THE INDUSTRIAL SECTOR:

            STRATEGIES AND POLICIES OF THE INDUSTRIAL SECTOR

           IN SUDAN :

            The comprehensive National Strategy has included an overall framework that specifies the industrial strategy. This farmework is based on the following concepts :-

1. The industrial development strategy is part and parcel of the comprehensive economic reform which endeavours to free the national economy and release the restrained economic capabilities in order to create an ideal investment climate in which a positive co- ordination policy shall be maintained between state  sponsorship and freedom of the private venture.

2.  Success of the industrial development strategy is closely connected with the success of the Comprehensive National Strategy in all its aspects, because availability of raw materials or energy alone, cannot ensure a comprehensive industrial boom.

3.  To specify the role requested of the industrial sector to play, and its relations with the other sectors.

4.  To correct the structural deformities and shortcomings of which the industrial sector has been suffering since its foundation.To realize this strategy, the government has sponsored some polices  and directives regarding this sector , for example:

- The large- scale industrial areas shall be given the utmost priority in rehabilitation . Moreover, all inactive powers shall be reactivated, all projects that have stopped production shall be put on operation again, and that vertical development policies shall be employed. In the non-strategic arenas, the state shall dispose of its shares and capitals in order to make it accessible for national and international ventures to contribute and establish some wide-range firms of private enterprises and free the industrial public sector of all bureaucratic bonds and free prices of  the industrial products and take all the restrictions imposed on hard currency transaction.

-           The abundant natural resources in Sudan provide the basic inputs for a profitable industrial production. The agricultural and animal products for instance, provide raw  materials for the food industries such as sugar,vegetable oils, meat products, vegetable and fruit canning, fodder, the weaving and spinning industries and the leather industries.

            While mine and quarry-extracted minerals serve as raw materials for the cement, gypsum, marble and glass industries, in addition to many other building materials. These minerals also serve as inputs for the chemical, medical and pharmaceutical industries . In Sudan, there are the natural resources that may facilitate the paper and timber industries . Moreover, the industrial sector provides the basic inputs for the agricultural sector, such as: fertilizers, pesticides, chemicals, the agricultural equipment and implements.

            Availability of most of the infrastructure facilities, and the basic services which are indispensable in industry such as: power and water supplies, transport and communication, marketing, insurance and banking services. But most, of these infrastructure facilities require rehabilitation, expansion and new investment ventures.

            Some of the major industries in this sector are:

3.2.1   THE SPINNING AND WEAVING INDUSTRY:

            In Sudan , the public sector owns eight spinning and weaving factories two of which produce yarn, and there are nine large scale private sector factories and 75 small scale . The maximum production capacity for these factories combined, was initially estimated as: 54,000 tonnes of yarn and 380 million meters of cloth per annum; but the actual annual productivity of these factories does not exceed 30% of the targeted output, and this is due to some impeding problems encountered by this sector.

            Sudan has considerable preferential qualities in the field of spinning and weaving industry . Cotton is produced in bulk and of all grades and the majority of it is still exported as raw material.

            The spinning and weaving industry is among the most ideal investment sector that attract investors whether to rehabilitate the present factories or built new ones specially in the field of producing high quality textiles and clothes, or production of sackcloth and jute, or medical cotton gauze and muslin.

3.2.2  THE SUGAR INDUSTRY:

            There are five sugar factories in Sudan: Al Geneid Sugar Factory, Sennar Sugar Factory, Kenana Sugar Factory and Asalaya Sugar Factory, which are all in the Central States and New Halfa Sugar Factory in the Eastern States. Four of these factories are owned by the public sector, while the fifth (Kenana Sugar Co.) is the joint-venture of Arab, Sudanese and foreign capitals. The total productivity of the five factories combined has reached 610000 tonnes during the 1998/99 season, while Kenana factory alone produced a total of 365, 000 tonnes in the same period.

            The investment potentialities and opportunities in the sugar industry can be in form of: rehabilitation of the present factories or to establish new large-scale factories for export. The government has also opened the door for the private sector to built small -scale factories to meet the domestic consumption requirements, because Sudan provides the basic  input to this industry. There are also possibilities of investing in fields of sugar by - products such as production of sugar syrup and glucose.

3.2.3   THE FOOD INDSTRIES:

            The food industries factories operate in the areas of food packaging, canning and processing. These factories are exculusively owned by the private sector and their annual output is established to around 9000 tonnes of food stuff. This sector also includes the fruit and vegetable canning industries and the vegetable oil industries which extract oil from sesame, groundnut, sunflower seeds and cotton seeds.

            Investment potentialities and opportunities in this sector can be in forms of ventures in oil seeds production for the present oil extraction factories, and to bulid new fruit and vegetable canning factories that process high quality products. There is also the possibility of building cereal mills and investing in the biscuit industry and other similar food industries.

3.2.4   THE LEATHER INDUSTRY :

           Hide, fur and other types of animal skin are all raw material for the tanning and leather industries , and the recycling of the tanneries reminants gelatine and lubber. There are seven modern tanneries in Sudan with a maximum annual output of about 29 million square feet of sheepskin and 28 million square feet of calfskin. There are also some 290 conventional tanneries that use traditional tanning methods to produce around 8 million square feet of sheep skin and 8 million square feet of calfskin. These traditional tanning enterprises are of low productivity , and they are owned by the private sector.

There are also a number of leather shoe factories and factories for other leather products, in addition to a number of small hand-made shoes workshops and stalls. Sudan enjoys a preferential status in the fields of leather industries due to the huge animal wealth and livestock that provides more than 13 million pieces of hide annually. Despite the many tanneries in Sudan , most of them are inefficient and produce semi-finished products and leather that is not fully tanned . Therefore, on top of the investment potentialities which national and foreign investors could venture in, comes the possibility of establishing modern tanneries that use advance technology in the whole tanning process. Modern large-scale and high quality leather shoe factories which shall suffice the domestic market and export the surplus, may also be bulit. Leather industries that may produce leather sheets , leather handbags, gelatine, belts, leather clothes, and all other sorts of leather ware can also be established. The government also welcomes all interested private sector investors to jointly invest with it in the rehabilitation of the present public sector tanneries by adding modern production lines, developing and diversifying products.

3.2.5  THE CEMENT AND BUILDING MATERIALS INDUSTRIES:

            There are two cement factories in Sudan, one at Atbara in the River Nile  State , and the other at Rabak in the White Nile State . The Two factories combined have a maximum Production capacity of  325000 tonnes per annum.

            When it comes to the issue of other building materials such as the firebrick, marble , gypsum,tiles and granite industries we find that there are few factories and most of them apply conventional methods.

            Sudan also enjoys a preferential characteristic in the field of cement and building materials industries becase of the abundant availability of the basic raw materials , the trained and skilful human cadre, and many marketing facilites, thus, the investment potentialities can be summed up in the following main points:-

1.  Investment in the cement industries sectors in northern , eastern  and western  Sudan.

2.  Production of quick and slaked lime for the sugar industry, and water filtration installations.

            3.  Production of gypsum and its products.

            4. Firebrick and sandstone brick industry .

            5.  The glass industry .

            6.  Health utensils, ceramic and porcelain industries.

3.2 .6   CHEMICAL AND PHARMACEUTICAL INDUSTRIES:

            The chemical and pharmaceutical industries sector includes various industries: paints, plastic, tyre, fertilizers, insecticides, sulphur and the perfume indusries. It also includes manufacture of all the electrical appliances and products. Most of the present industries in this field are established either by national or foreign private sector, and they are mostly concentrated in Khartoum State.

            There are good investment potentialities in this sector, such as: investment in the field of the basic industrial chemicals like caustic soda and chemical salts, production of insecticides, veterinary drugs, expansion in the field of the human pharmaceutical industry, specially the antibiotics and other essential life-saving drugs, production of drugs from the domestic medical plants and herbs. There are slso good investment opportunities in the field of pneumatic tyre manufacture, sulphur and industrial paints.

3.2 .7  BOTTLING AND PACKAGING INDUSTRIES:

            - The bottling and packaging industries consist of flexible wrapping materials which are made of paper and plastic, and inflexible stowage in bottles, wooden cases and metal kegs. Although there are several factories in Sudan that operate in this field, but their productivity is comparatively low. Almost all these factories are owned by the private sector, except one that produces wooden packaging kegs which has also been recently transferred to the private sector’s ownership.

            There are considerable investment opportunities in this sector created by the preferential characteristic of a large volume of agricultural products and other commodities in addition to the availability of the basic raw materials and other inputs locally, e.g jute and silica. There are also good investment potentialities in the field of container

             manufacture, e.g sacks of all size and grades. Deluxe and family size glass and plastic containers, supply of cellophane, paper and other packing and wrapping materials for Sudanese exports.

3.2 .8   PAPER AND TIMBER INDUSTRY:

            The paper and timber industry includes investment in plantation of trees that yield high quality timber and other wood products. It also includes the wood preparation stages, sawmills, manufacture of chemical products from lignin and cellulose; and paper products from wood preparation stages, sawmills, manufacture of chemical products from lignin and cellulose; and paper products from wood planks, bogus and weeds.

            In Sudan, there are several wood products factories, and Sudan still enjoys a preferential characterisic in the arenas of paper and timber industries due to the abundant raw material. Thus, the investment potentialities can be in forms of :

1.  Paper industry - to produce all kinds of paper and paper-based products.

2.  To promote the present sawmills and other wood industries such as: sapwood, plywood sheets, match sticks, telephone pylons, rail-road logs, wooden household and office furniture.

3.2.9  THE ENGINEERING INDUSTRIES:

Engineering  industries in sudan a re represented by the metal works sector such as :refrigerators ,air conditioners ,water coolers,liquid gas cylinders,welding,household utensils,electric appliances and automobile,ruck,tractors and agriculture equipment  assembly,auto_body industry and many other engineering industries and because of the ever-increasing demand for such products in Sudan,there are numerous  investment opportunities specially in truck, tractors and other agriculture equipment assembly industries.   However, establishing auto-assembly facilities and manufacture of the spare parts, household utensils,electronic devices and electrical appliances in Sudan could also be suitable investment arenas.

  3.2.10   MINOR INDUSTRIES:

            Minor industries are a group of industries that use simple or medium technology in product, for example vegetable-oil factories, grain mills, ovens and improved stoves and the like- and this field is specially recommended by the state for it helps develop the rural areas and it shall also be encouraged because of raw material availability for such industries.

            There are also investment opportunities in the field of:  haulage of raw materals to factory site, import of the necessary equipment, provision of consultation, marketing, warehousing and transportation services.

3.2.11   OTHER  INDUSTRIES:

            There are other industries in Sudan of which we may mention: the fodder, cigarette “tobacco’, flour, gaseous waters and match industries. All these industries are owned  by the private sector, and almost all the factories are concentrated in the State of Khartoum. There is also a public sector unit with an estimated annual productivity of some 400,000 tonnes, but it is currently operating at not more than

            50% of this target capacity.

            The Comprehensive National Strategy aims at the overall  rehabilitation of these factories in order to promote their capacities to he desired margins. This will of course create some investment opportunities either by participation in rehabilitating the present factories or to venture in establishment of some new factories and units specially when we put into consideration the factor or raw material  availability on domestic basis.