Resilience of agricultural value-chains in Sudan: Findings from the THABAT Project Survey of Small- and Medium-sized Enterprises (SMEs)

Hala Abushama, Nina Jovanovic, Kibrom A. Abay, Khalid Siddig, Guy Simbeko and Haruna Sekabira

No 28, Sudan SSP working papers from International Food Policy Research Institute (IFPRI)

Abstract: Sudan’s ongoing conflict has severely disrupted agricultural systems, markets, and rural livelihoods. In this context, resilience-oriented agricultural support remains critical for sustaining food production, protecting livelihoods, and supporting local economic recovery. The Sudan Enhancing Community Resilience Project (THABAT) provides resilience-oriented agricultural support that is critical for sustaining food production, protecting livelihoods, and supporting local economic recovery (‘thabat’ in Arabic means ‘stability’ or ‘firmness’). The project is a USD 130 million initiative financed through the Sudan Transition and Recovery Support Trust Fund (STARS) Multi-Donor Trust Fund. This report focuses on the small -and medium-sized enterprises (SMEs) sub-component of Component 2 of the project, which aims to improve food security through supporting farmers, SMEs, and consumer cooperatives to enhance value addition in agricultural value chains. This component of the THABAT project is being implemented by the World Food Programme (WFP) through Mercy Corps. Specifically, this report presents the initial findings from interviews with 100 small- and medium-sized enterprises (SMEs) active in the agrifood sector that have been shortlisted to receive support through a matching grant element of the THABAT project. The surveyed SMEs are quite diverse in the nature of their enterprises—crop production, agricultural input supply, agrifood processing and packaging, storage, transport, and a range of postharvest services. WFP and Mercy Corps identified the SMEs that were included in the survey sample, which comprises both selected and unselected SMEs for the THABAT matching grant. Baseline data from the sample SMEs were collected using computer-assisted telephone interviews (CATI). This baseline report serves as a description of the status quo for SMEs in the THABAT project zone at the start of the project. The findings indicate that SMEs there have relatively good access to basic infrastructure and digital technologies. More than 90 percent report access to electricity, water, and internet services, although electricity reliability remains limited. The operators of the SMEs generally demonstrate strong growth ambitions, with most expecting increases in capital investment, workforce size, and market expansion in the coming year. This baseline report serves as a description of the status quo for SMEs in the THABAT project zone at the start of the project. The findings indicate that SMEs there have relatively good access to basic infrastructure and digital technologies. More than 90 percent report access to electricity, water, and internet services, although electricity reliability remains limited. The operators of the SMEs generally demonstrate strong growth ambitions, with most expecting increases in capital investment, workforce size, and market expansion in the coming year. The SMEs operate in a challenging business environment characterized by inflation, market disruptions, supply chain constraints, and recurring shocks. More than 90 percent reported experiencing at least one shock during the previous year, while concerns regarding corruption, governance, and limited access to finance remain widespread. At the same time, these SMEs maintain strong linkages with other actors in the agricultural value chains in which they operate and demonstrate considerable resilience and willingness to invest and grow despite many challenges. Overall, these initial SME baseline results show the critical roles SMEs are playing in creating value addition in agricultural value chains despite the challenging business environment and inefficiencies in markets in Sudan. These data, along with those to be collected through a planned endline survey of the same SMEs, will enable assessments to be made of the type of impacts the matching grants and associated business development support offered by the THABAT project had on SME performance and resilience.

Keywords: capacity building; resilience; value chains; agricultural value chains; small and medium enterprises; Sudan; Africa; Northern Africa (search for similar items in EconPapers)
Date: 2026-07-28
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