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Embassy of the Republic of Sudan
2210 Massachusetts Ave
Washington DC 20008

p: 202.338.8565
f: 202.667.2406

ECONOMY and INVESTMENT 

 

Sudan, the largest country on the continent, with its liberalized economy that continues to grow at a rate of nearly 10%, has tremendous potential and indeed has proven to be the desired target for trade and investment. Numerous factors contribute to its appeal and its conduciveness for investment opportunities. With inflation virtually non-existent, the government is courting the private sector and urging all to participate in the development of the sixth fastest growing economy in the world.

Sudan lies in a strategic location whereby its shore lends access to Africa from the far and neighboring continents. While Port Sudan is the only sea outlet that many African nations rely on for a lot of their needs and sustenance. The Red Sea also gives Sudan an advantage, as the country, through it, is able to reach the Middle-Eastern, Asian and European economies. Sudan is also linked to the surrounding countries by air and through an extensive network of roads while it is also diligently working to develop its railway system for a more efficient intracontinental transfer of goods.

With regards to the resources Sudan is endowed with, the country offers an array of some most coveted items. An abundant amount of mineral resources is found in Sudan and it includes gold, silver, uranium copper, petroleum, zinc, gypsum, manganese, iron, natural gas, chrome, mica, cobalt, tin, nickel, asbestos, lead, kaolin, granite and a lot more.

Agriculture production is the cornerstone to Sudan's economy where it employs over 80% of the work force and accounts for nearly 40% of the Gross Domestic Product. There are dams built throughout the country that divert nearly sixty percent of their water resource to sustaining the agricultural sector. Though there are also farms who are solely dependent on the abundance of rain to maintain their crops, the country has embarked on a massive campaign to improve the irrigation system from the labyrinth of rivers and lakes to supply the resource to these farmers.


A few of the agricultural projects from the long list include the following:

Name of Project: West El-Goled Project
Location: Northern State ( Dongola area )
In the west bank of the Nile River South Dongola.
Background to the Project:
Area: 50 thousand feddan
Soil: Light Clay soil and of high permeability
Irrigation: The Project could be irrigated from the Nile, or by underground water through pumps or by modern irrigation methods, by spraying, sprinkling and pivotal irrigation. The Entire project is located in the frame of the Nubian Nilotic reservoir of high quantities of water of high qualities in addition to the Nile River.
Project nature : A new project with an available preliminary feasibility study and had obtained the approval of the competent authorities.
Objectives of the Project: To benefit from the modern sources and technologies in agricultural production.
· Creation of work opportunities and improvement of the standard of living in the area.
· Contribution in the country’s revenues of hard currency.
Agricultural products: Wheat, legumes, durra, fruits, date palm in addition to animal husbandry.
Availability of infrastructures: The Project is near to the land road of Dongola-Khartoum and Dongola Airport. Availability of fixed and mobile contact.
The targeted markets: The local market and the export (The Arab, Asian and European markets and the COMESA Countries).
Investment Costs: 12.2 million US Dollar


Name of Project: El-Khoy Project for Agricultural Production.
Project Location: Northern Project (Dongola locality) on the east bank of the Nile South Selaim basin between latitudes 18/23-19/9 North and Longitudes 30/27 – 38/30 East.
Background of Project:
Area: The proposed area for the project: 200 thousand feddan.
Soil: The project is located in level surface plain interspersed with moving sand fields and some outcrops. Pilot soil survey operations and semi-detailed soil survey were conducted and the soil is Nilotic sedimentaries.
Irrigation: There are two systems for irrigation: Flow irrigation and the use of modern system of irrigation from the Nile or from the underground water.
Nature of Project: A new project: availability of preliminary feasibility study obtained the approval of the competent authorities.
Objectives of the project: Contribution in achievement of food security through the extensive and intensive expansion.
· Introduction of cultivation of new crops in the area for the purpose of exportation.
· Expansion in the cultivated land area by establishment of greater projects.
· Implementation of modern technologies in the agricultural production and introduction of animals in the agricultural rotation.
· Settlement of the inhabitants and creation of new work opportunities for the employment.
Agricultural products: Citrus, date palm, vegetables legumes, wheat, feed
Availability of Infrastructures: The Project is located near to Dongola-Khartoum land road, and near Dongola airport and availability of the services of SUDATEL company for communications and the services of the mobile telephone.
Targeted Markets: The local market and the export (the Common Arab market, COMESA and the European markets).


Name of Project: Goat and Camel Husbandry
Location: Northern state, Wadi El-Khoy (Dongola Province)
Background of the Project:
Area: Proposed area 250 thousand feddan of arable land and free of restrictions.
Irrigation: The proposed area will be irrigated with a network of flood irrigation and to dig surface wells to provide water for man an animals.
Soil : The project is located in a level surface plain and the soil is composed of Nilotic sedimentaries.
Nature of Project: A new project, which obtained the approval of the competent authorities.
Project Objectives :
1-Parent production
· Male export (sheep – billy goats camels).
· Sale of improved surplus females to the local market.
2-Provision of work opportunities and settlement for the inhabitants of the state and the incoming nomads.
3-Support of the economies of the state and provision of hard currency from the export and provision of animals for the needs of the state.
El-Seela Agricultural Project

Name of Project: El-Seela agricultural Project.
Location : West White Nile, 30 miles a way to the north of Kosti town.
Background of project: The project area is about 150 thousand feddan.
Irrigation: Completion of the preparation of the maps for the main and sub-main canals, completion of the digging of four complete irrigation units-size one meter.
Soil: Clayey.
Objectives: Utilization of the available natural resources.
· Introduction of animals in the agricultural rotation
· Work towards the settlement of the inhabitants in the area.
· Provision of work opportunities for increasing the income and improvement of standard of living.
· Achievement of food security
· Contribution in the increase of exports.
Nature of Project: Implementation started in this project, where planning was completed to implement phase one of about 20 thousand feddan, but it is not yet completed.
Lands for agricultural investment may be granted provided that an adjustment should be carried out for the installations which were established in the project such as irrigation units, irrigation site at the river bank, and digging of the main canal. 25% of the area to be granted to the inhabitants of the area, after the completion of the canals and pumps for the irrigation of the project.
Agricultural products: Crops which may be cultivated are: cotton, wheat, legumes, sunflower and vegetables specially water melon and (galia) melon.
Project’s components: Completion of irrigation installations.
· Buildings and installations.
· Agricultural machineries and equipments.
· Means of transport.
· Agricultural inputs.

The infrastructures:
· The project is located near the national roads.
· Work had started in the irrigation canals and units.
· Availability of electricity.
Marketing: The area is characterized in the cultivation of water melon and Galia melon and had an obvious contribution in the quantities of exports of Galia melon to the Arab and European countries, and this will support the marketing of the products of the area of (vegetables and animal products) in Arab and European countries).
Cost : Estimated about USD 40 million.

 


Name of Project: Blue Nile Sugar
Location : About 45 kilometers away from Sennar town and 3 kilometers a way from Singa town.
Background of the Project: The area of the project is estimated about 76 thousand feddan to be implemented on two phases: phase one: 59 thousand feddan and phase two 17 thousand feddan.
Soil : The project’s land is flat and sloping from the South to the North, Soil is clayey. The project is composed of six existing projects and at present cotton, groundnut crops and vegetables were cultivated.
Objectives: To make use of the local resources in a way to adjust the present crop structure to sugar cultivation and production.
· To make use of the sugar cane refuse in feed production.
· Increasing the country’s revenues from the exports.
Project Components: · Habilitation of the existing pumps and canals.
· Machineries, equipments and production inputs.
· Establishment of a factory for Sugar production.
Nature of Project: The project is to be established on already existing schemes which have an agricultural rotation to be adjusted to the sugar cultivation and production. The relation with the investor will be to finance the agricultural processes and provision of production inputs purchase of sugar cane production from the farmers and deduction of the cost, then the sugar cane is to be transported to the factory for sugar production which will be the right of the investor.
The infrastructures: The paved roads linked to the other national roads such like Sennar-Singa-Damazin road and Sennar-Medani-Khartoum road and Medani-Port Sudan road and Sennar-Kosti road.
· The availability of irrigation and drinking water in the area, where the project will be irrigated by pumps from the Blue Nile.
· Availability of electricity supply.
· Availability of communication services and banking services.
Marketing: The targeted markets for sugar production: Arab markets and the markets of the COMESA countries in addition to the local market.
Costs: The costs of the establishment of the factory, habilitation of irrigation pumps and canals and the other installations is estimated to an amount of USD 180 million.
There are also vast forests and meadows replete with the indispensable animal resource that makes Sudan a grand tourist destination.

In addition to all of this Sudan is blessed with a tremendous amount of oil reserve that has since 1999 become one of the country’s principal exports. Oil production has steadily increased since then and has today peaked at some 520,000 barrels per day. This resource has contributed significantly to the trade surplus the country has enjoyed and boosted greatly the overall performance of the economy.

Oil wealth in Sudan has rejuvenated the light industry of the country and has expanded export processing zones. Because of the rising oil revenues, we have every reason to expect a sustained growth in the coming year and beyond, not the least because of the immense contribution the Merowe hydroelectric Dam will make towards the much needed energy for achieving various developmental projects that will significantly affect the economic performance of the nation.

Besides the ample natural resources, the human resource is a crucial aspect of the development of the country’s economy. Sudan has a plentiful reserve of skilled labor, with many of them wielding a university degree. The Government of Sudan is strongly committed to developing this resource and to enhance capacity nationwide. This will, as a matter of course, translate into increased levels of investment from foreign entities.

The environment and atmosphere is also a strong factor in the decision making process of the investor. The government is cognizant of this fact and has taken measures to make the climate conducive for foreign and regional investment. The government has initiated numerous programs that seek to resolve issues that threaten the security in the country as a whole. The last frontier is Darfur, for which the president has issued decrees that mandate the building of an infrastructure upon which economic development would be possible.

Some of these Infrastructral projects

 


Name of Project: Generation of Energy by Wind at Nyala.
Location: Nyala town – Southern Darfur State
Project Description : Installation of two generation units in two stages. The first is with a capacity of 1.5 mgw; and the second stage is with a capacity of 2 mgw.
Present situation : The feasibility study had been prepared by Lahmere Consultancy Co. (German.)
Total Cost : The first stage: US$ 2 millions; and the second stage: US $ 2.7 millions.
Implementation Period : 2 years.
Objectives :
- The introduction of the new and renewable energy system.
- Increase of the Western network.
- Maintaining the stability of the electric current.


Name of Project: New Generation at Bagair.
Location: El-Gezira State, Al-Bagair area, 42 kms from the centre of Khartoum.
Project Description : Installation of generation unit with the capacity of 300 mgw and linking it to the national network, according to the BOT system, for an agreed period of 25 years.
Present situation : The land is ready and is owned by the National Electricity Corporation.
Implementation Period : 3 years.
Objectives :
- Continuous current for the neighbouring GIAD Industrial Area.
- Meeting the increasing demand on electricity, because of the residential expansion in Khartoum (the capital) area.

Al-Shiraik Dam
Location: River Nile State
Project Description : The Project is formed from the construction of Al-Shiraik Dam on the River Nile, at the fifth cataract, the construction of an electricity generation station attached to it, with a capacity of 315 mgw, electricity transmission lines of 220 kv, from Al-Shiraik to Khartoum, transformer stations at Atbara, Shendi and Khartoum North, resettlement of those affected by the project and establishment of agricultural projects for them.
Present situation : The feasibility studies and the engineering designs are ready.
Implementation Period : 5 years.
Objectives :
- Addition of new hydro-electric generation system in the River Nile State and linking it to the national network, to meet the increasing demand for electric energy.
- Increasing the dependability of the electric supply.
- Benefiting from the potential cheep hydro-electric energy at the fifth cataract of the River Nile.

Name of Project: Reinforcing the Destribution Network in the centre of Khartoum.
Location: Khartoum (The Capital )
Project Description : Addition of 2 x 35 mgv ampere and 110/33/11 kv transformer to Al-Ghaba 110/33/11 kv.
Present situation : The project is included in the plan of the National Electricity Corporation and there are feasibility studies at the Planning Secretariat at the Ministry.
Total Cost : US $ 19 millions.
Implementation Period : One years.
Objectives :
- Meeting the increasing demand for energy in the area.
- Making the maximum benefit of the available generation in the network (i.e. effective network distribution).
- Increase of sales.
- Curbing programmed and unprogr-ammed black-outs and electricity cuts.

Name of Project: Transmission Line 220 kv, from Rabak to El-Obied.
Location: Kordofan and White Nile States.
Project Description : Transmission line 220 k.v. from Rabak to El-Obied; and a transformer station 220/33/11 kv at El-Obied.
Present situation :The Project is included in the National Electricity Corporation plan for the expansion of the national network.
Total Cost : US $ 70 millions.
Implementation Period : 3 years.
Objectives :
- Transmission of electric energy from the national network, to Kordofan State,
- Meeting the increasing demand on energy in the industrial and agricultural fields.

Name of Project: Khartoum New Airport
Location: Khartoum state
Project description : Establishment of an airport with high technical qualifications matching the international airports and according with the qualifications of the International Civil Aviation Organization (ICAO)
Total Cost :About US D 236 million


Name of Project: Port Sudan Airport
Location: Port Sudan town
Project description :Development of the airport so as to Operate as a substitute for the existing Khartoum International airport.
Total Cost : About US D 2 million


Name of Project: Air Radar System
Location: Khartoum town
Project description : Promotion and development of Air forecasting and other sectors.
Total Cost : About US D 2,5 million


Name of Project: Abu Gibieha Airport
Location: Southern Kordofan State
Project description :Establishment of the airport and establishment of fruits refrigeration stores as, the area is characterized with abundancy of production of fruits and vegetables, wildlife and fantastic picturesque areas for tourist, which were not yet utilized due to the shortage of speedy means of transport, which in turn attributed to the unavailability of infrastructures.
Total Cost : About US D 14 million

Name of Project: Osaif Iron Ore Export Port.
Location: Osaif region, 260 kms North of Port Sudan town.
Project Description: The construction of a dock with a length of 320 meters and 16/20 meters deep, which may house ships of 70-100 thousands tons load, in addition to handling equipment.
Current situation: The project is included in the corporations plan for the export of iron ore and other metals.
Estimated Cost: US$D 20 millions.
Implementation Period:18 months.
Objectives:
* Receiving ships of 70-100 thousands tons load.
* Export of iron ore and other metals.
* Encouragement of tourism.
* Development of the fishing, shells and the Kokian industries.
The Resulting Benefits:
- The establishing of a specialized port for the transport of iron ore, the marketing of raw iron in the far East and European markets and the development of the region by exploiting its wealth of raw materials and the other resources of the Red Sea.

Project: The New Suwakin Port
Location: The Project is located at (Akwai) region, at a distance of (45) kms to the South of Port Sudan town.
Project Description: Establishment of a specialized port for handling containers at (Akwai) harbour.
Current Situation: The project is included in the Corporation’s plan to meet the growth in the volume of transport by containers.
Estimate Cost: US $ 60 millions. (the first stage = construction of two docks.)
Implementation Period: 18 months
Objectives:
* Receiving the containers ships of determined specifications of the fifth generation.
* Offering port services to the Red Sea Free Zone.
* Addition of areas for storage of containers.
* Meeting the increasing demand for the use of containers in transport.
* Serving the purposes of the free zone.


The Resulting benefits: the increase of export and import movement by containers and the contribution of the raising the absorption capacity of the Sudanese ports.
The government has also initiated a program that seeks to stimulate the development of the industrial sector which begins by marking industrial areas and cities to be completely furnished with the infrastructural accoutrements that would encourage expedient investment in the country. “Crucial to industrial development within Sudan is the availability of free zones in Suakin and El-Jaili, granting exemptions to investors. The availability of a viable banking sector, insurance sector, auditing, financial, technical and legal consultancy will also prove crucial in this respect.”

For more contacts and more detailed information, please visit the Ministry of Investments website: http://www.sudaninvest.org/English/Default.htm

 

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