The economy of Sudan has a big potentiality with oil Resource Development in addition to the rainfed agriculture of the Nile.


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.



Gezira Scheme
 
Arabic gum of the best in world
  Industrial development projects and
domestic oil refinery. (Sudan became
oil exporting country since 1999)