An enabling political and governance environment is essential for adopting and implementing the policies required for agricultural transformation, especially in fragile states like Sudan. This Political Economy Assessment (PEA) exercise has highlighted that the military and paramilitary structures occupy a large market share of the State-Owned Enterprises (SOEs), private company partnerships, and land leases to foreign companies in the agriculture sector. Thus, this study forms a basis for deeper PEA and an opportunity for the exploration of the role of intermediaries and the rent seeking activities at the subsequent levels of agricultural value chains, and the extent to which they are linked to both formal and informal economic structures. We have highlighted how smallholder farmers are largely disadvantaged given the current distribution of economic rents.