SUDAN – COUNTRY OVERVIEW

An introduction to Sudan,

its history, its people and its

logistics challenges

Looking at:

• Country Overview

• Agri businesses

• Transport Infrastructure

Geography

Sudan used to be the largest country in Africa prior to the secession of South Sudan in 2011.

It is now the third largest, behind Algeria and Democratic Republic of the Congo.

The size of Sudan is now approximately 25% smaller, with an area of 1.86 million square kilometres.

Much has changed!

• Much has changed.

• But the trains still run!

Key Facts

• Location : NE Africa – bordering Egypt, Eritrea, Read Sea.

• Population: Estimated at c. 30 million (post split of S. Sudan).

• Area: 1,861,48 sq. km.

• Ethnic Groups: Sudanese Arab (c. 70%), Nuba, Fur & Fallata.

• Religion: Sunni Muslim, Christian minority.

• Language: Arabic (classical), English and local dialects.

• Currency: Sudanese Pound – GB £1 = Sud £ 8.58.

• Life expectancy : 60 years (men), 64 years (women).

• Capital: Khartoum ………… where the Nile rivers converge.

History

1820-21 Ottoman Empire conquers northern part of the country.

1899-1955 Sudan is under joint British-Egyptian rule.

1956 Sudan becomes independent.

1983 President Numeiri introduces Sharia Islamic law.

2003 Start of conflict in Darfur region.

2009 International Criminal Court issues an arrest warrant for President Omar Bashir on charges of war crimes and crimes against humanity relating to the drawn-out conflict in Darfur.

2011 South Sudan gains independence following years of war with the central government in Khartoum.

als

Two Peoples in one country

Ethnicity: Arab African

Religion: Muslim Christian

Lifestyle: Static Transient/Pastoral

Geography: Desert Wetlands

The creation of South Sudan:

South Sudan became the 193rd and most recent member of the United Nations on 11th July 2011

Head of State

• 1978: He came to power when, as a brigadier in the Sudanese Army, he led a group of officers in a military coup that ousted the democratically elected government of prime minister Sadiq al-Mahdi after it began negotiations with rebels in the south.

• 1993: On 16 October, al-Bashir's powers increased when he appointed himself President of the country, after which he disbanded the Revolutionary Command Council for National Salvation and all other rival political parties.

• 2008: On 14 July, the Chief Prosecutor of the International Criminal Court (ICC), Luis Moreno Ocampo, alleged that al-Bashir bore individual criminal responsibility for genocide, crimes against humanity, and war crimes committed since 2003 in Darfur. Sanctions imposed by US and EU.

• 2017: President Barack Obama announced that the US will reduce some sanctions imposed on Sudan, provided anti-terrorism trend is maintained.

President Omar al-Bashir1993 to current day

Sanctions

• 1991-6 – Osama bin Laden was guest of the Sudan government where Al Qaeda ran training camps

• 1997 - Imposed by UN, US and EU during Civil War with SPLP rebels

• 1998 – bin Laden expelled and a related pharma factory in Khartoum was bombed by US

• The list of prohibitions included all arms products and financial instruments for some Govt officers

• Sanctions were lifted by USA in January 2017

Government structure

The government of Sudan operates under a presidential representative democratic republic.

Under this system, the President is the head of state, head of government, and Commander-in-Chief of the armed forces.

The nation and its people are represented by a multi-party system, and public affairs are administered by 3 branches: the executive, the legislative, and the judicial.

Regional Government structure

Sudan3 Provinces

8 States

S. Sudan2 provinces

10 states

Currency

• Sudan’s economy has suffered high levels of inflation.• 2 civil wars and the impact of the current South Sudan conflict have

had significantly negative impacts.

• As a nett Importer it has also suffered from lack of foreign currency to pay for imported goods and services.

• Post 2011 split, all was not peaceful between the neighbours.• Sudan closed the export oil pipeline from South Sudan.• Both countries lost (almost) all their foreign currency.• Both local economies suffered significantly.• US $ is the currency used for international trade.

Value of Sudanese Pound – GB£ 1 = Sud £ 8.58 Sudan Pound

Inflation1965-2015

Economic rankings

Sudan’s economy depends to a large extent on oil exports.

• Imports: $ 5.7bn Ranked 101 out of 221

• Exports: $ 10.5bn Ranked 94 out of 221

• GDP per capita: $ 4.39k Ranked 134 out of 184

• Eco Complexity: $ 1.33% Ranked 129 out of 184

Poverty

Poverty is endemic in both countries.

In Sudan 48 percent of the population are defined as income-poor and living on an equivalent of less than US$1 per day.

In South Sudan this percentage rises to at least 80 percent . Foreign aid are lifelines to survival.

The trend line shows that gap likely to increase.

Current Economy: EXPORTS

• Sudan’s remains highly dependent on Oil exports: 54%

• Agricultural exports account for 21%

• Gold and other precious metals account for 15%

• Gum Arabic – largest exporter in the world

• Export destinations are dominated by China : 55%

• Rest of the Middle East accounts for: 30%

• Europe accounts for : 5%

• Egypt & Ethiopia account for : 3%

EXPORT detail

• Sudan’s top exports are:

• Crude Petroleum ($ 3.09B)

• Gold ($ 686M)

• Sheep and Goats ($ 550M)

• Other Oily Seeds ($ 424M)

• Insect Resins ($ 121M)

Data used from 1992 revision of the HS (Harmonized System) classification.

Current Economy: IMPORTS

• China is the major international player in Sudan.

• Sudan depends on the high export trade in oil with China as well as crucial inward investment.

• China is implicated in supporting (finance and know-how) a variety of infrastructure projects (e.g. railway).

• Historic import delays at Port Sudan experienced.

IMPORT detail

• Sudan’s top imports are:

• Planes, Helicopters, and/or Spacecraft ($ 708M)

• Raw Sugar ($ 479M)

• Packaged Medicaments ($ 316M)

• Unpackaged Medicaments ($ 274M)

• Wheat ($ 266M)

For a country with a predominantly starving population, this profile of Sudan’s imports indicates prioritisation of spend on war equipment.

Sudanese foods

• The Sudanese eat a wide variety of stews, often served with bread or porridge.

• Further South, fish dishes are popular.

• And….. they eat a lot of sugar!

• Eastern Sudan reflects the influence of places such as Yemen, as seen with the mokhbaza (banana paste).

• A lot of pasta, rice, vegetables and salads are staples.

Sudan’s Agricultural products

Cereals: sorghum (3mT+), millet (1.5mT), rice and wheat (0.25mT).

Oils: sesame, ground nuts, sunflower, and promising crops such safflower, sugar beet and soya beans. Cotton seeds are also a major source of edible oils.

Legumes: broad beans, beans, chick peas, lentils, lupine and cow pea.

Fibre: cotton, and kenaf is cultivated in small areas.

Fodder crops: production is estimated at 86.6 million tons of dry fodders yearly & includes natural pasture, sugar cane, agricultural waste, green fodder, concentrated fodders. Alfalfa exported to KSA.

Vegetables: onion, tomatoes, okra, egg plant, peseta, potatoes, watermelon, green veg. Onion & tomatoes account for 50%.

Sugar: Modern crop established to reduce dependence on imports.

Sudan’s Agricultural potential

• This article shows the context of Sudan’s agricultural opportunity …. Not taken thus far!

• The opportunities are significant … sun, soil & water.

• The challenges are greater … poverty & Government.

• Some areas are mechanised but the majority are not.

• Irrigation is not as developed as the Nile area is Egypt.

• Water increases yield, mechanisation & prosperity.

Sudan’s Sugar business

• Sugar consumption in Sudan is considerable.

• It is a key part of the local diet and it has highly detrimental effect on their dental health!

• The main Sudanese growers are: • Kenana Sugar Company

• Blue Nile Sugar

• White Nile Sugar

Transport Infrastructure

Sudan Deepwater Port

Port Sudan Liner services

Sudan Railways

• Sudan has 4,725 km’s of narrow gauge, single-track railroad that serve the northern and central portions of the country.

• The main line runs from Wadi Halfa (N) to Khartoum (C) with extensions to Nayala in Southern Darfur (SE) and Wau (S. Sudan).

• Another line connects Atbara with Port Sudan (E) and the 800 kmsof this line to Khartoum carries 70% of all Sudan’s freight.

• It is highly congested with multimodal flows from the only deep water port. This route is c. 475kms to Atbara.

• A modest effort to upgrade rail transport is currently underway to reverse decades of neglect and declining efficiency. Service on some lines may be interrupted during the rainy season.

Sudan’s Roads

• Sudan's road system totalled between 20,000 and 25,000 kms , 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 3,000 to 3,500 kms.

• Of this, Khartoum-Port Sudan road accounts for almost 1,200 kms.

• The non asphalted roads are subject to subsidence.

• Trucks can operate at 80 tonnes GVW (rigs with 2x 40’ semi trailers)

• The greatest risk to life is from Camels and Intercity coaches !

NB. Up-to-date data is hard to get but little/no recent investment

Sudan Airways

• The original fleet of planes operated by Sudan Airways were mainly sourced from Boeing.

• During sanctions this US fleet became very short of spare parts.

• As a result planes used for commercial passenger traffic services are mostly chartered.

• Most of the aviation over Sudan is operated by NGO’s especially the UN who have heavy lift, passenger planes & helicopters.

• Passenger services within Sudan are subject to regular delay.

NB. Impact of post-Sanctions era on parts supply still unknown

Sudan’s Waterways

• The Blue and White Nile Rivers becomes “one” at Khartoum.

• The White Nile starts in the swampy Sud area of South Sudan.

• The Blue Nile starts in Lake Tana in the highlands of Ethiopia.

• Dams for hydro electricity are in place/planned for the Blue Nile.

• At Aswan (at north of Lake Nasser) the dam prevents shipping.

• Development of any form of water-born freight is very limited.

• Some local cross-river taxis exist in the cities but no tourist craft as you’d see in Egypt, as there are no tourists in Sudan!

• Use of waterways in South Sudan is essential due to water/swamps.

NB. Impact of post-Sanctions era on Tourism are still unknown

Issues - Sudan Transport

Sea Transhipment delays (Jeddah and Jebel Ali)

Offload, Handling & Clearance delayPirates and Armed Convoy delays

Rail Lack of investment & congestion

Sand storms and buckled tracks

Road City delivery curfews

Up Country road infrastructure

Air Service delays and cancellations

Sudan’s Free zones

The World Bank defines free trade zones as "small, fenced-in, duty-free areas, offering warehousing, storage, and distribution facilities for trade, trans-shipment, and re-export operations."

Free-trade zones are also defined as labour-intensive manufacturing centres that involve the import of raw materials or components and the export of factory products.

Sudan’s main Free Zones are as follows:-

• Garri (Al-Gaili) Free Zone 70 kms North of Khartoum

• Red Sea Free Zone 40 kms South of Port Sudan

• The Free Port Project Proposed for Red Sea State

Garri Free zone

Initiated for Oil Refinery but was extendedin 2004. Widely used by large importers, especially for automotive & equipment

distributors.

Garri Dry Port

“A dry port (sometimes inland port) is an inland intermodal terminal directly connected by road or rail to a seaport and operating as a centre for the trans-shipment of sea cargo to inland destinations”.

It was proposed to implement a dry port at Garri Free Zone with direct rail connection from Port Sudan for containers. The feasibility was also discussed about staging road transport via Garri so goods could be Customs cleared “in transit”.

Concern expressed at the time of rail capacity of line from Port Sudan