Almost two years into the conflict that began in April 2023, Sudan remains in a deepening crisis with widespread social and economic consequences. The country is facing a severe humanitarian crisis with the ongoing conflict claiming more than 61,000 lives in Khartoum state alone between April 2023 and June 2024. The conflict has led to the world’s largest displacement, with 12.9 million forcibly displaced, including 8.9 million internally and 3.8 million in neighboring countries including Chad, Egypt and South Sudan. Military operations have caused extensive damage to residential housing across Sudan, particularly in Khartoum, and forced 31 percent of urban households to relocate to other states. The report is structured as follows: part I covers the recent macroeconomic developments; part II focuses on the agriculture sector as a main vehicle for alleviating the impact of the conflict and supporting recovery; and part III concludes by discussing the way forward and offering policy options to support post-conflict recovery efforts.