The Role of Military Companies During and After the War

By: Dr. Adel Abdel Aziz Al-Faki

adilalfaki@hotmail.com

Statistics indicate that in Sudan, we need to import petroleum products, fertilizers and pesticides, foodstuffs such as wheat, flour, sugar, and vegetable oils, as well as equipment, transportation means, medicines, and medical supplies, at a value of $11 billion (Central Bank of Sudan Statistics, 2022). Meanwhile, our exports, including gold, sesame, live animals, cotton, peanuts, and gum arabic, amount to only about $4.4 billion. This means that the trade balance deficit before the war was around $6.7 billion.

Other resources that could reduce the impact of this deficit (and are calculated within the balance of payments), such as foreign loans and aid, remittances from migrants, revenue from the use of Sudanese airspace, and fees for the transit of South Sudanese oil, have significantly diminished due to the war. Therefore, the fundamental solution lies in restoring economic activity in all sectors—agricultural, industrial, and services. This requires a decisive and strong victory for the Sudanese army in the battle for dignity. The stability of the Sudanese economy will not be achieved until the army triumphs and asserts control over all parts of the country.

Before the war, military companies operated under the umbrella of the Defense Industries System in three main areas. The first was pure defense industries, such as the production and manufacturing of combat vehicles, drones, and various weapons and ammunition. Production in these fields was very advanced and economically viable, as the Defense Industries System managed to market its products to several countries through participation in various exhibitions, generating good economic returns.

The second area in which the Defense Industries System operated was advanced technology, remote sensing devices, and specialized software and peripherals. This is a field that ordinary capital does not venture into because the initial costs are very high and returns are not quick. Therefore, it was necessary for military companies to enter this strategic field.

The third area was exports, particularly in livestock and meat, due to the fact that trade in this field in some neighboring countries is restricted to military companies in those countries. For this reason, it was necessary for Sudanese military companies to enter these markets and assist traditional exporters.

During and after the war, it is suggested that the activities and areas of work of military companies should increase, as most national and foreign capital that was operating in Sudan has left due to the lack of security and the uncertainty of returns. Currently, military companies should work in smart partnerships with Sudanese businessmen who have chosen to stay in Sudan despite the war, in order to protect these national investments and to ensure that export revenues and business profits are returned to the public treasury.

After the war, it is suggested that military companies operating in non-military industries should be converted into public joint-stock companies, listed on local and regional stock exchanges. This plan had already been initiated before the outbreak of the war, and we hope it will continue. God willing.