Divestment Basics

How does money from investment firms fund the genocide?

Sudan is a poor country by many standards, and it likely would not be able to fund genocide in Darfur on its own. To continue its campaign of death and destruction, it turns to its considerable oil supplies.

Sudan does not have the technology to exploit these oil resources itself, so the government invites international companies to do so instead. In return for the right to extract oil, Sudan receives millions of dollars from these companies, as much as 70 percent of which is used to finance the country’s military.

The military, in turn, arms, trains, and provides military support to the Janjaweed militia to conduct its campaign of murder, destruction, torture, and rape.

Which companies are involved in funding the genocide?

Highest offending companies provide significant funding to the government of Sudan and have been unwilling to consider a change in their relationships with Sudan. These companies include:

  • PetroChina (China)
  • CNPC  (China)
  • Sinopec (China)
  • ONGC (India)
  • Petronas (Malaysia)
  • Lundin Petroleum (Europe).

Request a list of offending companies from the Sudan Divestment Task Force

What is divestment?

Divestment is the sale of stock in companies most culpable of funding genocide in Darfur. Divestment also includes a commitment not to buy stock in such companies until the companies change behavior or the genocide ends.

Individuals can divest from such companies, but the biggest impact is when big investors – such as university endowments, state pension funds, and investment firms – also divest.

How Does Divestment Work

Divestment works in four steps:

  1. The process begins by lobbying local, state, and national governments for divestment legislation and related economic sanctions, including prohibitions on contracts with offending companies. Divestment by institutional investors (such as universities and mutual fund companies) and individuals adds to the pressure on offending companies.
  1. This pressure creates financial and public relations problems for the offending companies, including declines in share prices, political costs, and uncertainty about future profitability.
  1. As these negative consequences escalate, offending companies change behavior, pressure Sudan’s government to change, lobby their own governments to change, and/or leave Sudan.
  1. As companies change their behavior, they take away sources of funding for the Sudanese military and also create financial and political incentives for Sudan to end the genocide in Darfur.

How are people in the United States involved in funding the genocide?

U.S. law prohibits most American companies from operating directly in Sudan. However, U.S. firms are legally able to invest in foreign companies that operate in Sudan. Also, some states and towns, as well as universities, invest taxpayer dollars in the offending companies, or have contracts with them.

What has the divestment campaign accomplished so far?  

  • A growing number of states and universities have divested. Click here to see up-to-date statistics.
  • In response to aggressive divestment campaigning, Fidelity Investments divested some of its shares in PetroChina, one of the leading companies invested in Sudan. (The divestment campaign continues to ask Fidelity to divest the rest.)
  • The campaign has raised awareness among companies and individuals and has helped them realize that their investments could be supporting the genocide in Darfur.
  • Companies, including prominent companies such as Rolls Royce, have changed their behavior so they are no longer providing support for the genocide. Click here to learn about the effectiveness of divestment.