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The Economy & Natural Resources
Monday, 08 March 2010 20:29

Economic overview

Sudan has been experiencing economic upturn, characterized by a long positive episode of growth and relatively low inflation. Real GDP growth was 8.4 per cent in 2008. The exploitation of oil reserves and “the peace dividend” were the main drivers of this economic success. Direct foreign investment has stimulated recent growth as well as a boom in the service sector, especially transportation and communication sector.

The implementation of the Comprehensive Peace Agreement has improved the prospects for enhancing political stability and has provided a framework for wealth and power sharing.

Economic and political challenges notwith­standing, Sudan has managed to normalise its relations with neighboring countries, such as Ethiopia, Uganda and Kenya, as well as with its development partners. The sustained high rate of growth made possible by oil production has led to a sizeable increase in per capita income, a rising literacy rate and a reduction in the child mortality. Sudan has devoted a sizeable proportion of public expenditure to infrastructure such as roads, telecommunication, and electricity

Sudan Economic Statistics ( 2008 es.)

 GDP( purchasing power parity)

$87.27 billion

 GDP( real growth rate)

$5.5%

 GDP- per capita( PPP)

$2200

GDP- composition by sector

Agriculture: 32.9%

Industry: 31.2%

Service: 36%

Investment( gross fixed)

18.1% GDP

Reserves of foreign exchange and gold

$3.329 billion

Export

$13.62 billion f.o.b.

Import

$ 7.757 billion f.o.b.

 

Sudan economy is estimated to have grown by 10.5% in real terms in 2007, according to official figures of the Central Bank, underpinned by oil export revenues. Sudan is an agricultural country, though recently oil has turned into a major economic driver. The year 2007 real sector performance reflects the important role oil is playing, as the impact of regional folds and lower-than-projected agricultural output contributed to the slowdown in non-oil growth. Oil GDP real growth rate reached 36% in 2007, versus 16.5% in 2006 while non-oil GDP real growth rate was much lower at 7.5% in 2007.

 

Recent Economic Developments

Real GDP grew by 8.4 per cent in 2008, up from 10.2 per cent in 2007. The industrial sector accounted for 24.7 per cent of total GDP in 2007, mainly due to oil production (17.2 per cent of GDP), which grew at 19 per cent in 2008. The manufacturing sub-sector grew by 4 per cent in 2008 compared to 2 per cent in 2007. Most successful industries are in food processing, notably sugar refining, as well as in arms and vehicle manufacturing. The construction boom and increased demand for building material also contributed to growth in manufacturing output. 

The services sector accounted for 41.7 of aggregate output in 2007 and grew at 7.5 per cent in 2008 thanks mainly to continued expansion in the financial sector, construction, transportation and communication and trade. The transport, storage and communication sub-sector grew by 16 per cent in 2008 due to the rehabilitation and upgrading program adopted in the wake of the 2005 Joint Assessment Mission (JAM). The construction sector recorded growth of 18 per cent, one percentage point higher in 2007. The dynamic growth of construction can be attributed to improvements in infrastructure and the rise in demand for private residential and business property. 

Agriculture accounted for 34 per cent of GDP in 2007, and provides employment for about 70 per cent of the population. It also provides inputs to many manufacturing industries. It was encouraging that growth in the sector rebounded to 7.5 per cent in 2008 after experiencing a period of slow growth.

The continued growth in private and public investment was the main source of the recent upsurge in GDP growth. The two together accounted for 4.7percentage points of growth in 2008. The oil sector attracted substantial FDI for production and further exploration. Private investment continued to increase in agriculture and services, mainly transport, communication, hotel and restaurants. The contribution of total consumption to real GDP growth was only 2.8 percentage points in 2008. The contribution of private consumption was greater than that of government consumption. The external sector contributed 0.9 percentage points to real GDP growth in 2008. Obviously, growth in government consumption can stimulate growth but is often unsustainable.

 

 

   AGRICULTURE

 Sudan’s agriculture sector which accounted in 2008 for 32.9% GDP has great productive potential. Arable lands ready for agriculture are estimated to be (200) Million Feddans (84) Million Hectares. Sudan has been described as a possible bread basket for the Middle East and has great productive potential in land close to the Blue and White Nile rivers and the River Nile proper. But the farming sector is underdeveloped and in need of capital, irrigation systems, roads, machinery and technology..Yields in agriculture and livestock are low by comparative standards. To raise the income of the poor, especially those engaged in rain-fed agriculture, requires first and foremost an increase in agricultural productivity.

 In 2008, Sudan is the third partner of China in Africa. The volume of trade exchange between the two countries is 8.18 billion US. Also the investments of Chinese companies in Sudan amounted to 13.1 billion U.S. dollars while the non-financial investment jumped to ten billion U.S. dollars.

 

-Arabic gum and sesame generated some US $214 million from exports and accounted for 55% of non- oil exports. Most of the world's gum Arabic comes from Sudan, where a thick belt of Acacia Senegal trees stretches from one end of Sudan to the other. Sudan reportedly exports tens of thousands of tons of raw gum Arabic each year, feeding the high global demand. The raw sap is sent to Europe for processing and afterward is disseminated to customers worldwide.

-Cotton is Sudan's main cash crop, providing 45 per cent of the country's export earnings. Cotton output of Sudan totaled 500 bales in 2008, ranking the 17th among cotton export countries in the world. There has, however, been almost no development of commercial textile manufacturing to add value to the basic raw material. The Sudan government is extending to boost this sector.

-Corn produced grew by 15.5% over the period to reach almost 5.0 million tons in 2007, mainly because of improved productivity that went up 16.3% year-on-year (492 kg per feddan). Benefiting from international hike in commodities’ prices, Sudanese corn exports generated in 2007 a good US $27.66 million, which is more than 7% of total non-oil exports, versus a negligible amount the previous year.

-Millet output also grew by 18% and totaled 796 thousand of tons. Millet harvest improved as the land productivity was up 8.6% higher, despite a smaller farmed area in 2007.

A recent World Bank study has shown that agriculture has tremendous potential to lead a rebound in non-oil growth in Sudan. Enhancing agricultural productivity and transformation in the country requires, among other things, substantial investment in rural infrastructure, increased expenditure on agricultural research, increased use of irrigation, tractors and land conservation measures, improved seeds and fertilizers as well as sustainable and affordable rural credit services. Promoting agricultural processing and agribusiness will stimulate growth in agricultural production and will bring an increase in rural employment and income.

Looking forward, the Sudanese government aims to boost the agriculture sector, especially as the country uses only 6.8% of the area suitable for cultivation, as estimated by the United Nations Food and Agriculture Organization (FAO).

Sudan is seeking to attract capital for its agricultural sector from Arab and Asian investment groups that are looking for new food supplies to ensure food security following the commodity price inflation.

Over the longer-term, the Ministry of Agriculture aims to pursue a mega “agriculture revitalization” plan costing some US$5 billion to invest between 2008 and 2011.

 

INDUSTRY

         Sudan’s industrial sector (including extractive industries and manufacturing) accounted for 30.6% GDP in 2007 with a growth of 22.8% in real terms. The oil sector is major contributor and accounts for 19% of GDP and 95% of exports (when considering petrol and petroleum products). The oil sector grew by 36% in 2007, according to the Central Bank statistics, making available the hard currency to finance basic imports for industrialization.

Sudan’s industrial expansionary plans are not limited to the hydrocarbon sectors as other sectors are also under a face-lift, supported by an overall economic reform program and foreign investment that are increasingly attracted by the easing foreign exchange and trade regulations

OIL

Sudan is one of Africa’s largest oil producers with output of 500,000 barrels a day. More than 200,000 barrels a day are imported by China, making Sudan its fourth-largest provider of crude.

“Sudan is targeting 600,000 barrels a day of crude oil production in 2009” said by Sudan’s Minister of Energy and Mining.

The country’s proven oil reserves are among Africa’s largest at 6.4 million barrels.

Oil exploration and production is under the control of the Sudan Petroleum Corporation (Sudapet). However, due to its limited technical and financial resources, Sudapet often develop joint ventures with foreign companies, mainly from China, India, Malaysia and the Arab countries. The government is attempting to boost oil production further, and a number of new concessions have been awarded in recent years, and exploration has been stepped up in others.

In mid-2007, the partly onshore and partly offshore Block 13was awarded to a consortium led by China National Petroleum Corp, (CNPC), which also included Pertamina of Indonesia, Sudapet, Dindir Petroleum ( a Jordan-based firm), and two Nigerian companies, Africa Energy and Express Petroleum and Gas.

As to refineries, Sudan has also a total combined capacity of 121,700 barrels per day (b/d) in two refineries: Khartoum and the Port Sudan facility. In addition to these larger refineries, Sudan has also a 15,000 b/d plant at El Obeid, a small facility at Abu Gabra with a capacity of about 2,000 b/d and 5,000 topping plant.

Sudan authorities that are trying to grasp the opportunity presented by the spiraling oil prices are even ultimately considering joining the Organization of Petroleum Exporting Countries (OPEC) at some point in the future.

             .

SUGAR

            The most successful industries are in food processing, notably sugar refining. Refined sugar production now exceeds domestic demand, making Sudan the Arab world’s only net sugar exporter. Sudan is the third largest producer of sugar in Africa, after South Africa and Egypt. The country has five large scale sugar refining factories with a total capacity of 655 thousand tons of refined sugar. Kenana Suagar Company for Engineering and Services, owned mainly by Arab government investors, is Sudan’s largest sugar producer and one of the biggest in the world

Overall, Sudan produces about 850,000 metric tons of sugar per year. According to a June 2009 report by the Food and Agriculture Organization of the United Nations, this year’s harvest is estimated to have gained 3.6 percent over the 2007/08 harvest. The FAO attributes the gains to "favourable weather conditions and conductive public support."

Total area under cultivation for sugar cane in the season 2008/09 was 88,506 feddans, compared to 86,728 feddans last season.

Plans for significant expansion of the sugar industry are already underway. These will improve irrigation infrastructure in order to increase the cane areas under cultivation.

A Morrocon company, Awna Investment, aims to implement a 500 million euro (US$696.9 million) project, the Gafa project which will produce 43,000 tons of sugar a year when output begins in three years.

Sudanese authorities plan also to develop the sugar industry in the country and to increase sugar production as well as to convert molasses, to ethanol. Sudanese government intends to construct some 18 ethanol plants.

Sudan aims to produce an annual 10 million tons of sugar by 2015, though authorities consider that this output can double. The government announced an ambitious plan for sugar production, aiming at sugar cane cultivation of an area of 4.1 million feddans. The plan consists of 13 projects, located between the White and Blue Niles, Sabina Al-Ramash, Ballah, Al-Dewaim, Gezira, Sharaq Al-Nil and southern Sudan, are expected to create 700,000jobs and to improve health and education for three million people. Sugar production will not be only used for food, but the focus has now turned towards the production of ethanol and other bio-fuels.

The largest of the projects, the Eljazeera project, aims to produce 2.9 million tons of sugar and 205 million liters of ethanol per year. Another project is the US$300 million sugar refinery to be built at Al Ramash in the central Sinnar state of Sudan funded by an Arab investment private group based in Abu Dhabi. The plant would produce 100,000 tons of sugar and 20 million liters of ethanol per year.

TEXTILE

            Textile and yarn production is another targeted industry in Sudan, benefiting from homegrown cotton. Authorities are increasingly focusing on this sector.

HEAVY INDUSTRY

-Sudan has developed large arms manufacturing industry, as well as a vehicle industry located in the Giad City industrial zone. Giad Industrial City was inaugurated by President Al-Bashir in October1997.Giad was set up to encourage industry in the country and increase skills in Sudan’s labor force, it consists of thirteen separate companies that make vehicles( trucks and cars) and cables as well as metals for oil pipelines. Giad group has become a household name in the Sudan with homegrown Giad passenger cars being favored to foreign imports.

            Giad Automotive is the biggest and most profitable of Giad’s operations. It assembles up to over 12,000 vehicles a year, ranging from the $15,000 Accent passenger cars licensed by Korea’s Hyundai, to $100,000 heavy-duty trucks licensed by Germany’s Man Group and France’s Renault for sale in Sudan).

- Other small-scale manufacturing, sectors include pharmaceuticals, electrical goods, cement, paints, soft drinks, flour, vegetable oils and leather.

 

CONSTRUCTION

Sudan continued to witness a dynamic construction activity last year. As a result of the infrastructure rehabilitation, as well s increased demand on private residential and business property. Construction reported a real growth of 6.7% last year, still capturing almost 4% of GDP. An important coincident indicator, mirroring this momentum, is cement production that increased by 61.3%, as Sudan’s output totaled 326.2 thousand tons of cement.

-The Merowe Dam is a US$1.8 billion Economic overview

Sudan has been experiencing economic upturn, characterized by a long positive episode of growth and relatively low inflation. Real GDP growth was 8.4 per cent in 2008. The exploitation of oil reserves and “the peace dividend” were the main drivers of this economic success. Direct foreign investment has stimulated recent growth as well as a boom in the service sector, especially transportation and communication sector.

The implementation of the Comprehensive Peace Agreement has improved the prospects for enhancing political stability and has provided a framework for wealth and power sharing.

Economic and political challenges notwith­standing, Sudan has managed to normalise its relations with neighboring countries, such as Ethiopia, Uganda and Kenya, as well as with its development partners. The sustained high rate of growth made possible by oil production has led to a sizeable increase in per capita income, a rising literacy rate and a reduction in the child mortality. Sudan has devoted a sizeable proportion of public expenditure to infrastructure such as roads, telecommunication, and electricity

Sudan Economic Statistics ( 2008 es.)

 GDP( purchasing power parity)

$87.27 billion

 GDP( real growth rate)

$5.5%

 GDP- per capita( PPP)

$2200

GDP- composition by sector

Agriculture: 32.9%

Industry: 31.2%

Service: 36%

Investment( gross fixed)

18.1% GDP

Reserves of foreign exchange and gold

$3.329 billion

Export

$13.62 billion f.o.b.

Import

$ 7.757 billion f.o.b.

 

Sudan economy is estimated to have grown by 10.5% in real terms in 2007, according to official figures of the Central Bank, underpinned by oil export revenues. Sudan is an agricultural country, though recently oil has turned into a major economic driver. The year 2007 real sector performance reflects the important role oil is playing, as the impact of regional folds and lower-than-projected agricultural output contributed to the slowdown in non-oil growth. Oil GDP real growth rate reached 36% in 2007, versus 16.5% in 2006 while non-oil GDP real growth rate was much lower at 7.5% in 2007.

 

Recent Economic Developments

Real GDP grew by 8.4 per cent in 2008, up from 10.2 per cent in 2007. The industrial sector accounted for 24.7 per cent of total GDP in 2007, mainly due to oil production (17.2 per cent of GDP), which grew at 19 per cent in 2008. The manufacturing sub-sector grew by 4 per cent in 2008 compared to 2 per cent in 2007. Most successful industries are in food processing, notably sugar refining, as well as in arms and vehicle manufacturing. The construction boom and increased demand for building material also contributed to growth in manufacturing output. 

The services sector accounted for 41.7 of aggregate output in 2007 and grew at 7.5 per cent in 2008 thanks mainly to continued expansion in the financial sector, construction, transportation and communication and trade. The transport, storage and communication sub-sector grew by 16 per cent in 2008 due to the rehabilitation and upgrading program adopted in the wake of the 2005 Joint Assessment Mission (JAM). The construction sector recorded growth of 18 per cent, one percentage point higher in 2007. The dynamic growth of construction can be attributed to improvements in infrastructure and the rise in demand for private residential and business property. 

Agriculture accounted for 34 per cent of GDP in 2007, and provides employment for about 70 per cent of the population. It also provides inputs to many manufacturing industries. It was encouraging that growth in the sector rebounded to 7.5 per cent in 2008 after experiencing a period of slow growth.

The continued growth in private and public investment was the main source of the recent upsurge in GDP growth. The two together accounted for 4.7percentage points of growth in 2008. The oil sector attracted substantial FDI for production and further exploration. Private investment continued to increase in agriculture and services, mainly transport, communication, hotel and restaurants. The contribution of total consumption to real GDP growth was only 2.8 percentage points in 2008. The contribution of private consumption was greater than that of government consumption. The external sector contributed 0.9 percentage points to real GDP growth in 2008. Obviously, growth in government consumption can stimulate growth but is often unsustainable.

 

 

   AGRICULTURE

 Sudan’s agriculture sector which accounted in 2008 for 32.9% GDP has great productive potential. Arable lands ready for agriculture are estimated to be (200) Million Feddans (84) Million Hectares. Sudan has been described as a possible bread basket for the Middle East and has great productive potential in land close to the Blue and White Nile rivers and the River Nile proper. But the farming sector is underdeveloped and in need of capital, irrigation systems, roads, machinery and technology..Yields in agriculture and livestock are low by comparative standards. To raise the income of the poor, especially those engaged in rain-fed agriculture, requires first and foremost an increase in agricultural productivity.

 In 2008, Sudan is the third partner of China in Africa. The volume of trade exchange between the two countries is 8.18 billion US. Also the investments of Chinese companies in Sudan amounted to 13.1 billion U.S. dollars while the non-financial investment jumped to ten billion U.S. dollars.

 

-Arabic gum and sesame generated some US $214 million from exports and accounted for 55% of non- oil exports. Most of the world's gum Arabic comes from Sudan, where a thick belt of Acacia Senegal trees stretches from one end of Sudan to the other. Sudan reportedly exports tens of thousands of tons of raw gum Arabic each year, feeding the high global demand. The raw sap is sent to Europe for processing and afterward is disseminated to customers worldwide.

-Cotton is Sudan's main cash crop, providing 45 per cent of the country's export earnings. Cotton output of Sudan totaled 500 bales in 2008, ranking the 17th among cotton export countries in the world. There has, however, been almost no development of commercial textile manufacturing to add value to the basic raw material. The Sudan government is extending to boost this sector.

-Corn produced grew by 15.5% over the period to reach almost 5.0 million tons in 2007, mainly because of improved productivity that went up 16.3% year-on-year (492 kg per feddan). Benefiting from international hike in commodities’ prices, Sudanese corn exports generated in 2007 a good US $27.66 million, which is more than 7% of total non-oil exports, versus a negligible amount the previous year.

-Millet output also grew by 18% and totaled 796 thousand of tons. Millet harvest improved as the land productivity was up 8.6% higher, despite a smaller farmed area in 2007.

A recent World Bank study has shown that agriculture has tremendous potential to lead a rebound in non-oil growth in Sudan. Enhancing agricultural productivity and transformation in the country requires, among other things, substantial investment in rural infrastructure, increased expenditure on agricultural research, increased use of irrigation, tractors and land conservation measures, improved seeds and fertilizers as well as sustainable and affordable rural credit services. Promoting agricultural processing and agribusiness will stimulate growth in agricultural production and will bring an increase in rural employment and income.

Looking forward, the Sudanese government aims to boost the agriculture sector, especially as the country uses only 6.8% of the area suitable for cultivation, as estimated by the United Nations Food and Agriculture Organization (FAO).

Sudan is seeking to attract capital for its agricultural sector from Arab and Asian investment groups that are looking for new food supplies to ensure food security following the commodity price inflation.

Over the longer-term, the Ministry of Agriculture aims to pursue a mega “agriculture revitalization” plan costing some US$5 billion to invest between 2008 and 2011.

 

INDUSTRY

         Sudan’s industrial sector (including extractive industries and manufacturing) accounted for 30.6% GDP in 2007 with a growth of 22.8% in real terms. The oil sector is major contributor and accounts for 19% of GDP and 95% of exports (when considering petrol and petroleum products). The oil sector grew by 36% in 2007, according to the Central Bank statistics, making available the hard currency to finance basic imports for industrialization.

Sudan’s industrial expansionary plans are not limited to the hydrocarbon sectors as other sectors are also under a face-lift, supported by an overall economic reform program and foreign investment that are increasingly attracted by the easing foreign exchange and trade regulations

OIL

Sudan is one of Africa’s largest oil producers with output of 500,000 barrels a day. More than 200,000 barrels a day are imported by China, making Sudan its fourth-largest provider of crude.

“Sudan is targeting 600,000 barrels a day of crude oil production in 2009” said by Sudan’s Minister of Energy and Mining.

The country’s proven oil reserves are among Africa’s largest at 6.4 million barrels.

Oil exploration and production is under the control of the Sudan Petroleum Corporation (Sudapet). However, due to its limited technical and financial resources, Sudapet often develop joint ventures with foreign companies, mainly from China, India, Malaysia and the Arab countries. The government is attempting to boost oil production further, and a number of new concessions have been awarded in recent years, and exploration has been stepped up in others.

In mid-2007, the partly onshore and partly offshore Block 13was awarded to a consortium led by China National Petroleum Corp, (CNPC), which also included Pertamina of Indonesia, Sudapet, Dindir Petroleum ( a Jordan-based firm), and two Nigerian companies, Africa Energy and Express Petroleum and Gas.

As to refineries, Sudan has also a total combined capacity of 121,700 barrels per day (b/d) in two refineries: Khartoum and the Port Sudan facility. In addition to these larger refineries, Sudan has also a 15,000 b/d plant at El Obeid, a small facility at Abu Gabra with a capacity of about 2,000 b/d and 5,000 topping plant.

Sudan authorities that are trying to grasp the opportunity presented by the spiraling oil prices are even ultimately considering joining the Organization of Petroleum Exporting Countries (OPEC) at some point in the future.

             .

SUGAR

            The most successful industries are in food processing, notably sugar refining. Refined sugar production now exceeds domestic demand, making Sudan the Arab world’s only net sugar exporter. Sudan is the third largest producer of sugar in Africa, after South Africa and Egypt. The country has five large scale sugar refining factories with a total capacity of 655 thousand tons of refined sugar. Kenana Suagar Company for Engineering and Services, owned mainly by Arab government investors, is Sudan’s largest sugar producer and one of the biggest in the world

Overall, Sudan produces about 850,000 metric tons of sugar per year. According to a June 2009 report by the Food and Agriculture Organization of the United Nations, this year’s harvest is estimated to have gained 3.6 percent over the 2007/08 harvest. The FAO attributes the gains to "favourable weather conditions and conductive public support."

Total area under cultivation for sugar cane in the season 2008/09 was 88,506 feddans, compared to 86,728 feddans last season.

Plans for significant expansion of the sugar industry are already underway. These will improve irrigation infrastructure in order to increase the cane areas under cultivation.

A Morrocon company, Awna Investment, aims to implement a 500 million euro (US$696.9 million) project, the Gafa project which will produce 43,000 tons of sugar a year when output begins in three years.

Sudanese authorities plan also to develop the sugar industry in the country and to increase sugar production as well as to convert molasses, to ethanol. Sudanese government intends to construct some 18 ethanol plants.

Sudan aims to produce an annual 10 million tons of sugar by 2015, though authorities consider that this output can double. The government announced an ambitious plan for sugar production, aiming at sugar cane cultivation of an area of 4.1 million feddans. The plan consists of 13 projects, located between the White and Blue Niles, Sabina Al-Ramash, Ballah, Al-Dewaim, Gezira, Sharaq Al-Nil and southern Sudan, are expected to create 700,000jobs and to improve health and education for three million people. Sugar production will not be only used for food, but the focus has now turned towards the production of ethanol and other bio-fuels.

The largest of the projects, the Eljazeera project, aims to produce 2.9 million tons of sugar and 205 million liters of ethanol per year. Another project is the US$300 million sugar refinery to be built at Al Ramash in the central Sinnar state of Sudan funded by an Arab investment private group based in Abu Dhabi. The plant would produce 100,000 tons of sugar and 20 million liters of ethanol per year.

TEXTILE

            Textile and yarn production is another targeted industry in Sudan, benefiting from homegrown cotton. Authorities are increasingly focusing on this sector.

HEAVY INDUSTRY

-Sudan has developed large arms manufacturing industry, as well as a vehicle industry located in the Giad City industrial zone. Giad Industrial City was inaugurated by President Al-Bashir in October1997.Giad was set up to encourage industry in the country and increase skills in Sudan’s labor force, it consists of thirteen separate companies that make vehicles( trucks and cars) and cables as well as metals for oil pipelines. Giad group has become a household name in the Sudan with homegrown Giad passenger cars being favored to foreign imports.

            Giad Automotive is the biggest and most profitable of Giad’s operations. It assembles up to over 12,000 vehicles a year, ranging from the $15,000 Accent passenger cars licensed by Korea’s Hyundai, to $100,000 heavy-duty trucks licensed by Germany’s Man Group and France’s Renault for sale in Sudan).

- Other small-scale manufacturing, sectors include pharmaceuticals, electrical goods, cement, paints, soft drinks, flour, vegetable oils and leather.

 

CONSTRUCTION

Sudan continued to witness a dynamic construction activity last year. As a result of the infrastructure rehabilitation, as well s increased demand on private residential and business property. Construction reported a real growth of 6.7% last year, still capturing almost 4% of GDP. An important coincident indicator, mirroring this momentum, is cement production that increased by 61.3%, as Sudan’s output totaled 326.2 thousand tons of cement.

-The Merowe Dam is a US$1.8 billion hydropower project being built on the Nile in Sudan with 174-kilometer-length. It is funded mainly by China Exim Bank and some funders from Arabic countries. The Merowe Dam and Hydro power Project is located on the River Nile about midway between Khartoum and the Egyptian border.

The purpose of the project is electric power generation, supply water for irrigation and flood control. An agriculture development concept will be implemented downstream of the Merowe dam to feed the biggest portion of the 35 million people of the Sudan. The Merowe hydropower plant will be generate sustainable and clean CO2 free energy as almost no biomass exists in the future reservoir. The Merowe Dam Project is indeed one of the most environmentally friendly energy generation projects in the world as almost no green house gases are emitted into the atmosphere, supporting the international action plan to counter global warming.

-The two other large dams on the Blue Nile, the Roseires and the Sennar were also upgraded and five new bridges were constructed, including three around Khartoum.

The private property sector is also driving construction activity. Reductions in the costs of importing cement, the influx of competitively priced contractors from China, the surge in land made available for development, the gradual increase of mortgage financing, the increasing residential demand from other international bodies present in Sudan, and the growth of local businesses, have altogether propped up construction.

Between 2007 and 2013, Khartoum is expected to witness the delivery of almost 11,000 apartment and villa units, as projected by Colliers International, a real estate service firm. Residential provision will be concentrated in three main areas of Khartoum: Alsunut’s Almogran, the eastern end and the south-east end of Khartoum.

 

 

TRANSPORT AND TELECOMMUNICATION

Sudan’s non-financial services sectors are still developing. Tourism and hospitality remain confined, but major plans are set to create a momentum in the market, especially if the political and security conditions permit. Transportation, in parallel, continued to witness upgrading and expansion while the telecommunication sector enjoyed another good year.

Khartoum’s tourism and hospitability are almost fully driven by the corporate sector. The oil and construction sectors, together with international organizations, make up the bulk of this segment. More recently, authorities are trying to attract visitors to conduct meeting, conferences and exhibitions, by promoting Khartoum as a natural centre for East, North and Central African delegates.

The transport sector is similarly witnessing significant rehabilitation. Considerable work was done to increase the small network of all-weather roads in the South.

Rail transport is also being overhauled under an ambitious program. At the beginning of 2007, the government signed a US$1.2 billion contract with China to upgrade the 762-km line from Khartoum to Port Sudan to double track and to deliver new locomotives and rolling stock. Another plan project is the improvement of the 830-km northern sector of the network.

The works on the maritime ports are mainly focused on the country’s oil-export tanker terminal at Bashayer.

Telecommunication services enjoyed a booming year, as a result of the entry of foreign entities and the competition in a market in its early stages of development. The four companies that handle the market in 2007 saw a notable surge of 133% in subscribers of both the mobile and land line networks, to total 9.17 million subscribers.

 

 

 

 

 

Top Products Exported by Sudan

Market Value: 17,100 (millions)

 

Product

Trade Value

Share

Growth

 

(thousands)

(%)

(% 5yr)

 - Crude Oil

5,172,526

30.25

233.88

 - Oil Seeds & Oleaginous Fruits

114,931

0.67

64.29

 - Sheep & Goats

111,443

0.65

(6.42)

 - Gold

67,270

0.39

432.31

 - Natural Gums

53,988

0.32

66.34

 - Cotton

27,032

0.16

22.76

 - Molasses

24,547

0.14

118.56

 - Plants For Pharmacy

18,197

0.11

5.26

 - Non Crude Oil

16,385

0.10

2.12

 - Locust Beans

13,357

0.08

(21.78)

 

Top Products Imported by Sudan

Market Value: 16,296 (millions)

 

Product

Trade Value

Share

Growth

 

(thousands)

(%)

(% 5yr)

 - Trucks

500,493

3.07

830.13

 - Passenger Vehicles

307,809

1.89

640.30

 - Cane Sugar

210,559

1.29

2,700.78

 - Cell Phones, Video Recorders & Radio Transceivers

185,323

1.14

1,306.47

 - Semi Trucks & Tractors

160,044

0.98

815.62

 - Telephone, Fax & Switching Apparatus

95,965

0.59

192.02

 - Seamless Iron & Steel Tubes & Pipes

91,108

0.56

658.12

 - Pumps For Liquids

90,876

0.56

128.60

 - Medicines in Doses

88,464

0.54

117.18

 - Parts For Fork Lifts, Bulldozers & Graders

85,271

0.52

169.71

Total oil produced in barrels per day (bbl/day).

Year

Oil - production

Rank

Percent Change

Date of Information

2003

209,100

38

 

2001 est.

2004

209,100

38

0.00 %

2001 est.

2005

345,000

35

64.99 %

2004 est.

2006

401,300

33

16.32 %

2005 est.

2007

344,700

35

-14.10 %

2004 est.

2008

466,100

31

35.22 %

2007 est.

 

Total oil imported in barrels per day (bbl/day), including both crude oil and oil products

Year

Oil - imports

Rank

Percent Change

Date of Information

2005

0

45

 

2004

2006

0

56

 

2004

2007

0

67

 

2004

2008

7,558

144

 

2005

.

Total oil exported in barrels per day (bbl/day), including both crude oil and oil products

Year

Oil - exports

Rank

Percent Change

Date of Information

2005

275,000

26

 

2004

2006

275,000

30

0.00 %

2004

2007

275,000

31

0.00 %

2004

2008

282,100

40

2.58 %

2005

.

 

 

 

 

 

 The stock of proved reserves of crude oil in barrels (bbl).

Year

Oil - proved reserves

Rank

Percent Change

Date of Information

2003

631,500,000

39

 

January 2002 est.

2004

631,500,000

39

0.00 %

1 January 2002

2005

1,600,000,000

35

153.37 %

2004 est.

2006

1,600,000,000

33

0.00 %

2005 est.

2007

1,600,000,000

35

0.00 %

2006 est.

2008

5,000,000,000

23

212.50 %

1 January 2008 est.

 

 
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