German Cooperation via KfW and AECF Expand Support to Businesses in Sudan

Nairobi, Kenya, October 26, 2025 – The AECF (Africa Enterprise Challenge Fund) has signed an agreement with German Development Cooperation, via 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 three years, the Sudan SME Catalyser I Programme has supported SMEs in Sudan to relocate from conflict-affected areas to more stable parts of the country. The programme has financed 29 companies across Gedaref, Kassala and Red Sea states, providing technical assistance and grant funding totalling €7.4 million; the programme also mobilised an additional €2.3 million in private sector funding, created and sustained over 800 full-time equivalents (FTEs), and supported more than 52,000 households.

Over the course of the country’s history, SMEs have been a dynamic part of Sudan’s economy, yet many have recently suffered losses of capital, markets, and supply sources 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 at supporting companies with the potential to supply goods to multilateral and humanitarian organizations in Sudan. The ongoing conflict in the country has prompted a large-scale multinational aid 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 international 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.
Sudan SME Catalyser Phase II 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 programme will provide €250,000 to €1.5m in grants per SME, alongside business advisory support. Companies should be operating in production (not importing) in Sudan and able to provide matching funds to support their activities.

Phase II of the programme aims to support commercially active private sector companies in Sudan, focusing on Red Sea, Kassala, Gedaref, Khartoum and Darfur states. Eligible SMEs from other regions will also be considered. The programme seeks to support up to 15 SMEs, create and sustain up to 500 FTE jobs, and reach up to 30,000 households and smallholder farmers. Thorough background checks and due diligence will be conducted on every SME before funding is approved and disbursed.

Victoria Sabula, CEO of the AECF, said,
“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 years 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 have this opportunity to support them. We thank the German Federal Government for their ongoing belief in the Sudanese people and us at this critical time.

Friederike Hemker, Head of Cooperation of the German Embassy in Khartoum, said,
“The private sector is key to building resilience in Sudan. We therefore look forward to continuing our impactful engagement with AECF through KfW to support local Sudanese businesses. Leveraging the private sector’s reach further strengthens our commitment to localisation.”

About BMZ: Germany’s engagement in Sudan supports the population in securing their livelihoods and strengthening their resilience, even under the conditions of ongoing conflict, and to ease the burden on communities hosting internally displaced persons. In line with the Humanitarian-Development-Peace (HDP) Nexus, development cooperation complements humanitarian aid through medium- to long-term resilience approaches to preserve and strengthen local structures and basic services.

About AECF: AECF (Africa Enterprise Challenge Fund) is a leading non-profit development organization supporting innovative agribusiness and renewable energy enterprises to reduce rural poverty, promote resilient communities, and create jobs. AECF provides patient capital to highly innovative, early-stage, and growing enterprises that are hidden gems poised for greatness but that struggle to access funding from traditional sources of finance.
To date, we have supported 698 businesses in 27 countries in Sub-Saharan Africa, impacted more than 37 million rural and marginalized people, and reached over seven million households.

For more information about the programme, contact: sudancatalyserII@aecfafrica.org