Economy
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Overview of the Sudanese Economy
Since independence, the Sudanese economy has suffered from a paradox between its vast natural resources and wealth—which qualify it to be among the richest countries in the world—and the underdeveloped economic reality it has endured. The "Salvation" (Al-Ingaz) revolution aimed to adopt economic plans and programs to transform this reality, unleash dormant potential, and drive production across all sectors. The inheritance was heavy and the tasks complex, yet the leadership bet from the start that the people would support its programs, which were derived from the results of dialogue conferences involving the nation’s best expertise. The government began implementing these decisions on the ground, and the Sudanese people persevered, supporting the shift from dependency on aid to self-reliance. The state initially moved towards economic reform on two levels:
- The Three-Year Transitional Program (1990–1993)
- Strategic Planning: As outlined in the National Comprehensive Strategy (1992–2002) and the Quarter-Century Strategy (2006–2031).
The first Three-Year Program focused on breaking economic stagnation and directing resources toward production. As an "emergency" program, it focused on mobilizing resources, emphasizing the banking sector's contribution to development (especially agriculture), structural and administrative reform, and prioritizing peace, security, and defense. It relied on self-financing for projects after international aid ceased, seeking to liberalize the economy. Subsequently, the strategic planning phase established the National Comprehensive Strategy (1992–2002), which aimed to stabilize the national currency's internal and external value, achieve positive real GDP growth, reduce inflation, and complete arrangements for oil self-sufficiency and export.
These policies necessitated changes in financial structures, laws, and tax reform. Investment and financial laws were enacted, Value Added Tax (VAT) was introduced, and a strict monetary policy was followed. This included preventing banks from exceeding their financing capacities and requiring a legal reserve (15%–20%), while reducing minimum profit margins to encourage investment and facilitate the flow of foreign transfers through official channels.
Through these policies, Sudan began organizing its status with international institutions, repaying accumulated debts, and establishing a portfolio to finance agriculture—the backbone of the economy. The investment law succeeded in attracting investors from Europe, Turkey, Southeast Asia, and various Arab and Asian countries. This resulted in a clear improvement in economic performance, characterized by:
- Inflation Control: Tight monetary policies reduced the inflation rate to 15.5% by the end of 1999, eventually dropping to an average of 7%.
- Currency Stability: The Sudanese Dinar exchange rate saw significant stability, the multiple exchange rate market disappeared, and the gap between official bank rates and the parallel market vanished.
- Economic Growth: The growth rate shifted from negative to positive, reaching 8%, one of the highest in the region.
- Export Growth: Export volume rose significantly due to the entry of oil into the list of Sudanese exports.
In national development, spending continued on major projects such as oil extraction, expanding agricultural land, education, and rehabilitating infrastructure for irrigation, electricity, and roads. Major achievements included: oil exploitation, the establishment of the Sarya Industrial Complex and Giad Industrial City, the Merowe Dam, roads, bridges, and the development of telecommunications and banking technology.
As the economy began to recover and stabilize, a national economic program was implemented for the period (2001–2007), focusing on:
- Improving citizens' living conditions and fighting unemployment and poverty.
- Prioritizing rural development, particularly in the South and war-affected areas.
- Rationalizing internal resources and attracting foreign investment.
- The state distancing itself from productive and service activities in favor of the private sector, while providing necessary guarantees.
Livestock
Livestock numbers (in millions of heads) up to 2005:
- Camels:547 million
- Goats:179 million
- Sheep:797 million
- Cattle:369 million
Forestry Products
Hashab (Acacia senegal) and Talh (Acacia seyal) trees form a significant part of Sudan's forest wealth.
- Hashab: 40,120 acres, producing an average of 15,200 million tons.
- Talh: 64,210 acres, producing approximately 3,450 million tons annually.
Timber Production: 11,250 cubic meters of sawn timber and 141,450 cubic meters of fuelwood. Average charcoal production is 1,772,541 bags per year.
Minerals and Petroleum
Mineral production (in tons) until the beginning of 2005:
- Gold:73 tons
- Chrome: 14,666 tons
- Gypsum: 5,132 tons
- Salt: 48,685 tons
- Silver:40 tons
- Crude Oil: 113,094 barrels (for the year 2004).
Exports
Sudan is rich in resources. Oil, livestock, Arabic gum, cotton, oilseeds, and gold are the primary resources for the state treasury. The country produces approximately 122,000 tons of Arabic gum annually.
Export Procedures
An agreement is made between the exporter and the importer including:
- Exporter’s name.
- Importer’s name.
- Quantity exported.
- Unit price in USD (shipping via Port Sudan).
- Payment method.
- Total value in USD.
- Port of loading.
- Port of destination.
- Obtaining approval from the Ministry of Industry, followed by the Ministry of Foreign Trade.
- Opening letters of credit.
- Shipping after completing procedures regarding specifications and customs.
Development Projects
- Industrial Projects
- Agricultural Projects
Key Industrial Exports
- Sugar, Vegetable Oils, Leather, Yarn, Molasses, Oilseed cakes (Ambaz), Processed Henna, Gum, Laundry Soap, Plastic Granules, Biscuits, Juices and Jams, Millstones, and Animal Feed.
Key Industrial Products
- Sugar, Soaps (Laundry, Toilet, Powder), Juices/Jams, Biscuits, Sweets and Tahini, Medicines, Medical Gases, Leather, Tires, Dry and Liquid Batteries, Plastic Granules (P.P), Matches, Refrigerators, Wood and Metal Furniture, Textiles, Vehicle Assembly, Iron Industry, Paints, Cigarettes, Plastic Products, Packaging Cartons, Aluminum Sections, Concentrated Feed, Dairy, Mineral/Carbonated Water, Graphite, and Natural Marble.
Companies with Quality Certifications (ISO/Quality Awards)
- Liquid Air
- Amipharma Laboratories
- Blue Nile Food Industries
- United Steel Manufacturing
- Tajouj Soap
- Al-Tawfiq Soap
- Sarya Systems
- Nile Paints
- Malaysian Paints Factory
- Samir Gasim Packaging
- Bittar Group
- Giad Industrial Group (Canadian Quality Institute)
- Kurshi El-Musharaf Paints (International Quality Commitment Award)
