sudan theland of opportunities
TRANSCRIPT
10/24/2012
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Sudan the land of Opportunities
Presentation Synopsis
• Basic information.
• Investment Climate.
• Economic Indicators.
• Priority Investment Sectors.
• Economic Situation (Present and Future)
• Way forward
– Three Years Economic Stabilization
Program.
– Policy Reforms.
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Basic Facts
• Sudan is the 16th largest country in the world 1.8 Million sq km.
• Seven neighboring countries (Egypt, Ethiopia, Eretria, Libya, Chad, South Sudan and Central Africa)
• The total population is 33.4 million distributed in 17 states (49% in the Urban areas).
• Sudan is the continent gateway to the landlocked countries through the Red Sea.
Natural Resources
• Arable lands 60 million hectares (142 million
feddans) only 20% currently cultivated
• Rich in water resources (the Nile and its
tributaries and renewable ground water) with
total water resources of 30.8 billion cubic
meters
• Size of Livestock 104 million
• Rich mineral reserve (oil, gold, silver, chrome,
iron, zinc and tin, and natural gas)
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Infrastructure(Transport)
• 11 thousand km paved roads
• 4 thousand km Railway
• 15 airports with paved runways.
• 7 sea ports (Port Sudan, Suakin,
Bashayer, Southern port, Osaif, Green ,
Al-khair) and River ports.
Infrastructure
(Energy and Dams)
• The current hydro generation capacity in the
country is 7572 Mega Watts.
• Different generation projects under
construction.
• Thermal generation is also used in different
parts of the country.
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Telecommunication and Financial
Services
A) Telecommunication:
• Fiber optic network of 17000 KM
• 68% Mobile phone users/ population.
• 33% Internet users /population,
• 66% internet geographical coverage
B) Financial Services:
• 39 Banks with, 586 branches
• 20 Exchange Bureaus
• Khartoum Stock Market with 35 Financial Services Companies.
Investment Climate
Efforts to Improve Investment Climate (2001 to 2009)
1. Economic Policies:
• Restructuring of the Economy for achieving
sectorial balances
• Adopting market mechanism
• Liberalizing foreign trade
• Empowering the domestic private sector to
take hold of 70% of the economic activity and
privatizing the state owned enterprise
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Investment Climate
Efforts to Improve Investment Climate
Economic Policies (Cont.)
• Maintaining stable exchange rate in efficient
banking system.
• Setting monetary policies based on market
mechanism.
• Economic stability through well coordinated
macroeconomic, fiscal and Monterey policies
Investment Climate
Efforts to Improve Investment Climate
2. Supporting Institutions:
• Investment Supreme Council (chaired by the President of the Republic and the Rapporteur is the Advisor to the President). The council is a policy and regulatory body)
• Supreme Council for Agricultural Renaissance (Chaired by the First Vice President of the Republic) The council is an agricultural policy and regulatory body.
• One stop shop system mandated to perform all investment related procedures at one window
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Investment Climate
Efforts to Improve Investment Climate
3. Laws and Regulations:
3.1 Investment Encouragement Act 2007
Important aspects of the Act are:
• No discrimination between invested capital
(whether local or foreign)
• No discrimination between similar projects
regarding concession
Investment Climate
Efforts to Improve Investment Climate
3.2 Incentive Packages (Zero business profit Tax
for Agricultural project, 10% for industrial
projects and 15% for service projects)
3.3 Guarantees for investment (non
nationalization or Expropriation of a project and
non confiscation of any invested capital)
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Economic Indicators
• Sudan is the third country in the Arab region
in terms of recovery from economic crisis
• Sudan economy has been among the highest
growing Sub-Saharan African economies
• Gross Domestic Product 66.6 billion USD
• According to the World Bank “Sudan is in the
10th year of it’s longest and strongest growth
episode since independence”.
Economic IndicatorsYear Economic
Growth Rate
Exchange Rate Inflation Rate FDI Inflow
(in Billion USD)
2007 10.9% 2.05 8.2% 2.44
2008 % 7.8 2.09 % 14.3 2.6
2009 % 5 2.31 % 10.1 2.9
2010 % 5.2 2.53 % 14.9 3.5
2011 % 2.8 2.66 % 18.1 4.7
Notes:
1. The decline of the indicators after 2009 is due to the global financial crises and the
separation of South Sudan.
2. Accumulative amount of FDI inflow from year 2000 to 2010 equals 28 billion USD.
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Sudan Priority Investment Sectors
• Agriculture
• Animal resources
• Industry
• Mining
• Dams and Electricity
• Oil
• Tourism
Agriculture
• Contributes 31% of the Growth Domestic Product.
• 50% of the population of Sudan work in agriculture
• Arable lands 60 million hectares (142 million feddans), only 20% currently cultivated
• Forests cover about 11.6% of Sudan.
• Diverse Climate zones.
• Policies Pursued to Promote Agriculture include
Zero tax on all agricultural projects and
agricultural goods.
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MARKETS AND STRATEGIC LOCATION
Sudan
� 18 hours sea navigation PORT
SUDAN to JEDDAH
� Smooth asphalt road to Egypt
Neighbours Key Food Deficit SSA Region
ADDITIONAL TRADE AGREEMENTS:
• COMESA: FTA
• EU: LDC EBA
INVESTMENT OPPORTUNITIES IN
AGRICULTURE
• MIXED FARMING: – Grains: wheat, maize, sorghum
– Oil Seeds: groundnuts, sesame, sunflower
– Fodder: alfalfa
– Livestock: cattle fattening and abattoir
• SUGAR
• COTTON
• RICE
• SOYA BEAN
Prepared by MoA_IDeA
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MIXED FARMING INVESTMENT PROJECTS
• 42,000 ha agronomic favourable land in Northern State:– Irrigation source from under-ground aquifers
– Electricity supply from National Grid
• Fully-mechanised Seasonal Cropping Commercial Operations :– 600 * 50 hectare pivots irrigation systems
– Winter Crops: wheat, maize
– Summer Crops: sorghum, groundnuts
– Perennial Crop: alfalfa
• Cattle fattening for Beef Exports:– 200,000 heads of cattle fattened p.a.:
• In three equal cycles, each of 100 days duration
• Slaughter-house design capacity of 40 heads per hour
INVESTMENT OPPORTUNITIES IN GUM ARABIC
• Sudan provides XXX of the Global Market
needs of Gum Arabic
• Sudan receives XXX returns of Gum
Arabic Export.
• Sudan is establishing 30 (12 states)
processing units to improve value chain of
and returns from Gum Arabic.
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Animal Resources and Fisheries Sector
Opportunities and Investment Projects
Vast Animal Resources (104278 million heads)(29.618 million cattle,39.296 million sheep, 30.649 million goats, 4.715 million camels).
• Fisheries and sea products is estimated to be 72000 MT (Red Sea and the Nile).
• Poultry production1. 40,000 MT of poultry
2. 38,000 eggs
• Exports:1. 243000 MT of mutton meat
2. 109000 MT of goats meat
3. 936000 MT of beef
4. 139000 MT of camel meat.
•
•
Animal Resources and Fisheries Sector
Proposed Investment projects (Cont)
1. Large scale production and fattening projects,
( more than 7000 MT of sheep and 2000 MT of beef and
camel from farms).
1. Slaughterhouses projects for export
2. Milk production projects (farm size of 30,000 cows)
3. Dairy byproducts projects (invested capital not less
than 2 billion SDG)
4. Poultry production projects
5. Eggs production projects (capacity not less than 2000/year)
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Animal Resources and Fisheries Sector
Investment projects (Cont)
• Integrated veterinary services projects (for rural
areas such as mobile clinics, drugs …etc)
•Integrated fishery and sea products production
projects at the Nile and the Red Sea,(freezing,
transport …etc)
•
Manufacturing:
Agricultural products, food products, food oil, textile,leather,construction material,etc..
Sugar Industry:
Integrated industry including food, energy, milk,
meat, ethanol (Sudan is the first Arab state to
produce Ethanol), seeds and equipment, agricultural
processing.
LightandHeavy Industry:
VehicleAssembly,Aircraft,cement,steel,etc..
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Yield / Feddan
Sugar Return / Feddan
0 100 200 300 400 500 600
USA
Cuba
China
Thailand
Mexico
Zambia
Australia
Sudan
Swaziland
Malawi
Zimbabwe
Brazil
Low Cost of Production
20,45
23,59
23,31
28,85
32,00
37,80
40,78
27,05
44,30
South Africa
Brazil
Thailand
China
Australia
Colombia
Swaziland
Avarage
Sudan
W. Avarge
2,77
3,06
3,34
3,99
3,65
4,5
4,83
5,84
6,13
South Africa
Thailand
Brazil
China
Avarage
sudan
Australia
Swaziland
Colombia
Source: FAO
W.Avarage
Sudan
Harvesting
By
pro
du
cts
Mu
las
Ba
gh
as
Mulas
Poultry
Meat
Dairy
Concentrated
Anima Feed
Ethanol
Sugar
Sugar
production
Energy
Production
26
By
pro
du
cts
Forges
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Sudanese Sugar Company
(Strategy for New Projects)
• Increase production (vertically and horizontally) in existing projects.
• Establishment of new sugar projects
• Improve quality of product
• Integrated industry (Electricity, Ethanol, Animal feed)
• Pilot agricultural inputs industry
• Diversify production in the existing factories to include Horticultural, Animal Production and Organic Fertilizers production.
Examples of New Sugar Projects
• New Sugar Factory (Alhurga NurEldin)
• Increase the capacities of sugar factories to
produce electricity (Algenaid and New Halfa
Sugar factories)
• Produce Ethanol (Sinnar Sugar Factory)
• Production of Meat and Animal Feed (Sinnar
Sugar Factory)
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Projects of Kennana Sugar Company
• Alramash Sugar Project
• Alredais Sugar Project
• Kennana Station Project for Agricultural
Exports
• Meat Production Project
• Kennana Station for Agricultural Exports
Project
Rehabilitation Project for
Food Oil Sector
• This project is a public/private sector investment
• Aims to improve Production of Oil Seeds
• Allocates Agricultural lands in Irrigated agriculture areas to produce food oil seeds
(total of 600,000 Feddan - 100,000 Feddan for the
single sub project) Provides training and
international expertise to develop the sector
• Provides high quality seeds and apply standard production packages
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Leather Industries
Sub Sector Size of Sub Sector
Tanneries • 21 modern tanneries
• A large vocational sector (specially in
Darfur, Kordofan, Blue Nile and White
Nile)
Show Factory • 3 large scale factories, 10 medium
scale factories, SMEs, a great number
of workshops.
Volume of investment in the Leather Industry Sector is 150
million USD.
Employment in Leather Industry is around 6000 (seasonal
employment not included)
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Investment Opportunities in Leather
Industry
• Improve the operational capacities of the existing tanneries
• Establishment of new tanneries
• Establishment of modern leather products factories
• Establishment of chemical industry required for the leather industry
• Develop the sector for export purposes
Sudan has a long history and rich heritage in the culture
of which have huge reserves of minerals. mining since
the days of ancient pagan kingdoms.
The Sudan is covered (almost 40%) by the
basement complex formations
Investment Opportunities
Possibilities of Geological and
Mineral Sudan
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Types Of Minerals In Sudan
Gold - silver - copper - zinc - manganese - iron - black sand - salt -
gypsum - marble - mica - feldspar - chromite – white silica – black sand -
Altrona - phosphate - sulfur - hot springs - base metals - precious
metals- gem stones - talc - Nickel - semi-precious stones - Platinum -
aluminum - cobalt - lead.
-:خــريطة المعــــــــــــــــــــــــادن
Map Of Strategic Metals
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Investment In Minerals
• Contribution of the minerals sector in GDP is about 4%.
• The Geological Research Authority of Sudan has recently taken
important measures to open investment in mining and also
embarked on signing several exploration and mining concessions
with national and international mining companies.
Points on The Convention On The Grant of
Exploration Licenses
• Signed the Convention between the Government of Sudan and the investor in accordance with the Mineral Resources Act of 2007, and the investor may take advantage of all the privileges provided by the Investment Promotion Law of 2007.
• Granted under this Agreement permit research and exploration for minerals in accordance with time periods reasonable that is to grant a mining license, and after commercial production is recorded a joint venture is established between the government and the company under the Companies Act of Sudan for the year 1925, at rates to be agreed upon, with known royalities, shares, division of profits BPT, etc…
• . The company's right to share in the export of minerals and has the right to bring in foreign specialists whenever needed.
• The company is committed in relation to the environment, safety, health and community support (social responsibility) and pay an annual amount to the ministry as a training and technical assistance fee.
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– The agreement gives the companies, according to
the Investment Promotion Act 2007, amended
exemptions (sales and services tax - a tax profits of
the business - Customs Altercate and appliances
and equipment).
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Investment In The Mining Services: -The field of mineral exploration, of course, involves a broad spectrum of
activities that are considered to form profitable investmentopportunities in Sudan. The most important investment activitieson this domain is Exploration and mining development.Investment in the area of detailed exploration and mineral
evaluation.Investment in the field of providing services to companies (like
mapping, exploration, drilling, mining development andequipmentsInvestment in the Field of Analysis and Preparation ofSamples and Extraction operatiions.Investment in the Field of Laboratory-Related Industries.Investment in Training. The Establishment of Smelters (coppersmelter - steel -aluminum - chrome), and ferrochrome industry.
.
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DAMS SECTOR
DAMS LARGE IRRIGATION PROJECTS
MEROWE IRRIGATION PROJECT
AREA: 904,000 FEDDAN (380,000 HA)
KENANA & RAHAD-II IRRIGATION PROJECTS
AREA 2,500,000 FEDDAN (1.041,000 HA)
UPPER ATBARA IRRIGATION PROJECT
AREA: 1,000,000 FEDDAN (420,000 HA)
PLANNED HYDROPOWER
PROJECTS:
EL SHERIEK HYDROPOWER PROJECT
CAPACITY: 320 MW
DURATION: 4.5 YEARS
CAPITAL COSTS: 900 M$
KAJBAR HYDROPOWER PROJECT
CAPACITY: 420 MW
DURATION: 5 YEARS
CAPITAL COSTS: 900 M$
DAL HYDROPOWER PROJECT
CAPACITY: 660 MW
DURATION: 4.5 YEARS
CAPITAL COSTS: 900 M$
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Planned Water Harvesting
Projects:
127 Water Harvesting Projects:
Distributed all over Sudan
Oil
(Natural
Factors)
Sedimentary Rift Basins in Sudan
(Baggara Basin)
(Muglad Rift Basin)
)White Nile Rift Basin (
(Melut Rift Basin)
(Blue Nile Basin)
(Atabra Basin)
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Investment in Upstream
Total FDI in Upstream operations in
the period from (1997 to 2011)
reached 19.5 Billion USD
Investment in Down stream
Total FDI in Downstream operations
in the period from (1997 to 2011)
reached 4.8 Billion USD
The Fast Track Program
The
blockThe company
Daily production (thousand barrels)
2012 2013 2014 2015 2016 2017
2&4 GNPOC 65 70 70 70 70 90
6 PETRO-ENERY 60 100 100 100 100 200
17 STAR OIL 10 25 25 25 25 25
7 PETRODAR - - - - - 5
TOTAL 135 195 195 195 195 320
The
bloc
k
The company
Daily production (million cubic feet)
2012 2013 2014 2015 2016 2017
2&4 GNPOC - 22.5 22.5 22.5 22.5 22.5
TOTAL - 22.5 22.5 22.5 22.5 22.5
Oil
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UPSTREAM
BLOCKS
UNDER
PROMOTION
Block 10
Block 12 B
Block 14
Block 18
Block 15
Block 8
Expected Investment
THIRD EXPANTUED OF
Alobaid REFINERY TO BE
50,000 bbl/day at the end of 2006
DOWNSTREAM:
THIRD EXPANTUED OF
KHARTOUM REFINERY TO BE
200,000 bbl/day
Expected Investment
Port Sudan refinery is under expansion process, aiming
at increasing its refining capacity to 150 thousand barrels per day,
with total investment 7-8 billion .
Under study Urea Fertilizer Plant with capacity 300 k ton per year,
using petroleum coke as feedstock which is produced locally.
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Types of Tourism
Cultural Tourism (Archeological Sites)
Desert Tourism
Safari (National Parks)
Policies and Plans for Development of
Tourism
• Development of Infrastructure
• Promotion programmes
• Tourism Services Quality Control
• Investment incentives through investment law
• Tourism investment map
• Capacity Building for Human Resources
working in Tourism
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Tourism Services 2005 - 2011
Data 2005 2006 2007 2008 2009 2010 2011
Agencies 201 201 291 356 423 474 531
Tourism
Companies
16 14 14 13 16 12 12
Restaurants 35 55 84 131 158 210
Parks and
Resorts
40 40 49 211 211 67
Accommodation Capacity 2005 – 2011
Data 2005 2006 2007 2008 2009 2010 2011
Number of
Hotels
85 88 173 180 213 247 217
Number of
Rooms
� 4883 7677 7893 7102 7647 5525
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YearNumber of
Tourists
Revenues (in
million USD)200037.60929.600
200150.00060.400
200250.93061.800
200352.29062.700
200460.57768.300
2005245.797316.400
2006328.156409.000
2007436.295428.000
2008439.661548.000
2009420.238521.748
2010495.161616.639
2011536.400671.962
Performance of Tourism Sector (200 – 2011)
Alnagaa and Musawarat Site
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Alnagaa and Musawarat Proposed Project
• Umm Baronna Forest Resort
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Economic Situation (Present and future)
Despite the progress in the economic performance during (2000 to 2010), the economy is facing challenges resulting from the effect of the global financial crises, separation of the South Sudan and loss in oil revenues. These challenges are:
• Rise in inflation rate
• Decrease in value of national currency
• Difficulty in importing capital goods for investment
• Reduction in public expenditure
• Reduction in the inflow of FDI
• Land tenure laws and regulations
Way Forward
Government Efforts to Address the Challenges
The Three Years Sustainable Economic Stability Programme
Objectives
• Improvement of public investment in Infrastructure
• Mobilize potentials of productive sectors to cover the gaps in consumption goods
• Increase inflows of FDI
• Reduce levels of unemployment
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Way Forward
Government Efforts to Address the Challenges
Policy Reform for Broad Based Economic Growth
• To achieve self reliance, the economy is being oriented towards broad based and diversified productive sector with focus on Agriculture
• Maintaining macroeconomic stability to create enabling environment for growth.
• Creating conducive environment for the private sector, to lead the sector’s growth.
• Resolving land tenure issues.
• Investing in human development to build needed skills.
• Giving priority to investments in infrastructure (such as irrigation, livestock quarantines, slaughter houses, and roads), research, and extension.
• Removing production impediments by institutional reforms (taxes, administrative and regulatory procedures, and marketing).
• Revitalizing the role of the Products Marketing Councils.
• Increasing credit to agriculture and assisting small holders with micro credits and micro finance.
• Expand crop and livestock insurance
• Revitalization Program which has the highest political support and has agriculture and livestock as the leading sectors.
Way Forward
GOVERNMENT EFFORTS TO ADDRESS THE CHALLENGES
Policy Reform for Broad Based Economic Growth
• Maintaining stable exchange rate in efficient banking system.
• Setting monetary policies based on market mechanism.
• Economic stability through well coordinated macroeconomic, fiscal and Monterey policies
• Review of charges (levied at Federal and states levels)
• Incentive scheme for investors
• Removal of Investment Administrative Barriers
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Thank You