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
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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
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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
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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
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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
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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
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year
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2010
54465.0
7586.8
33.9
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2011
63609.1
7847.9
34.07
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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
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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.
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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
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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
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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