Economy

Sudan has turned around a sound economic policies and infrastructure investments, but it still faces formidable economic problems as it must rise from a very low level of per capita output. Since 1997 Sudan has been implementing the macroeconomic reforms recommended by the IMF. In 1999, Sudan began exporting crude oil and in the last quarter of 1999 recorded its first trade surplus. Increased oil production (the current production is half a million barrels a day) revived light industry, and expanded export processing zones helped sustain GDP growth at 6.1% in 2003. These gains, along with improvements to monetary policy, have stabilized the exchange rate. Currently oil is Sudan's main export (500000 barrels per day), and the production is increasing dramatically. With rising oil revenues the Sudanese economy is booming at a growth rate of nearly 7% in 2005.

Agriculture production remains Sudan's most important sector, employing 80% of the work force and contributing 39% of GDP, but most farms remain rain-fed and susceptible to drought. Chronic instability — including the long-standing civil war between the Muslim north and the Christian/animist south, adverse weather, and weak world agricultural prices — ensure that much of the population will remain at or below the poverty line for years.

The Merowe High Dam, also known as Merowe Multi-Purpose Hydro Project or Hamdab Dam, is a large construction project in northern Sudan, about 350 km north of the capital Khartoum. It is situated on the river Nile, close to the 4th Cataract where the river divides into multiple smaller branches with large islands in between. Merowe is a city about 40 km downstream from the construction site at Hamdab. The main purpose of the dam will be the generation of electricity. Its dimensions make it the largest contemporary hydro power project in Africa. The construction of the dam will be finished by mid 2008, supplying more than 90% of the population with electricity. Other gas powered electricity station are under construction in Khartoum state, these are also due to be completed by 2008.