AECF Expands its Support to Businesses in Sudan

Nairobi, Kenya, June 6, 2025 – The AECF (Africa Enterprise Challenge Fund) has signed an agreement with KfW to expand its existing Sudan SME Catalyser programme with a further €11 million, financed by the German Federal Ministry of Economic Cooperation and Development (BMZ).

Over the past year, the Sudan SME Catalyser has supported SMEs in Sudan relocating from conflict areas to more stable parts of the country, financing 20 companies so far, with more in the pipeline. Over the course of the country’s history, SMEs have formed a dynamic part of the economy in Sudan. Yet, many have recently suffered losses of capital, markets, and sources of supplies due to the ongoing conflict.

Whilst the initial funding for the Sudan SME Catalyser focused on Sudanese businesses in the agriculture and renewable energy sectors, this additional funding is targeted to support companies that have the potential to supply goods to multilateral and humanitarian organizations in Sudan. The ongoing conflict in the country has led to a large multinational assistance effort to provide essential goods to the people of Sudan.

Sudanese companies have the potential to make and supply such goods to international partners, including the UN and NGOs. This would generate employment for Sudanese people and build the local economy. However, this potential is currently limited due to the companies’ lack of access to finance.

Therefore, the expansion of the Sudan SME Catalyser will target established companies in Sudan that wish to apply for procurement contracts to supply goods to multilateral and humanitarian partners but need further financing or capital to develop their business. Under the new funding window, the SME Catalyzer will provide financing of up to €1.5m in grants alongside business advisory support. Companies should be operating in production (not trading) in Sudan and able to provide matching funds to support their activities.

قالت فيكتوريا سابولا، الرئيس التنفيذي لمنتدى التعاون الاقتصادي الأفريقي,

“Our work in Sudan is focused on bringing in the private sector as part of the solution to the humanitarian crisis in the country. Our experience over the past year has taught us that whilst the operating environment is difficult, the Sudanese people are resilient and strive to build their businesses even in challenging conditions. We are privileged to be given this opportunity to support them. We thank the German Federal Government for their ongoing faith in us and the Sudanese people at this critical time.

Alena Kern, Head of Cooperation for Sudan at the German Embassy, added, “Under the initial funding, the SME Catalyser programme has shown great achievements in supporting Sudanese businesses impacted by the conflict. The German government is thankful for AECF’s and KfW’s work in strengthening economic resilience in Sudan and is delighted to provide additional funding for the second phase of the programme, which will focus on companies that could supply much-needed humanitarian goods.”

Andrea Johnston, KfW Head of Division Governance, Stabilization, and Water East Africa, commented, “We are thankful to support the resilience of the Sudanese small and medium-sized companies with a relevant contribution from the German Government via this well-targeted AECF programme. This enables the Sudanese enterprises to serve the population in need in these difficult times.”