Cairo – The European Union has launched a dialogue with representatives of Sudan’s private sector, holding its first meeting in Cairo as part of efforts to strengthen engagement with Sudanese business leaders and support the country’s long-term recovery.

The meeting marks the beginning of a series of consultations to be held in different capitals focusing on the role of Sudan’s private sector in reconstruction, economic development, state-building, promoting stability and creating employment opportunities, particularly for young people.

Yacine Hichem Tekfa, Deputy Head of the EU Delegation to Sudan and Chargé d’Affaires, said the European Union was keen to hear the views of Sudan’s business community regarding the bloc’s future role in Sudan and looked forward to a dialogue that could strengthen relations between Sudan and the European Union.

Tekfa said political and security instability, exchange rate volatility, weak infrastructure, bureaucracy, overlapping taxes and fees, limited information available to European investors, and concerns over transparency and anti-corruption efforts have contributed to the withdrawal of European investment from Sudan.

European investment has declined sharply since the outbreak of war in April 2023, as insecurity, economic disruption and uncertainty have severely affected business activity, trade and investor confidence across the country.

The EU official said international and regional efforts to secure peace and a civilian-led political transition remain essential to restoring normal relations with Sudan, adding that the continuation of the war represents a waste of the Sudanese people’s resources.

He also stressed that the collapse of Sudan, its state institutions and its unity remains a “red line” for the European Union.

The European Union has consistently called for a ceasefire, unhindered humanitarian access and a civilian-led political process, while maintaining that preserving Sudan’s unity and state institutions is essential to any lasting political settlement.

Tekfa described the private sector as a key driver of Sudan’s post-war recovery, highlighting its role in creating jobs, attracting investment, promoting innovation, improving infrastructure and services, strengthening international economic partnerships and raising living standards.

He added that women entrepreneurs and young business leaders would play a central role in the success of future reconstruction and development efforts.

Sudan’s private sector, once a major contributor to economic growth and employment, has been severely affected by the conflict, with thousands of businesses forced to suspend operations or relocate as infrastructure, supply chains and financial markets have been disrupted.

The European Union said lasting peace and a genuine civilian transition remain necessary to unlock Sudan’s economic potential and create conditions for sustainable development and renewed international investment.