Economy, trade, industry
Sudan is a typical agricultural
country. Seventy-five percent of the population consists of farmers
and approximately 40% of the gross national product (GNP) is covered
by agriculture. This is because the natural conditions such as the geography,
the quality of soil, the irrigation and drainage, and the climate, are
all favorable for agriculture. Although only 31 million acres are being
cultivated at present, there is much potential in the future as the
arable land in Sudan is 250 million acres (which is over one third of
the total area).
The must successful
irrigation farming area is in the south of Khartoum, an area surrounded
by the White and Blue Nile called Gezira, the largest farm in the world
under one management. This project is operated jointly between the government,
the management and the farmers. The main crop is cotton and the profits
are a major contribution to the Sudan economy. Furthermore, a new 500,
000 acre irrigated land was developed with the completion of the Roseires
Dam, and a 300, 000 acre arable block was created in el-Suki. To become
the Arabian breadbasket based on the proud statement that “Sudan can
live on water if not oil”, an agricultural development is rapidly being
promoted within 400 km east and south of Khartoum centered around the
White and Blue Nile delta. Mechanized farms of 12 million acres in total
are located between Kassala and Blue Nile regions.
The
infrastructure is rapidly being implemented:
However,
the major obstacle that hindered the agriculture of Sudan was the lack
of infrastructure such as the means of transportation to connect the
productive regions, the domestic consumption areas and Port Sudan, the
only trading port in Sudan. Therefore, the government strengthened the
transportation infrastructure along with the development of agriculture
by completing an inland transportation network with the use of waterways
and by expanding the highway network. Recently, Port Sudan has been
expanded and there are plans to build a new port in Suakin. Approximately
50% of the export of agricultural goods is covered by good quality continuous
fiber cotton as well as peanuts, sesame seeds and Arabian rubber. Export
of livestock has also increased.
Promoting
investment in developing industries and oil resources:
The
industries are centered in Khartoum area known as the Three Cities.
They are mainly privately operated manufacturers producing cotton seed
oil, Textile, flour, automobile, cement, tobacco, chemical fertilizers,
tannery, beverages, canned fruit, plywood and so forth, and are expanding
into textile, jute, sugar and leather goods. Furthermore, to expand
industrialization, the government introduced the Development and Industrial
Investment Encouragement Act in 1972 and 1990 to offer a diversity of
special measures for domestic and international investors to promote
investment and financial loans.
Most of the underground
resources buried underneath the vast lands of Sudan have yet to be developed
and depending on the results of future studies, there is potential that
new resources will be discovered. The minerals that are presently being
developed mined in large quantities are iron ore, gold, chrome, magnetite,
and sulphate. In addition, the rainforests in the southern region have
potential in producing large quantities of lumber. There are prospects
of growing tea and coffee on the forest land. Recently, the oil fields
are attracting attention from domestic and international circles. Oil
fields have been developed since 1975 on the eastern boarders of Sudan
along the Red Sea, the mid-west, and the south. In 1992, a private corporation
in Sudan began a full-fledged production of oil. The export of oil began
in 1999 and one of the most important issues for the government is the
investment towards the development of oil resources.