Sudan Welcomes Foreign

Direct Investment

General Review

By virtue of being one of the largest areas of untapped resources in the world, the Sudan has always drawn  remarkable interest. It has extensive agricultural land and water resources a diverse potential of mineral wealth.

Location

Sudan is the heart of Africa. It is the largest country in Africa and the second for Arabian countries, after Saudi Arabia, and is ranked 10th  in size in the world.

Sudan is surrounded by eight countries. Sudan borders Chad and the Central African Republic in the west, Zaire, Uganda and Kenya in the south, Eriteria and Ethiopia in the east. It is also close to Saudi Arabia across the Red Sea and borders Egypt and Libya to the north.

Sudan is almost dissected into two by the River Nile that runs from south to north of the country. The River Nile derived mainly from the  Blue Nile which originated from Lake Tana in Ethiopia,  and  the White Nile coming from Lake Victoria and its catchments originating from Kenya , Uganda and Tanzania. The two rivers meet at Khartoum (the capital) almost at the middle of Sudan forming the Main Nile passing through two states of northern Sudan to Egypt. The River Nile water is considered as one of the fresh and sweet waters in the world.

Khartoum the capital is divided into three towns, Khartoum, Khartoum  north and Omdurman linked with five bridges across  the Niles.

 Climate

The climate is continental ranging from desert, to medeter anian to Savanah to equatorial with temp-ranging bet 30- 46⁰ C.

Type of government

Since acquiring independence in 1956,. Sudan has gone through seven political regimes both civilian and military. Now it is state government divided Sudan into 26 states.

Culture

Beyond its economic potential, the culture and location of Sudan are also of significant merit: it is an African nation with ethnic African cultures bounded by a predominantly Islamic culture.

The majority of the nation shares a common culture that is derived from the influence of Islamic religion and country’s unique background.

Sudanese share a common national interest in local music, poetry, and customs that emphasize family cohesion.

Arabic language serves as the official language  and English is also widely spoken. Several of the major tribes in the country also maintain indigenous dialects.

 Natural Resources

60% of Sudan area is arable land with 10 % pasture land, the rest are forests and mountains and others. A huge number of livestock of about 116  million including sheep, cattle, goat and camels, feed on natural pasture.

Ground water is available in a huge amount in addition to water falls and rivers . (including the Blue Nile, White Nile, Atbra, Rahad, and other small rivers and khors).

Tourism        

 Historically, Sudan got old civilizations,   Marawi kingdom in the north and Sennar kingdom in the middle comprising tourism spots and including pyramids in the north.

Sudan has six cataracts starting in Khartoum up words to the north.

The junction of the two niles at Khartoum reflecting impressive view.

The country is rich with wild life in western, southern parts and east southern parts of Sudan. The Dinder National park the biggest in Africa neighbouring Ethiopia.

Economic indicators

- Total Area: 2.5 million sq. kms.

- Total pop: 24,9 million (1993 statistics).

- Pop. Of Khartoum (the capital) 6 million (1993 statistics).

- 80% of the total pop. work in agriculture (1997 statistics )

- Agric. contributes 49,7 %  of the GDP  (1998).

- Industry and mining contributes 8,1 % of the GDP  (1998).

- services government and other services: 26,3 % of the GDP  (1998)

- Exchange rate 1 u$ = 250 Sudanese Dinar.

- Inflation rate now is decreasing due to economic reform policies.

Sudan exports

Sudan exports  are mainly agricultural and agricultural processed goods, including cotton, cotton yarns, cotton waste, gum Arabic raw and semi processed, guar gum, Lubban, sesame seeds, groundnuts, sunflower edible oils, sorghum, oil cakes.

They also include livestock meat and semi-processed leather.

Gold, mica, marble, and chromium are also exported.

Fresh vegetables (green beans), onion, garlic, beans and spices (all over the year).

 Fruit (Mango, Guava, Lemon Banana, Dates, Galia melon etc.) all over the year.

- Medicinal herbs (senna pods, henna ....... etc.).

- Hibiscous flowers, melon seeds.

- Sugar and molasses.

 Free zone areas

Under the free zone and markets corporation Act 1994, two free zones areas were declared, the first one is at Swakin in  Red Sea coast of

600 sq.Km  and construction started in the first phase.

 The activities in the free zone area include industry trade, banking system, economic services and others.

- The second area at north khartoum at Elgeli.

- Bonded warehouses are allowed in all parts of the country.

Mining

Sudan has a vast natural deposits that have not been exploited, mineral deposits which had been discovered in different parts are waiting for local and foreign investment. Mineral deposits include gold, silver, iron ore, chromite, mica, silica, gypsum, granite, marble, clay, manganese trauma (costic soda) talc and limestone, copper, zinc, cement production etc.  Three investment projects working in mining of gold and copper.

 Sudan Oil production : self sufficency & export in 1999

Oil exploration started in Sudan in late fifties and in seventies oil was discovered in Sudan. After the withdrawal of chevron overseas many other international companies started oil exploration in Sudan specially after 1992. Now there are many companies working in exploration and productions and construction of pipe lines.

Oil deposits till now is estimated by two billion barrels.

companies working in oil development:

1. The Canadian Arakis Energy Corporation , and International Petroleum

    of Canada (IPC).

2. Malazian petronas oil company .

3. China National Petroleum.

4. Qatar National petroleum.

5. Sudanese National petroleum.

  Aconsortium of companies from different parts of the world have already invested in the longest pipe line from Southern Sudan to Bashair port in the Red Sea (1610 km) investing over million dollars in that line.

Also two oil refinaries have been built in western Sudan and north of the capital Khartoum with a capacity of  two and a half million ton per year costing 640 million dollars.

  Investment in Agriculture:

Total arable land is about 200 million feddan  (4200 sqm) and only 30

million feddan is cultivated.

Investment needed welcomed in:

1. wheat production.

2. Sorghum (Dura).

3. Oil seeds (sesame, groundnut, sunflower).

4. Fruits (mango, banana, Juava, lemon, strawberry, pineapple (ananas); grapefruit.

5. Vegetables (tomato, through out the year and 9 months in the central regions, greenbeans, okra, cucumber, potatoes, onion, gralic, spices, legumes, lentils.

6. Beekeeping to produce honey .

7.  organic  fruits and vegetables (alluvial soil along the Nile Banks and deltas of wadis - Toker, El Gash etc), makes the soil fertility very high and makes very big potentiality for production of organic fruits and vegetabeles to meet the rapid growing demand which will reach 10 % of   European food consumption within the coming 10 years.

  Livestock:

50 million feddan of pasture land in addition to crop residue and oil cakes make cost of feeding very cheap.116 million heads of cattle, sheeps, goats and camels producing only 3 million tons of milk and less than one million ton of meat. Also Sudan is very rich in wild life and there are investment opportunities for modern farms for ostritches, antelopes, corcodiles etc.

Investmetn is welcomed in:

1. Modern farms to fatten and produce meat, milk, wool etc .

2. Slaughter houses to export meat.

3. Milk factories, to provide fresh milk, milk products for local and export.

4. Investment in transport facilities for life animal and refrigerated means for meat and milk products.

5.Fisheries (Nile perch) in the Nile, lake Nubia, Red Sea  .

6. Poultry.

7. Animal fodder.

8. Drugs and vaccins.

9. Improvement of quality of the natural herds by introducing new breeds crossbreeding to improve milk and meat production.

  Energy:

 potentiality:

One of the bottlenecks in sudan is shortage of energy as fuel for all uses and electricity. River Nile with many cataracts and waterfalls, strong winds, agricultural by -products, sun, forests covering 200 million feddans, all these sources give excellent opportunity for investment in those areas:

1. Petrol and gas production.

2. Hydro electric projects (micro, small and big)

3. Solar energy for lighting, heating, irrigation wind power for irrigation

4. Wind power for irrigation

5. Water turbines for irrigation from the Nile.

6. Biomass.

7. Charcoal from agricultural by-products.

8. Coal.

Fields for investment in Industry

 The biggest investments in sudan was in edible oil with capacity of 600 thousand tons, soap, textile and sugar industry and the share of industry is 8,1% in GDP (1998).

1. Joint venture in rehabilitation of (edible oil mills, leather industry, textile etc.. ).

 2. New sugar factories.

3. Oil productions (petrol and gas).

4. petrochemical.

5. Fertilizers: urea (demand 500.000 tons).

6. Tomato paste &  syrup (9 months tomato season).

7. Fruit juice & concentrates, dried fruits : mango, juava, lemon, grapes, papaya, dates, strawberry, and pineapples.

8. Yeast (from sugar by products, dates).

9. Leather products.

10. Dehulling of sesame seed.

11. Spray dry for gum arabic and guar gum.

12. Packing industry: cardboard, plastic, glass and sacks for grains.

13. paper industry: from dates tree, agricultural by products and forests.

14. compressed earth brick machines.