Investment Authority

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 products10. 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 machines15. pharmaceutical products and medical equipments.

THE MINING SECTOR:

The mineral wealth in Sudan consists of deposits of many metals for instance

gold , chromium, manganese, gypsum, mica, talc, iron lead, uraium , zinc, copper, choaline, coabalt, granite, marble , nickel, silver and tin

The Mining Sector’s strategies, Potentialities and Investment Opportunities :

The Comprehensive National Strategy has specified its aims regarding this sector in the following points

1. To intensify the exploration operations and rehabilitate the available quarries and mines introducing advanced technology

2. To invest and utilize the discovered mineral deposits in some domestic industries.

3. To increase production of chromium by three fold, mica by five fold, gypsum by ten fold, and increase gold production by rehabilitating the present mines and striking some new sites.

In order to realize these objectives, new investment horizons shall be created either by enterprising in new exploration operations or establishing new quarries and export the surplus, or providing some aiding services; in addition to the possibility of contributing into the rehabilitation works of the available projects.

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:-

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.

THE AGRICULTURAL SECTOR

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

IRRIGATION FARMING:

RAIN-IRRIGATED FARMING

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

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

e. Introduction of animal farming in the agricultural rotation.

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

following forms:

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

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.

LIVESTOCK:

35 million head of cattle.

42 million head of sheep.

36 million head of goats.

3 million head of camels.

FISHERIES:

LIVESTOCK STRATEGY IN SUDAN