreign investment and promoting economic growth.