China is Sudan's largest economic partner, with a 40 percent share in its oil. The country also sells Sudan small arms, which have been used in military operations such as the conflicts in Darfur and South Kordofan.
Oil was Sudan's main export, with production increasing dramatically during the late 2000s, in the years before South Sudan gained independence in July 2011. With rising oil revenues, the Sudanese economy was booming, with a growth rate of about nine percent in 2007. Sustained growth was expected the next year in 2008 due to not only increasing oil production, but also to the boost of hydroelectricity (annual electricity yield of 5.5 TWh) provided by the Merowe Dam. The independence of oil-rich South Sudan, however, placed most major oilfields out of the Sudanese government's direct control. In order to export oil, South Sudan must rely on a pipeline to Port Sudan on Sudan's Red Sea coast, as South Sudan itself is landlocked, as well as on Sudan's superior refinery infrastructure. The exact terms of a revenue-splitting agreement between Juba and Khartoum have yet to be established, but Sudan will likely receive a significant portion of the income from South Sudan's oil sales as a fee for the use of Sudanese pipelines, refineries, and port facilities, perhaps as much as 50 percent of the profits.
Agriculture production remains Sudan's most-important sector, employing eighty percent of the workforce and contributing thirty-nine percent of GDP, but most farms remain rain-fed and susceptible to drought. Instability, adverse weather and weak world-agricultural prices ensures that much of the population will remain at or below the poverty line for years.
The Merowe Dam, also known as Merowe Multi-Purpose Hydro Project or Hamdab Dam, is a large construction project in Northern Sudan, about 350 kilometres (220 mi) north of the capital, Khartoum. It is situated on the River Nile, close to the Fourth Cataract where the river divides
