Current Date:

Sunday, 18 November 2018
 

Preliminary Development Finance Assessment-Sudan (1)

(World Bank and United Nations) - This assessment was prepared by Elfatih Ali Siddig and Elmoiz Ismail. This Preliminary Development Finance Assessment

(DFA) for Sudan was made possible by the guidance of the State Minister of the Ministry of International Cooperation, H.E. Somia Okoued, in collaboration with the UN Resident Coordinator’s Office. Efforts of the Ministry of International Cooperation in forming a steering committee, coordinating its activities, and facilitating the data collection is highly commended. We would like to express gratitude to members of the National Technical Committee chaired by the Ministry of International Cooperation whose members are: the Ministry of Finance and National Economy, Ministry of Foreign Affairs, Ministry of Security and Social Development, Ministry of Environment, Natural Resources and Physical Development, Ministry of Agriculture and Forests, Ministry of Health, Ministry of Minerals, Ministry of Education, Ministry of Investment and Central Bureau of Statistics, Humanitarian Aid Commission, Central Bank of Sudan, National Population Council, Zakat Chamber, and the Taxation Chamber. The members of the committee provided guidance to the consultants throughout the DFA process. Appreciation is also expressed to all stakeholders and partners, both within and outside the Government of Sudan, for their inputs and guidance throughout the process. This includes participants at both the kickoff and review workshops. Technical guidance was also provided by the Bureau for Policy and Programme Support at the United Nations Development Program (UNDP) Headquarters and UNDP Regional Hub for Arab States.

Foreword

State Minister Ms, Somia Okoued

This Preliminary Development Finance Assessment (DFA) comes at a key moment for Sudan as we look towards the 2030 Agenda by aiming to achieve the ambitious Sustainable Development Goals. To translate this vision into action requires concrete and comprehensive strategies, including in relation to the mobilisation and use of finance. This preliminary DFA provides evidence and analysis towards
articulating the finance sources for Sudan and looks generally at how the country can make better use of existing finance, while not losing sight of the need to identify new avenues of mobilizing additional resources.
The Addis Ababa Action Agenda, which emerged from the third International Conference on Financing for Development 2015 emphasized the need for countries to take a more integrated approach to managing all types of finance, by improving integration across government, as well as between government and other stakeholders. The preliminary DFA for Sudan makes preliminary observationstowards this end. We are committed to implement policy frameworks that will contribute to increased
mobilization of public resources and unlock the potential of the private sector and the civil society to finance development, in collaboration with our development partners. We are also committed to review our institutional arrangements for more integrated use of resources. We are hopeful that our efforts will be complemented by up-scaled and more effective international assistance to overcomethe structural challenges we face. While the preliminary DFA recommendations outline an ambitious agenda, we look forward to collaborating with our partners on further articulating these observations.
I would like to note that this preliminary DFA was overseen and guided by the National Technical Committee. I extend my sincere thanks to all technical committee members, for the time and effort they contributed to defining the parameters of the study, attending meetings, and providing
substantive feedback on several iterations of the document. The quality and relevance of this assessment have been much improved through these efforts. I thank the consultants, Mr. Elfatih Ali Siddig and Mr. Elmoiz Ismail, for their hard work in preparing the report. I am also grateful to the late Ms. Amna Abdullah Elzain (may her soul rest in peace), for her dedication to the completion of this document. I am hopeful that this report will be useful for policy makers, researchers, students, development partners and those interested in gaining a better understanding of the development finance context of Sudan.
Finally, I would like to extend my thanks and appreciation for the support provided by the United Nations Resident’s Coordinator Office for making this DFA report possible.



UN Ms. Marta Ruedas


This Preliminary Development Finance Assessment (DFA) for Sudan was undertaken under the guidance of the State Minister of the Ministry of International Cooperation, H.E. Somia Okoued, in collaboration with the UN Resident Coordinator’s Office. The objective of this preliminary DFA is to shed light on the general finance context of Sudan, looking across a range of public and private, domestic and external sources of finance. It provides insights into how existing policies and institutional arrangements that the country has in place may need to be reviewed to reflect the
increasingly complex finance landscape in Sudan. More importantly, the assessment advocates for maximising opportunities for additional resource mobilisation in view of the constraints facing international official development assistance at the global level.
I take this opportunity to extend my appreciation to the Ministry of International Cooperation for leading this assessment and taking national ownership of the entire process. Similarly, my thanks are also due to other members of the National Technical Committee, comprised of representatives from various national institutions which include: the Ministry of Finance and National Economy, Ministry of Foreign Affairs, Ministry of Security and Social Development, Ministry of Environment, Natural Resources and Physical Development, Ministry of Agriculture and Forests, Ministry of Health, Ministry of Minerals, Ministry of Education, Ministry of Investment and Central Bureau of Statistics, Humanitarian Aid Commission, Central Bank of Sudan, National Population Council, Zakat Chamber, and the Taxation Chamber.
As we look ahead to the challenges of mobilising and managing a range of different types of finance in pursuance of the country’s development priorities, this type of intra-governmental collaboration will be critical, especially as Sudan looks towards the achievement of the SDGs. Finally, I am hopeful that the Government, together with relevant stakeholders, will be able to benefit from this assessment.


Introduction

Financing is a kingpin for the accomplishment of the new Sustainable Development Agenda, which is driven by the implementation of the 17 Sustainable Development Goals (SDGs), necessitating momentous investments estimated at trillions of dollars. The cost of financing the achievement of the SDGs goes well beyond the resources currently existing for most countries. Meeting these investment requirements will entail the mobilisation of a variety of substantial supplementary resources. It will also involve utilizing and guiding resources efficiently and coherently, and countries must plan to finance their SDGs from public and private, domestic and international resources. Meeting this challenge will require countries to take a comprehensive approach to financing for development. The Addis Ababa Action Agenda (AAAA) of 2015 called for ‘cohesive nationally owned sustainable development strategies supported by an
Integrated National Financing Framework (INFF) to be at the heart of these efforts’. The AAAA and the follow-up 2017 report of the Inter-Agency Task Force on Financing for Development1 therefore call for the establishment of holistic and forward-looking financing frameworks that consider the ever-expanding diversity of development resources. The INFF can be understood as a system of policies and institutional structures designed to enable governments to take a comprehensive approach towards mobilising and managing financing for national development strategies.
In response to demands from governments to reflect on the changing development cooperation landscape and the call to establish INFFs, the Development Finance Assessment (DFA) tool was developed by the United Nations Development Programme, it functions as a country-level, context-informed methodology that provides data and analytical information on both quantitative and qualitative aspects of development resources in a country. The DFA tool provides not only an overall mapping of financing flows, but also looks at an enabling environment for accessing, allocating, utilising, and monitoring the variety of financing available to a country. The assessment process is nationally owned and aimed at offering the national development partners with data and analysis on changing trends in development finance and their alignment with national priorities and results.

Finance Assessment Purpose


This Preliminary Development Finance Assessment (DFA) for Sudan was undertaken under the guidance of the State Minister of the Ministry of International Cooperation (MIC), H.E. Somia Okoued, in collaboration with the UN Resident Coordinator’s Office2. The UN Resident Coordinator’s Office commissioned independent experts to undertake this assessment looking at financing for development in view of Sudan’s commitment to the SDGs. The purposes of this preliminary DFA document are therefore to:
1) Present the concepts of the DFA within the context of Sudan as to enable the promotion of a potential undertaking of a full nationally-led DFA when further data and resources are made available.
2) Offer recommendations for the scope of a potential comprehensive DFA, which looks at all financing flows and the structural environment for the establishment of an INFF.
3) Showcase the trends, challenges, and opportunities pertaining to the main financing flows in Sudan within the private/public and domestic/external quadrants throughout the years of 2011- 2016.
4) Provide a preliminary baseline analysis for the establishment of an INFF for Sudan.

Financing for Development in Sudan


Sudan is at an important juncture for setting its path to achieve sustainable development and to implement its state reform programme. Linked to this is the recent establishment of the “National Mechanism to Supervise the Sustainable Development Goals”, which is a high-level coordination mechanism that oversees the progress of achieving the SDGs. The prospective national programme for sustainable development 2016-2030 aims to provide the essential foundation for the country’s endeavor to achieve the SDGs. Furthermore, the lifting of US sanctions on Sudan in 2017 has induced a change in the country’s economy and resource base for financing the national programme for sustainable development, hence creating opportunities to deepen engagement in the international economy to explore new sources of financing.
Combined with the strong Government of Sudan (GoS) commitment to the 2030 Agenda and the SDGs, this is a vital moment to assess the variety of funding available to the country and work towards a holistic and integrated approach to financing the SDGs.