Annual Report 2022

On behalf of the Central Bank of Sudan, I would like to express my sincere gratitude and appreciation to the ministries, institutions, and government units for their cooperation in providing the necessary data and statistics for the preparation of this report.

I also cannot miss extending my thanks to the committee that undertook the review and revision, and to everyone who contributed effort to its preparation.

And Allah is the Grantor of success.
Amna Hassan Merghani Al-Tom
Governor of the Central Bank of Sudan
2026

The Sixty-Second Annual Report 2022 – Central Bank of Sudan ii Board of Directors of the Central Bank of Sudan As of 31/12/2022

Mr. Hussein Jangoul Yahya / Governor - Chairman of the Board of Directors Mr. Salah Sheikh El-Din Khidir / Deputy Governor - Member Mr. Ali El-Siddig Barai / Deputy Governor - Member Mr. Abdullah Ibrahim Ali / Undersecretary of the Ministry of Finance - Member Mr. Mohamed Zain Al-Abideen El-Fateh Mohamed - Member Dr. Siddig Rabah Ambderab - Member Dr. Murtada Khidir Mohamed - Member Mr. Yasser Banaga Ahmed / Secretary of the Board of Directors

The Sixty-Second Annual Report 2022 – Central Bank of Sudan iii
Table of Contents

Page No. Topic
1 Introduction
2 Executive Summary
9 Chapter One: Key Local, Regional, and Global Economic Developments During 2022 28 Chapter Two: Central Bank of Sudan Policies for 2022 42 Chapter Three: Central Bank of Sudan Accounts for 2022 52 Chapter Four: Money Supply for 2022 66 Chapter Five: Banks and Non-Banking Financial Institutions for 2022 113 Chapter Six: The State's General Budget 128 Chapter Seven: National Accounts and Demographic Changes for 2022 152 Chapter Eight: Production for 2022 179 Chapter Nine: Foreign Trade for 2022 197 Chapter Ten: Balance of Payments, International Investment Position, and External Debt for 2022

The Sixty-Second Annual Report 2022 – Central Bank of Sudan 0 Central Bank of Sudan

The Sixty-Second Annual Report 2022 – Central Bank of Sudan 1 Introduction

The Annual Report of the Central Bank of Sudan for 2022 was issued amidst an economic reality that witnessed a freeze in the work of the reform program, and the suspension of financial, technical, and economic support provided by the international community due to political instability. Despite the fact that the implementation of economic reforms was accompanied by harsh measures, including tax increases and government service fees, including electricity services, along with the cessation of the 'Thamarāt' (Fruits) program to support poor families, the actual performance indicates the achievement of some positive results for the economic reform program during 2

Central Bank of Sudan – Sixty-Second Annual Report 2022 In the external sector, the current account surplus as a percentage of GDP rose from 2.9% in 2021 to 7.4% in 2022.
Below is a review of the performance of some economic indicators, including growth, inflation, current account, and unemployment rates in industrial countries and developing countries in the Middle East and North Africa region, Afghanistan, and Pakistan, in addition to economic indicators for Sudan's most important partners in trade and investment, and the economic performance of regional blocs to which Sudan is a member.
1.3.1 Economic Performance of Growth, Inflation, Unemployment, and Current Account Rates in Major Industrial Countries:
Table (1-1) shows the growth, inflation, current account, and unemployment rates as a percentage of GDP in major industrial countries for both 2021 and 2022. Figure (1-1) also illustrates the performance of these indicators during 2022.
Table (1-1)
Growth, Inflation, Current Account, and Unemployment Indicators in Major Industrial Countries for 2021 and 2022

Indicators	Growth Rates %	Inflation Rates %	Unemployment Rates %	Current Account as % of GDP %
	*2022	2021	*2022	2021	*2022	2021	*2022	2021
Industrial Countries (Combined)	2.4	5.2	7.2	3.1	Not available	Not available	(0.6)	0.6
United States of America	1.6	5.7	8.1	4.7	3.7	5.4	(3.9)	(3.7)
Japan	1.7	1.7	2.0	(0.2)	2.6	2.8	1.4	2.9
Germany	1.5	2.6	8.5	3.2	2.9	3.6	4.2	7.4
France	2.5	6.8	5.8	2.1	7.5	7.9	(1.3)	(0.4)
Italy	3.2	6.7	8.7	1.9	8.8	9.5	(0.2)	2.4
Spain	4.3	5.1	8.8	3.1	12.7	14.8	(0.2)	0.9
United Kingdom	3.6	7.4	9.1	2.6	3.5	4.2	(4.8)	(2.6)
Canada	3.3	4.5	6.9	3.4	5.3	7.4	0.5	0.0
Other Advanced Economies	2.8	5.3	6.5	2.5	Not available	Not available	5.7	7.1
Source: World Economic Outlook Report - October 2022 (International Monetary Fund – Global Financial and Economic Surveys).

Preliminary data
Revised data
The ( ) sign means negative.
Central Bank of Sudan – Sixty-Second Annual Report 2022
Figure (

Bank of Sudan - Annual Report, Second Sixty-Second - 2022 29 Bank of Sudan Central Policies for the Year 2022
1.2 Introduction
The Bank of Sudan's central policies for 2022 were issued in the context of a promising economic reality, represented by the removal of Sudan's name from the list of state sponsors of terrorism and Sudan's reaching the decision point in the Heavily Indebted Poor Countries (HIPCs) initiative, in addition to the economic reforms undertaken during 2021. This necessitated tightening policies, procedures, controls, and efforts that contribute to the integration of the Sudanese economy into the global economy, by adhering to supervisory and regulatory standards, enhancing transparency, and opening up Sudanese banks to the global financial system to create an investment environment. On the other hand, there were many challenges witnessed by the world due to the Corona pandemic, which negatively affected the global economy in general, in addition to the challenges faced by the Sudanese economy in particular, which were represented by the recurring deficit in the state's general budget and current account, and high inflation rates. This necessitated that the Bank of Sudan's central policies for 2022 take all these considerations into account. The central bank's policies for 2021 were based on specific references, including: the government's program for the transitional period, guidelines, the diverse amendments law for 2021, the general budget indicators for the state for 2022, the goals of the United Nations Sustainable Development Goals (SDGs), and the evaluation of the Bank of Sudan's central policies performance for 2021. The 2021 policies aimed at three main axes, with the first axis being achieving monetary stability by working to achieve general price stability and reducing the inflation rate to a single digit by the end of the year, and sustaining exchange rate stability. This was to be achieved by continuing the managed flexible exchange rate policy, using available monetary tools, reforming and managing the exchange rate, maximizing foreign currency resources, rational

Central Bank of Sudan – Sixty-Second Annual Report 2022 The number of bank branches operating during the evening period increased by the end of 2022 to 107 branches from 106 branches in 2021.
2. The most important performance indicators in the microfinance sector are summarized as follows:
a. The number of microfinance institutions increased from 47 institutions in 2021 to 51 institutions and companies by the end of the year. b. The actual volume of microfinance granted to microfinance clients by banks increased from SDG 73,446.2 million at the end of December 2021 to SDG 174,859.6 million at the end of December 2022, an increase of 138.1%.
c. The ratio of microfinance to the total portfolio in banks increased from 6.0% at the end of 2021 to 9.5% at the end of 2022, while the targeted ratio is 12% of the total financing portfolio of banks.
d. The delinquency rate of microfinance in banks decreased from 3.5% at the end of 2021 to 1.0% at the end of 2022, and the delinquency rate in microfinance institutions decreased from 8.6% at the end of 2021 to 2.8% at the end of 2022.

Central Bank of Sudan – Sixty-Second Annual Report 2022 Central Bank of Sudan

Central Bank of Sudan – Sixty-Second Annual Report 2022

Chapter Three
Central Bank of Sudan Accounts for 2022

Central Bank of Sudan – Sixty-Second Annual Report 2022

Central Bank of Sudan – Annual Report 2022, Second Sixty 57

In 2019, the significant decline in the curve was due to relative stability in the exchange rate, which was SDG/USD at the end of 2018. However, the curve returned to an upward trend in 2020 and 2021, due to the large increase in government borrowing from the banking system to finance the general budget deficit, in addition to the significant change in the exchange rate in 2021.

3.2.4 Main Sources of Monetary Expansion

Table (4-2) shows the main sources of monetary expansion at the end of each of the years 2021 and 2022.

Table (4-2)
Main Sources of Monetary Expansion at the end of 2021 and 2022 Million Sudanese Pounds

Statement	2021	2022	Change *	Change Rate %	Contribution Rate to Expansion in Money Supply (%)
:---------------------------------------------------------------	:-------------	:-------------	:-------------	:--------------	:---------------------------------------------------
Central Bank of Sudan:
Revaluation of Assets and Liabilities (1)	4,568,664.4	5,636,712.9	1,068,048.50	23.4	65.5
Temporary Borrowing for Government	337,105.5	864,009.9	526,904.40	156.3	32.3
Payments to Meet Other Government Obligations	528,171.3	693,712.2	165,540.90	31.3	10.2
Commercial Banks:
Private Sector Financing	918,052.0	1,659,154.3	741,102.3	80.7	45.5
Of which: From Central Bank Resources via Deficit Liquidity Window	82,521.0	145,786.6	63,265.60	76.7	3.9
Public Institutions Financing:	236,337.4	292,559.7	53,355.30	22.3	3.3
Central Bank of Sudan	113,307.7	132,213.6	16,038.90	13.8	1.0
Commercial Banks	123,029.7	160,346.1	37,316.40	30.3	2.3

Source: Statistics Department - Central Bank of Sudan *Preliminary data Adjusted data (1) Revaluation of Central Bank of Sudan assets and liabilities only, not including commercial banks' assets and liabilities (see Table 3-1).

Each of the Central Bank of Sudan, commercial banks, and public institutions contributed to the monetary expansion that occurred in 2022. On the part of the Central Bank of Sudan, the item of revaluation of assets and liabilities contributed 65.5% of the total monetary expansion, with an increase of SDG 1,068,048.5 million at a rate of 23.4%. This is attributed to the change in the exchange rate, in addition to the contribution of the item of payments to meet other government obligations by 10.2% of the total monetary expansion in 2022, as a result of its increase from SDG 528,171.3 million at the end of 2021 to SDG 693,712.2 million at the end of 2022 at a rate of 31.3%. The increase in the item of temporary borrowing for the government also contributed 32.3% of the total monetary expansion for 2022.

Central Bank of Sudan – Annual Report 2022, Second Sixty 58

On the part of commercial banks, the contribution rate of private sector financing reached 45.5% of the total monetary expansion in 2022, as a result of the increase in commercial banks' financing from their own resources and additional resources from the Central Bank of Sudan through the deficit liquidity window, from SDG 918,052.0 million at the end of 2021 to SDG 1,659,154.3 million at the end of 2022 at a rate of 80.7%. On the part of public institutions financing, its contribution rate reached 3.3% of the total monetary expansion in 2022, as a result of the increase in the balance of financing granted to public institutions by the Central Bank of Sudan and commercial banks from SDG 236,337.4 million at the end of 2021 to SDG 292,559.7 million at the end of 2022 at a rate of 22.3%.

3.4 Monetary Base (Reserve Money)

The monetary base represents the liabilities corresponding to the Central Bank's assets, and its components include currency in circulation outside the Central Bank of Sudan (consisting of currency with the public and currency with commercial banks), in addition to commercial banks' reserves with the Central Bank and deposits included in the money supply with the Central Bank of Sudan. See Table (3-3).

The Central Bank of Sudan uses the monetary base as an operational target for managing monetary policy, whether expansionary or contractionary. The relationship between the monetary base and the monetary multiplier controls the final impact of these operations on the volume of total liquidity (money supply).

Table (4-3) shows the monetary base and the factors affecting it at the end of each of the years 2021 and 2022, as Figure (4-3) shows, the components of the monetary base contributed at the end of 2022.

Table (4-3)
Monetary Base and Factors Affecting It at the end of 2021 and 2022 Million Sudanese Pounds

Item	2021	2022	Change	Change Rate %	Contribution Rate to Expansion in Monetary Base (%)
:-------------------------------------------------------------------	:---------------	:---------------	:---------------	:--------------	:----------------------------------------------------
A/ Assets	2,697,792.3	3,635,497.7	937,705.4	34.8	100.0
Factors Affecting the Monetary Base
1. Net Foreign Assets	(3,129,719.6)	(4,457,831.6)	(1,328,112.0)	42.4	(141.6)
2. Revaluation	4,568,664.4	5,637,555.4	1,068,891.0	23.4	114.0
3. Net Domestic Assets	1,258,847.5	2,455,773.9	1,196,926.4	26.2	127.6
3 – 1 Net Claims on Government (Claims – Deposits)	966,882.7	1,865,611.6	898,728.9	19.7	95.8
3 – 1 – 1 Claims on Central Government	1,222,435.2	2,239,732.9	1,017,297.7	22.3	108.5
3 – 1 – 2 Central Government Deposits	255,552.5	374,121.3	118,568.8	2.6	12.6
3 – 2 Claims on Commercial Banks	135,899.9	243,520.2	107,620.3	2.4	11.5

Central Bank of Sudan – Annual Report 2022, Second Sixty 59

Item	2021	2022	Change	Change Rate %	Contribution Rate to Expansion in Monetary Base (%)
:-------------------------------------------------------------------	:---------------	:---------------	:---------------	:--------------	:----------------------------------------------------
3 – 3 Claims on Public Institutions	113,071.9	132,213.6	19,141.7	0.4	2.0
3 – 4 Liquidity Management Tools (Shahab)	0.0	1,250.0	1,250.0	0.0	0.1
3 – 5 Other Net Items	42,993.1	213,178.4	170,185.3	3.7	18.1
Total Assets = (1+2+3)	2,697,792.3	3,635,497.7	937,705.4	20.5	100.0
B/ Liabilities = (1+2+3)	2,697,792.3	3,635,497.7	937,705.4	20.5	100.0
Components of the Monetary Base
1. Currency in Circulation	988,657.8	1,377,766.1	389,108.3	8.5	41.5
1-1 With the Public	905,705.6	1,245,561.9	339,856.3	7.4	36.2
1-2 With Commercial Banks	82,952.2	132,204.2	49,252.0	1.1	5.3
2. Banks' Reserves with the Central Bank of Sudan (1)	1,441,703.8	1,934,536.5	492,832.7	10.8	52.6
3. Deposits Included in Money Supply with the Central Bank of Sudan (2)	350,382.8	455,399.3	105,016.5	2.3	11.2

Source: Statistics Department - Central Bank of Sudan *Preliminary data Adjusted data /1 Legal Cash Reserve and Current Account Balance with the Central Bank /2 Deposits of State and Local Governments and Public Institutions with the Central Bank of Sudan

Figure (4-4)
Contribution of Monetary Base Components at the end of 2021 and 2022

Component	2021 (%)	2022 (%)
:---------------------------------------------------------------	:---------	:---------
Currency in Circulation	36.6	37.9
Banks' Reserves with the Central Bank of Sudan	53.4	53.2
Deposits Included in Money Supply with the Central Bank of Sudan	13.0	12.5

Source: Table (4-4)

Central Bank of Sudan – Annual Report 2022, Second Sixty 60

4.3.1 Assets:

Assets corresponding to the monetary base increased from SDG 2,697,792.3 million at the end of 2021 to SDG 3,635,497.7 million at the end of 2022, at a rate of 34.8%. This is attributed to the increase in net domestic assets from SDG 1,258,847.5 million at the end of 2021 to SDG 2,455,773.9 million at the end of 2022, at a rate of 26.2%. In addition to this, the revaluation item witnessed an increase from SDG 4,568,664.4 million at the end of 2021 to SDG 5,637,555.4 million at the end of 2022, at a rate of 23.4%. The deficit in net foreign assets also recorded an increase from SDG 3,129,719.6 million at the end of 2021 to SDG 4,457,831.6 million at the end of 2022, at a rate of 42.4%.

4.3.2 Liabilities:

Total banks' reserves with the Central Bank of Sudan (legal cash reserve and current account balance with the Central Bank) increased from SDG 1,441,703.8 million at the end of 2021 to SDG 1,934,536.5 million at the end of 2022, at a rate of 10.8%, as a result of the increase in current account balances of commercial banks with the Central Bank by 39.0%. Currency in circulation (currency with the public and currency with commercial banks) also increased from SDG 988,657.8 million at the end of 2021 to SDG 1,377,766.1 million at the end of 2022, as a result of the increase in the volume of currency with the public from SDG 905,705.6 million at the end of 2021 to SDG 1,245,561.9 million at the end of 2022, at a rate of 7.4%, where currency with the public amounted to 90.4% of currency in circulation, and 34.3% of the monetary base, with a contribution of 41.5% to the expansion in the base, compared to 24% at the end of 2021. Currency with commercial banks also increased from SDG 82,952.2 million at the end of 2021 to SDG 132,204.2 million at the end of 2022, at a rate of 1.1%, where it reached 9.6% of currency in circulation and 3.6% of the monetary base.

4.4 Monetary Multiplier, Velocity of Money, and Monetary Deepening

The monetary multiplier is defined as an indicator for measuring the ability of banks to generate money in the national economy, and it is measured by dividing the broad money supply by the monetary base.

The velocity of money is defined as the number of times a unit of money is exchanged to settle economic transactions and exchanges during a specific period. It is measured by dividing the Gross Domestic Product at current prices by the broad money supply.

Monetary deepening means the expansion of the phenomenon of public interaction with financial and banking institutions; therefore, this indicator is related to the extent of the ability of financial and banking institutions to attract the public to deal with them. It is affected by several factors, the most important of which are the level of individual income, the volume of savings, the return on deposits, the degree of banking penetration, the extent of the spread of modern payment methods, and the extent of banking awareness among the public. The most common methods used to measure it are the following:

Central Bank of Sudan – Annual Report 2022, Second Sixty 61

4.4.1 Money Supply / Nominal Gross Domestic Product:

This indicator reflects the extent of the monetary sector's ability to absorb non-monetary economic activities. An increase in this ratio is considered a positive indicator, meaning that many existing or newly created economic activities have been covered by the monetary sector.

4.4.2 Total Deposits / Nominal Gross Domestic Product:

This indicator reflects the extent of the banking sector's absorption and its ability to attract deposits. Therefore, an increase in this ratio is considered a positive indicator, as the volume of bank deposits increases faster than the increase in GDP, and it indicates public confidence in the banking system and the increase in banking awareness.

Table (4-4) shows the monetary multiplier, velocity of money, and monetary deepening during the period (2018-2022), while Figure (4-5) shows the monetary multiplier for the period (2018-2022) and Figure (4-6) shows the velocity of money and monetary deepening for the period (2018-2022).

Table (4-4)
Monetary Multiplier, Velocity of Money, and Monetary Deepening during the Period (2018-2022) Million Sudanese Pounds

Item	2018	2019	2020	2021	2022 *
:-------------------------------------------------------------------	:-------------	:-------------	:-------------	:-------------	:-------------
Money Supply	430,986.0	689,797.6	1,302,229.6	3,296,958.8	4,927,294.0
Monetary Base	291,006.3	516,364.6	1,034,142.5	2,697,792.3	3,635,497.7
Gross Domestic Product	1,318,969.1	1,950,330.2	4,727,134.7	18,703,277.0	38,902,816.0
Currency with the Public	112,832.2	281,335.7	560,312.3	905,705.6	1,245,561.9
Deposits (1)	306,203.0	367,217.9	683,086.9	2,156,570.0	3,358,379.5
Monetary Multiplier (2)	1.4810	1.3359	1.2592	1.2221	1.3553
Velocity of Money (Number of times) (3)	3.0604	2.8274	3.6300	5.6729	7.8954
Monetary Deepening Measurement Methods (4)
(a) Money Supply / Nominal Gross Domestic Product %	32.7	35.4	27.5	17.6	12.7
(b) Deposits / Nominal Gross Domestic Product %	23.2	18.8	14.5	11.5	8.6

Source: Statistics Department – Central Bank of Sudan *Preliminary data Adjusted data (1) Includes all bank deposits in local and foreign currencies.
(2) Monetary Multiplier = Broad Money Supply / Monetary Base.
(3) Velocity of Money = GDP at Current Prices / Broad Money Supply.
(4) Monetary Deepening Measurement Methods:
Broad Money Supply / Nominal Gross Domestic Product Deposits / Nominal Gross Domestic Product

Central Bank of Sudan – Annual Report 2022, Second Sixty 62

Figure (4-4)
Monetary Multiplier during the Period (2018-2022)

From Figure (4-4), it is clear that the monetary multiplier had a downward trend from 1.4810 in 2018 to 1.2221 in 2021, before rising slightly to 1.3553 in 2022. This downward trend reflects the monetary base's decreasing ability to generate a similar expansion in money supply, indicating a decline in the efficiency of the money creation process. It is noted that the relative improvement in the multiplier during 2022 reflects a greater increase in bank deposits compared to the monetary base, although the multiplier's return to its recorded level in 2018 was not achieved.

Figure (4-5)
Velocity of Money during the Period (2018-2022)

Source: Table (4-4)

Central Bank of Sudan – Annual Report 2022, Second Sixty 63

Figure (4-5) shows that the velocity of money increased steadily during the period 2018-2022, rising from 3.0604 times in 2018 to 7.8954 times in 2022. This indicates an increase in the number of times a unit of money is used to generate nominal output. However, this increase should be interpreted in light of the large expansion in nominal GDP, especially during 2021-2022, which was greatly affected by the increase in the general price level and exchange rate changes. Therefore, the sharp increase in velocity of circulation does not necessarily mean an improvement in real economic activity, but rather partially reflects the acceleration of nominal variables and the decline in the purchasing power of money.

Figure (4-6)
Monetary Deepening during the Period (2018-2022)

Source: Table (4-4)

From Figure (4-6) and Table (4-4), a consistent decrease in monetary deepening is observed during the period (2018-2022); the ratio of money supply to GDP decreased from 32.7% to 12.7%, and the ratio of deposits to GDP from 23.2% to 8.6%. This indicates a decline in financial intermediation and the real value of monetary balances and deposits.

4.5 Money Supply and Inflation

Inflation is defined as a continuous increase in the general price level, and it is considered a monetary phenomenon. There is a direct relationship between money supply and prices, as an increase in money supply leads to higher prices, a decrease in the purchasing power of money, and a decline in the level of economic activity for the state.

Figure (4-7) shows the growth rate of money supply and inflation during the period 2018-2022.

Central Bank of Sudan – Annual Report 2022, Second Sixty 64

Figure (4-7)
Growth Rate of Money Supply and Inflation during the Period (2018–2022)

From Figure (4-7), a clear relationship is observed between the developments in money supply growth and the inflation rate during the period 2018-2022. In 2018, money supply growth increased to 111.7%, coinciding with an increase in inflation to 62.8%. In 2019, money supply growth decreased to 60.1%, with inflation declining to 57.0% due to relative stability in the exchange rate. In 2020, money supply growth increased to 88.8%, coinciding with a sharp increase in inflation to 269.3%. Monetary expansion continued during 2021, with money supply growth reaching 153.2%, accompanied by an increase in inflation to 318.2%, which reflects the growing monetary and price pressures. The sharp increase in inflation during 2020-2021 was attributed to the cumulative effect of monetary expansion, exchange rate adjustments, and the increase in the costs of goods and services, and subsidy removal, in addition to inflationary and speculative expectations. In 2022, money supply growth decreased to 49.4%, and inflation decreased to 87.3%, indicating a relative improvement in monetary and price pressures, although inflation remained at high levels.

Central Bank of Sudan

Central Bank of Sudan – Annual Report 2022, Second Sixty 66

Banks and Non-Banking Financial Institutions for the Year 2022

Central Bank of Sudan – Annual Report 2022, Second Sixty 67

5.1 Introduction:

This chapter discusses the most important developments related to the performance of banks and non-banking financial institutions.

The financial sector includes all resident financial institutions whose primary activity is limited to providing financial intermediation services or assisting in financial intermediation operations. Banks provide various payment methods, attract depositors' funds and savings, and then invest them through priority economic sectors. Financial institutions include all financial institutions: banking (Central Bank of Sudan and banks) and non-banking financial institutions.

It is worth noting that the values contained in the tables of this chapter are nominal values that do not take into account the inflation rate, which reached 87.3% at the end of 2022 compared to an inflation rate of 318.2% at the end of 2021. The Central Bank of Sudan adopted a free exchange rate policy on March 7, 2022, where banks and exchange companies announce buying and selling prices according to supply and demand without intervention from the Central Bank.

5.2 Banking System:

5.2.1 Central Bank of Sudan:

The tasks of the Central Bank of Sudan, according to its law for 2002 as amended in 2012, are summarized in maintaining the stability of the general price level, the stability of the exchange rate, and the efficiency of the banking system through achieving the goals of financial stability and the soundness of the banking system. Its objectives include issuing currency of all types, regulating and monitoring it, formulating and implementing monetary policy, regulating and supervising banking operations, and working to develop and enhance its efficiency in a way that helps achieve balanced and sustainable economic and social development, in addition to its work as a bank, agent, and advisor to the government in monetary and financial affairs. The number of branches of the Central Bank remained seventeen branches, with one branch for each state of Sudan, except for one state (West Kordofan, under establishment), as in the previous year 2021.

2.4.1.1 Central Bank of Sudan Balance Sheet

Table (5-1) shows the Central Bank of Sudan's balance sheet at the end of 2021 and 2022 according to the standardized classification recommended by the International Monetary Fund for monetary statistics purposes.

Central Bank of Sudan – Annual Report 2022, Second Sixty 68

Table (5-1)
Central Bank of Sudan Balance Sheet at the end of 2021 and 2022 (Million Sudanese Pounds)

Statement	2021/12/31	2022/12/31 *	Contribution Rate %	Change %	Change Rate %
:-----------------------------------------------------------------------	:-------------	:-------------	:--------------------	:---------	:--------------
Total Assets	7,178,755.0	9,857,969.8	100.0	2,679,214.7	37.3
Foreign Currency, Balances with Correspondents Abroad, and Foreign Bonds	1,056,982.9	1,467,207.8	14.9	410,224.9	38.8
Financing and Advances to Banks	129,258.8	236,879.2	2.4	107,620.4	83.3
Temporary Advances to Government (Direct Borrowing)	337,105.5	864,009.9	8.8	526,904.4	156.3
Long-Term Financing to Government	120,796.1	120,796.1	1.2	0.0	0.0
Differences in Gold Purchase and Allocation Revenues for Central Government	36,054.4	36,083.4	0.4	29.0	0.1
Financing and Advances to Public Institutions	85,078.9	95,500.4	1.0	10,421.6	12.2
Contribution to Capital of Local Banks	6,641.0	6,641.0	0.1	0.0	0.0
Other Contributions (2)	28,050.5	36,770.6	0.4	8,720.1	31.1
Fixed Assets	2,458.5	7,055.6	0.1	4,597.1	187.0
Revaluation Account	4,568,664.4	5,636,712.9	57.2	1,068,048.5	23.4
Other Accounts	737,801.2	1,256,809.9	12.7	519,008.7	70.3
Total Liabilities	7,178,755.0	9,857,969.8	100.0	2,679,214.7	37.3
Paper and Metallic Currency in Circulation	988,657.8	1,377,766.1	14.0	389,108.3	39.4
Sight Liabilities (3):	1,964,687.0	2,631,852.8	26.7	667,165.9	34.0
Central Government	255,552.5	374,121.3	3.8	118,568.8	46.4
State and Local Governments	101,092.7	182,870.2	1.9	81,777.5	80.9
Public Institutions	249,290.1	272,529.1	2.8	23,239.0	9.3
Banks	1,358,751.6	1,802,332.2	18.3	443,580.7	32.6
Correspondents Abroad	24

Central Bank of Sudan – Annual Report, Sixty-Second, 2022 72 Total assets of operating banks increased by 51.6% in 2022, from SDG 3,518,274.9 million in 2021 to SDG 5,334,554.8 million in 2022. This increase was due to a rise in balances with other banks by 84.0%, private sector financing by 75.4%, local currency by 59.4%, and balances with foreign correspondents by 57.2%. On the liabilities side, the foreign correspondents item increased by 131.8% due to the rise in the exchange rate. Public institutions' deposits increased by 106.4%, and capital and reserves by 102.7%, while government deposits decreased by 70.3%.
Table (5-5) and Figure (5-1) illustrate the total banking deposits at the end of 2021 and 2022.

Table (5-5)
Total Banking Deposits at the End of 2021 and 2022 (SDG Million)

Statement	Central and State Government	Public Institutions	Private Sector	Total
Current Deposits:
2021	37,129.7	24,064.7	979,841.6	1,041,036.0
2022	19,462.8	57,636.1	1,387,143.2

2022 Annual Report – Central Bank of Sudan 85

1.4.2.5 Microfinance Policy

The Central Bank of Sudan continued to apply its policies aimed at allocating a minimum of 12% of the total financial portfolio to microfinance, whether through direct financing to customers or through microfinance institutions, cooperatives, and associations. Table (11-5) below shows the volume of microfinance granted by banks at the end of 2021 and 2022.

Table (11-5)
Volume of Microfinance Granted by Banks at the End of 2021 and 2022 (In Million Sudanese Pounds)

Item	2021	2022*	% Change Rate
Total Banking Finance	1,229,759.2	1,845,242.5	50.0
Targeted Microfinance Volume (According to Policy)	147,571.1	221,429.1	50.0
Actual Microfinance Volume via Microfinance Institutions (Wholesale)	11,451.5	43,492.7	279.8
Actual Direct Financing to Micro and Small Customers via Banks	61,994.7	131,367.0	111.9
Ratio of Actual Microfinance to Targeted Microfinance (%)	49.8	79.0	79.0
Ratio of Microfinance to Total Banking Finance (%)	6.0	9.5	9.5

Source: Microfinance Unit – Central Bank of Sudan

Adjusted data

The Central Bank of Sudan’s policies targeted allocating a minimum of 12% of the total financial portfolio. The actual volume of microfinance to institutions rose from 11,451.5 million Sudanese pounds at the end of 2021 to 43,492.7 million Sudanese pounds in 2022, representing a 279.8% increase. This is attributed to the increase in the volume of financial portfolios to the number of microfinance institutions adopted as part of the reform efforts and the increase in the microfinance unit. Additionally, the actual direct microfinance to customers via banks rose from 61,994.7 million Sudanese pounds in 2021 to 131,367.0 million Sudanese pounds in 2022, a 111.9% increase. This is also attributed to the policy of moral suasion and supervisory discipline towards banks working to comply with the targeted ratio of 12% (of the financial portfolio) as per the organization's regulations.

It is noted that the ratio of actual microfinance to targeted microfinance rose from 49.8% at the end of 2021 to 79.0% at the end of 2022, aiming to reach the targeted ratio. The actual performance ratio of microfinance to total banking finance also rose from 6.0% in 2021 to 9.5% in 2022.

Figure (5-4) below shows the volume of microfinance granted by banks at the end of 2021 and 2022.

Figure (5-4)
Volume of Microfinance Granted by Banks at the End of 2021 and 2022

2.4.2.5 Microfinance Institutions

As a result, the number of microfinance institutions and companies rose from 48 at the end of 2021 to 51 at the end of 2022. In addition, the capital of 9 operating institutions increased, with 3 additional institutions obtaining licenses to operate. Table (12-5) below shows the funding sources of microfinance institutions at the end of 2021 and 2022.

Table (12-5)
Funding Sources of Microfinance Institutions at the End of 2021 and 2022 (In Million Sudanese Pounds)

Source	2021 % of Total*	2021 Amount	2022 % of Total	2022 Amount	% Change Rate
Central Bank of Sudan	3.4	437.0	0.0	0.0	(100.0)
Arab Fund for Economic and Social Development	4.0	504.4	1.5	664.4	31.7
Banks	90.3	11,451.5	97.7	43,492.7	279.8
Islamic Development Bank - Jeddah Partnership	2.3	288.0	0.8	340.0	18.1
Total	100.0	12,680.9	100.0	44,497.1	250.9

Source: Microfinance Unit – Central Bank of Sudan

Adjusted data

Note: The Central Bank of Sudan exited the funding process for microfinance institutions in 2022.

The total balance of microfinance granted to microfinance institutions rose from 12,680.9 million Sudanese pounds at the end of 2021 to 44,497.1 million Sudanese pounds at the end of 2022, at a rate of 250.9%. This is attributed to the increase in the volume of wholesale microfinance, and following the decision to raise the microfinance ceiling for customers, the average loan granted through microfinance rose from 400,000 Sudanese pounds in 2021 to 1,500,000 Sudanese pounds in 2022, contributing at a rate of 275.0%.

Banks contributed 97.7% of the total microfinance granted to microfinance institutions, while the Arab Fund for Economic and Social Development and the Islamic Development Bank - Jeddah Partnership contributed at rates of 1.5% and 0.8%, respectively.

Figure (5-5) below shows the contribution ratios of funding sources for microfinance institutions during 2021 and 2022.

Figure (5-5)
Contribution Ratios of Funding Sources for Microfinance Institutions During 2021 and 2022

Source: Data from Table (12-5)

The total microfinance granted to microfinance institutions rose at a rate of 250.9% in 2022 compared to 2021, at a rate of 402.1%. This was where the total financing granted by banks before rose from 11,451.5 million Sudanese pounds at the end of 2021 to 43,492.7 million Sudanese pounds in 2022, at a rate of 279.8%. Also, the total financing granted by the Arab Fund for Economic and Social Development rose from 504.4 million Sudanese pounds in 2021 to 664.4 million Sudanese pounds in 2022, at a rate of 31.7%. Also, the financing volume granted by the Islamic Development Bank - Jeddah Partnership rose from 288.0 million Sudanese pounds in 2021 to 340.0 million Sudanese pounds in 2022, at a rate of 18.1%.

Table (13-5) below shows the volume of microfinance for microfinance institutions and banks that are in distress at the end of 2021 and 2022.

Footnote 1: Circular No. (2/2021) and Circular No. (5/2022) from the Central Bank of Sudan.

Table (13-5)
Volume of Distressed Microfinance for Microfinance Institutions and Banks at the End of 2021 and 2022 (In Million Sudanese Pounds)

Source	2021 Contribution %	2021 Amount	2022 Contribution %	2022 Amount	% Change Rate
Microfinance Institutions (1)
Existing Microfinance	15.9	11,704.7	26.9	48,453.6	314.0
Distressed Microfinance	34.1	1,116.8	51.0	1,376.8	23.3
Distress Ratio in Institutions (%)		9.5		2.8	9.5
Banks (2)
Existing Microfinance	84.1	61,994.7	73.1	131,367.0	111.9
Distressed Microfinance	65.9	2,156.8	49.0	1,322.2	(38.7)
Distress Ratio in Banks (%)		3.5		1.0	3.5
Total (3)
Existing Microfinance		73,699.4		179,820.6	144.0
Distressed Microfinance		3,273.6		2,699.0	(17.6)
Microfinance Distress Ratio (%)		4.4		1.5	4.4

Source: Microfinance Unit – Central Bank of Sudan

The microfinance distress ratio decreased from 4.4% in 2021 to 1.5% in 2022. Also, the distress ratio in banks decreased from 3.5% in 2021 to 1.0% in 2022, and the distress ratio in microfinance institutions decreased from 9.5% in 2021 to 2.8% in 2022.

5.2.5 Credit Scoring and Classification Agency

The activity of the Credit Scoring and Classification Agency involves providing credit information through credit scoring. This is done by collecting demographic data for customers, such as banks, microfinance institutions, and leasing companies, and financial data and data from related parties, then analyzing and presenting it to help the Central Bank of Sudan evaluate the creditworthiness of customers. It also helps lending institutions identify potential risks, such as non-compliance with repayment obligations (distress), and provides information to evaluate the possibility of new financing operations based on customer history, in addition to providing information on customers in the blacklist database. It is worth mentioning that the Agency provides reports to the relevant supervisory administrations at the Central Bank of Sudan. In addition to expanding the Credit Scoring and Classification Department, the Agency held workshops and seminars to promote the culture of credit scoring, aiming to improve information quality according to international standards and diversify data sources based on the principle of data source diversification.

The performance of the Agency during 2022 is reviewed below:

1.5.2.5 Credit Symbol for Customers

Table (14-5) below shows the status of issuing credit symbols for customers at the end of 2021 and 2022.

Table (14-5)
Status of Issuing Credit Symbols for Customers at the End of 2021 and 2022

Item	2021	2022*	% Change Rate
Individuals	1,931,258	2,304,909	19.3
Companies	37,001	41,737	12.8
Organizations 1	37,457	41,260	10.2
Total	2,005,716	2,387,906	19.1

Source: Credit Scoring and Classification Agency

Adjusted data

1 Organizations include voluntary organizations such as ministries, unions, neighborhood service committees, clubs, mosques, cooperatives, etc., that do not have a commercial register or tax number.

Table (14-5) shows that the number of credit symbols issued by the Agency rose from 2,005,716 symbols at the end of 2021 to 2,387,906 symbols at the end of 2022, at a rate of 19.1%.

2.5.2.5 Credit Inquiry for Customers

The Credit Scoring and Classification Agency provides credit inquiry services for customers of the banking sector, other financial institutions, and microfinance institutions.

Table (15-5) below shows the number of credit inquiries for customers during 2021 and 2022.

Table (15-5)
Number of Credit Inquiries for Customers During 2021 and 2022

Item	2021	2022	% Change Rate
Individuals	3,221,517	3,601,359	11.8
Companies	185,427	210,368	13.5
Organizations	42,383	46,748	10.3
Total	3,449,327	3,858,475	11.9

Source: Credit Scoring and Classification Agency

Table (15-5) shows that the number of credit inquiries for bank customers rose from 3,449,327 inquiries during 2021 to 3,858,475 inquiries during 2022, at a rate of 11.9%.

6.2.5 Electronic Banking Services (EBS) Company Limited

The Electronic Banking Services (EBS) Company was established in 1999 as a joint-stock company between the Central Bank of Sudan, the Sudanese Telecommunications Company, and the Union of Sudanese Banks. The company aims to develop the electronic clearing system and the inter-bank linking system between the Central Bank of Sudan and the Sudanese Banks, and the system for current settlements (SIRG). The company contributed to pushing the wheel of banking technology in the country through developing electronic payment systems, including facilitating the use of the SWIFT system for all electronic external payments, in addition to other electronic payments such as ATMs, POS terminals, banking cards, and electronic wallets.

Table (16-5) below shows the number of electronic payment means at the end of 2021 and 2022.

Table (16-5)
Number of Electronic Payment Means at the End of 2021 and 2022

Item	2021	2022*	% Change Rate
ATMs	1,523	1,504	(1.2)
Banking Cards 1	1,993,338	2,083,946	4.5
POS Terminals	44,846	58,091	29.5
E-Wallet Cards	1,195,143	1,236,639	3.5

Source: General Administration of Banking Technology and Payment Systems - Central Bank of Sudan

Adjusted data
1 Active banking cards

The number of ATMs decreased from 1,523 machines in 2021 to 1,504 machines in 2022, at a rate of 1.2%. While the number of active banking cards rose from 1,993,338 cards in 2021 to 2,083,946 cards in 2022, at a rate of 4.5%. As for POS terminals, their number rose from 44,846 points in 2021 to 58,091 points in 2022, at a rate of 29.5%. Also, the number of e-wallet cards rose from 1,195,143 cards in 2021 to 1,236,639 cards in 2022, at a rate of 3.5%.

Table (17-5) below shows the number of electronic banking transactions during 2021 and 2022.

Footnote 1: Real Time Gross Settlement (RTGS)
Footnote 2: Sudanese Inter-bank Real time Gross Settlement (SIRG) Footnote 3: Society for Worldwide Interbank Financial Telecommunication (SWIFT)

Table (17-5)
Number of Electronic Banking Transactions During 2021 and 2022

Item	2021*	2022	% Change Rate
External Transactions (SWIFT) 1	90,840	94,114	3.6
Card Transactions	158,623	773,245	387.5
Issued Messages	211,639	232,735	10.0

Source: General Administration of Banking Technology and Payment Systems - Central Bank of Sudan

Adjusted data
1 Includes data related to national transfers and reversals.

Table (17-5) shows that the number of external issued messages via the SWIFT system rose from 90,840 messages during 2021 to 94,114 messages during 2022, at a rate of 3.6%. While the number of external received messages rose from 211,639 messages to 232,735 messages, at a rate of 10.0%. Also, card transactions rose from 158,623 transactions during 2021 to 773,245 transactions during 2022, at a rate of 387.5%.

3.5 Non-Financial Financial Institutions

Non-financial financial institutions include exchange companies, the Sudan Company for Financial Services Limited, and the National Insurance Company, the Sudan Stock Exchange, the Sudanese Depository and Guarantee Fund for Financial Investment, the Export and Credit Guarantee Agency, the Microfinance Guarantee Agency (Taysir), the Interbank Liquidity Management Fund, the Credit Scoring and Classification Agency, and microfinance institutions.

1.3.5 Exchange and Remittance Companies and Leasing Companies

Table (18-5) below shows the number of exchange and remittance companies at the end of 2021 and 2022.

Table (18-5)
Number of Exchange and Remittance Companies at the End of 2021 and 2022

Item	2021	2022*
Exchange Companies	19	18
Remittance Companies	16	18
- External	9	10
- Internal	7	8
Leasing Companies	2	2

Source: Financial Institutions Administration - Central Bank of Sudan

Adjusted data

The number of exchange companies decreased from 19 companies in 2021 to 18 companies in 2022, five of which were suspended from work, while the number of remittance companies rose from 16 companies in 2021 to 18 companies in 2022, including one internal remittance company suspended from work. Meanwhile, the number of leasing companies remained constant at 2 companies.

2.3.5 Resources and Uses of Exchange Companies

Table (19-5) below shows the total resources and uses of exchange companies during 2021 and 2022.

Table (19-5)
Total Resources and Uses of Exchange Companies During 2021 and 2022 (In Million Sudanese Pounds)

Item	2021	2022*	% Change Rate
Total Resources	173.7	120.9	(30.4)
Total Uses	51.4	59.3	15.4

Source: Policy Administration - Central Bank of Sudan

Adjusted data

The total resources of exchange companies decreased from 173.7 million dollars at the end of 2021 to 120.9 million dollars at the end of 2022, at a rate of 30.4%, compared to 79.9 million dollars at the end of 2021, which was the amount of purchases by the Central Bank of Sudan. While total uses rose from 51.4 million dollars in 2021 to 59.3 million dollars in 2022, at a rate of 15.4%.

Table (20-5) below shows the details of resources of exchange companies in 2021 and 2022.

Table (20-5)
Details of Resources of Exchange Companies in 2021 and 2022 (In Million Sudanese Pounds)

Item	2021	2022	% Change
Incoming Transfers (Over the Counter)	2.9	6.5	124.1
Cash	22.9	36.7	60.3
Received Transfers	54.3	24.0	(55.8)
Foreign Currency in Cash 3	93.6	53.7	(42.6)
Other
Total	173.7	120.9	(30.4)

Source: Policy Administration - Central Bank of Sudan

Adjusted data
1 Transfers sold by exchange companies
2 Sold in cash by exchange companies
3 Foreign currency amounts received in cash are adjusted so that they are not included in the resources of exchange companies during the period from the end of February 2021 to the end of August 2021, through Circular No. 2021/5 of the Central Bank of Sudan, to be treated as a flow and not a balance. 4 Represents payments for foreign subscriptions and registration fees, student allowances, and foreign transfers.

Incoming transfers to exchange companies decreased from 93.6 million dollars in 2021 to 53.7 million dollars in 2022, at a rate of 42.6%. The cash supply item (Over the Counter) also decreased from 54.3 million dollars in 2021 to 24.0 million dollars in 2022, at a rate of 55.8%. While received transfers in foreign currency in cash rose from 22.9 million dollars in 2021 to 36.7 million dollars in 2022, at a rate of 60.3%.

The increase in total resources and uses of exchange companies was contributed to by the travel and processing item, which accounted for 79.7% of the increase, and the foreign currency paid in cash item, which accounted for 184.8% of the increase in total resources and uses.

Table (21-5) below shows the details of uses of exchange companies at the end of 2021 and 2022.

Table (21-5)
Details of Uses of Exchange Companies at the End of 2021 and 2022 (In Million Sudanese Pounds)

Item	2021	2022	% Change
Outgoing Transfers and Processing	14.7	7.9	(46.3)
Foreign Currency in Cash 1	23.6	38.2	61.9
Other 2	9.6	3.4	(64.6)
Travel and Processing	3.5	9.8	180.0
Total	51.4	59.3	15.4

Source: Policy Administration - Central Bank of Sudan 1 Represents sales of foreign currency by exchange companies.
2 Represents payments for foreign subscriptions and registration fees, student allowances, and foreign transfers.

The definition of outgoing transfers was amended by Circular No. 2021/5 of the Central Bank of Sudan before 2021, which included exchange companies, and this item was excluded from the uses of exchange companies during the period from the end of February 2021 to the end of August 2021, to be treated as a flow and not a balance.

Total uses rose from 51.4 million dollars in 2021 to 59.3 million dollars in 2022, at a rate of 15.4%. Foreign currency for travel and processing rose from 3.5 million dollars in 2021 to 9.8 million dollars in 2022, at a rate of 180.0%. While outgoing transfers decreased from 9.6 million dollars in 2021 to 3.4 million dollars in 2022, at a rate of 64.6%. And received transfers in foreign currency rose from 23.6 million dollars in 2021 to 38.2 million dollars in 2022, at a rate of 61.9%.

2.3.5 Sudan Company for Financial Services Limited

The Sudan Company for Financial Services Limited is a company owned 99% by the Central Bank of Sudan and 1% by the Ministry of Finance and Economic Planning. It was established in 1998 and registered with the Companies Registry according to the Companies Act No. 1 of 1925. The company acts as a manager for various funds. It is known as a "Special Purpose Vehicle" (SPV) based on which various financial bonds are issued. The Central Bank of Sudan, in cooperation with the Ministry of Finance and Economic Planning, introduced it as an alternative to traditional Open Market Operations (OMOs) for Islamic banking systems, to manage liquidity and provide resources to finance the real budget deficit. The Sudan Company acts as a financial intermediary between the issuers of sovereign bonds (Shamm, Shihab, Sarh, Shihama, Shamal, Shama, and Shams) and the bondholders (individuals or institutions, representing the Ministry of Finance and Economic Planning or the Central Bank of Sudan). The company also organizes auctions in the primary securities market through the sale of participation certificates, including government investment certificates (Sarh), government participation certificates (Shahama), and asset leasing certificates (Shama for Khartoum Oil Refinery, Shams for Sudan Electricity Distribution Company).

The company continued to participate in the sale of government certificates during 2022. The details of the securities it manages are as follows: government investment certificates (Sarh) and government participation certificates (Shahama).

Table (22-5) below shows the total sales of government certificates at the end of 2021 and 2022.

Table (22-5)
Total Sales of Government Certificates at the End of 2021 and 2022

Item	2021	2022*	% Change Rate
Number of Certificates Sold
Government Participation Certificates (Shahama)	76,853,522	75,495,781	(1.8)
Government Investment Certificates (Sarh)	14,823,543	14,823,543	0.0
Asset Leasing Certificates (Shama for Khartoum Oil Refinery)	3,784,000	3,784,000	0.0
Asset Leasing Certificates (Shams for Sudan Electricity Distribution Company)	4,485,259	4,485,259	0.0
Total	99,946,324	98,588,583	(1.5)
Value (Million Sudanese Pounds)
Government Participation Certificates (Shahama)	38,426.8	37,748.0	(1.8)
Government Investment Certificates (Sarh)	1,482.4	1,482.4	0.0
Asset Leasing Certificates (Shama for Khartoum Oil Refinery)	1,892.0	1,892.0	0.0
Asset Leasing Certificates (Shams for Sudan Electricity Distribution Company)	2,242.6	2,242.6	0.0
Total	44,043.8	43,365.0	(1.5)
Contribution Ratio (%)
Government Participation Certificates (Shahama)	87.2	87.0	(1.8)
Government Investment Certificates (Sarh)	3.4	3.4	0.0
Asset Leasing Certificates (Shama for Khartoum Oil Refinery)	4.3	4.4	0.0
Asset Leasing Certificates (Shams for Sudan Electricity Distribution Company)	5.1	5.2	0.0
Total	100.0	100.0	(1.4)

Source: Sudan Company for Financial Services Limited

Adjusted data
1 To be liquidated in 2005

The total number of government certificates sold decreased from 99,946,324 certificates in 2021 to 98,588,583 certificates in 2022, at a rate of 1.5%. This was due to a decrease in the number of government participation certificates (Shahama) from 76,853,522 certificates in 2021 to 75,495,781 certificates in 2022, at a rate of 1.8%. Also, the value of sold certificates decreased from 44,043.8 million Sudanese pounds in 2021 to 43,365 million Sudanese pounds in 2022, at a rate of 1.4%.

The government certificates include:

1.2.3.5 Government Participation Certificates (Shahama)

These are certificates based on a partnership formula issued by the Ministry of Finance and Economic Planning on behalf of the government, marketed through the Sudan Company for Financial Services Limited and authorized companies at the Sudan Stock Exchange. They are short-term maturity certificates. Shahama certificates aim to attract national savings, provide an investment tool, and enable the Ministry of Finance and Economic Planning to borrow from the macroeconomic level of the Sudanese economy to reduce reliance on borrowing from the Central Bank of Sudan, thereby providing real financial resources that do not inflate capital and develop it. They contain a partnership component that includes investors, achieving a return for them according to the financial and administrative performance of the certificate, determined by the prevailing inflation rate and the efficiency of the partnership owners. These certificates are secured by first-degree lending from banks.

Table (23-5) below shows the sales of government participation certificates (Shahama) at the end of 2021 and 2022.

Table (23-5)
Sales of Government Participation Certificates (Shahama) at the End of 2021 and 2022

Entity	2021 Contribution %	2021 Value (Million SDG)	2021 Number	2022 Contribution %	2022 Value (Million SDG)	2022 Number	% Change Rate
Central Bank of Sudan	0.01	4.0	8,000	0.01	4.0	8,000	0.0
Banks	57.93	22,260.6	44,521,216	63.29	23,889.3	47,778,644	7.3
Companies and Funds	30.87	11,861.9	23,723,758	29.22	11,031.7	22,063,443	(7.0)
Public	11.19	4,300.3	8,600,548	7.48	2,822.8	5,645,694	(34.4)
Total	100.00	38,426.8	76,853,522	100.00	37,747.8	75,495,781	(1.8)

Source: Sudan Company for Financial Services Limited

Adjusted data

The number of government participation certificates (Shahama) sold decreased from 76,853,522 certificates valued at 38,426.8 million Sudanese pounds at the end of 2021 to 75,495,781 certificates valued at 37,747.8 million Sudanese pounds at the end of 2022, at a rate of 1.8%. A decrease was observed in the contribution of the public, considered the targeted entity for financing the budget deficit, from 11.19% at the end of 2021 to 7.48% at the end of 2022. Also, the contribution of companies and funds decreased from 30.87% at the end of 2021 to 29.22% at the end of 2022. This is attributed to the weak volume of new (subscription) issuances in 2022.

Table (24-5) below shows government participation certificate (Shahama) issuances for 2021 and 2022.

Table (24-5)
Government Participation Certificate (Shahama) Issuances for 2021 and 2022

Item	2021	2022*	% Change Rate
Number of Certificates Issued
Value (Million Sudanese Pounds)
Contribution Ratio (%)

Source: Sudan Company for Financial Services Limited

Adjusted data

96 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Table (5 – 24)
Issuances of Government Participation Certificates (Shahama) for the years 2021 and 2022

Statement	Change Rate %	2022	2021
		Number of Certificates	Value (SDG Million)	Number of Certificates	Value (SDG Million)
Subscription	(39.1)	(39.1)	4,863.8	9,727,600	7,982.9	15,965,800
Renewals	7.9	7.9	32,884.1	65,768,200	30,478.2	60,956,400
Liquidations	28.8	28.8	5,542.6	11,085,200	4,304.9	8,609,800
Net Issuances of Certificates	(5.7)	(5.7)	32,205.3	64,410,600	34,156.2	68,312,400
Average Profit %	2.6	20.0	19.5

Source: Sudan Financial Services Co. Ltd.

Table (5 – 24) shows that the volume of subscription in Government Participation Certificates (Shahama) decreased by 39.1% in 2022, compared to a decrease of 23.9% in the previous year 2021. Meanwhile, renewals increased by 7.9% in 2022 compared to 7.5% in 2021. Liquidations also increased by 28.8% by the end of 2022. Net issuances of certificates also decreased by 5.7% by the end of 2022.

Table (5 – 25) illustrates the profit distribution ratios for Government Participation Certificates (Shahama) during 2022.

Table (5 – 25)
Profit Distribution Ratios for Government Participation Certificates (Shahama) during 2022 (%)

Quarter of 2022	Issue Date	Profit Ratio (%)
First Quarter	2021/01/01	19.6
Second Quarter	2021/04/01	20.3
Third Quarter	2021/07/01	20.7
Fourth Quarter	2021/10/01	19.4

Source: Sudan Financial Services Co. Ltd.

Table (5 – 25) shows that the average profit distribution ratio for Government Participation Certificates (Shahama) increased from 19.5% in 2021 to 20.0% in 2022, at a rate of 2.6%.

2.2.3.5 Government Investment Sukuk (Sarh)
Work began on issuing these Sukuk in 2003 by Sudan Financial Services Co. Ltd. in the form of Mudarabah. They are managed and marketed in the primary market through the company and accredited financial brokerage firms. The term of these certificates ranges between 2 and 6 years.

97 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Government Investment Sukuk (Sarh) aim to gather national savings, encourage investment, manage liquidity at the overall economic level through what is known as open market operations, develop local capital markets, employ savings in government financing projects for infrastructure, health, education, and water sectors in various states of Sudan, and reduce inflationary effects.

Table (5 – 26) illustrates the sales of Government Investment Sukuk (Sarh) at the end of 2021 and 2022.

Table (5 – 26)
Sales of Government Investment Sukuk (Sarh) at the end of 2021 and 2022

Entity	Change Rate %	2022	2021
	Number of Certificates Sold	Value (SDG Million)	% Contribution to Total Value	Number of Certificates Sold	Value (SDG Million)	% Contribution to Total Value
Central Bank of Sudan	0.0	0.0	2,611,036	261.0	17.6	2,611,036	261.1	17.6
Banks	(33.6)	(33.6)	2,984,930	298.5	20.1	4,497,967	449.8	30.3
Companies and Funds	(3.7)	(3.7)	5,458,279	545.8	36.8	5,669,579	566.9	38.3
Public	80.5	80.4	2,681,551	268.2	18.1	1,486,260	148.6	10.0
Ministry of Finance and Economic Planning	94.6	94.7	1,087,747	108.8	7.4	558,701	55.9	3.8
Total	0.0	0.0	14,823,543	1,482.3	100.0	14,823,543	1,482.3	100.0

Source: Sudan Financial Services Co. Ltd.

Table (5 – 26) shows that the total number of Sarh Sukuk sold remained unchanged, at 14,823,543 Sukuk with a value of SDG 1,482.3 million at the end of each of the years 2021 and 2022. The number of Sukuk sold to the public increased from 1,486,260 Sukuk with a value of SDG 148.6 million in 2021 to 2,681,551 Sukuk with a value of SDG 268.2 million in 2022, at a rate of 80.5%. Similarly, certificates sold to the Ministry of Finance and Economic Planning increased from 558,701 Sukuk with a value of SDG 55.9 million in 2021 to 1,087,747 Sukuk with a value of SDG 108.8 million in 2022, at a rate of 94.6%. Meanwhile, the number of certificates sold to banks decreased from 4,497,967 Sukuk in 2021 to 2,984,930 Sukuk in 2022, at a rate of 33.6%. The number of Sukuk sold to companies and funds also decreased from 5,669,579 Sukuk in 2021 to 5,458,279 Sukuk in 2022, at a rate of 3.7%.

3.2.3.5 Khartoum Refinery (Shahama) Asset Ijara Certificates
Work began on these certificates in 2010, with their issuance based on the Ijara formula to mobilize resources from investors through a Sharia-compliant agency contract, then employing these resources to purchase refinery assets and lease them to the Ministry of Finance and Economic Planning as an operational Ijara to finance the refinery. These certificates aim to provide profitable investment opportunities, in addition to providing real financial resources for the state and reducing borrowing from the Central Bank.

98 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Table (5 – 27) illustrates the sales of Khartoum Refinery (Shahama) Asset Ijara Certificates at the end of 2021 and 2022.

Table (5 – 27)
Status of Shahama Certificates at the end of 2021 and 2022

Entity	Change Rate %	2022	2021
	Number of Certificates Sold	Value (SDG Million)	% Contribution to Total Value	Number of Certificates Sold	Value (SDG Million)	% Contribution to Total Value
Central Bank of Sudan	0.0	0.0	2,401,233	1,200.6	63.46	2,401,233	1,200.6	63.46
Banks	4.7	4.7	1,002,855	501.4	26.50	958,194	479.1	25.32
Companies and Funds	(15.9)	(15.9)	237,833	118.9	6.28	282,652	141.3	7.47
Public	16.7	12.6	1,413	0.7	0.04	1,255	0.6	0.03
Ministry of Finance and Economic Planning	0.0	0.0	140,666	70.3	3.72	140,666	70.3	3.72
Total	0.0	0.0	3,784,000	1,891.9	100.00	3,784,000	1,891.9	100.00

Source: Sudan Financial Services Co. Ltd.

Table (5 – 27) shows that the total number of certificates sold remained unchanged, at 3,784,000 certificates with a value of SDG 1,891.9 million for each of the years 2021 and 2022. This is due to the absence of new subscriptions or liquidations (until 2027).

4.2.3.5 Sudanese Electricity Distribution Company (Shasha) Asset Ijara Certificates
Work began on these certificates in 2013. They are an investment fund with an average term of 4 years, aiming to mobilize resources from investors through a Mudarabah contract to purchase assets of the Sudanese Electricity Distribution Company and lease them to the Ministry of Finance and Economic Planning as an operational Ijara to finance the company's operational expenses. The purpose was to provide profitable investment opportunities for investors and provide real financial resources for the state without inflationary pressures, in addition to developing the funds industry in the country.

Table (5 – 28) illustrates the status of Sudanese Electricity Distribution Company (Shasha) Asset Ijara Certificates at the end of 2021 and 2022.

99 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Table (5 – 28)
Status of Shasha Certificates at the end of 2021 and 2022

Entity	Change Rate %	2022	2021
	Number of Certificates Sold	Value (SDG Million)	% Contribution to Total Value	Number of Certificates Sold	Value (SDG Million)	% Contribution to Total Value
Central Bank of Sudan	0.0	0.0	93,720	46.9	2.1	93,720	46.9	2.1
Banks	0.0	0.0	1,260,567	630.3	28.1	1,260,567	630.3	28.1
Companies and Funds	0.0	0.0	1,612,327	806.2	35.9	1,612,327	806.2	35.9
Public	0.0	0	0	0.0	0.0	0	0.0	0.0
Ministry of Finance and Economic Planning	0.0	0.0	1,518,645	759.2	33.9	1,518,645	759.2	33.9
Total	0.0	0.0	4,485,259	2,242.6	100.0	4,485,259	2,242.6	100.0

Source: Sudan Financial Services Co. Ltd.

Table (5 – 28) shows that the total number of certificates sold remained unchanged, as it was in 2021, at 4,485,259 certificates with a value of SDG 2,242.6 million at the end of each of the years 2021 and 2022. This is due to the absence of new subscriptions or liquidations.

3.3.5 Financial Investment Promotion Company
The company aims to achieve immediate settlements for all transactions related to buying and selling securities on behalf of clients. This company also acts as an arm of the Central Bank of Sudan in the secondary market to contribute to achieving the objectives of monetary policy through open market operations, in addition to promoting all securities and financial products of Sudan Financial Services Company in both primary and secondary markets.

Table (5 – 29) illustrates the volume of Promotion Company activity at the end of 2021 and 2022.

Table (5 – 29)
Volume of Promotion Company Activity at the end of 2021 and 2022 (SDG Million)

Statement	Change Rate %	2022	2021
Secondary Market	2.0	1,411.5	1,384.3
Primary Market	(2.3)	448.9	459.7

Source: Financial Investment Promotion Company.

Table (5 – 29) shows that the contribution of the Promotion Company's activity in the secondary market increased by 2.0% in 2022, compared to a decrease of 27.1% in the previous year 2021, as a result of an increase in the trading rate (buying and selling). Meanwhile, the company's activity in the primary market decreased by 2.3% in 2022, compared to an increase of 20,658.3% in the previous year 2021. This was attributed to the absence of new subscriptions in issuances.

100 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

4.3.5 Company for Deposit Guarantee Fund for Bank Deposits
The Deposit Guarantee Fund was established in 1996 by the Law of the Deposit Guarantee Fund for Bank Deposits, with contributions from the Ministry of Finance and Economic Planning, the Central Bank of Sudan, and banks. The Deposit Guarantee Fund aims to insure bank deposits, especially small depositors' deposits, when the Central Bank of Sudan makes a decision to liquidate, merge, or withdraw the license of any bank in the banking system. It thus works to strengthen confidence in the banking system, as it is a branch of the financial safety net for the banking system. It also plays a reformative or curative role in improving the conditions of weak banks within the decisions taken by the Central Bank of Sudan to achieve financial safety for the banking system. In addition to this, it plays a preventive role complementing the supervisory role of the Central Bank of Sudan, which involves working to ensure the stability and safety of banks subject to the fund's guarantee and strengthening confidence in public deposits by guaranteeing them (especially small depositors), as well as by regularly analyzing their financial positions. The fund's management pays special attention to the preventive role and ensuring its effectiveness in detecting points of weakness in any bank at an early stage, which helps in taking appropriate corrective measures in consultation and coordination with the Central Bank of Sudan through a joint committee that holds its meetings periodically and continuously.

Therefore, the deposit guarantee for bank deposits is complementary to the Central Bank's guarantee, as the fund explicitly guarantees deposits, while the Central Bank of Sudan implicitly guarantees bank deposits through supervision, inspection, reform, and restructuring, setting monetary policies, guidelines, and preventive instructions, and determining reserve ratios, provisions, and others. Ultimately, the decision of merger or liquidation and payment to depositors is made by the Central Bank of Sudan through the Deposit Guarantee Fund for Bank Deposits, after directing payment according to the law.

Table (5 – 30) illustrates the volume of contributions to the Deposit Guarantee Fund for Bank Deposits at the end of 2021 and 2022.

1
According to paragraph (a) of the Law of Bank Deposits for 1996, guaranteed banks pay annually what is equivalent to two per thousand (0.002) of their total current and savings deposits; and according to paragraph (c), owners of investment accounts pay annually what is equivalent to two per thousand (0.002) of their total investment deposits. The ratio has been raised to three per thousand (0.003) according to Article (5) of the Law, which states that "the Board of Directors of the Fund, after consultation with the Governor, may amend the annual contribution ratios stipulated therein to the extent deemed necessary by the Board," which means that the annual contribution ratio is subject to change.

101 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Table (5 – 30)
Volume of Contributions to the Deposit Guarantee Fund for Bank Deposits at the end of 2021 and 2022 (SDG Million)

Contributors	Change Rate %	2022	2021
		% Contribution	Value	% Contribution	Value
Banks	117.4	39.4	874.0	43.2	402.0
Ministry of Finance and Economic Planning	114.8	5.9	131.0	6.6	61.0
Central Bank of Sudan	114.8	5.9	131.0	6.6	61.0
Owners of Investment Deposits	165.6	48.8	1,081.0	43.7	407.0
Total	138.1	100.0	2,217.0	100.0	931.0

Source: Deposit Guarantee Fund for Bank Deposits.

1
Paid by banks on behalf of those deposit owners by deducting it from the principal of their deposits.

Table (5 – 30) shows that the volume of contributions to the fund increased from SDG 931.0 million at the end of 2021 to SDG 2,217.0 million at the end of 2022, at a rate of 138.1%. This is due to the increase in the volume of guaranteed deposits in the banking system, as annual contributions are a percentage of the average total guaranteed deposits in the banking system.

5.3.5 Khartoum Stock Exchange for Financial Securities
The Khartoum Stock Exchange for Financial Securities operates under the Law of the Khartoum Stock Exchange for Financial Securities of 2016, with the aim of regulating and supervising financial markets, ensuring equal opportunities for dealers in securities, and protecting small investors. Among its most important features is working to transform part of society's savings into investments that help in capital financing, which is considered one of the most important factors of production. In addition, it works to expand awareness in securities by establishing new markets for trading. It also allows expert houses to provide specialized consultations for those wishing to deal in financial securities. The market situation has also been legalized under the supervision of the regulatory authority for financial markets (the supervisory authority was separated from the executive authority), and the market board has been granted the right to take necessary measures to protect the interests of shareholders and dealers in the market in any situation.

1.5.3.5 Key Functions of the Khartoum Stock Exchange for Financial Securities
The stock market is considered one of the most important financial institutions in the contemporary economy, performing a complementary function to other financial institutions such as banks, insurance companies, and others. The key functions of the Khartoum Stock Exchange for Financial Securities can be summarized as follows:

Encouraging savings and developing investment awareness among citizens and creating suitable conditions for employing savings in financial securities in a way that benefits the citizen and the Sudanese economy.

102 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Working to expand and enhance private ownership of productive assets in the national economy and transfer public ownership of capital assets of the state to the widest segments of society.
Developing and organizing the market for issuances by regulating and monitoring the issuance of financial securities and determining the conditions and requirements that must be met in prospectuses when offering financial securities for public subscription.
Developing and encouraging investment in financial securities and working to create the appropriate investment climate for them.
Providing all factors that help facilitate and speed up the liquidation of funds invested in financial securities in a way that serves the interests of investors.
Establishing optimal and fair trading principles among investor categories and ensuring equal opportunities for dealers in financial securities, especially for small investors.

2.5.3.5 General Index of the Khartoum Stock Exchange for Financial Securities
When calculating the general index of the Khartoum Stock Exchange for Financial Securities, 30 companies are included, which are called "index companies" and are among the 67 most liquid companies listed on the market under the eight stock sectors. It is symbolized by (KSE30).

Table (5 – 31) and Figure (5 – 6) illustrate the general index of the Khartoum Stock Exchange for Financial Securities during the period (2018-2022).

Table (5 – 31)
General Index of the Khartoum Stock Exchange for Financial Securities during the period (2018-2022) (Points)

Statement	2022	2021	2020	2019	2018
Khartoum Stock Exchange Annual Index	74,031.1	20,455.3	18,254.5	15,964.1	13,317.4
Change Rate (%)	261.9	12.1	14.3	19.9	216.9

Source: Khartoum Stock Exchange for Financial Securities.

103 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Figure (5 – 6)
General Index of the Khartoum Stock Exchange for Financial Securities during the period (2018-2022)

(This figure visually represents the data from Table 5-31, showing the Khartoum Stock Exchange Annual Index in points for the years 2018, 2019, 2020, 2021, and 2022, with corresponding values of 13,317.4, 15,964.1, 18,254.5, 20,455.3, and 74,031.1 respectively. The change rate for each year is also reflected.)

Source: Table (5 – 31) data.

Table (5 – 31) and Figure (5 – 6) show that the annual index of the Khartoum Stock Exchange for Financial Securities increased from 20,455.3 points in 2021 to 74,031.1 points in 2022, at a rate of 261.9%. This increase is attributed to the decision of the Khartoum Stock Exchange management regarding activating the trading of shares in public shareholding companies in the secondary market during the period September 1-14, 2022. The price limits were raised from 15% to 50% (decrease/increase) per trading session, and the trading commission for shares was also reduced to 50%. This, in turn, led to a significant increase in the market values of shares for some companies, which was reflected in the large increase in the market index.

3.5.3.5 Market Capitalization of the Khartoum Stock Exchange for Financial Securities

Table (5 – 32) illustrates the market capitalization of the Khartoum Stock Exchange for Financial Securities during the period (2018-2022).

Table (5 – 32)
Market Capitalization of the Khartoum Stock Exchange for Financial Securities during the period (2018-2022) (SDG Million)

Statement	2022	2021	2020	2019	2018
Market Capitalization	2,241,863	101,289	75,965	58,883	47,939
Change Rate (%)	2,113.3	33.3	29.0	22.8	141.7

Source: Khartoum Stock Exchange for Financial Securities.

Table (5 – 32) shows that the market capitalization of the Khartoum Stock Exchange for Financial Securities increased from SDG 101,289 million in 2021 to SDG 2,241,863 million in 2022, at a rate of 2,113.3%. This increase is attributed to the decision of the Khartoum Stock Exchange management regarding activating the trading of shares in public shareholding companies in the secondary market during the period September 1-14, 2022.

104 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

The price limits were raised from 15% to 50% (decrease/increase) per trading session, and the trading commission for shares was also reduced to 50%. This, in turn, led to a significant increase in the market values of shares for some companies, which was reflected in the large increase in market capitalization.

Table (5 – 33) illustrates the stock trading activity in the secondary market of the Khartoum Stock Exchange by sector at the end of 2021 and 2022.

Table (5 – 33)
Shares Traded by Sector at the end of 2021 and 2022

Sector	2022	2021
	Number of Shares Traded (Thousand Shares)	Number of Executed Contracts 1	Trading Volume (SDG Million)	% Contribution	Number of Shares Traded (Thousand Shares)	Number of Executed Contracts	Trading Volume (SDG Million)	% Contribution
Banks and Investment 2	609,919	355	8,095.6	87.63	491,823	302	579.8	68.76
Insurance	2,894	10	7.4	0.08	73	9	0.6	0.07
Commercial	1,896	70	461.9	5.00	163	47	16.4	1.95
Industrial	2,370	52	55.3	0.60	3,023	11	1.5	0.17
Agricultural	0	0	0.0	0.00	1,000	2	1.0	0.12
Communications and Media	139	16	1.6	0.02	339	19	2.0	0.24
Investment and Development 3	25,856	88	594.1	6.43	10,856	47	15.9	1.88
Brokerage Companies	8,059	21	21.9	0.24	1,445	5	226.0	26.81
Total	651,134	612	9,237.8	100.00	508,722	442	843.2	100.00

Source: Khartoum Stock Exchange for Financial Securities.

1
Means the buying/selling process that takes place between the buyer and seller during the trading session (executed deals).
2
Includes banks licensed by the Central Bank of Sudan to engage in banking, financial, investment, and brokerage activities.
3
This sector refers to companies that invest in educational, health, and real estate institutions, and services. It was previously called the Services sector.

Table (5 – 33) shows that the volume of stock trading in the market increased from SDG 843.2 million at the end of 2021 to SDG 9,237.8 million at the end of 2022, at a rate of 995.6%. The number of shares traded also increased from 508.7 million shares to 651.1 million shares, at a rate of 28.0% during the same period. Meanwhile, the number of executed contracts increased from 442 contracts to 612 contracts, at a rate of 38.5%.

The trading of shares was concentrated in the Banks and Investment sector, with a contribution rate of 87.63% in 2022, compared to 68.76% in 2021. This was followed by the Investment and Development sector, with a rate of 6.43% in 2022, compared to 1.88% in 2021. Then the Commercial sector, with a rate of 5.0% at the end of 2022, compared to 1.95% at the end of 2021.

105 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

The Industrial sector, the Brokerage Companies sector, and the Insurance sector accounted for 0.60%, 0.24%, and 0.08% respectively in 2022.

Table (5 – 34) illustrates the Sukuk trading activity in the secondary market of the Khartoum Stock Exchange by sector at the end of 2021 and 2022.

Table (5 – 34)
Sukuk Traded by Sector at the end of 2021 and 2022

Sector	2022	2021
	Number of Sukuk Traded (Thousand Sukuk)	Number of Executed Contracts	Trading Volume (SDG Million)	% Contribution	Number of Sukuk Traded (Thousand Sukuk)	Number of Executed Contracts	Trading Volume (SDG Million)	% Contribution
Sukuk and Funds	17,969	859	4,110.5	36.2	23,693	880	4,374.6	23.2
Investment Certificates*	15,767	7,890	7,247.8	63.8	32,438	19,629	14,483.3	76.8
Total	33,736	8,749	11,358.2	100.0	56,131	20,509	18,857.9	100.0

Source: Khartoum Stock Exchange for Financial Securities.

All certificates are Government Participation Certificates (Shahama).

Table (5 – 34) shows that the volume of Sukuk trading decreased from SDG 18,857.9 million in 2021 to SDG 11,358.2 million in 2022, at a rate of 39.8%. The number of Sukuk also decreased from 56.1 million Sukuk in 2021 to 33.7 million Sukuk in 2022. The number of executed contracts decreased from 20,509 contracts in 2021 to 8,749 contracts in 2022, at a rate of 57.3%.

6.3.5 Insurance Companies
Insurance companies aim to protect individuals and properties from material losses arising from the occurrence of a risk without the insured causing it. This is in exchange for a premium paid by the insured to the insurance company, on the condition that the insurance company compensates the insured for losses resulting from the realization of the risk insured against. Insurance covers areas such as property insurance, marine insurance, aviation, energy, agricultural insurance, car insurance, as well as medical and engineering insurance, various accident insurance, and other types of insurance. The surpluses and resources of insurance companies are employed in paying claims, in addition to investing in bank deposits, shares, government investment certificates (Shahama), bonds, lands, real estate, and any investments that do not violate Islamic Sharia. Furthermore, insurance companies bear 20% of total premiums as general and administrative expenses. After deducting general and administrative expenses, technical provisions, and commissions, the remaining amount is considered a surplus. After that, the legal reserve, provisions for doubtful debts, taxes, and Zakat are deducted. What remains is considered the distributable surplus, which is distributed at a minimum of 65% to policyholders and a maximum of 25% to employees.

106 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Here is a summary of the activity of insurance companies for each of the years 2020 and 2021 1:

1.6.3.5 Total and Net Premiums for Insurance Companies
Total insurance premiums include all amounts collected from the insured, while net insurance premiums represent the amounts after deducting the amounts paid to reinsurance companies as premiums.

Table (5 – 35) illustrates the total and net premiums for insurance companies at the end of 2020 and 2021.

Table (5 – 35)
Total and Net Premiums for Insurance Companies at the end of 2020 and 2021 (SDG Million)

Statement	Change Rate %	2021*	2020
Total Premiums	240.7	75,929	22,285
Net Premiums	214.3	42,296	13,458

Source: National Authority for Insurance Supervision.

*Adjusted data

Table (5 – 35) shows that the total insurance premiums increased from SDG 22,285 million in 2020 to SDG 75,929 million in 2021, at a rate of 240.7%. Net premiums also increased from SDG 13,458 million in 2020 to SDG 42,296 million in 2021, at a rate of 214.3%.

2.6.3.5 Total and Net Claims for Insurance Companies
Total claims represent the total amounts paid by insurance companies to the insured as compensation, while net claims represent the net amounts paid to the insured after deducting claims from reinsurance companies.

Table (5 – 36) illustrates the total and net claims for insurance companies at the end of 2020 and 2021.

Table (5 – 36)
Total and Net Claims for Insurance Companies at the end of 2020 and 2021 (SDG Million)

Statement	Change Rate %	2021*	2020
Total Claims	205.6	33,829	11,069
Net Claims	170.5	15,615	5,772

Source: National Authority for Insurance Supervision.

*Adjusted data

1
Data on insurance companies' premiums and claims is slow for one year due to data unavailability.

107 Central Bank of Sudan – Annual Report, Second Sixty-Second 2022

Table (5 – 36) shows that the total claims for insurance companies increased from SDG 11,069 million in 2020 to SDG 33,829 million in 2021, at a rate of 205.6%. Net claims also increased from SDG 5,772 million in 2020 to SDG 15,615 million in 2021, at a rate of 170.5%.

7.3.5 National Agency for Export Insurance and Finance
The National Agency for Export Insurance and Finance was established in 2005 under its Export Law, with the aim of encouraging and developing Sudanese exports, with the exception of petroleum and gold, by insuring export proceeds, providing financing, and carrying out promotional activities and marketing studies for export products and services. The agency commenced operations in January 2006 with a paid-up capital of SDG 55.3 million. The Central Bank of Sudan contributed 76

Sudan Central Bank – Annual Report 2022, Part Two 108
Table (5 – 38)
National Agency Activity in Export Finance at the end of 2021 and 2022 (Million SDG)

Statement	2021	2022	Change Rate %
Funded Finance (Net Repayment)	10.0	0.0	(100.0)
Total Finance	10.0	10.0	0.0
Outstanding Finance at the end of the period	10.0	0.0	(100.0)

Source: National Agency for Export Credit Guarantee.
Table (5-38) shows that no new financing operations were executed during 2022, and the total outstanding finance, amounting to SDG 10 million, was fully repaid/settled. This resulted from the settlement of the Agency's contribution to the Gum Arabic portfolio in 2021.

8.3.5 Interbank Liquidity Management Fund
The Fund was established in August 2014 under the provisions of the Financing Instruments Law of 1995 and the establishment order issued by the Central Bank of Sudan, numbered 2014/1 dated 21/8/2014, with the approval of the Minister of Finance and Economic Planning.

Central Bank of Sudan – Sixty-Second Annual Report 2022

Table (6-6) shows an increase in total current expenditures from SDG 1,510.3 billion in 2021 to SDG 3,189.5 billion in 2022, at a rate of 111.2%. The compensation of employees item accounted for 34.1% of total current expenditures, as it increased from SDG 290.8 billion in 2021 to SDG 1,087.4 billion in 2022. Support for strategic goods increased from SDG 649.7 billion in 2021 to SDG 778.5 billion in 2022, at a rate of 19.8%. Transfers to states increased from SDG 211.8 billion in 2021 to SDG 444.2 billion in 2022, at a rate of 109.7%, representing 13.9% of total current expenditures. Spending on goods and services also increased from SDG 174.8 billion to SDG 449.0 billion, at a rate of 156.8%, with a contribution of 14.1% to total current expenditures. Spending on social benefits during 2022 amounted to SDG 206.2 billion, compared to SDG 126.1 billion in 2021, at a rate of 63.6%, representing 6.5% of total current expenditures. The cost of financing, subsidies, and other expenditures also contributed, in addition to national obligations, at a rate of 6.3% of total current expenditures.

(b) Development Expenditures:

Table (7-6) and Figure (8-6) each show national development expenditures in local and foreign currency for 2021 and 2022 by sector.

Table (7-6)
National Development Expenditures in Local and Foreign Currency for 2021 and 2022 (Billion SDG)

Statement	2021					2022
	Budget Estimates	Actual Performance	Performance Rate (%)	Contribution Rate (%)	Budget Estimates	Actual Performance	Performance Rate (%)	Contribution Rate (%)
National Development in Local Currency	118.0	47.2	40.0	53.5	180.4	96.5	53.5	81.6	104.6
National Development in Foreign Currency*	198.3	41.0	20.7	46.5	0.0	21.8	-	18.4	-46.8
Total (Third Quarter)	316.3	88.2	27.9	100	180.4	118.3	65.6	100	34.2

Source: Ministry of Finance and Economic Planning *Represents the local equivalent for development in foreign currency according to the official exchange rate in the year.

National development expenditures increased by 34.2% from SDG 88.2 billion in 2021 to SDG 118.3 billion in 2022. The local equivalent for national development expenditures in foreign currency decreased from SDG 41.0 billion in 2021 to SDG 21.8 billion in 2022, at a rate of -46.9%. Meanwhile, development expenditures in local currency increased from SDG 47.2 billion in 2021 to SDG 96.5 billion in 2022, at a rate of 104.6%. The local component contributed 81.6% to development expenditures, while the foreign component contributed 18.4% to total development expenditures.

Central Bank of Sudan – Sixty-Second Annual Report 2022

Table (8-6) and Figure (8-6) show national development expenditures estimates and performance by sector for 2021 and 2022.

Table (8-6)
National Development Expenditures Estimates and Performance by Sector for 2021 and 2022 (Billion SDG)

Statement	2021					*2022
	Budget Estimates	Actual Performance	Performance Rate (%)	Contribution Rate (%)	Budget Estimates	Actual Performance	Performance Rate (%)	Contribution Rate (%)
Agricultural Sector	29.2	11.0	37.6	12.4	45.0	19.7	43.7	16.6	79.4
Industrial Sector	2.3	0.5	20.1	3.4	16.4	480.7	14.0	3395.0
Roads, Bridges and Transport Sector	9.3	10.8	116.6	12.3	3.7	26.4	706.7	22.3	143.7
Electricity, Water Resources and Mining Sector	203.0	27.0	13.3	30.7	54.0	17.2	32.0	14.6	-36.1
Social Development Sector	47.1	27.7	58.8	31.4	46.7	17.2	36.8	14.5	-37.9
Miscellaneous Sector	25.3	11.2	44.4	12.7	27.6	21.4	77.5	18.0	90.0
Total	316.2	88.2	27.9	100	180.4	118.3	65.6	100	34.1

Source: Ministry of Finance and Economic Planning *Preliminary data Modified data

Figure (8-6)
National Development Expenditures for 2021 and 2022

[Bar chart showing National Development Expenditures for 2021 and 2022 by sector. Categories: Agricultural Sector, Industrial Sector, Roads, Bridges and Transport Sector, Electricity, Water Resources and Mining Sector, Social Development Sector, Miscellaneous Sector. Values are in Billion SDG. For 2021, values are approximately: Agricultural (11.0), Industrial (0.5), Roads (10.8), Electricity (27.0), Social Development (27.7), Miscellaneous (11.2). For 2022, values are approximately: Agricultural (19.7), Industrial (16.4), Roads (26.4), Electricity (17.2), Social Development (17.2), Miscellaneous (21.4).]

Central Bank of Sudan – Sixty-Second Annual Report 2022

Table (8-6) and Figure (8-6) show that actual spending on national development reached SDG 118.3 billion, with a performance rate of 65.6% against the 2022 budget allocation of SDG 180.4 billion. It is noted that the Roads, Bridges and Transport sector had the largest share of development spending, amounting to SDG 26.4 billion, with a rate of 22.3%, followed by the Miscellaneous sector, which amounted to SDG 21.4 billion, with a rate of 18.0%. Spending on the Agricultural sector accounted for 16.6% of total development spending in 2022, amounting to SDG 19.7 billion, followed by the Electricity, Water Resources and Mining sector, which amounted to SDG 17.3 billion, with a rate of 14.6%, and then the Social Development sector, which amounted to SDG 17.2 billion, with a rate of 14.5%. Spending on the Industrial sector amounted to 13.9% of total development spending, with SDG 16.4 billion, at a rate of 3395.1% compared to 2021.

2-4-6 Budget Deficit and its Financing Sources

The overall budget deficit in 2022 decreased from the expected deficit, reaching SDG -478.9 billion, compared to an estimated SDG -1,034.1 billion, a decrease of 46.3%. However, it increased by 557.7% compared to the deficit in 2021, which was SDG -72.8 billion.

Table (9-6) shows the overall budget deficit and its financing sources for 2021 and 2022, while Figure (9-6) shows the internal debt instruments that contributed to financing the overall deficit for 2021 and 2022.

Table (9-6)
Overall Budget Deficit Estimates and Performance and its Financing Sources for 2021 and 2022 (Billion SDG)

Statement	2021					2022
	Budget Estimates	Actual Performance	Performance Rate %	Contribution Rate %	Budget Estimates	Actual Performance	Performance Rate %	Contribution Rate %
Overall Deficit	247.2	(72.8)	29.5	100.0	1,034.1	(478.9)	46.3	557.7
Sources of Deficit Financing	247.2	72.8	29.5	100.0	1,034.1	478.9	46.3	557.7
*Net Acquisition of Financial Assets	(23.1)	(1.8)	7.8	-2.4	(11.0)	(5.6)	51.5	(1.2)	-416.1
External Financing (Loan Disbursements)	242.9	15.1	6.2	20.7	-	-	0.0	100.0
External Financing (Repayments)	(97.3)	(38.7)	39.8	-53.1	-	(0.6)	-	-0.1	-98.5
Net External Financing	145.6	(23.6)	-16.2	-32.4	-	(0.6)	-	-0.1	-97.5
Internal Financing (Disbursements)	158.5	134.8	85.0	185	1,323.9	778.7	58.8	162.6	478.0
Internal Financing (Repayments)	(33.8)	(36.6)	108.2	-50.2	(278.8)	(293.6)	105.3	-61.3	702.7
Net Internal Financing and Debt Instruments	124.7	98.2	78.7	134.8	1,045.1	485.1	46.4	101.3	394.2
Shahama	6.0	6.5	107.8	8.9	6.0	0.4	6.1	0.1	-94.4
Treasury Bonds	-	-	-	-	40.0	-	-	-	-
Government Investment Sukuk	86.5	(0.2)	-0.2	-0.3	17.5	(0.5)	-2.7	-0.1	132.1
Guarantees	(17.8)	47.8	268.0	65.6	725.0	190.7	26.3	39.8	299.1
Arrears	(2.0)	(2.8)	139.1	-3.8	(207.3)	(230.4)	111.1	-48.1	8,184.7
Borrowing from Central Bank	52.0	46.9	90.2	64.4	463.9	524.9	113.2	109.6	1,019.7

Source: Ministry of Finance and Economic Planning *Government contribution to assets or liquidation of new assets

Central Bank of Sudan – Sixty-Second Annual Report 2022

(a) Net Acquisition of Financial Assets:
Net acquisition of financial assets amounted to SDG (5.6) billion in 2022, with a contribution of 1.2% of total deficit financing.

(b) External Financing:
No loans were drawn in foreign currency in 2022, while repayments amounted to SDG 0.6 billion. Accordingly, net external financing amounted to SDG -0.6 billion, with a contribution of -0.1% of total deficit financing.

(c) Internal Financing:
Actual performance for internal financing disbursements in 2022 amounted to SDG 778.7 billion, and total repayments were SDG 293.6 billion. The difference between them, which is SDG 485.1 billion, represents net internal financing, which contributed 101.3% of total deficit financing.

(d) Internal Debt Mechanisms:
Financing sources include temporary borrowing from the Central Bank of Sudan, government participation certificates (Shahama), government investment sukuk (Sarf), guarantees, and arrears and treasury bonds. In the 2022 budget, government sukuk maturities (principal + profits) and internal debt arrears represented an additional burden on the budget. In addition to financing the overall deficit, guarantees issued in 2022 represented 39.8% of deficit financing. Temporary borrowing amounted to 109.6% of overall deficit financing, reaching SDG 526.9 billion, which represents 15.8% of total estimated public revenues for 2022. However, SDG 2 billion of long-term borrowing was repaid, bringing net borrowing from the Central Bank during the year to SDG 524.9 billion. Shahama certificates issued amounted to SDG 0.4 billion, representing 0.1% of total deficit financing.

Figure (9-6)
Internal Debt Instruments for Financing the Budget Deficit for 2021 and 2022

[Bar chart showing Internal Debt Instruments for Financing the Budget Deficit for 2021 and 2022. Categories: Shahama, Sukuk, Treasury Bonds, Guarantees, Arrears, Borrowing from Central Bank of Sudan. Values are in Billion SDG. For 2021, values are approximately: Shahama (6.5), Sukuk (-0.2), Guarantees (47.8), Arrears (-2.8), Borrowing from Central Bank (46.9). For 2022, values are approximately: Shahama (0.4), Sukuk (-0.5), Guarantees (190.7), Arrears (-230.4), Borrowing from Central Bank (524.9). Treasury Bonds show no value for either year.]

Central Bank of Sudan – Sixty-Second Annual Report 2022

Chapter Seven
National Accounts and Demographic Changes for the Year 2022

Central Bank of Sudan – Sixty-Second Annual Report 2022

National Accounts and Demographic Changes for the Year 2022

1.7 Introduction
National accounts are an accounting framework that allows for the compilation and presentation of macroeconomic information to benefit from it in economic analysis, preparing economic policies, plans and programs, monitoring and evaluating economic performance, and identifying and addressing imbalances in the economy. It also provides a comprehensive overview of the economy, including measuring production and income generation, income distribution among economic sectors, and the use of income for consumption, saving, and changes in assets and liabilities. National accounts are prepared by the Central Bureau of Statistics in accordance with the System of National Accounts (SNA) 1968, issued by the International Monetary Fund.

This chapter covers Gross Domestic Product, Gross National Product, and Gross National Income and per capita income at current and constant prices. It also covers price indices at current prices, which reflect inflation rates, in addition to demographic changes represented by population size, gender, and age composition.

Gross Domestic Product (GDP) is defined as the total market value of final goods and services produced in a country during a specific period (usually one year). Three methods are used to calculate it:

Product (Value Added) Method: According to this method, GDP equals the sum of the added values in all economic sectors (according to economic activities). This is done by summing the values of goods and services at current prices, while excluding the values of intermediate goods and services participating in the production process.
Income Method: According to this method, GDP equals the sum of the incomes of the factors of production that contributed to the production process. This includes rents, profits, capital gains (interest), and compensation of employees, including wages and salaries, and other labor costs, plus gross operating surplus at businesses, minus product subsidies and taxes.
Expenditure Method: According to this method, GDP equals the sum of private consumption expenditure, government expenditure, private and government investment, and net external transactions.

The Central Bureau of Statistics follows the first and third methods in preparing national accounts.

2-7 Gross Domestic Product at Constant Prices by Economic Activities

Table (1-7) and Figure (1-7) show the growth rate of Gross Domestic Product and its components at constant prices by sector for 2021 and 2022, calculated on the basis of 1981/1982 prices.

Central Bank of Sudan – Sixty-Second Annual Report 2022

Table (1-7)
Gross Domestic Product at Constant Prices by Economic Activities for 2021 and 2022 (Based on 1981/1982 prices) (Million SDG)

Sector	2021					*2022
	Value	Growth Rate %	Contribution %	Value	Growth Rate %	Contribution %
Agriculture, Forestry, Livestock and Fisheries Sector	9.13	(1.9)	26.1	9.14	0.1	26.3
Agricultural Crops	3.64	(2.1)	10.3	3.65	0.2	10.5
Livestock	5.36	(1.7)	15.4	5.37	0.1	15.4
Forestry	0.02	(1.3)	0.1	0.02	0.0	0.1
Fisheries	0.11	(1.9)	0.3	0.10	(9.1)	0.3
Mining and Manufacturing Industries Sector	7.76	(0.2)	22.2	7.70	(0.7)	22.2
Industry and Mining	0.52	8.8	1.5	0.53	1.9	1.5
Manufacturing and Handicrafts	5.45	(0.3)	15.6	5.41	(0.7)	15.6
Electricity, Water and Gas	1.10	(2.8)	3.1	1.09	(0.9)	3.1
Construction	0.69	(1.8)	1.9	0.67	(2.9)	1.9
Services Sector	18.07	(2.6)	51.7	17.85	(1.2)	51.5
Trade, Hotels and Restaurants	3.13	(2.5)	9.0	3.06	(2.2)	8.8
Finance, Insurance and Banking	5.25	(2.0)	15.0	5.23	(0.4)	15.1
Transport, Storage and Communications	3.69	(2.2)	10.6	3.61	(2.2)	10.4
Government Services	5.24	(3.6)	15.0	5.20	(0.8)	15.0
Other Services1	0.76	(2.6)	2.1	0.74	(2.6)	2.2
Gross Domestic Product at Constant Prices	34.96	(1.9)	100.0	34.69	(0.8)	100.0
GDP Deflator	534,990.8			1,121,441.8
GDP at Current Prices2	18,703,277.0			38,902,816.0

Source: Central Bureau of Statistics
*Preliminary data
Modified data
1 Includes social services, financial institution services, private non-profit services, and import duties.
2 For more, see Table No. (3-7).

Central Bank of Sudan – Sixty-Second Annual Report 2022

Figure (1-7)
Sector Growth Rate for 2021 and 2022

[Bar chart showing sector growth rates for 2021 and 2022. Categories: Agricultural Sector, Industrial Sector, Services Sector. Values are in %. For 2021, values are approximately: Agricultural (-1.9), Industrial (-0.2), Services (-2.6). For 2022, values are approximately: Agricultural (0.1), Industrial (-0.7), Services (-1.2).]

Source: Table No. (1-7)

Table (1-8) shows an improvement in the GDP growth rate at constant prices from -1.9% in 2021 to -0.8% in 2022. This is due to an increase in the agricultural sector's growth rate from -1.9% in 2021 to -0.1% in 2022, and an improvement in the services sector's growth rate from -2.6% in 2021 to -1.2% in 2022, despite a decrease in the industrial sector's growth rate from -0.2% in 2021 to -0.7% in 2022.

The increase in the agricultural sector's growth rate is attributed to the increase in most of its sub-sectors. The growth rate of agricultural crops increased from -2.1% in 2021 to 0.2% in 2022, and livestock from -1.7% in 2021 to 0.1% in 2022.

The services sector's growth rate also improved due to the improvement in the growth rate of some of its sub-sectors. Government services increased from -3.6% in 2021 to -0.8% in 2022, trade, hotels and restaurants from -2.5% in 2021 to -2.2% in 2022, and finance, insurance and banking from -2.0% in 2021 to -0.4% in 2022.

Meanwhile, the industrial sector's growth rate decreased due to the decrease in the growth rate of most of its sub-sectors. The growth rate of industry and mining decreased from 8.8% in 2021 to 1.9% in 2022, manufacturing and handicrafts from -0.3% in 2021 to -0.7% in 2022, and construction from -1.8% in 2021 to -2.9% in 2022.

1-2-7 Contribution of Economic Sectors to Gross Domestic Product at Constant Prices

Figure (2-7) shows the contribution of economic sectors to Gross Domestic Product at constant prices for 2021 and 2022.

Central Bank of Sudan – Sixty-Second Annual Report 2022

Figure (2-7)
Contribution of Economic Sectors to GDP at Constant Prices for 2021 and 2022

[Bar chart showing the contribution of economic sectors to GDP at constant prices for 2021 and 2022. Categories: Agricultural Sector, Industrial Sector, Services Sector. Values are in %. For 2021, values are approximately: Agricultural (26.1), Industrial (22.2), Services (51.7). For 2022, values are approximately: Agricultural (26.3), Industrial (22.2), Services (51.5).]

Source: Table No. (1-7)

The contribution of the agricultural sector (plant and animal) to GDP at constant prices increased slightly from 26.1% in 2021 to 26.3% in 2022. The contribution of the industrial sector remained around 22.2% for both 2021 and 2022. Meanwhile, the contribution of the services sector decreased slightly from 51.7% in 2021 to 51.5% in 2022.

2-2-7 GDP Growth Rate at Constant Prices during the period (2018-2022)

Table (2-7) and Figure (3-7) show the GDP growth rate at constant prices during the period (2018-2022).

Table (2-7)
GDP Growth Rate at Constant Prices during the period (2018-2022)

Statement	2018	2019	2020	2021	*2022
GDP Growth Rate (%)	2.8	(1.3)	(1.6)	(1.9)	(0.8)

Source: Central Bureau of Statistics
*Preliminary data
Modified data

Central Bank of Sudan – Sixty-Second Annual Report 2022

Figure (3-7)
General Trend of GDP Growth Rate at Constant Prices during the period (2018-2022)

[Line chart showing the general trend of GDP growth rate at constant prices from 2018 to 2022. Values are in %. Approximately: 2018 (2.8), 2019 (-1.3), 2020 (-1.6), 2021 (-1.9), 2022 (-0.8).]

Source: Table No. (2-7)

Table (2-7) and Figure (3-7) show the general trend of the GDP growth rate at constant prices during the period (2018-2022). The GDP growth rate decreased from 2.8% in 2018 to -1.3% in 2019, and then to negative. The GDP growth rate then improved to -0.8% in 2022, after reaching -1.9% in 2021.

3-7 Gross Domestic Product at Current Prices

1-3-7 Gross Domestic Product at Current Prices by Economic Activities

Table (3-7) shows Gross Domestic Product at Current Prices by Economic Activities (Product/Value Added Method) for 2021 and 2022. As Figure (4-7) reflects, the contribution of sectors to GDP at Current Prices for 2021 and 2022.

Table (3-7)
Gross Domestic Product at Current Prices by Economic Activities for 2021 and 2022 (Million SDG)

Sector	2021					*2022
	Value	Growth Rate %	Contribution %	Value	Growth Rate %	Contribution %
Agriculture, Forestry, Livestock and Fisheries Sector	3,776,787.0	323.0	20.2	10,252,312.4	171.5	26.4
Agricultural Crops	1,477,590.6	322.0	7.9	4,093,569.8	177.0	10.5
Livestock	2,229,544.2	323.7	11.9	6,015,338.7	169.8	15.5

Central Bank of Sudan – Sixty-Second Annual Report 2022

Sector	2021					*2022
	Value	Growth Rate %	Contribution %	Value	Growth Rate %	Contribution %
Forestry	28,052.4	325.4	0.2	23,994.1	(14.5)	0.1
Fisheries	41,599.8	322.9	0.2	119,409.8	187.0	0.3
Mining and Manufacturing Industries Sector	4,201,621.9	344.9	22.5	8,637,869.5	105.6	22.2
Industry and Mining	1,864,209.9	368.9	10.0	588,639.9	(68.4)	1.5
Manufacturing and Handicrafts	1,573,710.7	329.9	8.4	6,063,551.2	285.3	15.6
Electricity, Water and Gas	90,095.4	319.1	0.5	1,229,977.0	1265.2	3.2
Construction	673,605.9	323.3	3.6	755,701.4	12.2	1.9
Services Sector	10,724,868.1	320.7	57.3	20,012,634.1	86.6	51.4
Trade, Hotels and Restaurants	3,035,187.2	320.4	16.2	3,430,929.5	13.0	8.8
Finance, Insurance and Banking	3,371,231.3	322.6	18.0	5,866,216.7	74.0	15.1
Transport, Storage and Communications	1,666,166.0	321.6	8.9	4,047,599.8	142.9	10.4
Government Services	1,032,994.3	315.7	5.5	5,834,822.5	464.8	15.0
Other Services	1,619,289.3	319.7	8.7	833,065.6	(48.6)	2.1
Gross Domestic Product at Current Prices	18,703,277.0	326.4	100.0	38,902,816.0	108.0	100.0

Source: Central Bureau of Statistics
*Preliminary data
Modified data

Figure (4-7)
Contribution of Economic Sectors to GDP at Current Prices for 2021 and 2022

[Bar chart showing the contribution of economic sectors to GDP at current prices for 2021 and 2022. Categories: Agricultural Sector, Industrial Sector, Services Sector. Values are in %. For 2021, values are approximately: Agricultural (20.2), Industrial (22.5), Services (57.3). For 2022, values are approximately: Agricultural (26.4), Industrial (22.2), Services (51.4).]

Source: Table No. (3-7)

Table (3-7) and Figure (4-7) show an increase in the contribution of the agricultural sector (plant and animal) to GDP at current prices from 20.2% in 2021 to 26.4% in 2022. This is due to an increase in the contribution of the sub-sectors forming the sector, where the contribution of agricultural crops increased from 7.9% in 2021 to 10.5% in 2022, livestock from 11.9% in 2021 to 15.5% in 2022, and fisheries from 0.2% in 2021 to 0.3% in 2022.

In contrast, the contribution of the services sector to GDP at current prices decreased from 57.3% in 2021 to 51.4% in 2022. This is due to a decrease in the contribution of the sub-sectors forming the sector, where the contribution of trade, hotels and restaurants decreased from 16.2% in 2021 to 8.8% in 2022, finance, insurance and banking from 18.0% in 2021 to 15.1% in 2022, and other services from 8.7% in 2021 to 2.1% in 2022.

The contribution of the industrial sector to GDP at current prices also decreased from 22.5% in 2021 to 22.2% in 2022. This is due to a decrease in the contribution of the industry and mining sector from 10.0% in 2021 to 1.5% in 2022, and the construction sector from 3.6% in 2021 to 1.9% in 2022.

2-3-7 Gross Domestic Product at Current Prices by Expenditure Method

Table (4-7) shows Gross Domestic Product at Current Prices by Expenditure Method for 2021 and 2022.

Table (4-7)
Gross Domestic Product at Current Prices by Expenditure Method for 2021 and 2022 (Million SDG)

Sector	2021					*2022
	Value	Growth Rate %	Contribution %	Value	Growth Rate %	Contribution %
Consumption Expenditure	18,096,678.0	317.7	96.8	37,657,925.9	108.1	96.8
Government Expenditure	130,902.4	28.8	0.7	350,125.3	167.5	0.9
Private Expenditure	17,965,775.6	324.7	96.1	37,307,800.5	107.7	95.9
Investment Expenditure	1,427,310.1	962.1	7.6	2,801,002.8	96.2	7.2
Net External Transactions of Goods and Services	(820,710.9)	(925.0)	(4.4)	(1,556,112.6)	(89.6)	(4.0)
Exports of Goods and Services	1,040,477.1	608.3	5.6	2,061,849.2	98.2	5.3
Imports of Goods and Services	1,861,188.0	720.0	10.0	3,617,961.9	94.4	9.3
Gross Domestic Product at Current Prices	18,703,277.0	326.4	100.0	38,902,816.0	108.0	100.0

Source: Central Bureau of Statistics
*Preliminary data
Modified data

Central Bank of Sudan – Sixty-Second Annual Report 2022

According to Table (4-7), an improvement is observed in the contribution of net external transactions of goods and services from -4.4% in 2021 to -4.0% in 2022. The contribution of consumption expenditure remained stable at 96.8% for both 2021 and 2022, and the contribution of investment expenditure decreased from 7.6% in 2021 to 7.2% in 2022.

Following is a detailed explanation of the components of Gross Domestic Product by expenditure method:

1-2-3-7 Consumption Expenditure:
Consumption expenditure is divided into government and private expenditure, where government expenditure includes all current expenditures, including compensation of employees, purchase of goods and services, transfers to states, and the operation of state institutions. Private expenditure includes household and individual consumption.

Figure (5-7) shows the contribution of consumption expenditure to GDP at current prices for 2021 and 2022.

Figure (5-7)
Contribution of Consumption Expenditure to GDP at Current Prices for 2021 and 2022

[Bar chart showing the contribution of consumption expenditure to GDP at current prices for 2021 and 2022. Categories: Government Expenditure, Private Expenditure. Values are in %. For 2021, values are approximately: Government (0.7), Private (96.1). For 2022, values are approximately: Government (0.9), Private (95.9).]

Source: Table No. (4-7)

Table (4-7) and Figure (5-7) show the stability of the total consumption expenditure's contribution to GDP at current prices at 96.8% in both 2021 and 2022. This is due to a slight increase in the contribution of government expenditure from 0.7% in 2021 to 0.9% in 2022, and a slight decrease in the contribution of the private sector expenditure from 96.1% in 2021 to 95.9% in 2022.

Figure (6-7) shows the consumption expenditure growth rate at current prices for 2021 and 2022.

Central Bank of Sudan – Sixty-Second Annual Report 2022

Figure (6-7)
Consumption Expenditure Growth Rate at Current Prices for 2021 and 2022

[Bar chart showing the consumption expenditure growth rate at current prices for 2021 and 2022. Categories: Government Expenditure, Private Expenditure. Values are in %. For 2021, values are approximately: Government (28.8), Private (324.7). For 2022, values are approximately: Government (167.5), Private (107.7).]

Source: Table No. (4-7)

Table (4-7) and Figure (6-7) show an increase in the government expenditure growth rate from 28.8% in 2021 to 167.5% in 2022, and a decrease in the private expenditure growth rate from 324.7% in 2021 to 107.7% in 2022.

Figure (7-7) shows the general trend of total consumption growth rate during the period (2018-2022).

Figure (7-7)
General Trend of Total Consumption Growth Rate during the period (2018-2022)

[Line chart showing the general trend of total consumption growth rate from 2018 to 2022. Values are in %. Approximately: 2018 (65.1), 2019 (45.4), 2020 (139.9), 2021 (317.7), 2022 (108.1).]

Source: Table No. (4-7)

Central Bank of Sudan – Second Sixtieth Annual Report 2022 138
Figure (7-7) shows an upward trend in the growth rate of total consumption expenditure during the period (2018-2022), where the growth rate of total consumption expenditure increased at an accelerating pace from 65.1% in 2018 to 317.7% in 2021, then decreased to 108.1% in 2022.
Investment Expenditure 2-2-3-7
Investment expenditure is defined as capital expenditure on new projects in public utilities and infrastructure sectors, in addition to projects related to economic activity for producing goods and services in productive and service sectors such as industry, agriculture, health, education, tourism, and housing. Meanwhile, gross investment is defined as the change in the total market value of new establishments and durable means of production, plus the value of the change in inventory held by businesses.
Figure (8-7) illustrates the general trend of investment expenditure growth rates during the period (2018-2022)
Figure (8-7)
General Trend of Investment Expenditure Growth Rate During the Period (2018-2022) Source: Table No. (4-7)

	2018	2019	2020	2021	2022
Investment Expenditure Growth Rate %	40.8	112.9	(2.3)	962.1	96.2
General Trend of Gross Investment Growth Rate %	(100.0)	-	100.0	200.0	300.0
	400.0	500.0	600.0	700.0	800.0
	900.0	1,000.0

Figure (8-7) shows an upward trend in the growth rate of total investment expenditure during the period (2018-2022), where the growth rate of investment expenditure rose to 112.9% in 2019, then decreased to negative 2.3% in 2020, while it recorded an increase of 962.1% in 2021, before declining again to 96.2% in 2022.
Net External Transactions of Goods and Services 3-2-3-7 Net external transactions of goods and services equals the domestic equivalent of exports of goods and services minus the domestic equivalent of imports of goods and services during the year.
Table (4-8) shows an improvement in the growth rate of net external transactions of goods and services from negative 925.0% in 2021 to negative 89.6% in 2022. This is primarily due to the decrease in the growth rate of imports of goods and services from 720.0% in 2021 to 94.4% in 2022, as well as the decrease in the growth rate of exports of goods and services from 608.9% in 2021 to 98.2% in 2022.

Central Bank of Sudan – Second Sixtieth Annual Report 2022 139 Gross National Product 4-7 Gross National Product (GNP) is one of the measures used to gauge national income and total expenditure of a country. It represents the sum of the market values of final goods and services produced in the country during the year, in addition to net factor income from abroad and payments to foreigners.
Table (5-7) shows the Gross National Product for the years 2021 and 2022 at current prices.
Table (5-7)
Gross National Product at Current Prices for the Years 2021 and 2022 (Million SDG)

Statement	2021	2022 *
	Value	Growth Rate %	Value	Growth Rate %
a - Gross Domestic Product at Current Prices	18,703,277.0	326.4	38,902,816.0	108.0
b - Net Invisible Receipts and Payments	(481,755.9)	(494.7)	(391,934.3)	(18.6)
a + b - Gross National Product at Current Prices	18,221,521.1	323.2	38,510,881.7	111.3

Source: Central Bureau of Statistics and Central Bank of Sudan

Preliminary data
Revised data
Table (5-7) shows an increase in Gross National Product at current prices from SDG 18,221,521.1 million with a growth rate of 323.2% in 2021 to SDG 38,510,881.7 million with a growth rate of 111.3% in 2022. This is due to the increase in the growth rate of Gross Domestic Product at current prices by 108.0% and the improvement in the net deficit rate of invisible receipts and payments to 18.6%.
National Income 5-7
National Income equals Gross Product minus depreciation, plus net compensation of employees and net property income from the rest of the world (i.e., Gross Product minus depreciation and primary incomes paid to non-resident units, plus primary incomes received from non-resident units).
Table (6-7) shows National Income, Gross Domestic Product at Current Prices, and Per Capita Gross Domestic Product for the years 2021 and 2022.

Central Bank of Sudan – Second Sixtieth Annual Report 2022 140
Table (6-7)
National Income, Gross Domestic Product, and Per Capita Gross Domestic Product for the Years 2021 and 2022

Statement	2021	2022 *
	Value	Growth Rate %	Value	Growth Rate %
Gross Domestic Product at Current Prices (Million SDG)	18,703,277.0	326.4	38,902,816.0	108.0
Population (Persons)	45,678,376	2.8	46,934,522	2.7
Per Capita Gross Domestic Product (SDG)	409,459.2	314.8	828,865.8	102.4
National Income (Million SDG)	17,076,413.7	300.7	36,922,998.4	116.2

Source: Central Bureau of Statistics

Preliminary data
Revised data
Table (6-7) shows an increase in per capita Gross Domestic Product at current prices from SDG 409,459.2 in 2021 to SDG 828,865.8 in 2022, at a rate of 102.4%, and an increase in National Income from SDG 17,076,413.7 million in 2021 to SDG 36,922,998.4 million in 2022, at a rate of 116.2%.
Price Indices and Inflation Rates 6-7
Inflation: Inflation is defined as the continuous increase in the general price level of goods and services over a specific period.
Inflation is classified as follows:
Headline Inflation - Headline inflation is defined as tracking all changes in the prices of goods included in the general consumer price index basket.
Core Inflation - Core inflation is defined as the index that tracks changes in the general price level, attributed to changes in the level of aggregate demand (excluding the food group) and affected by changes in money supply. Imported Inflation - Imported inflation is defined as price increases resulting from the transmission of inflation from trading partners through imports. Consumer Price Index (CPI) 2-6-7 The Consumer Price Index (CPI) is a statistical tool for measuring changes in the prices of goods and services purchased by consumers. It is a measure of the average change over time in the prices of consumer items, i.

Second Annual Report 2022 – Central Bank of Sudan 155 Sorghum Sorghum production decreased from 5,152 thousand metric tons in the 2020/2021 season to 3,107 thousand metric tons in the 2021/2022 season, a decrease of 39.7%. This was due to a 9.1% decrease in cultivated areas from 25,850 thousand feddans to 23,491 thousand feddans, and a 20.9% decrease in productivity from 249.0 kg/feddan to 197.0 kg/feddan. Millet Millet production decreased from 1,918 thousand metric tons in the 2020/2021 season to 901.0 thousand metric tons in the 2021/2022 season, a decrease of 53.0%. This is attributed to a 22.1% decrease in cultivated area from 13,282 thousand feddans to 10,352 thousand feddans, and a 25.6% decrease in productivity from 183.0 kg/feddan to 136.0 kg/feddan. Wheat Wheat production decreased from 900.0 thousand metric tons in the 2020/2021 season to 602.0 thousand metric tons in the 2021/2022 season, a decrease of 33.1%. This was also due to a 25.9% decrease in cultivated areas from 8

Central Bank of Sudan – Sixty-Second Annual Report 2022
Table (8-15)
Number of Students Enrolled in Government and Private Universities and Colleges in the Academic Years 2020/2021 and 2021/2022 (Unit) Academic Year|Institution|*2022/2021|2021/2020 ---|---|---|---

	Bachelor Students	Diploma Students	Total	Bachelor Students	Diploma Students	Total
	Males	Females	Males	Females	Males	Females	Males	Females	Males	Females
Government Universities and Colleges	126,386	20,378	16,023	54,892	35,093	126,089	14,092	12,809	61,955	37,233 Private Universities and Colleges

Preliminary data
Figures do not include technical colleges
It is observed from Table (8-15) that the number of Bachelor and Diploma students enrolled in Sudanese universities increased from 196,136

Bank of Sudan – Second Annual Report 2022 – 191 followed by imports from China, which amounted to $1,725.9 million, with a contribution rate of 21.5%, where the most important goods are machinery and equipment. followed by imports from India, from which the most important imported goods are machinery and equipment, manufactured goods, means of transport, petroleum products, and textiles. These amounted to $1,124.2 million, with a contribution rate of 14.0%, and the most important imported goods from India are foodstuffs, chemicals, machinery and equipment, and manufactured goods. As for the rest of the countries combined, their contribution rate for 2022 was 36.1%.

4-9: Sudan's Foreign and Regional Blocs Trade

1-4-9: Greater Arab Free Trade Area (GAFTA)
The Greater Arab Free Trade Area (GAFTA) is considered an economic alliance between Arab countries for economic integration and trade exchange. The value of exports to GAFTA countries decreased from $3,969.1 million in 2021 to $3,174.4 million in 2022, at a rate of 20.4%. Exports to GAFTA countries represent 73% of total exports for 2022. Meanwhile, the value of Sudan's imports from these countries increased from $3,112.8 million to $3,754.3 million, at a rate of 20.6%. Imports from GAFTA countries represent 33.8% of total imports for 2022. Table (9-7) illustrates the trade balance between Sudan and GAFTA countries for the years 2

For more clarification, refer to the Balance of Payments and International Investment Position Manual, Sixth Edition, issued by the International Monetary Fund in 2009.

2022 Sixty-Second Annual Report – Central Bank of Sudan 207

Table (4-10)
International Investment Position at the end of 2021 and 2022 (Million USD)

Statement (by functional category)	2021	2022	Change	Rate of Change %
External Assets
Direct Investment	54.2	54.2	-	-
Portfolio Investment	150.1	209.7	59.6	39.7
Other Investments	9,442.5	8,552.0	(890.6)	(9.4)
*Of which: Reserve Assets	1,627.8	1,560.7	(67.1)	(4.1)
Gold (monetary)	269.7	402.6	132.9	49.3
Special Drawing Rights (SDRs)	1,080.5	1,027.1	(53.4)	(4.9)
*Other Reserve Assets	277.7	131.0	(146.7)	(52.8)
Total External Assets	11,274.7	10,376.6	(898.1)	(8.0)
External Liabilities (by functional category)
Direct Investment	29,733.7	30,307.2	573.5	1.9
Portfolio Investment	300.8	301.3	0.5	0.2
Other Investments	74,940.9	77,220.6	2,279.7	3.0
*Credit and Trade Facilities	10,503.7	11,335.8	832.1	7.9
*Foreign Loans	52,611.4	53,979.2	1,367.8	2.6
*Currency and Deposits	10,708.8	10,843.2	134.5	1.3
*Other Liabilities	0.0	0.0	0.0	0.0
Allocation of Special Drawing Rights (SDRs)	1,117.1	1,062.2	(54.9)	(4.9)
Total External Liabilities	104,975.4	107,829.2	2,853.8	2.7
Net International Investment Position	(93,700.7)	(97,452.5)	(3,751.8)	(4.0)

Source: Central Bank of Sudan
*Preliminary data
Adjusted data
*Includes deposits and currency with monetary authority and other entities, bonds, financial derivatives and other claims.

2022 Sixty-Second Annual Report – Central Bank of Sudan 208

Referring to Table (4-10), the international investment position at the end of 2022 showed a net liability to the outside world amounting to USD 97,452.5 million, compared to a net liability to the outside world of USD 93,700.7 million at the end of 2021, at a rate of 4%.

The balance of external assets (claims and financial assets for all resident economic sectors in Sudan) decreased from USD 11,274.7 million at the end of 2021 to USD 10,376.6 million at the end of 2022, by USD 898.1 million, at a rate of 8%. This was primarily attributed to a decrease in the balance of other investments by USD 890.6 million.

The balance of external liabilities (foreign obligations on all resident economic sectors in Sudan) increased from USD 104,975.4 million at the end of 2021 to USD 107,829.2 million at the end of 2022, at a rate of 2.7%. This was primarily attributed to an increase in the balance of other investments, distributed among foreign direct investment, portfolio investment, and other investments, by USD 2,279.7 million. This was a result of an increase in the balance of long-term foreign loans by USD 998.8 million, the balance of credit and trade facilities by USD 832.1 million, and an increase in the currency and deposits item by USD 134.5 million in 2022.

It is worth noting the decrease in the balance of Special Drawing Rights (SDRs) by USD 54.9 million, which was due to a decrease in the SDR exchange rate against the US dollar from 1.3996 in December 2021 to 1.3308 in December 2022.

4-10: External Debt
Table (5-10) shows the external debt position during 2021 and 2022, and also illustrates the contribution of financing sources to the size of indebtedness for the year 2022.

Table (5-10)
Sudan's External Debt by Source for 2021 and 2022 (Billion USD)

Source of Finance	2021 Total Debt	2022* Total Debt	Outstanding Principal	Contractual Interest	Arrears Interest	Percentage of Total Debt %
Non-Paris Club Member Countries	31.6	34.3	15.7	4.2	14.4	50.2
Paris Club Member Countries	10.1	10.6	8.7	0.7	1.2	15.5
International Commercial Banks	6.5	7.1	3.5	0.3	3.2	10.4
Facilities	5.2	5.2	0.0	0.0	5.2	7.6
Ministry of Oil Finance	3.2	3.2	0.0	0.0	3.2	4.7
Regional and International Institutions	3.0	5.2	0.1	0.1	5.0	7.5

Source: International Monetary Fund website www.imf.org

2022 Sixty-Second Annual Report – Central Bank of Sudan 209

Source of Finance	2021 Total Debt	2022* Total Debt	Outstanding Principal	Contractual Interest	Arrears Interest	Percentage of Total Debt %
Foreign Suppliers	2.8	2.8	0.0	0.0	2.8	4.1
Total	62.4	68.3	28.0	5.3	35.0	100.0

Source: External Debt Unit - Central Bank of Sudan *Preliminary data Consists of deposits and financial facilities from various creditors.
Note: Contractual Interest: The interest rate contracted in the agreement.

The table shows that Sudan's total obligations increased from USD 62.4 billion at the end of 2021 to USD 68.3 billion at the end of 2022, at a rate of 9.5%, covering all sources of finance. Arrears interest, calculated on non-payment by the due date, contributed to the increase in total indebtedness.

Looking at the contribution of financing sources, the debt of non-Paris Club member countries occupies the first rank with 50.2%, followed by Paris Club member countries with 15.5%, international commercial banks with 10.4%, facilities with 7.6%, regional and international institutions with 7.5%, Ministry of Oil finance with 4.7%, in addition to foreign suppliers' facilities with 4.1%.

4-10-1: Sudan's Debt Sustainability Indicators for 2021 and 2022 It is known that these indicators are used to measure the state's ability to service its debt and meet its external obligations in light of available financial resources such as exports and government revenues, in addition to the size of the Gross Domestic Product. It is worth noting that the international benchmark for measuring external debt sustainability is:

External debt to total GDP ratio: 30%
External debt to total exports ratio: 100%
External debt to total government external revenues ratio: 200%

Table (6-10) shows Sudan's debt sustainability indicators for 2021 and 2022.

Table (6-10)
Sudan's Debt Sustainability Indicators for 2021 and 2022

External Debt Sustainability Indicators	Benchmark Indicator %	Sudan's Indicators % 2021	Sudan's Indicators % 2022*
Total Debt to GDP Ratio	30	123.7	95.5
Total Debt to Total Exports Ratio	100	1,241.2	1,567.4
Total Debt to Total Government External Revenues Ratio	200	1,517.4	1,313.3

Source: External Debt Unit - Central Bank of Sudan *Preliminary data Adjusted data

2022 Sixty-Second Annual Report – Central Bank of Sudan 210

4-10-2: External Loan Disbursements and Repayments Position
Table (7-10) shows the position of external loans for 2021 and 2022.

Table (7-10)
External Loan Disbursements for 2021 and 2022
(Million USD)

Financing Entity	2021	2022*
Islamic Development Bank - Jeddah	47.8	0.0
IFAD - International Fund for Agricultural Development	0.0	1.7
Total	47.8	1.7

Source: External Debt Unit - Central Bank of Sudan *Preliminary data

The value of external loan disbursements in 2022 amounted to USD 1.7 million, which was only from the International Fund for Agricultural Development (IFAD).

Table (8-10) shows the principal repayment of external loans for 2021 and 2022.

Table (8-10)
Principal Repayment of External Loans for 2021 and 2022 (Million USD)

Financing Entity	2021	2022*	Contribution Rate in 2022 %
Islamic Development Bank - Jeddah	25.6	0.0	0.0
World Bank	22.2	0.0	0.0
IFAD - International Fund for Agricultural Development	11.0	0.4	100.0
International Monetary Fund	1.6	0.0	0.0
African Development Bank	0.2	0.0	0.0
Total	60.6	0.4	100.0

Source: External Debt Unit - Central Bank of Sudan *Preliminary data Note: Does not include principal arrears on due loans.

2022 Sixty-Second Annual Report – Central Bank of Sudan 211

As observed from Table (8-10), the total principal repayment of external loans decreased from USD 60.6 million in 2021 to USD 0.4 million in 2022. Repayment in 2022 was only to the International Fund for Agricultural Development (IFAD).

Central Bank of Sudan