Bakri Yousif Omer
How can we develop Asia-Africa Business Relations The role of the Sudan Presented to Asia-Africa Business Summit Jakarta , Indonesia – April 2015 By Bakri Yousif Omer Secretary General Sudanese Businessmen & Employers Federation Contents of the Presentation The reality of Afro-Asian Relations What can we do Sudan case: Importance of the Agriculture Sector Sudan basic Features (+) Agricultural Resources Infrastructure Investment Climate Basic features of the Investment Act 2013 Why Sudan attract agricultural investment? Investment Opportunities The Reality of Afro-Asian Relations During the last fifteen years, trade flows between Africa and Asia have rapidly increased. This is the hallmark of the recent growth of South-South trade and investment Africa’s exports to Asia consist of mainly primary commodities, including oil, non-oil , minerals, metals, and agricultural raw materials, accounting for 86% of exports to Asia. Approximately 47% of Africa’s exports to Asia are from oil and natural gas exports, which represent 12% of overall Africa’s exports to the world . In addition to oil and natural gas, agricultural raw products and non-oil mineral and metal products are also major product groups, representing another 39% of Africa’s exports to Asia. The Reality of Afro-Asian Relations Cotton, timber, fruits and nuts, crustaceans and mollusks are the major agricultural products exported from Africa to Asia. The leading nonoil mineral and metal products include gold, silver, platinum, iron, aluminum, iron ore, copper, and pearl. The high growth of Africa’s trade with Asia is largely driven by exports to China and India, the two dynamic economies not only in Asia but also in the global economy While China and India are the two drivers of the recent growth in Africa-Asia commercial relations, other Asian developing countries are also important players. Africa’s exports to five ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, and Thailand) While Indonesia is the largest importer of African products, Malaysia, Singapore, and Thailand are steadily increasing their imports from Africa The Reality of Afro-Asian Relations The Africa- Asia commercial exchange pattern , determined by the similarities and differences between relatively more developed ASEAN countries. For example, while China and India have high demand on imported energy resources due to their rapid industrialization, relatively higher income levels of consumers in other ASEAN countries such as Indonesia, Malaysia, Singapore, Thailand, and the Philippines increase their demand for imported food from Africa. Increasing Asian FDI flows to Africa is another dimension of deepening Africa-Asia commercial relationship. While increasing presence of Chinese businesses in Africa is observed, other developing Asian countries such as Singapore, Thailand, and Malaysia have also increased their FDI flows to Africa in recent years. The Reality of Afro-Asian Relations Foreign direct investment often accompanies with significant technology flows from home to host countries. the technical knowledge and skills that have been acquired by Asian countries could be imparted to African countries as well. This SouthSouth aspect of technology transfer has been considered very effective. As we noted Africa export to Asia primary commodities and raw material, but we missed one of the important things , which may constituted tow region movement , Africa export immigrants to Asia, some of them seeking decent jobs, better live, .. etc. The Reality of Afro-Asian Relations There is a lot of efforts exerted by Asian & African countries to strengthen bilateral & regional ties The Reality of Afro-Asian Relations • The diversity of partners is a tremendous opportunity for Africa • Each wave of countries engaging with Africa brings with it new: i. ii. iii. iv. v. products capital goods technology know-how and expertise development experience Each also bring new ways of doing things which question previous assumptions What can we Do To set up Africa- Asia partnership, we must do something for them( people & local communities). We think that, we need to invent a new model of African – Asian partnership, to promote & deepen vested interests of the people in tow region. We need to establish a responsible investment to: Educate and train people. Connect and link people. Commercialize people daily life. Make people sense of tradability. Make Business work for poor people. What can we Do No doubt, most of African counties have a capabilities to actively share in the new model of the Africa – Asia partnership. Sudan have & can do more, let us explained that: Investment Opportunities in Sudan Investment Opportunities in Sudan: Sudan is now known as the land of opportunities. Investment chances are widely open in the field of agriculture, industry, and mining. The Sudanese government is strongly supporting the private sector to play its role and fill in all the gaps to build mutual business relations with their foreign counterpart. Sudan is endowed with rich natural resources, including oil but also natural gas, gold, silver, chromite, asbestos, manganese, gypsum, mica, zinc, iron, lead, uranium, copper, kaolin, cobalt, granite, nickel, tin and aluminum. With regards to the Industrial sector there is a lot of investment opportunity in Building material –Lather industries- Plastic industries – Weaving &textile industries. Sudan Agricultural Resources, Investment Policies & Investment Opportunities Importance of Agricultural Sector Agriculture contributes 34.1 % to GDP 70% of the Sudanese depend on their livelihood directly or indirectly on agriculture It contribute more than 60% of raw material for the processing sector It provides net employment to 66 % people year 2010 54465.0 7586.8 33.9 2011 63609.1 7847.9 34.07 2012 GDP at Current Prices GDP at constant % share of Prices Agriculture 84638.3 8298.2 Source: Central Bureau of Statistics (CBS) 34.77 Basic Features (+) Sudan with a total area of1.86 Million sq km, is the third largest country in the Arab world and African countries Sudan and the 17th largest country in the world. Unique location among Arab and African countries, neighboring 7 countries (Egypt, Ethiopia, Eretria, Libya, Chad, South Sudan and Central Africa) The total population is 35.6 million distributed in 18 states. Sudan is the continent gateway to the landlocked countries through the Red Sea. Agricultural 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 heads (cattle, camel, sheep and goats) Rich mineral reserve (oil, gold, silver, chrome, iron, zinc and tin, and natural gas) Infrastructure Transport: (11500 km paved roads, 4 thousand km Railway, 15 airports with paved runways. 7 sea ports 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. Financial Services (40 banks with about 600 branches) Telecommunication (mobile phone 50% of population, internet wide spread, Investment climate Sudan has many advantages to attract foreign investment. Sudan is classified as number two of the most attractive countries for investment in Africa and as number three in the Arab region. to boost the economy and to realize direct development, the government established the Ministry of Investment in 2002. The Sudanese investment Act of 2013 is one of the best laws of investment in the area. The main features of the Act Non discriminatory treatment of the invested capital, whether be it public, private, cooperative or multi-sector capital. investment projects enjoy all privileges and would have all guarantees: not to be nationalized, confiscated or exappropriated except through a law and against indemnity. The investor has the right to transfer his money, in case the project was not implemented, and is entitled to transfer the profits, financing cost to import raw materials and to export products. Investment projects are also exempted from tax of business profits for a term of not less than 10 years and will be given land for the project free or at an incentive price, beside custom privileges for cars Why investing in the Sudan? socio-economic and political stability and national security provide a convenient climate for investment. Simplification of investment procedures, provision of facilities, guarantees of incentives for investors and the invested capitals. Flexibility in dealing with foreign currency, pricing policies and removing of any obstacles hindering internal or external trade transactions. Wide opportunities for investment in agriculture, industry, mining and economic services such as transport, storage a infrastructure. The availability of qualified cadres in sectors of agriculture, industry, mining and economic service. Investment opportunities in Agriculture Sudan Priority Investment Sectors: Agriculture, Animal resources, Industry, Mining, Dams and Electricity, Oil and Tourism. grains: wheat, maize, sorghum Oil Seeds: groundnuts, sesame, sunflower, soya bean fodder: alfalfa Gum Arabic. Livestock: cattle fattening and abattoir, dairy farms, processed meat Fisheries and sea products, Poultry production Proposed Projects No Projects Name Activities Cost in USP 1 Meat strategic project A complex Agricultural 110 Million project for all kinds of animal production & forage Crops for export and local market 2 Establishment and Meat production according to 45 Million operation of modern standard specifications for export slaughterhouses & local market mechanism (one) 3 Marine fisheries Exploit the potential of fishery 20 Million development project at resources of wealth in the Red Sea Red Sea State 4 Fisheries Aquaculture project 5 Modern tanneries Project 6 Dairy farms production and processing project (one ) 7 Gum Arabic production project 8 Crops cultivation for the production of wheat , maize and corn Fisheries & animal feed 20 Million production Export good production of 15 Million tanned leathers Increased milk production 50 Million to achieve self sufficiency Provision of Gum Arabic 50 Million and products Agriculture 50 Million 9 Cultivation & Peanuts , Sesame , and processing of Sunflower vegetable Oil 10 Investment in The provision of Services & Services & agriculture agriculture inputs inputs at remuneration prices 11 Transient transport The transfer and company for the mobilization of Arab States, agricultural products Transportation of agricultural products. 50 Million 100 Million 120 Million Again: What Can We Do As we state above, there is a huge opportunities to do responsible business through Asia –Africa region. The diversity of Asian partners is a tremendous opportunity for Africa. We encourage all countries to raise their business with Africa, but we need unify & enhance all efforts which aim to promote & developing ties of both side We hope that, this meeting comments to set up AfroAsian business council. The proposed business council have tow level, presidential level, & business level Again: What Can We Do The Afro-Asian Business Council will Serve partnership objective which include but not limited to the following areas: To organize promotional meetings or business talks for projects in investment, tourism, industry, agriculture, environment, infrastructure, public projects, etc. To promote cooperation between countries in economic trade, technology and investment. To sponsor business leaders summits, seminars, exhibitions, negotiations, training programmes to enhance Afro -Asian extensive exchanges and effective cooperation in the fields of trade, economy, finance, industry, agriculture, science and technology, information and communication, resources, news, media, human resources, etc.; To fully use the information platform to promote trade and trade facilitation, to achieve the website free-connect and sharing the project resource of the both side. Thank you all www.sudabiz.org
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