Basic HTML Version
www.ebizguides.com
94
Industry and Trade
Industry in Sudan has a lot of potential. It represents
the cornerstone for economic and social develop-
ment.
Sudan has an abundance of natural resources: ag-
riculture, cattle, fish, minerals, ore and petroleum,
allied with inexpensive labour costs. The country’s
industrial base is currently dominated by extracting
and refining oil, as well as the production of vegetable
oil, white sugar, tobacco products, and soap. Sudan
has shown that industry can be strikingly successful.
Kenana Sugar Company, which in 2010 produced
seven hundred million tonnes of sugar, is one of the
biggest and most profitable sugar companies in the
world and boasts a list of international shareholders.
Other industry initiatives, such as the GIAD industrial
park for automobile assembly and manufacturing, and
the Sudan free trade zones.
Other aspects point towards Sudan’s industry and trade
potential as well; a competent and affordable labour
market, a stable currency, its entrance into a number
of bilateral, regional and international agreements that
promote investment and movement of commodities
and capital, not to mention its central location bordering
nine other countries in North-East Africa.
Success in industrialising is crucial in order to diver-
sify Sudan’s foreign trade. Currently, crude oil and
raw agricultural produce such as cotton, oil seeds
and meat make up the bulk of the country’s exports.
United Nations and United States sanctions on Su-
danese products once severely inhibited the coun-
try’s export potential, however the decision in 2002
by the United Nations to lift all trade sanction on Su-
dan has since paved the way for normalising trade
relations internationally. Today, almost 80% of Su-
dan’s exports go directly to China – whose demand
is expected to increase exponentially in the coming
decade – followed by Japan at 7.3% and the United
Arab Emirates at 2.3%.
The country’s industrial base is dominated by the
processing of food, beverage, and tobacco products.
Oil refining is a major activity, as is the production
of vegetable oil and of soap.
Industry has become the real hope and driver for de-
velopment in Sudan. It represents the cornerstone for
economic and social development considering the
role that it canplay instrengtheningandmultiplying the
capabilities and potentials of the national economy.
Sudan’s limited industrial development consists of
agricultural processing and various light industries
located in Khartoum North. In recent years, the GIAD
industrial complex introduced the assembly of small
autos and trucks, and some heavy military equip-
ment such as armored personnel carriers and the
proposed “Bashir” main battle tank.
Although Sudan is reputed to have great mineral re-
sources, exploration has been quite limited, and the
country’s real potential is unknown. Small quantities
of chromium, and mica are exploited commercially.
Sudan has various qualities which have made it a
favored place for investors from all over the world.
These include:
• Huge resources in both the animal and crop
sections of the agricultural sector, and the mining
sector.
• Competent manpower at reasonable cost,
particularly after the famous educational
revolution.
• High returns on investment in the manufacturing
sector.
• Presence of conducive laws and policies for
investment in manufacturing.
• The signing by Sudan of a number of bilateral,
regional and international agreements that
guarantee investments and encourage the
movement of commodities and capital.
• The strategic geographical location of Sudan,
which shares borders with nine countries
constituting important markets.
• The Sudanese economy has achieved positive
and high growth rates, as compared with similar
economies, in addition to the reduction of inflation
rates to a single digit and the stability of the
national currency.
Sudan is a member of the Arab Investment Guar-
antee Organization, the International Convention for
the Settlement of Investment Disputes (ICSID).
Export and import policy has recently been liberal-
ized. In the past, the country was isolated, and for-
eign trade was highly restricted.
Sudan’s principal
export destinations, 2008
Sudan’s principal
import sources, 2008
China 79.5%
Japan 7.3%
United Arab Emirates 2.3%
Saudi Arabia 25%
China 7.9%
UK 6.6%