Investment Authority

1. Sudan is a country with great potentialities whether in form of the extensive uncultivated farm land or the plentiful water resources, differing climatic zones, its huge animal wealth and limitless natural pasture land, forests or the mineral wealth , particularly its large oil reserves which have not been exploited fully.

2. There are countless and various investment potentialities in the differnent economic sectors such as: the agricultural sector, the industrial sector, energy and mining and in the fields of economic services. There are also investment opportunities in the fields of air and sea transport and road haulage, warehousing and the infrastructure sector.

3. There are clear and explicit economic, social and political plans and programmes demonstrated by launching of the “Comprehensive National Strategy for the sudan “ which is a ten year plan (1992-2002), in addition to the studied targeted development programmes.

4. The most recent reformatory steps taken by the state have freed investment in Sudan from the restrictive acts which it was shackled by,however, the very few remaining ones are but exceptions to the basic rule which is investment . The Sudanese economy is currently drifting towards the free market economy, and there is a rapid shifting towards privatization in all sectors. This will definitely instigate the private sector and encourage it to contribute in the economic and social development since its rights are safeguarded and reward is guaranteed.

5. All procedures pertaining to investment in Sudan shall be prompt and of a simple nature. However , there shall be facilities, adequate assurance and impetus for both the investor and the invested capital without any preference.

6. Availability of a highly trained and qualified cardre in the agricultural, industrial, mining and energy and the economic services sectors, and comparatively low wages.

7. The Banking sector in Sudan is deep -rooted and firmly established and banking services are accessible in all the states of Sudan. Moreover, there are some specialized banks which are solely devoted to spur investment and development to greater efficiency in the various investment fields. There is a number of specialized banks, for instance: The Agricultural Bank , The Farmer’s Bank,The Livestock Bank, The Industrial Development Bank ( of the industrial sector), The Real Estate Bank (which serves the construction and building sector), The Co-operative Development Bank ( which serves the Co- operative Movement in Sudan), and the proposed ‘construction Bank’ which is currently under establishment . There are also some state owned institutions and private companies that finance the investment activities. A stock Exchange Market has also been opened in Khartoum.

8. Transactions in hard currency shall not be restricted, and there shall be an extraordinary freedom of trade with the outside world and at the national level, and no restrictions in the pricing policies.

10. Success story of foreign investment like Kenana Sugar, Eriab gold (French), spinning and weaving (Korean) and many investments in oil may be incentives for others to invest in Sudan.

11. Telecommunication: Advanced telephone and fax services through privategation of the sector .

12. The unique geographical location of the Sudan- almost in the heart of Africa-markes it an ideal marketing centre and a traverse point for supplying the neighbouring African countries with commodities and services.

Sudan is situated in the North East Corner of Africa, and lies between latitudes 4 and 23 degrees north ,and longitudes 22 and 38 degrees east. In terms of area, Sudan is the Largest african country (2.5 million km²) and it shares common borders with nine African countries. Egypt and Libya in the north , Chad and the Central african Republic in the west, Zaire, Uganda Kenya in the south , Ethiopia and Eritrea in the east. It also neighbours the Kingdom of Saudi Arabia which lies on the east coast of the Red Sea. With an area of one million square miles, is among the targest single political entities in the world , and it comprises 8.3% of the area of the African continent.

Sudan lies within the Africa tropical zone, thus its climate varies from the equatorial in its most southern parts, savanna in the centre, and the continental in the northern parts. While at the Red Sea coastal plains in the eastern part of Sudan, it rains in winter, and period from March to June is renowned for its extreme humid heat-up to 42 degrees celsius at day time, and 27 degrees celsius at night. But temperature gradually declines when it starts raining from July to October. The weather changes to match that of the temperate zones with warm sunshine from November to February when temperature starts zooming up again and reaches 30 degrees Celsius at day time and 16 degrees Celsius or less at night. Thus cotton clothes are the most convenient ware in Sudan.

According to 1998 projected Census, Sudan population numbers 33,000,000 of which 69% of the population are farmers with the rest engaged in other different activities.

Sudan, with its vast extending areas, is home to 597 tribes , with nearly 115 dialects belonging to three major groups:

The first group brings together the arabs in the Northern and central Sudan making this a majority. This group comprises Ja’aleyeen, Shaigia Baggara, Bedairia, Hassania and Kababish.

The second group is in the east comprising Red Sea tribes like Beja, Hadandawa, Amar’ar and Bishareyeen. The third group comprises negroids who live in the south and some areas in the west.

Islam is the religion of the majority in sudan while there are Christian and pagan minorities particularly in the southern states.

Arabic is the offical language, whereas English is also used besides Arabic in some private and governmental sectors specially in the Southern States.

- The Sudanese Dinar ( Ds) is the standard monetary unit. There are notes of twenty-five -dinar bill, fifty -dinar- bill ,hundred dinar -bill, five hudred and one thosuand dinar-bill.

In decimal coinage, there are: five dinar, 10 dinar , twenty dinar coins (Ds,5, 10,20).

The hard -currency exchange rate is controlled by the supply and demand factors.

(a) Government circles and banks open at 7:30 a. m. And close down at 2:30 p.m. from Saturday through Thursday. Friday is the official weekly holiday, but in the southern states Sunday is the officical weekly holiday while Muslims work up to 11:00 a.m. on Fridays.

Banks transact business with the public from 8.00 in the morning until 12:30 in the afternoon.

Work at companies often starts at 8.00 in the morning and finishes at 2:00 in the afternoon, but some companies have afternoon shifts which resume work at 5:00 p.m. and carry on until 7:00 in the evening .

Work starts at 8.00 in the morning and services are provided to the public until 12:00 in the afternoon;then ‘close door’ internal services until 01:00 p.m. On Sundays and Tuesdays, the usual working hours for the public start at 08:00 in the morning and continues up to 01:00 in the afternoon.

Shops usually open at 08:00 in the morning and close down at 03:00 in the afternoon, but there are some shops that reopen at about 05:00 p.m. and conduct business dealings until around 07:00 p.m.

Whoever intends to visit Sudan is requested to obtain entry visas from embassies of Sudan or its accredited consulates abroad prior to arrival in Sudan.

The Investment authority may also obtain entry visas for any investment delegation that wishes to visit Sudan, provided that the visiting delegation telexes the Authority and fixes the time of the intended visit. In such cases contact should be in advance so as to give ample time and convenience.

Under the new foreign exchange regulations,current account transactions were free of any restrictions. However,capital account transactions that would involve using export proceeds or transactions from the export accounts were permitted only on a case-by case basis. The authorities continued to permit without restricitions the opening of individual unrestricted accounts with resources originating from abroad.

Luggage belonging to incoming visitors to Sudan-whether handcarried or freight -shall be checked by the customs police at port of entry. However, such luggage (with exception to electrical and electronic devices) shall not be liable to any customs duties. Should the amounts be in commercial quantities, then the ordinary customs tariff shall be applied.

The form of government is the federal system. There are twenty six states and Khartoum is the capital of the Federal Union. The system is based on three levels: (federal, State, and District

In Sudan , there is a a skillful and highly qualified cadre in the agricultural, industrial and the economic services sectors. Moreover, skilled labour is easily obtainable and at low cost.

Being an agricultural country in the first place, Sudan has given the agricultural education special emphasis and care. Therefore, we find that the agriculturalists’ sector is one of the largest professional sectors and its members are among the most scientifically- highly qualified professional nationwide. The state has also paid special care to promotion of scientific research in the agricultural sector, including both animal and crops. In sudan, there are some high- level and eminent research centers, and there are qualified personnel at different levels of professionalism: in production, civil service,etc. Most of these professionals have accumulated experience due to the long years of practice in the rich Gulf states where they had served as migrant labour before. The state has also being sponsoring- since long ago-scientific research in applied and practical sciences, and the economic and social science “humanities’ . However, there are specialized research centers and councils in these disciplines, for instance:there are specialized industrial consultation and research centers, some specialized centers for the food industries sector, and other for tanneries, the weaving industry, oceanography and marine science etc. There is also an administrative sciences academy and numerous centers for banking, accountancy and computer studies.

Sudan is rich in natural resources which can be summed in the following categories:

1. Extensive stretches of cultivable land and plains estimated at 200 million feddans .

2. A huge livestock wealth estimated to be about 116 million head of cattle, sheep and goats. There are also some 250 million feddans of forest, bushes and natural pastureland.

3. Considerable water-supply reserves in forms of rain water, rivers, surface and unerground water reservoirs.

4. A broad climatic zone that stretches from the lush vegetation of the equatorial southern Sudan to the arid deserts of the north.

5. Huge deposits of mineral wealth which have not yet been fully exploited, explored or utilized; for example: gold, silver, chromium, manganese, gypsum, mica, talc, iron, lead, uranium, zinc, copper, choline, cobalt, granite, marble, nickel, tin, in addition to pertroleum and natural gas.

The National Salvation government has seriously endeavoured to utilize to the utmost all available potentialities in the Sudan by creating favourable investment conditions that attract the adequate capitals for his purpose. In Order to encourage both national and foreign capitals to invest in Sudan , the state has taken the following steps:-

(a) Procedural reforms were stipulated. For instance: abrogation of state monopoly of agricultural and industrial products, the economic services sector and marketing. The state has also withdrawn from some public-sector corporations and institutions. Radical reforms of investment Acts and laws regulating all economic activities have lead to the complete lifting of any clauses that hinder the private sector’s contribution in investment, thus increase productivity.

A similar economic, trade and financial policies that run in the same course, and back the new orientation of the Sudanese economy towards the free market economy were also adopted. As examples for these policies:-

- Freeing and floating of the Sudanese Dinar against the dollar. Thus, allowing the foreign exchange values of the dinar to vary freely according to the values of other international currencies.

- Freeing of prices for all agricultural and industrial commodities as an impetus for production and producers.

- With exception to the following commodities, all kinds of commodities may be improted. The banned commodities are: clothes, textiles, ready - made clothes, sauces, slaughtered and alive animals, chichen and eggs, natural leather, sugar, alcoholic beverages and drugs, fire arms and ammunition (except with a permit). However , there are plans to shorten the above list by litting the import ban from some of these commodities.

(b) The National Salvation Government has adopted a national ten-year work plan (1992-2002) , during which all the possible potentialities and energies of the nation shall be mobilized in order to realize the strategy’s desired aims and goals in accordance with the findings of a studied futuristic perspective, hence the adopted programmes turned out to be genuine strategic break through not merely late reactionary decisions.

- This plan is in fact a means of striking a deep root for the cultural and intellectual resurrection and remobilization of the society and an overall planning that includes all sectors of the Sudanese society. It has also been a comprehensive plan for the most ideal utilization of all sorts of human and natural wealth in Sudan.

- the comprehensive National Strategy was designed to have sectorial sub-strategies for the ten years of the plan. The sectors concerned are the following:

(c) The government is earnestly endeavouring for finding a radical solution for the southern question in order to maintain peace in the southern states.

(d) The 1999 investment Act is the legal base for investment that gives it ease in procedure and flexibility in handiling of investment affairs, thus encourages investment in projects that lead to promotion of the domestic income and expand the national economic base and realizes the goals of economic and social development particularly in the rural areas. Such projects should also care for the ecological balance and emphasize utilization of local raw materials as inputs for their products specially the ones that uses new and renewable energy sources and lead to greater co-operation and integration amongst Islamic, Arab , African and friendly countries.

The 1999 Investment Act has also encouraged investment in the agricultural (animal and crop), the industrial, the mining, trasport, tourism, warehousing, housing, contracting and basic services sectors for national, Arab and foreign private sectors besides the co -operative, joint- venture and public sectors without any bias or favouritism. The Investment Act also grants the investors addditional privileges and facilities if their projects are among those that realize the objectives of the development plans. Some of these facilities are the following:-

1. Exemption from business profit taxes for not less than ten years as effective the year that follows commercial production or commencement of activities for strategic projects.

2. Tax and export duties reduction for the finished and semifinished products of the project in question. There shall also be further duties and tax-cuts during the tax -exemption period.

3. Total or partial exemption from customs and excise or any other duties pertaining to imports related to the project’s requirements.

5. Projects that realize food security, investments in the less developed areas, projects that realize housing, medicinal or clothing securities, projects that aim at promotion of export capabilities; generate more work vacancies and help in redistribution of wealth, projects that endeavour to provide local alternatives for the basic imports or that depend on local raw materials for ther inputs, projects that re -invest their profits and projects that invest in the mining sector; all such projects shall be granted preferential privileges.

(a) Foreign capital proprietors may transfer their profits and initial financing costs or debts provided that all the legally-binding commitments pertaining to the project are met and settled. The back-transfer shall be in the original currency or currencies the capital was transacted in.

(b) Import of raw materials for the sake of the project during the tax exemption period without being restricted by the procedures of importers -exporters registrars.

(c) Transfer of expatriates’ savings, or those working for the project in accordance with the acts imposed in such cases.

(d) Freedom of movement, residence or transfer of the project’s expatriate employees is guaranteed in accordance with the prevailing laws.

Some of the the most significant guarantees that the 1999 Investment Act grants the investor:

(a) That the investor’s project shall not be liable to nationalization or confiscation.

(b) That the project’s funds shall not be distrained, seized, freezed, confiscated, provisionally seized or sequestrated unless there is a warrant issued by a court for taking such a step.

(c) That any estates owned by the project shall not be expropriated whether in whole or partially except for the common cause in accordance with the law. In such case, the investor shall be justly compensated on basis of the market price of the estate at time of expropriation.

(d) Remittance of invested capital in its currency or currencies of origin in case the project has not started, or in case the project got liquidated or disposed of wholly or partially, provided that all legally- binding commitments were met.

( e) As Sudan is one of the signatories to several international and regional organizations concerned with investment disputes, this factor can also be added to the assurities and guarantees provided . For instance Sudan is a signatory to:

The 1980 Unified agreement on Investment of Arab capitals, the 1974 agreement on Settlement of Investment Disputes Arising Between Host Arab States and Nationals of Other Arab countries, the 1965 Agreement on Settlement of Investment Disputes Between Host States and Nationals of other countries, the 1977 General Agreement on Economic, Technical and Trade Among Member States of Organization of Islamic Conference, or any other agreemet in this regard, in which Sudan is a signatory partner in case a direct legal dispute arises from interpretation of the stipulatins of any of the above mentioned agreements. (REFER TO THE 1999 INVESTMENT PROMOTION ACT).

However, Sudan is a member of the Arab Corporation for Investment Guarantee, and is also a member of the International Agency for Investment Guarantee.

The Investment Authority was established by a decision of the Council of Minsters as the organ responsible for setting up adveretising and publicity campaign for investment in Sudan. It is also put in charge of creating an ideal investment climate that attracts national, Arab and foreign capitals in the Sudan and eliminate all obstacles that might hinder them . Besides all that, it is the organ that draws encouraging investment policies, simplify procedures for investors, issue licences of investment projects and the relevant facilities and guarantees in addition to follow up of the actual execution of the proposed projects, prepare investment maps and save the investors the trouble of data collecting by providing them with all the necessary information and data. The Authority shall also follow up all the procedures of the investment licence at the various government circles on behalf of the investor.

The Investment Authority enjoys close relations and jointly co-operate with local, regional and international corporations and organizations concerned with investment such as:

The Arab Organization for Investment Guarantee, The United Nations Industrial Development Organization (UNIDO), The International Investment Guarantee Agency and other Arab , Islamic, African and international organizations in which sudan is a member.

The government has established a free-trade zone at the old town of Suakin in the Eastern State, and declared Osman Digna Port on the Red Sea a free-port for the following reasons:-

1. To promote, diversify and create new markets for the Sudanese Exports, and transform some of them from raw to finished or semi-finished products and advertise for them within the Free Zone.

2. To avoid the time-consuming process of importing commodities from abroad for the local market, thus the turnover shall be positively directed towards industry and commerce.

The total area is designed to be 600 Km2, but the first phase started at one square km and has already drawn a number of foreign investors.

located (60) km. North of Khartoum (Capital of Sudan). This area is demarked and now being planned to cover (20) sq.km. This area is significant in:

* located within a fast economic booming circle accessed to the country’s main Oil rRefinery Station.

* Linked with active business and industrial communities in Khartoum , the heart of the nation’s economy.

* Communicated with traffic networks of air, highways and railways extending beyond Sudan’s boundaries into the Africa markets.

- Some of the guidelines and directives of the Economic Salvation programme in Sudan, is to free the Sudanese economy from domination and bureaucratic control, an let it depend on market mechanism in handling all affairs related to the administration of economy . Besides, more open policies towards the private sector are recommended.

- Under the canopy of the above apprehension, the State Monopoly of the most vital economic fields such as: agricultural and industrial Products, the economic services, internal and external marketing has already been abrogated, and the government has actually begun to pull-out from many public sector corporations, establishments and companies operating in these fields.

- The government has conducted radical amendments in all acts pertaining to investment and all economic activities in order to give access to greater and open private sector contribution in order to boost productivity in all sectors.

- The government has placed on the market some state assets and public sector companies for sale, partnership or transfer. Some of these units operate in the agricultural and industrial sectors (spinning and weaving, ready -made clothes, food industries and tanneries); other units operate in the services sector (hotel-keeping, transportation, communication and telecommunication services, and some trading and marketing corporations).

- Whereas the privatization process is such a large-scale operation for redistribution of wealth and restructure of Sudanese economy;therefore, three different guidelines shall be observed:

(i) competitive bidding in ownership of the public sector’s shares that shall be transferred to the private sector.

(ii) Sale, disposal of or partnership in any of the state-owned corporations or companies of the public secror shall receive full publicity and shall be widely advertised for, prior to taking any step. This is to ensure the element of justice in the whole affair.

(Iii) Some sort of balance shall be reached between the prompt implementation of privatization, and justice in distribution of the privatization units.

1. The investor shall submit a technical and economic feasibility study of the project.

2. The investor shall fill in a special form of application pertaining to claims for licensing, privileges or facilities for an investment project against payment of prescribed fees. The form shall be issued by the investor’s services section in the Ministry.

3. The Investment Authority in the Ministry shall review the application form and consult the competant technical organs if necessary.

4. Upon receipt of the provisional approval from the Ministry of Industry and Investment, regarding the particular project, the investor shall then register a business name or company whose activities shall be limited to its specific field of licensing only.

5. Upon approval of the business name or company, the invesor shall submit all the relevant documents to Ministry of Industry and Investment in order to be issued the licence which covers the facilities granted and location of the plot where the premises of the project in question shall be sited.

6. Upon completion of all licencing procedures and issuance of the licence, the investor may then import the project’srequirements from abroad in accordance with “an itemized requision list” which the ministry must consent to in advance.

7. The Ministry of Industry and Investment shall then contact the customs duties , upon clearance of the project’s imported items through the customs’ coordinator in the Ministry.

8. The Ministry of Industry and Investment shall also contact the taxation authorities to exempt the project from tax duties in accordance with the granted privileges.

2.7 TYPE OF COMMERCIAL COMPANIES IN SUDAN AND THEIR REGISTRATION PROCEDURES:

The laws in Sudan permit companies and practice all sorts of activities . An whether they are national or foreign companies, they are granted the same rights . The only exception is that these companies can not operate in the import-export arena except on their own products. Otherwise, foreign and national companies enjoy similar rights including the registration procedures, and the prescribed fees in such cases are also the same.

All companies incorporated in Sudan are referred to as “limited Liability Company ( abbr. Ltd.) is a businesss company whose shareholders are liable for its debts only to the extent of the capital sum they have provided.

A public company incorporates of at least seven shareholders or more, an it never commences work prior to issuance of the certificate of the Registrar General for Commerce which authorizes and initiates operations. However, this cerificate is never issued before payment of the minimum sum of the capital.

The company’s articles of incorporation and statute (if available ) shall be signed by the founders or their representatives, then submitted to the Registrar Ceneral for Commerce where a small sum of money is paid as licensing fees.

A private Company incorporates of a minimum of two shareholders and the number of its shareholders may never exceed 50 partners (minimum of 2 maximum of 50) .

Subscription of a private company’s shares and stocks shall be limited to its shareholders then submitted to the Register General for Commerce, hence a licence shall be issued against payment of a small sum of money as licensing fees.

No cocessions of the shareholders’ shares- which are considered as their quotas - may be made without the shareholders’ prior consent or the step thus taken is backed by the the stipulation of the company’s articles of incorporation or statute (if available).

The private company does not require any initiation certificate in order to commerce its activities as in the case of the public company, but it may start work right after issuance of its incorporation certificate.

Foreign companies intending to conduct any kind of business or businesses in Sudan must register branches of their own in Sudan. Should the work assigned to the company be very specific and takes only a short period of time, the licence issued thereof shall be a temporary one. For example a company with a contract to built a road or assemble a factory, shall be issued a licence limited with the time allowed for the particular job. In such case, the registration form should be supported by the following documents prior to submitting the application to the Registrar General for Commerce:

1. A certified copy of the company’s decree of initiation and articles of incorporartion and statue (if available ) issued in country of base. Should the documents be issued in a language other than Arabic, a certified translation into Arabic shall also be requested.

3. Name and address of one authorized representaitve of the company - or more than one -residing in the sudan to whom notices and other legal documents which the authorities in Sudan want the company be informed about shall be addressed.

4. A copy of the legal deputation which empowers one of the representiatives- usually residing in Sudan - to conduct the company’s business and act on behalf of the company in Sudan.

They are companies incorporated in accordance with the articles of the Act of Companies ‘but have been granted specific concessions by ministerial decree issued by the minister concerned thereof. The concession thus granted is renewable in adherence to the conditions stipulated in the decree. However, only joint- stock companies conducting activities which the country is in need of in its deveopment plan, shall be granted such specific concessions.

Copartnership incorporates by two or more partners with the intention of conducting any commercial enterprises, and share the generated profit amongst themselves.

To officially register a copartnership, an authenticated statement signed by all the associates in the particular copartnership shall be submitted to the Registrar for Companies. The statement shall specify the following:

Name of the company and nauture of business nature of the business it shall conduct; names and addresses of the associates and the sums of money paid by each etc.

Business name means the name given to or the way any sort of enterprise is conducted whether it is a copartnership or not. The busines name shall be registered at the Registrar General for Commerce and Attorney General;s Chamber. The latter shall be handed a statment of the prescribed form with the following data:

Although there is no stipulated act that restricts the participation of the national capitals with the foreign ones in incorporating companies or engaging in any other sort of joint-venture business, but no shares shall be relinquished or appropriated to none Sudanese nationals “aliens” without a prior written approval by the Attorney General.

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.

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.

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:

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.

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.

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

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.

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.

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.

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.

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:

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.

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.

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.

3.1.7 INVESTMENT POTENTIALITIES AND OPPORTUNITIES IN THE LIVESTOCK SECTOR IN SUDAN:

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.

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

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 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.

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 Fof 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.

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.

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.

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.

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.

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. 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.

- 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.

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 :

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.

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.

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.

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

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.

Sudan is basically dependent on energy supplies generated by bio mass which constitutes 80% , and the remaining 20% come from petroleum and the hydro-electrical sector.

a. Oil was first refined and distributed commercially in Sudan in 1928 by Shell. Later Mobil Oil (1953).Total (1954) and Agip (1959) set up their own downstream operations. Total sold out to Nile Petroleum ( a Sudanese company) while Agip sold out , to GAPCO ( a marketing company operating in Central Africa with a mixed ownership of Mauritius and Indian)

In 1976 the Government of Sudan established the General Potroleum Corporation (GPC) under the umbrella of the Ministry of Energy and Mining to promote the oil industry. It was responsible for the importation of petroleum products for domestic consumption and refining of crude oil. The oil importation bill is above 400 million US dollars taking about 66% of export earnings of Sudan.

The American Company Chevron began work in 1980 and discovered the Heglig field in 1982. The initial exploration indicated reserves of 200 ,000 barrels per day and reserve of 15-20 years. In 1983 Chevron pulled out for political reasons and exploration and production ceased.

In 1990 the Government introduced a production Sharing Agreement in order to attract investors to develop its oil resources. The Agreement granted exclusive exploration rights and included tax and foreign exchange concessions.

Areas with potential exploration have been divided into 15 blocks.Concessions are awarded by block number. The largest and most important of these blocks in El Moglad basin. The Unity and Heglig oil fields are on El Moglad basin situated some 800 -km south west of Khartoum.

A consortuim called the Greater Nile Petroleum Operating Company (GNPOC)has been established to develop these fields. The Sudan National Petroleum Corporation hold a 5% stake in the consortium , with the Chinese National Petroleum Corporation holding 40%, Petronas Garigali of Malaysia have 30% and Talisman Energy of Canada the remaining 25% . The consortuim has pledged more than US $ 1200 million to develop the fields, including the construction of 1600 km pipeline from the fields to Bashair terminal in the Red Sea. Production is estimated at 150,000 bpd and could grow to 400, 000 bpd over the medium term. First shippment was dispatched on late Augest 1999. Part of the crude from the pipelines is fed to Concorp refinary south of Khartoum and Khartoum North Refinary recently started production.

Other International Oil Companies have taken concessions in other blocks. Still the oil sector is of tremendous opportunity. There is great potential for investment and the Government of Sudan is taking an extremely flexible approach to companies willing to invest in this sector. The spin off business from the development of the sector is also considerable . There is need for equipment of the field station from the construction of camps, road links and communications to the supply of vehicles and catering equipment. The growth of oil sector has also stimulated the need for power stations, roads , bridges, and the development of a river transport system, communication, light industry and petrochemical industry. ( For further information on exploration and production the Ministry of Energy and Mining can be contacted).

There were also considerable quanities of natural gas discovered in the Red Sea coastal areas in the Red Sea State.

No economic growth can be achieved without basic infrastructure investment, especially in the electricity sector. Unlike in developed countries, where there are now relatively few needs for additional electricity investments, electriciey represents one of the main priorities in the developing countries.

An increase in the generating capacity there should also have corresponding important investments for transmission and distribution lines, which could account for more than a third of capital expenditures in this sector in developing countries.

Without this electricity coming online to the country it would be very difficult for Sudan to sustain the historical average of 5% per annum GDP growth for the past serveral years.

The electricity supply industry like in Sudan is often perceived as a public service, and utilities are consequently frequently publicly owned and operated. Historically therefore, most of the electric power investments have been financed in a “classic’way using sovereign equity and debt, either direct or through the state electric utility.

In addition, since often, imported equipment (turbines and boilers) constitute the main part of the power plant’s construction cost, export credits or foreign loans or aid have been largely utilised. But , because the Export Credit Agencies (ECAs) require either a government or a first rate bank guarantee for their financing, these loans add to the sovereign debt of the country.

Since 1995 the installed capacity of the National Electricity Corporation (NEC) has remained at about 630 MW. Of which 308 MW is hydroelectric and the remainder thermal capacity. In addition, fourteen isolated centers are served by thermal generating plants and local distribution networks. As a result, the NEC serves only about 20 percent of the population.

Most of the demand for electricity centers on the Khartoum area and comes from the residential sector, which represents more than 40 percent of the total consumption . Industry and agriculture account for about 36 percent, and the government (12 percent) and commercial establishments (9 percent) consume the remainder . Power use in industry has been restrained mainly by supply constraints and , to a lesser extent, by its unreliability, which has compelled all major firms to purchase backup power supply units.

Due to the huge increase of new capacity requirements, the electricity sector can no longer depend on the government for new investment, especially when the government have to cut public expenses in order to balance the budget, control inflation and address various requirements in the social sectors, as well as to meet public debt reduction targets. The Government Formulated the National Energy Plan with the following objectives:

(a) to expand electric generation and services to regions and towns in order to promote economic and social activity and improve the quality of life for the people.

(b) To eliminate power shortages and underliability of supply, targeting to increase generating power capacity from 600 mw to 5000 MW within the coming 10 years.

(d) To provide electricity at the lowest possible cost to meet the needs of the growing economy.

(e) To gain energy from existing system by rehabilitation and improving system efficiency.

(h) To manage the existing load and future growth in demand to ensure better utilization of power.

In 1999 an independent power producers and New Generation Projects General Secretariate was established to represent the National Electricity Corporation in dealing with Independent Power Producers. Foreign and local investors are to be approached to play some role in one way or another. Independent Power Producers (IPP) are to be welcomed in one of the following forms;

For Further information on (IPP) feel free to contact the Secretariate General (IPPNGP) on the following address; independent Power producer & New Generation Projects General Secretariate,

There are new and renewable energy schemes in Sudan, for example the improved charcoal stove project which has three factories with an annual out put of 15,000 units for conservartion of bio-mass energy. Solar energy is also introduced in some remote rural areas where it is used in pumping water , heating it and in production of distilled water. It is also used in operating communication stations, cooling, light and in drug preservation . Wind power is also used in many states of Sudan in water pumping and in generating electricity. There are also some researches on the bio-gas technology and stowage of peanut shells, bugasse and cotton stalks and other agricultural remains into compressed cubes.

Regarding the energy sector, the National Comprehensive Strategy aims at the following:-

1. To supply energy to all industrial sectors which are dependent on domestic energy surplus.

2. To draw a kind of co-ordination between the energy producting sector, and the consuming ones.

3. To preserve the environment by organizing exploitation of the natural energy resources especially those connected to the forest, and to reforest new areas in order to create an ecological balance.

4. To technologically promote the energy techniques specially in fields of new and renewable energy that depends on domestic sources.

6. To train and develop the human cadre employed in the different fields of energy supply.

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 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.

The Railways Corporation has the second largest network of transport on the African continent as it extents for about 4,750 km. The railway line cover all the country from port Sudan in the east to Nyala in the west, and Wadi Halfa in the north to Wau in the south.

The Corporation is engaged in transporting passengers, goods the post and livestock. Due to the recent developments that have taken place in the country in the transport field , the railways corporation started work on a commercial basis as work was started on rehabilitaing its utilites depending on self resources.

In 1998 Sudan’s road system totaled between 20,000 and 25,000 kilometers, comprising an extremely sparse network for the size of the country. Asphalted all -weather roads, excluding paved streets in cities and towns, amounted to roughly 3,500 kilometers, of which the Khartoum-Port Sudan road accounted for almost 1,200 kilometers . There were between 3,000 and 4,000 kilometers of gravel roads located mostly in the southern region where lateritic road -building materials were abundant . In general these roads were usable all year round, although travel might be interrputed at times during the rainy season.

Small private companies, chiefly owner-operated trucks, furnished most road transport. The government has encouraged private enterprise in this industry, especially in the central and eastern parts of the country, and the construction of all weather roads has reportedly led to rapid increases in the number of hauling business.

The Nile River, traversing Sudan from south to north, provides an important inland transportation route. Its overall usefulness, however, has been limited by natural features, including a number of cataracts in the main Nile between Khartoum and the Egyptian border. The White Nile to the south of Khartoum has shallow stretches that restrict the carrying capacities of barges, especially during the period of low water, and the river has sharp bends. A greater impediment has been the spread of the water hyacinth, which impedes traffic. Man-made features have also introduced restricitions, the most important of which was a dam constructed in the 1930s on the White Nile about forty kilometers upriver from Khartoum.

The Civil Avation Corporation (CAC) was set up in 1936 and in 1985 the CAC was transformed to the Aviation and Tourism Ministry. The first airport was established east of Khartoum during WW II. Currently the Corporation has 17 airports in Sudan, the biggest being Khartoum Airport.

Currently scheduled domestic and international air service was provided by Sudan Airways, a government -owned enterprise operated by the Sudan Airways Company, Presently the company has 14 planes with a fleet of five Boeing 707, three Boeing 737 and three Airbus 300.

Presently Sudan had only one operational deep harbor, Port Sudan, situated on an inlet of the Red Sea . The port had been bulit from scratch, beginning in 1905, to complement the railroad line from Khartoum to the Red Sea by serving as the entry and exit point for the foreign trade the rail line was to carry.

Another port known as Sawakin was opened in January 1991, and was capable of handling an estimated 1.5 million tons of cargo a year and also as passengers terminal .

Sudan Shipping Line (SSL) is the only national sea carrier and the only shipowner in the country. It is in fact one of largest and oldest shipping companies in the Arab and Middle East area.

Sudan Shipping Line was initiated in 1959 but its set up was completed and operations started in 1962 with small fleet comprising two vessels of total capacity TDW of 10.000 M.T.

The volume of SSL operations was expanded and due to this expansion SSL has increased and diversified its fleet units in four (4) different phases up to 15 various multi-purpose vessels of total capacity TDW of 159.000 M.T.

SSL started with equal shared capital between the Central Bank of Sudan and Yugoslavia Foreign Trade Bank, However and due to the considerable success achieved by SSL the Government of Sudan had bought the shares of Yugoslava and SSL capital is fully owned by the Government of Sudan since January 1967.

All agency works related to selling, purchasing and chartering of different vessets.

All rescue and maintenance works together with other similar works related to sea transport such as building of warehouses. ship yards and ports in addition to any other works deemed necessary for SSL. Being the only national sea carrier (SSL) had undertaken several important achievements such as:

a. Securing the target part of self reliance in the field of sea transport which enables smooth flow of the country’s foreign trade.

b. Realizing a strategic security objective of the country by securing the basic requirements in times of catastrophes and wars.

c. Realizing a reasonable profit and saving of a large portion of foreign currency paid in the past to foreign carriers.

d. Building of a reliable national fleet of different multi-puropse vessels which has a remarkable positive effect in fostering development efforts in the country .

Beside the liner services SSL also provides other necessary services for sea transport such as Agency, Stevedoring, Clearance, forwarding warehousing and inland transportation services.

Line Shipping Agencies & Stevedoring company “LSASCO” Lines Clearance & Forwarding “LCF” and Lines Passingers services Company “LP SCO” .

Strategies, Investment Potentialities and Opportunities in the Transport Sector:

- The Comprehensive National Strategy aims at increasing the land transport capability by twenty times, and to pave more tarmac roads, and connect the whole country by proper means of air transport, and to promote the present airports and airstrips in order to make Sudan a real transport and communication centre on the international and regional levels. However, the river transport sector shall also be modernized and its capability increased twenty times the present figure, and some industries shall be established to manufacture all means of transport such as vehicles, river vessels etc., locally in Sudan .

Realization of these objectives generates many investment opportunities, and the private sector is expected to contribute the greatest portion under the privatization policy.

Among the investment opportunities in the transport sector, we may mention the following;

a. To incorporate transport companies for haulage of crops and animals designated for export, specially using specialized haulage techniques for transporting alive animals, liquids or fridge containers for meat products.

c. To incorporate passenger-transport companies to serve the inner-town and city quarters, and connect the National Capital with the other towns and cities.

The warehousing sector is complementary and essential activity in the economics of production especially in the agriculture sector. Despite the availability of so many dry and cool warehousing containers in Sudan,storge capabilities do not meet the present demand,and do not cope with the ever-increasing storage requirements that have emerged to the surface after the considerable increase in production, specially in the sector of the agricultural products.

The fact of having such a warehousing gap, and that efforts should be accumulated to cater for it, all these factors create an ideal investment climate in the warehousing sector in Sudan whether by building dry or cool storage facilities, or establishing mobile fridge-container transport units, or to contribute in the rehabilitation of the present storage facilities by promoting their storage capacities (for example raise the capacity of Port Sudan granary to 100,000 tonnes).

The housing and construction sector builds houses, hospitals, educational institutions, roads and constructs bridges, airports et.. This sector faces great challenges in order to keep abreast with the fast steps of development and the overall investment resurrection which Sudan is currently undergoing.

There are great investment opportunities in this sector, by directly contributing in the building and construction works of the various educational institutions, hospitals, houses, bridges, airports etc..

International telecommunications were modern and provided high-quality links to the rest of the world. A statellite ground station near the capital working with the International Telecommunication Satellite Corporation’s (Intelsat) Atlantic Ocean satellite permitted direct dialing of telephone calls between Sudan and Europe, North America, and parts of Africa. In addition, a second satellite ground station was linked to the Arab Satellite communications Organization’s (Arabsat) pan-Arab communications network. The Arabsat network was used for live television broadcasts, news exchanges, and educational programming among the members of the League of Arab States (Arab League).

As per 1999, Domestic telecommunication has greatly improved with the establishment of sudanese Telecommunicaiton Company (Sudatel) as a public share-holding company with the aim of extending telecommunication services and modernizing equipments and network.

Generally, the educational and medical services are provided by the state-owned educational institutions and the Ministry of health’s hospitals.

Because of the high demand for educational and health services, the government has became unable to cope with the situation on its own. Therefore, the investment opportunities are left open for the private sector to venture in and that covers the following services:-

d. To establish some educational institutes in the field of specialized sciences and technological studies and vocational, medical, engineering , agricultural, veterinaruy and economic training centres.

There are countless tourism capabilities in Sudan which are still untouched. The ancient civilizations’ sites, the diverse and colorful cultural, ethnic and climatic conditions, besides the beautiful tropical fauna and flora that include rare animal and plant species, some wildife conservation parks like El Dinder Park in the Central State, all these are suitable attraction points for tourists.

There are some other tourist sites such as Arous Village and sea-side resort on the Red Sea coast, the historical town of Suakin, and Erkowit district on the Red Sea Hills. All these sites are in the Eastern States.

In the southern states , there is the virgin tropical forest and many fascinating natural sceneries and some tourist villages.

In the Northern States there are many archaeological sites on the Niles banks from Dongloa up to Wadi Halfa in the extreme north, and at Bajarawia district near Shendi.

In Dar Fur State, we find Jebel Marra, and in Khartoum State there are many places, for example the juncture of the White and Blue Niles “Mogran”.

Interested investors who wish to venture in this sector shall have many alternatives. Investment in this particular sector is encouraged by the Comprehensive National Strategy in order to expand all activities related to tourism and promote its infrastructure by attracting national, Arab and foreign capitals to invest in any of the following:-

d. To provide services along the roads that lead to the major tourist areas such as buffet and cafeteria services etc. For en route tourists.

The economic salvation programme has included some economic reforms such as freeing of domestic and foreign trade and domestic and foreign marketing by the total abrogation of former state monopoly of these activities , hence, the private sector has a chance to contribute in a more positive way in this sector.

Moreover, the government has freed the prices of all the agricultural and industrial commodities in order to give a fresh impetus to producers and production.

The government has formed a national council to promote the Sudanese exports, especially the non-conventional commodities. This council shall endeavour to fetch new markets, conduct an intensive world-market analysis and provide the Sudanese exporters with the necessary assistance upon request.

The basic Sudanese exports consist of some elementary commodities, e.g; cotton, gum arabic, oil seeds which include: sesame, groundnut and their products, alive animals, meat, animal hide, sorghum, sugar, vegetables and fruits . Recently, wheat, sunflower and glucose have also been added to the export list.

The European Common Market countries are the biggest importers of Sudanese exports, followed by Saudi Arabia, Japan, the peoples’ Republic of China, and the United States of America.

Lately, some countries have also begun importing Sudanese commodities; for instance: Jordan, Thailand and Malaysia.

Sudan imports food stuff, raw materials, equipment, agricultural and industrial equipment and implements, chemicals and all sort of vehicles and means of transport.

The E.E.C. countries are also the biggest exporters to Sudan at present, followed by Libya, Saudi Arabia, Egypt the peoples’ Republic of China and India.

Sudan has economic and trade protocols with some countries like Egypt, Libya, Jordan, Turkey, Malaysia, Indonoesia and many other countries. Sudan also conducts border trade with the neighbouring African States, and it is also a member in the preferential Trade Agreement, whose membership includes countries from central, south and east Africa.

Name of the Bank

Telephone number

The central Bank

Bank of Sudan

778064

Specilized Banks

Sudanese State Bank.

Farmer’s Bank

Animal Wealth Bank.

Industrial Development Bank

Sudan Agricultural Bank.

772705

774960

466389-466383

772269- 773939

770150-777401

National Banks (Public Sector)

Bank of Khartoum

Sudanese Saving and Social Development Bank.

777521-770170

772875-772806

10.

11.

12.

13.

14.

15.

Commercial Banks

Saudi Sudanese Bank.

Islamic cooperative Development Bank

Al-Baraka Sudanese Bank.

Eltadamon Islamic Bank.

Western Sudan Islamic Bank

National Workers’ Bank

Faisal Islamic Bank

Sudanese Islamic Bank

Elshamal Islamic Bank

National Bank for Populer Development

the Blue Nile Bank

Sudanese French Bank

Sudanese local Bank

Omdurman National Bank

Ivory Bank.

776700-770302

775366-775234

784911

771845-771505

779583

777463-777936

781848

774552-781284

782191-782190

779259-776784

778952

771730-776542

788153-780867

779306

784517

Foreign Banks

National Bank of Abu Dhali

Meshreq Bank

City Bank

774816-774857

772796-772743

467610-46761