Sudan and South Sudan Infrastructure Report Q2 2016
BMI View: Foreign investors will remain averse to entering the construction markets in Sudan and SouthSudan despite their severe infrastructure deficits, owing to the continued political and economic instabilityin both countries. Low oil prices along with government expenditures directed mainly towards security willdampen growth prospects in both nations.
Forecast & Industry Developments
Growth will remain subdued in Sudan and South Sudan over our 10-year forecast period, as domesticinstability continues to deter foreign investment critical for addressing both nations' infrastructuredeficits.
Saudi Arabia's decision to slash spending in its 2016 budget (in anticipation of prolonged low oil prices)could limit its ability to finance planned projects in Sudan in the short term.
In South Sudan, government budget is directed mainly towards security expenditure, which will limit itsability to support any growth in its construction sector.
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