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Once described as the bread basket of the Arab world, Sudan is a country of high, though largely unrealised, economic potential,
which is presently crippled by civil war, a foreign debt of around US$15 billion, and climatic effects which have brought
both drought and flooding. Agriculture employs most of the workforce, producing cotton – the major export, wheat, groundnuts,
sorghum and sugar cane. Production of gum arabic, once an important product, has declined through the introduction of synthetic
substitutes and increasing competition, particularly from West Africa. Livestock breeding has suffered from persistent drought.
The manufacturing sector concentrates on processing the country’s agricultural output – sugar, for example – and the production
of textiles, cement and some consumer goods. There are some mineral deposits including marble, mica, chromite, gypsum and
gold. There are also some onshore oil deposits: located in the mid-1990s, these came on stream in 1999 and have been of some
help in easing Sudan’s chronic power shortages. The government has announced a major dam project on the Nile and a new oil
refinery that are intended to meet both electricity demand and the urgent need for planned water distribution. Ultimately, Sudan relies on foreign aid to sustain its economy. Natural phenomena, compounded by the effects of the two-decade-long
civil war, have made this more pressing than usual since 2000, as Sudan has needed two large injections of emergency food
aid to stave off mass famine. Relations with the IMF have been rocky – Sudan was almost thrown out in the mid-1990s – but
the Fund is now providing some financial support in exchange for a standard economic reform programme. Elsewhere, while the
political posture of Sudan’s Islamic government has alienated Western governments, it can still rely on support from wealthy
Arab states, notably Saudi Arabia. Nonetheless, the Islamic government’s economic programme has successfully achieved its
principal targets of 5 to 6 per cent annual growth and inflation of below 5 per cent. Saudi Arabia is the largest exporter
to Sudan, and is also a major recipient of Sudanese exports along with Egypt, Italy and Japan.
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Sudan Development Corporation (SDC) PO Box 710, 21 al-Amarat, Khartoum, Sudan Tel: (11) 472 186 or 472 195.
Sudan Chamber of Commerce PO Box 81, Gamhoria Street, Khartoum 11114, Sudan Tel: (11) 772 346 or 776 518. Website: www.sudanchamber.org
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