THE ECONOMIC SECTOR

a.  INTRODUCTION:

            Sudan initiated economic reforms in the early 1990 aimed at liberalizing the economy. Progress has been made in deregulating and opening the economy to private sector participation, an average annual growth rate of about 5% was maintained during 1992-1998.

            The economy has responded positively to this reforms. Real GDP growth acclerated modestly to an annual average about 6% during 1997-1998. Inflation declined from an average of 133% in 1996 to 17% in 1998. Fiscal revenue bouyancy has increased markedly after years of stagnation at low levels and, coupled with an improvement in budget control, has resulted in sharply reducing the overall budget deficit. Aided by positive real rate of returns, financial disintermediation has been halted . For the first time in may years, in 1998 the velocity and cash-to-deposits and foreign currency deposits ratios declined and the ratio of quasi-money deposits to current deposits increased. The current account deficit has also declined from 7.6% of GDP in 1996 to 4.1% in 1998, mainly as a result of increased private transfers and improved export performance.

b. SECTORIAL DEVELOPMENTS:

            Sudan’s economy is based largely on agriculture, which accounted for about 40% of the GDP on average during 1992/93-98, while trade and other services averaged about  46% of the GDP . The rapid decline in inflation rates, the return to positive real rates of returns on bank deposits and finance, and the relative stability of the exchange market have crowded out many trade and services activities and attracted private investment and transfers to industry and construction.

 3.1.   THE AGRICULTURAL SECTOR:

            Agriculture is the dominant sector  in the Sudanese Economy . In addition  to generating directly about two -fifth of GDP, agriculture also drives activity in the service sectors such as transportation, agro- industries, and commerce, that account for a large part of the rest of the economy . Even more importantly, 80 percent of the labor force is employed in agricultural and related activities, and the performance of agriculture is the main determinant of year -to- year changes in poverty levels and food security of the population.

            Finally, agriculture is the source of virtually all Sudan’s exports, and therefore the key determinant of balance of payments development.

            In recent years, agriculture has begun to live-up more to its potential, in response to stabilization and structural reform measures. Agricultural GDP has increased at a rate of about 5% between 1993/1994 and 1998, and has pulled the economy along at about that rate . The growth has been export-led, with export volume growing at well over 7 percent a year.

            Cultivable land in Sudan is estimated to be around 200 million  feddans (about 84 million hectares). Of this huge area, only 30 million feddans has so far been exploited, in other words, an equivalent of 15% of the total cultivable land for the different farming methods nationwide:

          IRRIGATION FARMING:

            This method of farming is mainly used in the irrigation projects located between the banks of the white and Blue Niles. Here, we find the Gezira Scheme and the giant Al- Managil Extension in an area of 2.1 million feddans out of a total area of  some  4 million feddans which represents the entire artificially  irrigated farming land plot in Sudan. Hence, this project is considered the largest farm under one administrative board in the world. Among the other modren canal-irrigated projects are Al-Rahad project and New Halfa project in the Eastern States, Kenana Sugar, Hajar Asalaya and Gharb Sennar sugar cane plantations in the Central States. Most of the irrigation projects are administratively run by the public sector, but few of them are run by the private and co-operative sectors. Cotton, wheat , sorghum and sugar cane are among the most important crops farmed in these projects. 

           RAIN-IRRIGATED FARMING:

            This type of farming is concentrated in the Eastern and Central States and in the Southern parts of Dar Fur and Kordofan States, and it is generally mechanized. There is also the conventional methods of farming known as shifting cultivation’ which is seasonal and exists in the central parts of the country and the Southern States. The mechanized rain irrigated projects and the conventional ones are administratively run by the private sector in most of the occasions. However, there are some local and regional companies and corporations that work in this field . The crops cultivated in these projects vary from sesame, sorghum, cotton, groundnut, kardadi, millet and corn, to sunflower and sugar which have been introduced in the last few years.

            Plantations for other crops have also been developed such as : rice,   coffee, tea and some garden farmed legumes such as bean, broad bean, lentils,peas and vegetables. Orchard fruits such as dates, mango, lemon, orange, grapefruit and guava are also available             throughout the year.

      INVESTMENT POTENTIALITIES AND STRATEGIES IN THE AGRICULTURAL SECTOR IN SUDAN:

The ten -year Comprehensive National Strategy (1992-2002) have numerous objectives which it endeavours to realize in the agricultural sector. For instance it plans:

1.  To increase the artificially and streamlined irrigated agricultural plot by three fold.

2.  To Increase the rain-irrigated areas by ten fold.

3.  To increase productivity of cereals and other food crops by six fold at least.

4.  To increase productivity of oil seeds by six fold.

5.  To diversify and increase other crops by two fold including medical and perfume plants.

6. To increase the qualified agricultural cadre by five fold and encourage the agrarian scientific research by facilitating the institutes and universities that sponsor it.

There are some invaluable investment opportunities in the artificially -irrigatged vegetal sector , for instance:

a.  There is the possibility of establishing some agricultural projects on the fertile banks of the White and Blue Niles . Because of the high fertility of alluvial soil, miscellaneous crops could be farmed ranging from cotton, groundnut, and wheat, sugar cane to vegetables, fruit and legumes.

b.  Investment in water supply and irrigation services such as establishment of subterranean water -well drilling companies, provision of maintenance to surface water pits “hafeer’ and other surface water reservoirs.

c. Provision of agricultural and field services such as supply of genetically improved seeds, assistance in pests combat and field mechanization.

d.  Establishment of agricultural projects in the Northern State, northern Kordofan and Dar Fur states which can be irrigated by pumping the rich under ground water reservoirs. Such projects shall boost wheat and animal products in Sudan.

e.            Introduction of animal farming in the agricultural rotation.

f. Investment in tne farming aids industries relevant to the artificially -irrigated sector such as: manufacture of water -well casing, conducting services pertaining to the water-well drilling industry for example manufacture of drill pipes, tubing, underground water-pumps and supply of the necessary accessories, spare parts and equipment, manufacture of hand pumps and provision of maintenance for all the above mentioned wares, and establishment of a sound drilling mud”bentonite’ industry of which the raw material is available in abundance.

g.      Investment in the field of orchard products which continues throughout the year, and reaches its acme in winter. The wide variety of the climatic zones in Sudan, makes the country relatively unique and enable it produce fruit and vegetables for export to the European markets, specially when we put into consideration the difference in seasons of fruit production in Europe in comparison to Sudan. However, some shipments of grapefruit, mango, lemon, onion, aubergine and green pepper have already established a positive reputation there. Among the areas which are potentially suitable for both vertical and horizontal expansion in the field of orchard products are: central and eastern Sudan, in addition to some other areas.

     In the rain-irrigated areas, the investment potentialities can be in the     

     following forms:

a.   To expand the present projects both vertically and horizontally through intensive rehabilitation , modernization and a proper rearrangement of plans, by introducing some farm animals, provision of water supply facilities , and utilizing the harvest left-over and reminants as fodder for the farm animals.

b.   To invest in the mechanized agricultural services such as provision of tractors, equipment, and harvesters for hire, and building service workshops and supply them with spare parts for maintenance purposes.

c.   To expand horizontally by establishing new cash crop projects like oil seeds, cotton and sorghum.

d.   To invest in plantation and crops protection against disease and insects by incorporating companies that operates in fields of supplying genetically - improved seeds and conducting spray campaigns in combat of insets and other forms of farm blight.          

e.   To invest in the fields of crops warehousing and transport because most of the rain-irrigated projects areas are located in remote rural areas and are isolated from the major marketing centres and the sea ports.

      THE FORESTS’ SECTOR:

22% of the total area of Sudan ( about 127 million feddans ) is covered in forests of mahogany, teak, acacia, ebony and various other kinds.

- Gum arabic is the most important of all forests products in Sudan besides the wood products which include: timber, plywood , lumber, rail-road logs, firewood and charcoal. Forests in Sudan are mainly concentrated in the southern states, the southern parts of Kordofan, the Central, Dar Fur and the Eastern States.

The horizontal agricultural expansion-specially in the rain-irrigated areas -has negatively affected the forests to the extent that made the authorities legislate against cutting down of trees, and issue some environment conservation laws that compel owners of the agricultural projects to spare 20% of the areas of their rain -irrigated projects as protective green belts.

The Comprehensive Naional Strategy has also emphasized the issues of maintaining the multifaceted ecological balance in Sudan, soil conservation and protection against erosion and desertification, development and promotion of forests, national pastures and to safeguard them against overgrazing and unauthorized wrongful downing of trees.

      LIVESTOCK:

Sudan owns a huge livestock  population which consists of cattle, sheep, goats and camels, in addition to the wildlife, fish and poultry. The livestock wealth was estimated to be around 116 million head in 1999  classified in the following categories:

35 million head of cattle.

42 million head of sheep.

36  million head of goats.

3 million head of camels.

Sudan comes first in the Arab world, and as the second richest African country in livestock. This is due to its extensive pasture lands and suitability of its climate for animal raising. Good natural pasturage covers more than 57 million feddans, and the nomadic pastural sector tends for more than 90% of this huge animal population.

The wildlife sector is considered as a sub-sector of the forests’ products and there are no statistical data about this sector , but wild animals are distributed in most parts of the country and they vary in accordance with the different climatic zones in Sudan.

        FISHERIES:      

            Sudan huge fishing potentialities and fish resources are represented by the 700 kilometre coast line on the Red Sea and about 42 billion square metres of fresh water stretched in forms of lakes and rivers, the most important of which are the River Nile and its tributaries, the Sennar Dam reservoir lake, Al Ruseiris Dam reservoir lake and Jebel Awliya Dam reservoir lake, and the Nubian lake at wadi Halfa . The annual production of fish is estimated to be 33000 tonnes.

       LIVESTOCK STRATEGY IN SUDAN: 

            The Comprehensive National Strategy aims at increasing the livestock population by three fold through promotion of the conventional methods employed by traditional herds owners to more modernized and developed techniques. The strategy also aims at boosting animal and livestock products exports by twenty times in comparison to the present figures. It also aims at the complete eradication of endemic and epidemic cattle diseases, realize self-sufficiency in vaccines and basic drugs and promote veterinary services and research.

            Moreover, the Comprehensive National Strategy aimed at promoting the fish industry by establishing fish and modernizing food canning and drying industries through provision of the necessary technological equipment in order to make the most possible use out of our fisheries.

  INVESTMENT POTENTIALITIES  AND OPPORTUNITIES IN   THE LIVESTOCK SECTOR IN SUDAN: 

1. Marketing of red meat and alive cattle both in domestic and world markets.

2. Provision of means of transport and haulage for alive cattle and meat products by land , air or cool sea containers.

3. Building of refrigerated meat storage facilities, and setting up some modern abattoirs in the major towns and cities of the production areas such as: Kosti, El Obeid and El Fasher.

4.  Investment in the field of dairy products specially in the central plains of Sudan.

5.  Expansion in the field of white meat production, and this particular field is emphasized and backed by the government.

6.  Production of fodder and concentrated fodder stock and cubes.

7. Fishing and fish -marketing by incorporating specialized firms that employ modern techniques and introduce the appropriate technology.

8.  Production of veterinary drugs.

9.  Import of some genetically improved or crossed cattle breeds, production of white meat poultry and a high quality egg-laying hens, and production of one- day -old chicks.

10.  Introduction of modern poultry industry equipment such as: heavy-duty electric incubators and other relevant  chicken farm appartatuses.

11.  Incorporation of fishing firm that shall have modern conveniences such as  instant packaging that enables off shore fishing and canning, thus , it makes it possible to export fresh marine products to the world markets.

12.  To invest in provision  of packaging and fridge containers for all livestock and polutry products, whether it is red meat, white meat or eggs.

  THE ECONOMIC SERVICES SECTOR:

The  economic services sector is the basic element in the development of all other sectors. It has contributed 44% to the National Domestic product in the year 1999.

This sector includes miscellaneous economic services, for instance:-