CH2,-2_o/x: s ^_ .■KHX •^tfa SftGOttl THE SUDAN # market for U. S. products UNITED STATES DEPARTMENT OF COMMERCE the cover . . . The official crest of Sudan — a rare white African rhinoceros. Protected by the Govern- ment, the animal roams throughout the southern reaches of the country. The rhinoc- eros is enclosed by palm trees, symbol of the desert (inner circle), and cotton, bulwark of Sudan's economy (outer circle). THE SUDAN a market for U.S. products By Richard C. Graham Bureau of International Commerce U.S DEPARTMENT OF COMMERCE Luther H. Hodges, Secretary Jack N. Behrman Eugene M. Braderman Assistant Secretary Director, Bureau of for Domestic and International Business International Commerce Richard C. Graham has been with the U.S. Department of Commerce as an International Economist since 1959. Mr. Graham holds a graduate degree in Foreign Trade from the American Institute for Foreign Trade, Phoenix, Arizona, and an undergraduate degree from Western Maryland College. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. - Price 40 cents foreword . . . The republic of the Sudan offers a new and challenging market for U.S. exports. In many ways sales efforts and acceptance of American products in this African country will serve as a barometer for the success we can expect to enjoy with other African countries in a similar stage of develop- ment. The Sudan recently launched a 10-year program for social and economic development. Significant international loans and credits have been made available to implement major infrastructure projects. Licensing and exchange regulations have been substantially liberalized and are no longer a deterrent to U.S. sales to that country. In the light of these actions and accelerated expenditures for economic development, there are promising prospects for considerable expansion of U.S. trade with, and investment in, the Republic of Sudan. It is hoped that this study will serve as an introduction to the Sudan for U.S. firms now seeking new markets abroad. J^««A*>u. rf7 . /^/a-**^i>ix»^4 Eugene M. Braderman Director, Bureau of Internatiorml Comment November 1962 111 credits . . . This market study of the Sudan was prepared by Richard C. Graham, Africa Division, Bureau of International Commerce. Material for the report was gathered on a field trip made by Mr. Graham to Sudan. Acknowledgment is gratefully due Giles M. Kelly, Economic Officer of the American Embassy, Khartoum, and Emmett M. Coxon, formerly Consular Officer, Khartoum, for their cooperation and assistance. The author wishes to thank the Embassy of the Republic of the Sudan, Washington, D.C., and the International Bank for Reconstruction and Develop- ment, for their cooperation in providing photographs and other valuable material used in the report. IV contents - • • page Foreword iii Commodities Marketable in Sudan. 10 Market Indicators viii Outlook vii CHAPTERS I. Basic Data 1 Geography and Climate I The People 2 II. Market Dimensions 3 Population 3 Gross National Product 3 Principal Towns -1 III. Trade Analysis 7 Direction of Trade 8 Market for Selected Commodities 12 Food Products, Beverages, and Tobacco 12 Textiles 13 Machinery, Apparatus, and Vehicles 13 Products for Heating, Lighting, Power, and Lubricants 14 Base Metals and Manufactures L5 Chemicals 15 Clothing and Madeup Textiles 15 Other Commodities 1 (> Factors Limiting Trade With the United States 17 IV. Economic Development Program 23 American Aid Program 27 V. Sudan Government Procurement 31 VI. Import Regulations 33 Import Licensing; Exchange Controls 33 Import Duties 33 VII. Marketing Aids 35 U.S. Publications and Services 35 Sudanese Directories. :>."> Business Associations. _ 36 Fairs and Exhibitions 36 Official Representation 36 Advertising __ 36 VIII. Notes to Business Travelers 3;» APPENDIXES A. Bibliography _ 40 B. Selected Economic Data 41 TABLES 1. Sudanese Population by Provinces, 1961 3 2. Sudan Balance of Payments, 1957-61 7 3. Sudanese Imports by Category of Goods, Average 1950-54, 1955-59, and Years 1960-61 7 4. Direction of Sudan's Foreign Trade, 1960-61 8 5 Trend of Sudanese Imports From Selected Countries, 1956-61 9 6. Sudanese Imports Classified According to End-Use, Average 1950-54, 1955-59, and Years 1960-61 13 7. Summary of Sudanese Government Expenditure Estimates Under 1961-71 Plan for Economic and Social Development 41 8. Sudanese Imports From the United States, 1954-59 42 9. Sudanese Exports to the United States, 1954-59 42 10. Sudanese Exports by Commodity Groups, 1956-61 43 11. Sudanese Imports by Commodity Groups, 1956-61 44 12. Principal Sudanese Imports, 1954-61 44 13. Principal Sudanese Exports, 1950-60 45 14. Sudanese Imports by Country of Origin, 1957-61 45 15. Sudanese Cotton Exports by Country of Destination, 1956-61 46 CHARTS 1. Sudan's Balance of Payments, 1950-61 » 8 2. Sudanese Imports by Principal Types of Goods, 1960 9 3. Sudanese Imports by Geographical Region, Average for 1956-57 and January- August 1959-60 12 4. Sudanese Exports by Major Commodities, 1960 12 5. Sudanese Imports by Major Commodities, 1960 14 6. Percentage and Value of Sudanese Imports by Government and Private Sectors, 1956-61 14 7. Foreign Trade of Sudan, 1941-61 16 MAPS I. General Map of Sudan 20 PHOTOGRAPHS 1. Aerial view of junction of Blue and White Niles 1 2. Sudanese woman harvests cotton in Gezira Scheme on Blue Nile 2 3. The Hedandawa Tribe (Fuzzy Wuzzy) pf eastern Sudan 2 4. Aerial view of Khartoum 5 5. Fishing for Nile perch near Omdurman Bridge 6 6. Worker harvests gum arabic 6 7. Driving Baggara cattle in Kordofan Province of western Sudan 6 8 . Merchant in Oro dur man displays handm ade gold j e welry 17 9. Port Sudan, the country's only important port city 18 10. Sudan Railways main line south from Khartoum to the Gezira 19 II. The Gezira Irrigation Scheme 23 12. The Sennar Dam 24 13. Hydroelectrification of the Sennar Dam 24 14. Architect's drawing of Roseires Dam project 26 15. The Industrial Bank of Sudan 27 16. Sudan American Textile Factory 29 1 7 . Technical training at Khartoum Technical Institute 31 18. Heavy-duty U.S. equipment at work on Sudanese irrigation project 33 19. Fresh vegetables at marketplace in Khartoum 34 20. Banana production in the tropical south 34 21. Date processing and packaging in northern Sudan 34 22. Downtown Khartoum, showing office building and American Embassy 37 23. The Republican Palace, residence of the President 1 38 24. Sailboat racing on the Blue Nile 38 VI outlook . . . The republic of the sudan became an independent African country on January 1, 1956, after 57 years of joint rule by Great Britain and Egypt. In a span of less than 7 years, Sudan has achieved economic progress to a degree which places it among the most promising of the 33 currently independent nations on the continent. The climate for trade and investment in Sudan is considered to be good, with both political and financial stability. The present Government, which assumed power in November 1958, has emphasized economic development, particularly in the industrial and agricultural sectors. Sudan on September 9, 1962, announced the introduction of a 10- Year Plan of Economic and Social Development which may prove to be the most significant undertaking of this largest African country in its history. If fully implemented, this program could thrust Sudan into the stage of economic takeoff which is essential to sustained and orderly growth. The plan, embrac- ing some 260 projects covering every sector of Sudanese society, has been projected at a magnitude of $512 million Sudanese pounds ($1,470 million). Whether the goals of the plan can be fully implemented or not is still a matter of conjecture. In any event, close study is necessary to arrive at an under- standing of Sudanese priorities for economic development. Foreign trade exceeded $412 million in 1961, with imports approximately $234 million and exports $178 million. Foreign exchange reserves now are in excess of $150 million, sufficient for foreseeable import financing. Foreign loans and grants have been obtained by the Sudanese Government in significant amounts over the past 4 years to sustain a program of infrastructure expansion that will generate a heavy volume of imports. Historically, U.S. trade with Sudan has been negligible. U.S. interests were confined to small amounts of long-staple cotton and to gum arabic, while Sudan took only those products that were unique or most readily available from the United States. This pattern is changing. Following the signing of the U.S.- Sudanese Agreement for Technical Assistance in 1958 and liberalization of the pound sterling in 1959, American-made products began to appear in increasing volume. U.S. -origin goods now account for about 7 percent of Sudanese imports, a three-fold increase from the traditional 2 percent or less. Sudan is representative of the newly developing countries that offer a small but growing market for a wide variety of consumer and capital goods. The Sudanese market currently is marginal, but combined with adjacent areas to form a regional market, it should be considered carefully. Western European nations and Japan are making extensive efforts to penetrate this new and increasingly important market. U.S. firms should not overlook the potential that exists for American-made products and the opportunity to enter this African market at an early stage of its economic growth. vii Republic of the Sudan Market Indicators AREA 967,500 square miles. Largest African country. Exceeds in size Alaska, Texas, New York, Pennsylvania, and New Jersey. POPULATION 12,262,000 (estimate, January 1962). AVERAGE ANNUAL POPULATION GROWTH RATE 2.8 percent. GROSS NATIONAL PRODUCT $1.2 billion (estimate, 1961). PER CAPITA GNP $95 (estimate, 1961). POPULATION ECONOMICALLY ACTIVE 5.6 million (1961). CURRENCY Sudanese pound, equivalent to US$2.87 at official exchange rate. FOREIGN EXCHANGE RESERVES $159.3 million, October 1962. CURRENCY IN CIRCULATION $75.2 million, October 1962. FOREIGN TRADE Total imports, 1961 — $234 million. Total exports, 1961 — $178.6 million. PRINCIPAL EXPORTS Ginned cotton; gum arabic; sesame seed; peanuts; cottonseed; oil cake and meal; durra (grain sorghum); camels; hides and skins. PRINCIPAL IMPORTS Vehicles and transport equipment; cotton piece goods; machinery; base metal and manufactures; petroleum products; sugar; chem- icals and pharmaceuticals ; artificial textiles ; tea ; flour. LEADING PURCHASING COUNTRIES 1961: United Kingdom, Federal Republic of Germany, India, Italy, U.S.S.R., Egypt, France, Japan, and the United States. LEADING SUPPLYING COUNTRIES 1961 : United Kingdom, Federal Republic of Germany, India, Egypt, United States, Japan, Italy, and the U.S.S.R. chapter I basic data . . . geography and climate The Sudan, extending 1,260 miles from south to north, occupies much of northeast Africa. The largest country on the continent, Sudan is an enormous plain of 967,500 square miles through which the Nile River courses for over 2,100 miles. The main Nile, which flows from Khartoum through Egypt to the Mediterranean, has its source in the White Nile which originates in the equatorial lakes of Uganda and in the Blue Nile, which has its origin in the Ethiopian highlands. The Nile literally is a lifeline for the people of the Nile Valley, including all of Sudan and Egypt. No surplus water reaches the Mediterranean during the period of low-volume flow and the river mouths are closed to prevent an influx from the sea. The River's economic importance is unquestioned. Both the established riverain culti- vation, as well as all future development of irri- gated cultivation to feed the growing population, depend upon the Nile which serves also as a vital link between the peoples of the north and south. The Sudan is considered by many to be a bridge between the cultures of the Near or Middle Kast and Equatorial Africa. Sudan is bounded on the north by the United Arab Republic (Egypt); on the west by Libya, Chad, and the Central Africun Republic; on the south by the Congo, Uganda, and Kenya; and on the east by Ethiopia and the Red Sea. Sudan's climatic conditions, extending over such a broad land mass, account in large part for the "bridge" concept or transitional nature of the country. There are three rather distinct zones — the northern area, mainly desert, with rock at or near the surface, covered by thin poor soils; the western qoz, an area of undulating dune sands, fixed by vegetation and merging northward into the desert zone; and the clay plain, extending across central and southern Sudan. The great swamplands of the south, known as the Sudd, are in the center of the clay plain where over one- half the waters of the White Nile traversing this region are lost through evaporation. The eastern reaches of Sudan are broken by the Red Sea hills which separate the coastal plain from the interior. The southeastern border follows generally the foothills of the Ethiopian highlands. Aerial view of the junction of the Blue ami White Niles, forming the Main Nile at Khar- toum. Variation in eolor of the two rivers ran he seen. Bridge in lower right fore- ground connects Khartoum with Omdurman, largest eity in Sudan. Courtesy Government of Sudan the people Sudan is one of the world's most diverse countries, both geographically and culturally. The approximately 12 million people who make up its population speak more than 80 languages. Sudan's terrain changes through all the variations between the barren unproductive desert of the Wadi Haifa area in the north and the lush forests and grasslands of southern Equatoria Province. One account by a U.S. citizen of his travels compared the southern forest regions, interspersed with open woods and meadowlands, with the countryside of rural England or central Pennsyl- vania. The northern Sudan is predominantly Arab and Muslim. The main tribal divisions include the Hadendoa, Bisharin, and Beni Amer of the Red Sea hills who speak their own Hamitic and Semitic languages ; the Nubian tribes of the north- ern Nile Valley ; various Arab tribes occupying the whole central belt of the Sudan, including the Kababish, Kawahla, Ja'aliin, and Baggara; and remnants of earlier indigenous tribes, such as the Fur and Ingessana. The common language of northern and central Sudan is Arabic. The southern Sudan is inhabitated by Negroid peoples speaking a wide variety of languages and dialects. These people may be grouped in three major divisions: Sudanic, usually found west of the Nile River, including the Azende and Moru- Madi; Nilotic, inhabiting the riverain and swamp regions, including the Dinka, Nuer, and Shilluk- Acoli; and the Nilo-Hamitic, found in the southern Nile Valley, embracing such tribes as the Bari and Latuka. English and some Arabic is spoken in the area. Courtesy Government of Sudan A Sudanese woman harvests cotton in the Gezira Scheme on the Blue Nile. Courtesy Government of Sudan The Hedandawa Tribe (Fuzzy Wuzzy) of eastern Sudan. chapter II market dimensions . . . population Only one population census has been made in the Sudan; the base date of January 17, 1956, was used. The census at that time was 10,262,536. A re tabulation was made in 1959 and the figure was revised to 10,365,000. There were 5,186,126 males (50.5 percent) and 5,076,410 females (49.5 percent) in all age groups. Only 27.8 percent of all males and 29.2 percent of females are 15 years or older. The census also showed 2,066,626 households averaging 5 persons each. The rate of population growth, based on the revised tabulation, is estimated at 2.8 percent per annum. Using this assumed rate of growth, the population of Sudan has been projected at 11.9 million in 1961, 13.7 million in 1966, and 15.8 million by 1971. By area, Sudan is among the ten largest inde- pendent countries of the world, yet its population density of 10 per square mile is far below the world average of over 52. Sudan's population is unevenly distributed, however, with some 65 percent of the total area having a density of less than 5 per square mile and certain areas in the fertile lands south of Khartoum exceeding 260. There are nine Provinces within the country. Six of the Provinces are considered to be northern and are inhabited primarily by Arab peoples; three are southern and Negroid (Bahr el Gazal, Equatoria, and Upper Nile). Each Province is administered locally by a council which in turn is responsible to the central government through a government representative. Administrations are situated in the principal towns of the various Provinces which are known officially as head- quarters towns. A breakdown of the 1961 population by province, size, number of economically active persons, and average density follows (see table 1): Table 1. — Sudanese Population by Provinces. 1961 Province Total popu- lation Economi- cally active persons Density (per square kilometer) Blue Nile Kordofan. . Darfur. .. .. _ Bahr el Gazal Kassala. - 2, 398, 000 2, 052, 000 1, 539, 000 1, 157, 000 1, 097, 000 1, 050, 000 1, 038, 000 1, 014, 000 584, 000 11, 928, 000 936, 000 1, 070, 000 875, 000 646, 000 446, 000 607, 000 490, 000 290, 000 212, 000 5, 572, 000 15 5 3 5 3 Equatoria. . . Upper Nile Northern . Khartoum . 5 4 2 24 Source: Economic Survey 19G1. Ministry of Finance. Government of Sudan. First Population Census of Sudan, Final Report. \'ol. I. Depart- ment of Statistics. Government of Sudan. gross national product Per capita gross national product is estimated to have been $88 in 1957. climbing to $95 by 1961 . Dis- tribution of the gross national product is far from oven. Professional classes in the urban areas, including government employees, teachers, busi- nessmen, and workers employed by the newly established industries, railways, and cotton gin- neries have a higher income average than the general population. Many of the southern tribal groups still depend upon baiter to obtain their needs. They have not become accustomed to the use of money. Thus, large numbers of Sudanese remain outside LABOR FORGE Total population (1961). . 11,928,000 Economically active. . . 5,572,000 By economic sector (percentage) : Pastoral activi- 85.8 Manuf acturing . . 5.0 Construction .... .6 Commerce 2.1 Transport .6 Services and ad- ministration. . . 4.6 Unclassified 1.3 principal towns the money economy. In fact, that portion of the 1960-61 gross domestic product originating from this group, known in economic terms as the traditional sector, amounted to Sd£l87.2 million and exceeded the Sd£l70 million generated by the income-producing and wage-earning element, known as the modern sector. This pattern is reversing itself gradually, how- ever, when compared with the base year 1955-56. In that year, Sd£160.7 million of gross domestic product was derived from the traditional sector and Sd£l23.5 from the modern sector, or a much wider gap between the two sectors. Overall growth of the gross domestic product since 1955-56 has been 4.7 percent annually, with the modern sector growing at a rate of 6.5 percent, or more than double the 3 percent rate of the traditional sector. The political and commercial center of Sudan is the "three towns" complex of Khartoum, Khartoum North, and Omdurman, with a metro- politan population in excess of 250,000. This picturesque community, at the confluence of the White and Blue Niles, is the seat of government and site of Khartoum University. All banks and most commercial houses are headquartered here. The bulk of private industrial plants specializing in consumer products are situated in and around the metropolitan district. A sizable percentage of Sudan's 40,000 to 50,000 foreign community reside in this complex. Khar- toum is served by an international airport, a railway connecting with the Egyptian railroad at Wadi Haifa, with lines to the coast at Port Sudan and to western and southern Provinces, and river steamer services as far south as Juba. The "three towns" are situated strategically at the apex of the intrariver agricultural region that can be called the breadbasket of the country for some 200 miles south with its terminus in the general vicinity of the Sennar Dam. Wad Medani (47,677), in the heart of the Gezira Scheme 108 miles by rail south of the Khartoum complex, is the headquarters of the Blue Nile Province and, as such, is an important marketing and agricultural center. The head- quarters of the Gezira Board is 7 miles from Wad Medani in the town of Barakat. Here are found most of the cotton ginning factories operated by the Board and the regional gathering center of Sudan's long-staple cotton. After ginning, cotton is transported to Port Sudan via either Kassala (678 miles) or Atbara (607 miles). El Obeid (52,372), headquarters of Kordofan Province some 430 miles by rail southwest of Khartoum, is an important marketing center and regional collection point for the gum arabic crop. Gum arabic is Sudan's second most important export, amounting to 10.3 percent of the total value of the 1961 exports, and largest dollar earner. The United States in 1960 became the largest buyer of gum arabic, taking Sd£l.6 million (US$4.6 million) of Sudanese exports. Kassala (40,612) is the headquarters of the easternmost Province of the same name. Dry- land farming is possible in the southern part of CouTttiy Gorernment of Sudan Aerial view of Khartoum. Population about 100,(100. Located just over 1,000 miles due south from Cairo, Kgypl, the city is situated 1,2-10 feet above sea level on a vast desert plain. this Province and flush irrigation is conducted in the area of the Gash and Tokar plains, both fed by seasonal inland rivers. Cereal crops, par- ticularly grain sorghum, are largely concentrated in this region. Kassala serves as the principal marketing town in this Province and appears destined to assume greater importance. The Province also is expected to benefit from the Khashm el Girba irrigation project and new town to be built for the Wadi Halfans 54 miles south on the Atbara River. A Government card- board manufacturing plant has been built only 31 miles north on the main railroad line at Aroma. A 600-mile road connecting Port Sudan with Khar- toum via Kassala also is being studied and, if undertaken, could bring on rapid growth in eastern Sudan. Port Sudan (47,561), the only significant port city, is the eastern terminus of the railroad. Over 80 percent of imports enter Sudan through this port for shipment down country. Sudan's cotton destined for export to the world markets is sold here to brokers and cotton merchants through auctions conducted by the Gezira Board. Port Sudan has little industry, although the Shell Com- pany plans to build an oil refinery of sufficient size to meet domestic consumption. The Esso Company of Libya has received approval to build an ammonium nitrate plant but construction plans have not been announced. Berthing facilities are being expanded gradually to accomodate the growing volume of trade. A U.S. construction firm won the most recent contract to build two quays. Atbara (36,298) is important primarily because it is the headquarters of the Sudan Railways. Here, too, are located the workshops and main- tenance depot. Atbara is almost 200 miles north of Khartoum on the main Nile at the junction of the rail line, one branch of which goes north to the Eg3 r ptian border and the other east to Port Sudan. A cement plant, the only one in the country, is the second industry of Atbara. El Fasher (26,161) is the headquarters of the westernmost Darfur Province. The region is known for its cattle and other livestock economy, although it has important secondary agricultural crops such as tobacco and gum arabic. This region is somewhat remote and apart from eco- nomic life of central Sudan. The railway does, however, penetrate into the Province as far as Nayla and scheduled domestic airline service is available. Juba (10,660), headquarters of Equatoria Prov- ince in southern Sudan, is the southern terminus for river steamers that ply the Nile between this town and Khartoum in the north. Juba also will become the southern terminus of the railroad, according to expansion plans of the Sudan Kail- ways. The small volume of forest products now being taken from the south are shipped from Juba. Experimentation in coffee and tea production in this area may lead to greater economic activity. In seven other towns the population exceeds 10.000 persons. Courtesy Government of Sudan Driving Baggara cattle in the Kordofan Province of western Sudan. Livestock is plentiful and offers a potential for a domestic meat industry. Courtesy Government of Sudan Fishing for Nile perch near Omdurman Bridge. Abundant fresh water fish are caught in the two Niles and are a staple in the local diet. Courtesy Government of Sudaii Worker harvests gum arabic. Sudan is supplier of 85% of the world's need. U.S. was largest customer in 1960; also in the first half of 1962. chapter III trade analysis The sudan has an almost unbroken record of rising imports over the past 20 years. Im- ports increased from less than $28 million in 1941 to over $100 million by 1951 and $234 million in 1961. The impact of rising imports on Sudan's balance of payments is immediate. Unless ex- ports, which in the main are agricultural commodi- ties, particularly cotton, keep apace, a deficit is almost certain to occur (see table 2). Table 2. — Sudan Balance of Payments, 1957-61 [In millions of Sudanese pounds '] Item Current Account Exports Imports Less: Invisibles Plus: Capital account. Adj ustments Balance 1957 51. 7 69. 7 18.0 -3. 6 ■21. 6 15.8 -. 2 -6. 1958 44. 9 54. -9. 1 -3. 7 - 12. 8 8.0 + . 4 -4. 4 1959 68. 2 49. 2 + 19. -5. + 14. 11.8 -. 1 + 25. 7 1960 64. 61. 9 + 2. 1 -3. 1 -1.0 13. 1 + . 1 + 12. 2 1961 61. 3 77. 7 -16. 3 -5. 1 -21.5 16.3 + . 3 -4. 9 1 1 Sudanese pound = US$2.87. Source: Ministry of Finance and Economics, Sudanese Government Hank of Sudan. Large movements of capital in the form of foreign credits and grants, which are reflected in the capital account, have mitigated the extent of the balance-of-payments deficit in the period under review. An accelerated rate of import growth is evident by the increase of $51 million in 1961 over 1900 imports. This increase was earmarked largely for the 10-year development program now in its second year of operation. Imports of capital goods and raw materials together accounted for 62 percent of the increase. The value of capital goods imports alone increased from Sd£l 1.2 million (US$32.1 million) in 1960 to Sd£20.1 million (US$57.7 million) in 1961; the largest increase was in non transport equipment. Consumer goods also increased in absolute value over this same period by $20.4 million, primarily in the nondurable categories of food, drink, clothing and footwear, and household goods, but decreased percentagewise (see table 3). Imports will continue to be influenced by the trend of Sudanese exports and by development program activity. Historically, imports are less susceptible to fluctuation than exports. Given the impetus of increasing demand both in the public and private sectors, and the present fav- orable world marketing conditions for cotton. Sudanese trade will continue to grow. Table 3. — Sudanese Imports by Category of Goods, Average 1950-51. 1955-59. and Yearn 1960-61. [Percentage] Average 1950-54 A\ i-rage 1955-59 1960 1961 Consumer goods- Haw materials M 27 9 100 58 29 13 100 S3 29 18 100 49 26 Capital goods . 25 Total.. UK) Source: Department of statistics. Government of Sudan. direction of trade The Sudanese Government used the European Common Market grouping for the first time in 1961 in publishing direction of foreign trade data. Under this computation, the Common Market was the largest buyer of Sudanese exports (see table 4). The total value of Sudanese imports reached Sd£81.5 million (US$234 million), some Sd£l7.8 million (US$51 million) more than the 1960 total of Sd£63.7 million (US$182.8 million). The United Kingdom continued its role as principal supplier with a total of Sd£21.7 million (US$62.3 million) or 26.6 percent of all imports. In second place was the European Common Market with 19.8 percent of imports. India accounted for 9.5 percent and Egypt for 6.6 percent of imports, reflecting their traditional positions as important Table 4. — Direction of Sudan's Foreign Trade, 1960-61 [Percentage] European Common Market United Kingdom India Egypt U.S.A „ U.S.S.R Others Total Exports 1960 22. 26. 10. 3 4 8 3.2 3.2 30. 5 100. 1961 29. 3 19. 1 9. 8 4. 6 2.8 5. 5 28. 9 100. Imports 1960 20. 3 27. 2 12. 8. 4 2.9 3.6 25. 6 100. 1961 19.8 26. 6 9. 5 6. 6 6. 1 3.7 27. 7 100. Source: Research and Statistical Section, Ministry of Finance and Eco- nomies, Government of Sudan. suppliers. The United States and Japan greatly expanded their positions. In 1960, 2.9 percent of Sudan's Balance of Payments, 1950-61 (In millions of Sudanese pounds!/) 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 l/Sd.£ 1 = U.S. $2.87 Source: Ministry of Finance and Economics, Government of Sudan. Based on Foreign Trade Reports and Bank of Sudan Bulletins. 8 the total value of imported ^oods came from the United States and 2.5 percent from Japan; in l'Hil these percentages had increased to 0.1 and 5.8 respectively. The Soviet Union's share remained about the same, with 'A.7 percent in 1961 and .'U> percent in 1900. The value of Sudanese exports in 1901 amounted to Sd£02.2 million (US$174.5 million) or about 2 percent lower than the 19(H) total of Sd£63.4 (US$182 million). The European Common Mar- ket, as stated before, became the largest buyer, taking 29.3 percent of total exports in 1901 com- pared with 22 percent in 1900. The United Kingdom's share declined to 19.1 percent in 1901 from the high of 20 percent in 1900. India, with 9.8 percent; the Soviet Union, with 5.5 percent; and Egypt, with 4.0 percent, followed in that order. The United States is not an important buyer of Sudanese products other than gum arabic, taking only 2.8 percent of the total in 1901 and 3.2 percent in 1900. It was an unwritten policy of the Sudanese Government during periods of restrictive import licensing to direct procurement to areas which were principal customers for Sudanese exports. This was done wherever practical to achieve relative balance in bilateral trade as a means of encouraging increased exports of Sudanese prod- ucts. The current policy of worldwide pro- curement can be expected to bring dramatic re- alignment in Sudan's pattern of trade (see table 5). Chart 2 Sudanese Imports by Principal Types of Goods 1960 (In millions of Sudanese pounds J/) 1/ Sd £ 1 = U.S. S2.87 Source: Economic Survey 1960, Ministry of Finance ond Economics, Government of Sudon. Table 5. — Trend of Sudanese Imports From Selected Countries, 1956-61 [In thousands of Sudanese pounds '] Country 1956 1957 1958 1959 1960 1961 United Kingdom Germany, Fed. Rep. of. India Kgypt United States Japan U.S.S.R Czechoslovakia Communist China Y ugoslavia 12, 486 1, 751 5, 507 6, 270 977 1, 083 143 1, 662 106 49 17, 897 4, 916 8, 177 5, 089 2, 263 3, 585 262 1, 259 257 157 19, 114 3. 445 6, 616 3, 477 1, 586 2, 478 166 1 , 205 521 67 14, 189 3, 643 8, 843 4, 552 1,044 tillS 997 1, 211 SUM 429 17, 344 5, 210 7. 675 ."., 339 1. 826 1. 622 2, 2S7 1, 086 ( s ) C) 21,675 7. 740 5, 393 4. 961 4. 757 3, 057 1. 2" w P) 1 1 Sudanese pound = US$2.87. ■ Not available. Source: Economic Survey /.%'(. Ministry of Finance and Economics, Government of Sudan. Economic and Financial Btilkliiu, Annual and Quarterly, Hank of Sudan. i;t»7ot;i o — 03- A latent market exists in Sudan for the prod- ucts listed below* Determination is made on the basis of the known needs and takes into account commodities for which the United States is either a marginal or negligible supplier. Consumer Goods Canned foodstuffs, especially fruit Cigarettes High-quality synthetic textiles Plastic articles Costume jewelry Watches and clocks Battery-operated or transistor radios Paper products Electric fans Kerosene lanterns and stoves Development Goods Tracklaying tractors Heavy-duty scrapers and graders Heavy-duty trucks and trailers Concrete mixers and concrete hlockmaking machinery Automobile repair and maintenance tools Electric handtools Industrial chemicals Fertilizers 10 Electrical Equipment (Motors, Generators) Sudanese businessmen currently are inter- ested in the following products. The market is highly competitive and credit arrangements can be as important an element as price in determin- ing from what source the purchase is made. Agricultural Machinery Mechanical harvesters Cotton harvesters Peanut cultivators Oil presses For: Cottonseed Peanuts Sesame j Light Industrial Machinery For: Citrus fruit canning I Tomato paste canning I Candy, cookie, and soap wrapping I Salt and sugar crushing and grinding I Pickling hides and skins I Fertilizer production from dom nuts I Bags and sacking from jute or dom fiber Paper production Plastic utensils Radio and flashlight batteries Mining Equipment For: Manganese Gold Iron Ore Mica Talc (formiculate) Asbestos Gypsum Limestone Small Factories (Paint, Hard board) Structural Roofing Blocks Insecticides Textile Machinery for Readymade Clothing J 11 market for selected commodities The latest available import statistics in detail are for 1959, issued in April 1962. Information on selected imports is available through 1961 with some breakdown by subgroups through the first 10 months of 1960 and 1961 (see table 6). food products, beverages, and tobacco Sudan is not self-sufficient in many of the basic foodstuffs, such as coffee, tea, flour, and sugar. Efforts are underway to replace this dependence on imports with domestic production, mostly of sugar, the largest single item under this category of imports in former years. The United States, for the first time, will become an important wheat and flour source under the terms of a P.L. 480 agreement. Greater opportunities also are evident for increased trade in canned foodstuffs and cigarettes. South Africa was the major Chart 3 Sudanese Imports by Geographical Region, Average for 1956-57 and January-August 1959-60 (Percentage of total) AVERAGE 1959-60 (Jan. -Aug.) Chart 4 Sudanese Exports by Major Commodities, 1960 (Value as percentage of total) ^ Hides and r*BB Skins \ ^ 1.7% \ ^ Cattle and Sheep 2.4% Source: Research and Statistical Section, Ministry of Finance and Economics, Government of Sudan. 28.1 26.9 AVERAGE 1956-57 I 23 1 177 14.4 8.7 ■-j- ./? V Source: Ministry of Finance and Economics, Government of Sudan. 5.5 3.7 supplier of canned foods to Sudan until a ban was imposed on that country in 1960. American cigarettes have a latent popularity from World War II but were excluded for almost 15 years by exchange restrictions. Food, beverages, and tobacco, amounting to Sd£l4.2 million (US$40.8 million) in 1959, ac- counted for about 25 percent of total imports. Imports under this category remained at the high level of Sd£l0.6 million (US$30.4 million) in 1960 and Sd£l4.1 million (US$40.5 million) in 1961, but the share of total imports declined to under 20 percent. Most important items in this category for 1959 were sugar, coffee and tea, cereal products, and tobacco. 12 textiles The second most important category of imports in 1959 — textiles — amounted to Sd£l0.2 million (US$29.8 million), or about 18 percent of all imports. Total imports for the first 10 months of 1960 were Sd£9.1 million (US$26. 1 million) and Sd£ll.3 million (US$32.4 million) for the same period of 1961. Textile fabric and small wares comprised over 90 percent of this category and yarns and threads about 5 percent. Almost half of the textile imports came from the sterling area. Japan has made significant inroads into this market since 1960 and now supplies over 15 per- cent of textile imports. Domestic industry can be expected soon to capture a large share of this market, particularly unbleached cotton cloth. The Sudan American Textile Mill, completed in late 1961, has an announced capacity of 75 million square yards of .unbleached cotton cloth annually. When operat- ing at full production, this mill could supply an estimated 70 percent of annual domestic consump- tion. A second mill is under construction ami approval has been given by the Government for two more. There is no provision for local production of synthetic textiles and it is expected that a growing demand for high-quality synthetic textiles made with nylon and dacron will offer IS. exporter- opportunities to enter the market. machinery, apparatus, and vehicles This category was in third position in 1959 with Sd£l0.1 million (US$29 million) or 17.7 percent of all imports and currently is the fastest growing category of imports. Statistics for the first 10 months of 1960 show imports of Sd£l2.6 million (US$36.2 million) and 19.2 million (US$55.1 million) for the same period of 1961. Nonelectric machinery, Sd£9.5 million (US$27.3 million) was the largest item for the first 10 months of 1961. followed by vehicles and transport equipment. Table 6. — Sudanese Imports Classified According to End-Use, Average 1950-54, 1955-59. and Years 1960-61 [In thousands of Sudanese pounds'] Commodity Annual average 1950-54 Annual average 1955-59 1900 1961 Consumer Goods Nondurablcs Food, drink, tobacco Clothing, footwear Fuel, light, water Household goods Others Durables Motor vehicles Others Raw materials Fuel Building industry Agriculture. Other industry Capital goods Nontransport equipment. . Railway equipment Other transport equipment Discrepancy Total imports •232 396 620 268 459 485 50-1 836 220 616 573 415 312 996 850 204 878 507 819 + 7 46, 016 29, 27, 12, 10, 2 1, 1, 31, 932 29, 998 13. 606 10, 798 639 2, 714 2,241 1, 934 1, 202 732 to. 232 3, 624 5, 500 2, 310 l, 798 7. 168 1. :.71 1. 442 1. 455 -24 I 33, 381 30, 252 10, 594 13, 202 902 2. 970 2, 584 3, 129 2, 160 969 18, 433 3, 837 5, 990 2. 690 5, 916 11, 184 6. :.st; 1. s:»>> 2, 73!" .'».".. 60S 62. 99S 40, 391 36, 921 14, 121 14, 986 935 3, 029 3, 050 3. 170 1. !>S1 1, 489 21, 072 •1. 180 6, 941 3. 396 6. 555 20, 078 13, 2S5 1. 159 :». 634 81, 541 1 l Sudanese pound— US$2.87. Source: Department of Statistics, Government of Sedan. 13 Chart 5 Sudanese Imports by Major Commodities, 1960 (Value as percentage of total) Coffee 1.6% "^ Jute Sacks 1.9% Wheat Flour 2.5% Source: Research and Statistical Section, Ministry of Finance and Economics, Government of Sudan. graders, and tracklaying tractors also will find additional markets in connection with the new irrigation schemes and proposed highway construction. products for heating, lighting, power, and lubricants Almost 9 percent of 1959 imports were listed under this category, which includes gas oil, fur- nace fuel, gasoline, kerosene, and related items. Imports totaled Sd£5 million (US$14.5 million), continuing an almost static level of the previous 3 years, and about the same for 1960 and 1961. This reflects the small volume of vehicular traffic in the Sudan resulting from lack of roads. The United States is only an important supplier of lubricants, with Sd£88,677 (US$255,430) for the first 10 months of 1961. Additional power for economic development is expected to come primarily from hydroelectric schemes rather than from thermal sources. Sudan is totally dependent upon imported petroleum products for its needs. Following construction of the Shell Oil Co. refinery at Port Sudan, the composition of imported petroleum products will change from refined to crude. Chart 6 Sd.£ 100" Percentage and Value of Sudanese Imports by Government and Private Sectors, 1956-61 Sd£8.1 million (US$23.2 million), and electric machinery, Sd£l.6 million (US$4.6 million). It is in this sector that the United States has made its most important gains, particularly in motor vehicles, where for the same period imports from the United States were given as Sd£666,162 (US$1.9 million). In this one category the United States supplied over 7 percent of total machinery imports. Agricultural machinery is expected to find an increasing market as Sudan switches from hand labor to mechanized harvesting to cope with a growing labor shortage. U.S. -built equipment, which leads the field, can benefit from this devel- opment by intensive sales efforts. Heavy-duty trucks and trailers, scrapers, £45.3 23.8% £81.5 £ 67.6 16.9%- /. J I. . I I £57.1 22.1% : 21.4% : ■ "■ J 1. MM ^ Sudanese Government Imports Private Imports 1956 Sd.£l = U.S. 52.87 1957 1958 1959 1960 1961 Source: Economic Survey 1961. Ministry of Finance and Economii Government of Sudan. 14 base metals and manufactures Imports of base metals and manufactures amounted to Sd£4.8 million (US$13.8 million) in 1959, or H.'A percent of the total, making this the fifth largest category. A rising trend is evident in the first 10 months of I960 and 1961 when Sd£4.6 million and Sd£5.5 million were imported respectively. The most important items under this category for the 10-month period were base metal manufac- tures, Sd£3.4 million (US$9.8 million), including metal structures and articles for lighting, and iron and steel, Sd£l.9 million (US$5.5 million). Sudan's mineral resources are largely unknown and undeveloped. Until an intensive resource survey is undertaken, the country will continue to depend upon foreign sources of supply. The Koseires and Khaslnn el Girba Dam proj- ects will restllt in increased iron and steel imports, as will the industrial expansion of the Khartoum North area. ELECTRIC POWER Generating capacity (November 1962) 70 megawatts Subscribers 50,000 TELEPHONE AND TELEGRAPH Telephones (January I960)... 21,539 Telegrams (annual volume 1959) 1.8 million MOTOR VEHICLES Total (January 1961) 30,113 Passenger cars 12,716 Taxis 2,483 Buses 604 Trucks 11,744 Other 2,566 chemicals Chemical imports in 1959 amounted to Sd£3.3 million (US$9.5 million), 5.7 percent of the total and the sixth largest category. For the first 10 months of 1900 and 1901, chemical im- ports were Sd£3 million (US$8.0 million), and Sd£i}.8 million (US$10.9 million), respectively. The most important items under this category lor the 1901 period were insecticides, Sdfil.l million (US$3.2 million); pharmaceutical prepa- rations, Sd£l million (US$2.9 million); fertilizers, Sd£631,624 (US$1.8 million); paints and dyes. Sd£320,OI57 (US$935,620 million). Many light industries now are being established and a small but rising market for a wide variety of industrial chemicals is opening. Industrial chemicals are being or will be imported for the manufacture of cotton textiles, matches, enamelware, glassmak- ing, confectionery, sugar, pharmaceuticals, and shoes, among others. Insecticides for agriculture are being introduced for the first time on a large scale for cotton culti- vation. Diversification of crop production to in- clude sugarcane, castorbeans, larger acreages in grain sorghum, peanuts, and sesame will call for increased use of insecticides to assure a uniform quality product. Fertilizer imports should expand for the same reasons cited for insecticides. Highly concen- trated nitrogen fertilizer which cuts down on shipping costs is preferred. clothing and madeup textiles Clothing and madeup textiles were valued at Sd£2.8 million (US$8 million) in 1959 and ac- counted for 5 percent of total imports. For the first 10 months of 1900 and 1901 imports in this category were Sd £2.7 million (US$7.7 million; and Sd£2.9 million (US$8.3 million) respectively. Jute sacks, Sdt'1.2 million (US$3.4 million and footwear, Sd£l million (US$2.9 million) were the largest items. Readymade clothing accounted for only Sd£370,000 (US$1.1 million' of the total, primarily because of the high import duty on such imports (00 percent ad valorem), yet a small market for lightweight tropical clothing could be developed with proper effort. Footwear imports are expected to decline with completion of a modern shoe factory now under construction. 15 other commodities No other commodity section accounted for more than 2 percent of total imports with the exception of miscellaneous goods (3.4 percent), yet several of these offer limited opportunities for expanded exports. Pulp, paper, cardboard, and manufactures. — Amounted to 1.3 percent of imports in 1959, about Sd£800,000 (US$2.2 million). Imports in 1960 and 1961 were at about the same level. The only domestic industry is a Government cardboard factory. Construction of new schools and new businesses will bring a demand for school and office supplies, mimeograph paper, stationery, and wrapping paper. Rubber and manufactures. — About 2 percent of 1959 imports, amounting to Sd£l.l million (US$3.2 million). The 1960 and 1961 totals were about the same or slightly less. Motor vehicle tires and tubes constituted almost the entire category and, because of the low number of vehicles in Sudan, no appreciable growth is expected until a highway program is started. Wood, cork, and manufactures. — About 2 per- cent of 1959 imports, Sd£l million (US$2.9 million). This too is a static category, almost entirely timber imports. Hardwoods now are banned in deference to domestic production. The southern Sudan could potentially supply most of domestic consumption if production were stepped up. Nonmetallic minerals— About 1.7 percent of 1959 imports, Sd£0.9 million (approximately US$2.6 million). Slightly rising trend for 1960 and 1961, when 10-month totals were Sd£l.l million and Sd£l.3 million respectively. Principal items were cement, glass bottles, asbestos pipe, and household chinaware. Minor items. — Fats and waxes (0.8 percent), hides, skins, and leather (0.2), gold metal and specie (0.1), and parcel post (0.1) made up the remainder of Sudan's import trade in 1959. Each of these minor items showed declines in 1960 and 1961. Chart 7 Sd. £ 100 • 80 60 - Foreign Trade of Sudan, 1941-61 (In millions of Sudanese pounds ' ■ ) Exports and Reexports Imports /\ / /v r t i t - s^. 40 - 20 J I 1941 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 J/ Sd. £ 1 =U.S. $2.87 Source: Annual Foreign Trade Reports, Department of Statistics, Government of Sudan. 16 factors limiting trade with the United States Essentially only three major factors account for the low volume of U.S. exports to Sudan: (T) American products are largely unknown and consequently have not generated consumer acceptance. © U.S. credit terms are unfavorable. The market is felt to ho marginal or too small for development of direct exports and many U.S. firms choose to sell to Sudan through their foreign subsidiaries. There are ancillary reasons, of course, for the low level of exports, such as price competition and the comparative disadvantage of transporta- tion and delivery time costs from the United States. But, with the exception of certain con- sumer goods and automobiles, Sudanese business- men do not look upon these latter reasons as insurmountable. Something can be done about the first problem, that of lack of knowledge of the product. For many years U.S. goods were excluded by exchange control restrictions. After independence, Sudan maintained its foreign exchange reserves in sterling and could not afford large dollar purchases because of the unconvertibility of the pound sterling. Following liberalization of the pound by the United Kingdom, Sudan modified its policy until few restrictions remain and almost no discrimination against U.S. -origin commodities. Modification of exchange controls dates from July 1, 1959, and yet in 1961 only about 100 American businessmen passed through the Ameri- can Embassy in Khartoum. This, however, is a beginning, and a considerable increase over previous years. IT. S. -produced consumer goods are almost nonexistent in Sudanese stores. In isolated instances such goods have been introduced and have quickly caught the public fancy; prepared packaged rice and cigarettes are two examples. But too often inquiries from Sudanese merchants have gone unanswered or have been rejected because the supplier could not fill small orders. The second impediment, credit terms, is perhaps a much more difficult problem from the point of view of both the U.S. supplier and the Sudanese importer. Sudan is a remote African country Courtesy the author A merchant displays attractive handmade pold jewelry at his place of business in Omdurman, the histori- cal native city across the Nile from Khartoum. and basically an unknoyvn area to a large segment of the American business community. No branches of American banks have been established in the country to facilitate payment. Sudan has no commercial offices in this country (a Com- mercial Attache has just been assigned to the Sudanese Embassy in Washington) nor does the United States have a Commercial Attache in Sudan. And trade is only noyv beginning to assume worthyvhilo volume between the two countries. But such countries as the Federal Republic of Germany and Japan, which started at about the same plateau in 1959. are rapidly widening the gap and replacing the traditional supplier nations, India and Egypt. This is being accomplished by offering credit to carefully selected customers and following through with prompt attention to orders and support for their agents. Credit terms are particularly important for Sudan even more so than for certain other countries, such as Ethiopia, where operating capital also is in short supply. Sudan's unhappy uniqueness is founded upon its chronic transporta- tion difficulties. Most imported goods must be freighted down country from Port Sudan over a single track railroad system. For almost li months lir.Totii o ('•:; 17 of the year these goods must compete for space with damage-prone export crops, such as cotton, durra, and sesame, which are given priority to the extent that trains in the height of the season will offload these bulk products and return down country empty for another load to conserve as much time as possible and effect shipment before the rainy season. The problem is compounded even before im- ported goods are offloaded from ships because Port Sudan is an overburdened port whose facilities seem always to be taxed to the limit. In one in- stance, a freighter remained in port for 7 days to unload a consignment of construction equipment. Only one railroad gondola a day could be made available to receive the equipment and port cranes were not of sufficient size to lift the items from the dock onto the gondola. Delays in unloading are only part of the prob- lem. Shipping agents cannot claim their consign- ments until receipt of an Outturn Report from the port authorities. This may take as long as 3 weeks. Only then can delivery orders be issued to forwarding agents who, in turn, must await space from the railroad for delivery into the interior. A small volume of freight is shipped by truck across the desert, but with only desert tracks for a road considerable damage can occur by this method. The Sudan Railways is expanding its services, adding more diesel locomotives and cars, but in the face of greatly expanding imports and exports, the condition will not be remedied in the immediate future. Delays of more than 6 months have oc- curred for goods arriving from Port Sudan, but the average delay now is closer to 2 or 3 months. Constantly confronted by the delays in receipt of orders, the Sudanese merchant must seek a source of supply that will not tie up his operating capital, thereby stifling his ability to meet over- head expenses. The merchant simply cannot operate on a letter-of-credit basis, which most American firms insist upon. Hundreds of thou- sands of pounds of the available commercial credit volume can become tied up by this slow credit turnover. The following is a description of the usual credit cycle in Sudan. A Sudanese importer obtains a letter of credit at a rate of % of 1 percent of the face value, computed every 90 days. The im- porter normally must deposit 40 percent of the face value on issuance of the letter of credit; he then pays the balance due on arrival of the vessel. As many as 3 or 4 months may go by between the opening of the letter of credit and the arrival of "off the shelf" U.S. goods in Port Sudan. As pre- viously mentioned, transhipment from Port Sudan can take another 3 or more months. Thus, the importer may have to wait 6 or 7 months before charging his customer for U.S. imports. Sudanese banks are permitted to advance credits secured by imports for periods only up to 4 months. The desirability of cash against documents or docu- ments against acceptance, therefore, may prove as important to the merchant as the price. Letters of credit no longer are required by other Port Sudan, the country's only important port city. Over 80% of total imports enter here and are shipped down country via Sudan Railways. Courtesy United Nations J*^ &%**** -ssfS£ r ' II' Courtesy the author The Sudan Railways main line south from Khartoum to the Gezira. Without an all-weather road system, the Government depends upon the railroad to move its agricultural production to the eoast for export. countries except where the cost of freight is 40 percent or more of the value of the merchandise. The general procedure for persons handling prod- ucts from other countries for the first time is to pay 50 percent cash against documents. Under this procedure, the bill of lading is presented to the banks once the goods arrive in Port Sudan and the importer deposits 50 percent of the value of the merchandise with the bank. Depending on the agreement with the exporter, the importer signs a promissory note with the bank agreeing to pay the balance over a period of time. Once the im- porter has good connections with the exporter, the cash against documents requirement is lowered or eliminated so that the importer, upon receiving the bill of lading, has only to sign a promissory note to the bank to pay for the shipment in 90, 180, or in some instances, 360 days. When asked why he purchased an electric press valued at $130,000 for stamping aluminum parts for refrigerators from England rather than the United States, a local manufacturer quoted the credit terms — 20 percent with the order, 20 per- cent delivered at Port Sudan, and the remainder over a 2-year period. The sheet metal used in the production of refrigerators is purchased with payment due 180 days sight draft from delivery at Port Sudan. U.S. exporters planning to enter the Sudanes market will he confronted by the credit situation Local banks have advised that the following arrangement might be used on a limited basis after carefully checking the commercial repu- tation of the customer: Payment due 00 to 90 days after the delivery at Port Sudan and upon acceptance of documents. Alter sufficient trial, these terms might be reviewed for possible exten- sion in light of the transportation problem re- ferred to earlier. The only point that can be made about the third factor limiting trade the marginal nature or size of the market — is that practically every familiar American brand-name commodity avail- able in Sudan is produced by foreign subsidiaries of U.S. companies. Commodities include canned foods, breakfast cereals, razor blades, pharmaceuti- cals, and related items. This decision is clearly a matter of company policy and there would accrue little benefit, or possibly negative results, to attempt to compete with foreign branches. To complement the policy of marketing through foreign subsidiaries, U.S. linns may find it profit- able to parley customer preferences built up by their brand names to introduce items not now evident in Sudan, and not yet being produced by the foreign subsidiaries. 19 A Sudanese Government official and several business- men in Khartoum have this to say about doing business with the United States: Government Official, Ministry of Commerce "Agents have handled British lines for up to 50 years in some cases. U.S. goods are not well known because few U.S. firms have undertaken to make direct representation to Sudanese retailers and agents." Distributor for U.S. Petroleum Products "Sudan is a price-conscious market with access to many sources of supply. Most merchants are essentially conservative and loath to engage a new source of supply or try a new product, particularly if the old one is satisfactory. Diligent effort is necessary to sell in this market. Operating capital is extremely limited and most merchants must buy where credit is available. Losses from bad debts are practically nonexistent when dealing with reliable local businessmen." Franchised Representative of U.S. Soft Drink "Sudanese businessmen are just as interested in a profitable agency relationship as American exporters. But, first, the two groups must get to know one another, and that will take a while. The necessary contacts can best be formed by travel between the two countries. U.S. businessmen should certainly include Sudan in their travel itinerary." Sudanese Agent for Industrial Machinery "U.S. firms seek out only the largest and best established mercantile houses for agency representation in Sudan, and these are mainly British, Greek, or Armenian. This results in these houses having so many clients that they are not able to adequately look after the interests of all, which may sometimes be by design rather than chance. Sudanese, who are capable and energetic but without sizable capital, if given the opportunity, may be the most able representative for numerous smaller U.S. clients." Sudanese Contractor /Agent for Heavy Machinery "Sudanese engineers and procurement officials are not familiar with American specifi- cations. They do not receive technical literature from U.S. suppliers. In many instances, U.S. products are not adapted to fit existing needs. They will have to learn more about the capabilities and range of U.S. products before they can be induced to direct significant orders to U.S. sources." i \ 22 chapter IV economic development program . . . Un BUSINESSMEN who contemplate estab- • kj« lishing a market for their products in Sudan should study carefully the Government's program for economic development. Under this program an increasing proportion of annual revenues are being earmarked for projects de- signed to promote economic growth. In addition, sizable amounts of loans and grants from foreign governments and international institutions have been secured to implement development schemes. Since the inception of the formal development budgets a total of $111.1 million had been utilized by the end of March 1962. This sum comprised $57.1 million in loans and grants from foreign governments and international institutions, $33.0 million in grant aid from the United States, and $20.4 million obtained as loans from private foreign creditors. Unutilized foreign loans still available to the Sudan in March 1902 amounted to $101 million plus $13.2 million in grant aid from the United States previously allocated. This amount of foreign debt would appear to be sizable, but a brief glance at Sudan's foreign debt repayment schedule reveals that debt servicing will approximate 8 to 10 percent of expected foreign exchange earnings at the end of the plan period, which is not considered a heavy burden. A centralized approach to economic develop- ment was initiated prior to independence with separate 5-year programs, beginning in 1940. under which improvements were made in trans- portation, communications, construction, and so- cial welfare. A series of single-year development budgets filled the interim period from 1956 until the beginning of a 10-Year Plan of Economic and Social Development on July 1, 1901. Formal announcement of the plan was delayed until September 9, 1962, so that the various proposals of the Government Ministries and agencies could be integrated into an overall master plan. The Gczira Irrigation Scheme. A model agricultural cooperative between the Government anil tenant farmers for the past 30 years, the (Jezira recently was expanded to 1.8 million acres by the addition of the Managil extension. Courtesy Gorernmtnt of Xitdan Courtesy Government of Sudan The Sennar Dam. Built in 1925, about 200 miles south of Khartoum on the Blue Nile, this structure serves as the principal reservoir for irrigation of the Gezira. The plan as announced consists of over 260 proj- ects to be distributed on a countrywide basis. The magnitude of investment over the 10-year pe- riod is projected at Sd£512 million (US$1,470 mil- lion). The public sector is scheduled to invest Sd£285 million (US$818 million) through the development budget and Sd£52 million (US$149 million) from the ordinary budget for replacement, improvements, and minor projects. The Sudanese Government obviously is placing heavy reliance on the private sector in that a sizable share of the projected total, Sd£ 175 million (US$503 million), is set aside for both foreign and domestic private investment. Allocations from the Sd£285 million that will be invested in the public sector have been sched- Courtesy the author uled as follows: Agricultural sector, including irrigation, Sd£85 million (29.9 percent); indus- tries, mining, and public utilities, Sd£42 million (14.6 percent); education, health, housing and other social services and general administration, Sd£85 million (29.9 percent); transport and com- munications, Sd£63 million (22.1 percent); mis- cellaneous, Sd£l0 million (3.5 percent). Numbered among the 260-odd projects to be undertaken are the following which have been singled out in the formal announcement of the plan (see table 7). © An expansion in the production of American variety short-staple cotton in the Nuba Mountains and Gedarif areas to meet requirements of the domestic textile industry and for export. © Expansion of rice production in the Bahr El Ghazal Province and coffee production in Equa- toria Province. A pilot project for growing and processing tea. © Consolidation of mechanized crop produc- tion schemes in Gedarif. Crop rotation to main- tain soil fertility and increase yields will be under- taken. Pest control and agricultural research also are to be emphasized. Construction of new hospitals, dispensaries, laboratories, and health training centers. © Automation and expansion of the telephone and telegraph facilities. © Construction of new airports and improve- ment of the railway system. © Construction of a second sugar factory, plus various food processing plants. In addition, the Sudanese Government also has listed a number of projects for which no funding provisions have been made in the 10-year plan. It is intended that these projects be undertaken by private enterprise. The list is indicative of the Hydroelectrification of the Sennar Dam was completed in 1962 by a consortium of Federal German Republic and British contractors. This dam will supply pow- er to new Gezira ginning mills and to Khartoum. priority that the Government might give to pro- posals from foreign investors. The list includes the following: A road connecting Khartoum and Port Sudan; reconstruction of Suakin as a second port for the country; extension of the railway line from Wan to Juba in the South; execution of the River Rahad Diversion Project; fertilizer factory; hessian factory; and insecticide factory. A review of the first year of the 10-year plan, carried out prior to formal announcement in Sep- tember 1962, will provide a useful example of the kind of projects to be implemented. Expenditures for the 1961-62 period were pro- jected atSd£38.1 million (US$109.3). As 57 per- cent of the previous years' gross domestic product was derived from agricultural, livestock, forestry, and fishing, this sector will receive first priority. This fact is borne out by an analysis of the per- centage of allocations made to the sectors of the economy as follows: Productive schemes (62) ; social services (20.4); communications (6); public utilities (5); research and investigation (3.2); ad- ministration (3.1); and miscellaneous (0.1). Major productive schemes, which accounted for over 62 percent or Sd£ 22.7 (US$65.1) million out of total development expenditures, and are de- signed primarily to expand the country's infra- structure, are given below: ■ Khashm El Girba Project Sd£ 10 million (US $28.7 million). This project envisions con- version of land to productive use along the Atbara River in an area some 300 miles from Khartoum. Construction of a major dam on the Atbara and canals for the irrigation of 500,000 feddans ' of land is planned. A complete town will be built for resettlement of the inhabitants of the Wadi Haifa area. Wadi Haifa, located on the Nile at the Egyptian border, will be flooded on completion of the Aswan Dam in the United Arab Republic. A contract for construction of the dam was awarded to an Italian firm in February 1961. The dam will cost about US$20 million and is scheduled for completion by July 1963. Sub- sidiary contracts were subsequently awarded to other foreign firms for supplying electricity to Khashm el Girba and construction of the new town. Supplemental financing, covering the dif- ference between the amount allocated by the Sudan Government and the actual cost, was arranged by the Italian Government in the form of a loner-term loan. 1 1 feddan- 1.088 acres. Sudan's Power Requirements Projected Through 1968 The Central Electricity and Water Admin- istration (CEWA) has projected its estimated requirements for the Khartoum-Sennar area through 1968. CEWA estimates an average annual in- crease in maximum demand of about 12 or 13 percent between 1962 and 1968, reaching a total maximum demand of about 73.4 mega- watts by 1968. Total generating capacity in the area following installation of the Sennar hydroelectric plant will only be about 60 megawatts and no other major project for increasing the installed capacity has reached the serious planning stage. The Sudan will have to take fast action to avoid a serious power shortage which could hamper the country's development plans within the next few years. . . . Available figures reflecting the use of elec- tricity by industry indicate an increase of from 77 industrial users in 1956 to 165 in 1960, with at least 30 more industries approved or under construction. The use of electricity for industrial purposes in the Khartoum area increased from 6 million kilowatt-hours in 1956 to 17 million kilowatt -hours in 1960. — American Embassy, Khartoum. ■ Sennar Dam Hydroelectrification Project — Sd£846,882 (US$2.4 million). This, too, is an example of Sudanese planning for development of infrastructure. Electrification of the existing Sennar Dam was undertaken by a consortium of West German and British manufacturers with a supplemental loan provided by the contracting firms amounting to the equivalent of Sd£3.5 million (US$10 million) for machinery and other equipment. The project, completed in late 1962, will generate 15,000 kilowatt-hours and be linked with the existing thermal power from Khartoum. The system will supply the increased power re- quirements of the new cotton ginning factories in the Ge/.ira area and permit industrialization of t lie area. As is evident by the very nature of those five projects, some have phased out. such as the 25 Courtesy Government of Sudan Architect's drawing of the Roseires Dam project now under con- struction. Started in 1961, the dam will require 7 years to complete. Managil Extension, and others will be completed shortly, such as the sugar factories and the Sennar Dam electrification. The Khashm el Girba and Roseires Dams are only just underway. The dams will be followed by the projects outlined earlier in this section according to priorities as- signed by the Sudanese Government. ■Roseires Dam Project — Sd£3.8 million (US$10.9 million). This is one of the truly significant undertakings of the Sudanese Govern- ment. Conclusion of the Nile Waters Agreement with Egypt in 1959 made construction of this dam essential, if the Sudan is to provide the storage required to fully utilize its share of the waters. Financing of this project, which will require 7 years for completion, was arranged by the Inter- national Bank for Reconstruction and Develop- ment which provided funds totaling $32.5 million and a loan from the Federal German Republic of 73.6 million marks (US$18.4 million). An Italian firm was the successful bidder in mid-1961 for the amount of Sd£ 19.6 million (US$56.3 million) to construct the dam. This project has generated various subsidiary contracts, including a bridge across the Nile, an airport, and an electricity and water plant, all totaling about Sd£2.7 million (US$7.7 million). Additional contracts can be expected during the course of construction. For example, provision is being made in the dam structure for eventual hydroelectrification ; however, no plans have been drawn or financing allocated for this undertaking. Estimates of future consumption of electricity in Sudan indicate that demand will surpass supply as early as 1968, if not sooner. The Sudan Government also is formulating long-range plans which will provide for the even- tual irrigation of vast acreages of adjacent land, utilizing water impounded by the Roseires Dam. Such a project could approach in magnitude the highly successful Gezira Scheme which is fed from the Sennar Dam downstream from the site of Roseires on the Blue Nile. ■ Managil Extension to the Gezira Scheme — Sd£5 million (US$14.4 million). This extension to the existing 1 million-acre Gezira Scheme was completed in July 1962, 3 years ahead of schedule. The work, involving construction of extensive irrigation canals and preparation of land for culti- vation, was carried out by Federal German Re- public contractors. Under this project over 800,000 acres of crop land were added to the Gezira Scheme. The effect of this additional land on cotton pro- duction has been sudden and dramatic. The combination of a good yield per acre and new planting increased Sudan's production of long- staple cotton in 1962 by over 60 percent, to slightly above 1 million bales. As additional markets are found for Sudan's cotton, which in 1961 accounted for almost 59 percent of total exports, and new 26 sources of revenue arc generated, the Govern- ment's ability to finance economic development projects should expand materially. The trade opportunities arising from the Mana- gil project, may not he immediately apparent to U.S. businessmen, hut they are tangible, never- theless. The International Bank for Reconstruc- tion and Development, granted a loan of $15.5 mil- lion in 1900 for completion of the last stages of the Managil Extension, Under terms of the loan, foreign exchange was made available to purchase material and equipment for expansion of the light railway system that transported crops within the scheme, additional textile ginning equipment, and related works. Even with this enlargement of facilities, Sudan is not expected to be able to cope with an increasing agricultural production. Thus, a continuing market for cotton-ginning equipment, railroad equipment, and mechanical harvesting devices should he anticipated. The same premise also holds for the Khashm el Girba scheme and the Roseires irrigation program. Sudan Railways has completed a 70-kilometer rail spur to connect Khashm el Girba to the main Kassala line for transporting supplies to this scheme. ■ Guneid Sugar Factory — Sd£2.9 million (US$8.3 million). The Government, in its efforts to set up industries that will produce goods hereto- fore totally imported and thereby conserve foreign exchange for purposes that will expand Sudan's economy, decided in 1959 to establish a domestic sugar industry. A contract was signed in 1900 with firms of the Federal German Republic to erect and equip a sugar refinery with a capacity of 00,000 tons of raw wash sugar. This factory, designed to satisfy approximately one-half of Sudan's annual requirements, came into produc- tion in 1902. To supplement the Government's allocation for the factory in the development budget, the German firms granted loans for 41.5 million marks (US$10.4 million). The Government has awarded a tender for the construction of a second sugar refinery, to he located in eastern Sudan in the vicinity of Khashm el Girba. Although these projects are not now trade opportunities, they are nonetheless prime ex- amples of type of planning to he expected in Sudan's 10- Year Plan. american aid program The l.S. Agency for International Develop- ment (AID) provides assistance to the Govern- ment of Sudan for its progr a m of economic development under terms of a bilateral agreement signed March 31, 1958. American aid in the form of grants and loans totaled $52.9 million as of July 1, 1902. These funds are being used for technical assistance pro- jects and for financing both Government and private imports. The first category of aid is known as project assistance, whereby AID is financing the salaries and expenses of technicians and importation of equipment necessary to implement specific projects. Such projects include development of animal resources, technical education, rural water develop- ment, urban transportation, agricultural research, road construction and maintenance training, elementary education teacher training, radio com- munications, and cartographic surveys. Funds made available for project assistance for the period 1959-01 amounted to $20.8 million. Of this amount, $12.1 million had been utilized by December 31, 1961. The second category is nonproject assistance, whereby AID has financed commodity imports to Courttsy Uorrmment of Sudan The Industrial Bank of Sudan. I aited Nation* Square, Khartoum. Opened in 1962 *ith assistance of a 92 million capitalization loan pr«>vi«le«l by VII>. 27 The U.S. Agency for International Develop- ment has contracts for projects in the Repub- lic of Sudan with the following U.S. firms: Daniel, Mann, Johnson and Menden- hall, Inc. — consultant engineering services. Fresno State College — education. National Association of Educational Broadcasters — private enterprise study. Radio Corporation of America Service Co. — education. Raymond Constructors of Africa — con- struction. Texas Instruments, Inc. — Water de- velopment. support the balance of payments and generate local currency (known as counterpart) used for payment of local expenses of projects undertaken by the two Governments. Financing of general private and Government imports by AID under nonproject assistance was confined mainly to 1959-60, when Sudanese foreign exchange resources freely available for import financing declined to Sd£4.7 million (US$13.5 million) at the end of 1958. This situation was precipitated by a sharp drop in the value of cotton exports from Sd£41.7 million in 1956 to Sd£22.9 million, or a decline of almost 45 percent. Low prices held throughout 1958 when the value of cotton exports remained at Only Sd£22.3 million before climbing to Sd£40.2 million in 1959. Faced with this sudden imbalance of trade (imports remained at their pre-1957 level), the Sudanese Government found it necessary to put licensing controls into effect which greatly re- stricted the ability of Sudanese importers to obtain foreign exchange. A total of $22.1 million was made available to the Sudanese Government to pay for essential imports. Approximately 70 percent of this total was sold to private importers for Sudanese cur- rency which, in turn, was designated for the pre- viously mentioned approved projects. Commodities imported under nonproject as- sistance included sugar ($2.3 million); motor vehicles and parts ($8 million) ; agricultural equipment ($3.4 million); industrial machinery ($2.6 million); iron and steel ($3.2 million); and electrical apparatus ($1.4 million). Following overall improvement in foreign re- serve earning from raw cotton exports that dra- matically reversed Sudan's trade imbalance in 1959, general import financing for balance-of- payments reasons was suspended. It is intended that future nonproject assistance will be utilized solely to generate counterpart funds as needed to implement technical assistance programs. A third category of assistance has been AID development loans. Only one such loan has been implemented, amounting to $10 million, to the Sudan American Textile Co. The mill, costing $20 million, came into limited production in late 1961. When operating at full capacity of 75 million square yards annually, the mill can be expected to provide a major part of Sudan's gray cotton cloth requirements. The loan is scheduled for repayment over 16 years (1963-78) with in- terest at 5 percent. Two projects now under consideration for AID financing are the Industrial Development Bank of Sudan and the Khartoum North Sewerage Disposal System. A loan of $2 million is to be made to the Industrial Bank to provide foreign exchange needed for relending to industrial enterprises. 1 The Government of Sudan will con- tribute $2.87 million toward establishment of the Bank, one-half in the form of an interest-free, 30-year loan with a 15-year grace period, and one- half as equity participation by the Sudan Govern- ment to be resold eventually to the public as a stock subscription. The Khartoum North Sewerage Disposal Project, now under study, will cost about $3.5 million. It is proposed that a vitrified clay pipe plant be built in Sudan to supply the system and other market needs of about 8,000 tons annually. Lack of sewerage facilities is a major deterrent to expansion of the Khartoum North industrial area. Disposal of waste into the Nile River is prohibited. Implementation of this system should spur industrial development and offer sales opportunities for related equipment. This assumption is based on AID projections of industrial growth in the Khartoum North area. Industrial investment is estimated to have in- creased at the rate of 18.6 percent annually for i Foreign procurement by enterprises established under this AID loan will be restricted to the United States and thus can be expected to generate U.S. exports of industrial equipment. 28 Courtesy Government of Sudan Sudan American Textile Factory as it appeared while under construction. limit at a cost of $20 million, the factory was completed in 1961. It is designed to supply a major share of domestic consumption of low-cost cotton cloth. the period 1948-61. Total investment in the area is expected to riso from Sd£4.9 million (US$14.1 million) in 1961 to Sd£35.3 million (US$1 01. * million) by 1970. AID retains a U.S. consultant engineering linn, Daniel, Mann, Johnson and Mendenhall Inter- national, to advise on the feasibility of projects for AID funds. The linn works jointly with the Assistant Permanent Undersecretary for Develop- ment, Ministry of Finance and Economics, Sudan Government, and the Industry Section, All). Enquiries to the firm should be addressed c/o USAID/Sudan, American Embassy, Khartoum. Additional information on trading opportunities that may arise in Sudan through AID-tinanced loans is published in the World Trade Opportuni- ties section of International Commerce, a weekly publication of the U.S. Department of Commerce. Washington, D.C.; the Commerci Business Daily, published by the Department of Commerce Field Office, Administrative Service Office, Room L300, 433 W. Viin Buren, Chicago 7. Illinois: and the Small Business Circular, issued by the Office of Small Business, Agency for International Devel- opment, Washington 25, D.C. 29 Selected Sudanese Industries in Production Quantity of production Name Location Nature of industry per annum Blue Nile Brewery Khartoum North _. Brewing 584,000 doz. lager. 35,000 doz. stout. Blue Nile Cigarettes Co., Ltd Wad Medani Cigarettes 117,785,200 cigarettes. General Metal Industries Omdurman Aluminiumware, nails, and 375 tons nails, 20 tons hinges. aluminium. Bata Sudan, Ltd Khartoum North Shoemaking 1,337,000 pairs. Perfumery Products Khartoum North Perfumery 12,000 gallons. Blue Nile Packing Co., Ltd Khartoum North Packing materials 1,792,000 cu. meters. 190 tons. Modern Aluminium Works Khartoum Aluminiumware 4,000 tons. Boxall & Co., Ltd Khartoum Laundry and toilet soap 4,000 tons soap, 140 tons toilet products. Abu Ela Glass Factory Khartoum Glassware 150 tons. Khartoum North Glass Factory Khartoum North Glass bottles 6,000 tons. The Sudan Dom Produce Co Port Sudan Dom products 350 gross daily; 20 tons. Perfumery & Pharmaceutical Prod- Khartoum North Perfumes 600 liters. ucts Co. Cold Air Engineering Co Khartoum North Air conditioners, refrigerators, 1,000 units. water coolers. Harkisondas & Khoshal Wad Medani Aluminium 120 tons. Apostolou Enterprises, Ltd Khartoum Air-conditioning equipment. _ 100 units. Krikab Confectionery Co., Ltd Khartoum North Confectionery 1,000 tons. Carbon Dioxide Co., Ltd Khartoum Carbon dioxide 152 tons. G. M. Haggar Co Juba Cigarettes 25 million cigarettes. The Sudanese Chemical Industries Khartoum Pharmaceuticals The African Households Industries, Omdurman Chinaware, glassware and 27,000 doz., 275 tons. Ltd. plastic. Mustafa Satti & Sons Khartoum Toilet soap 600 tons. Rainbow Factories Khartoum North Paints Wifag Trading Co Khartoum North Aluminium and steel works__ Sudan Steel Furniture Industries Khartoum North Steel beds 1,500 beds. The Watania Distillery Co Khartoum North Alcoholic beverages Aybee Co., Ltd Khartoum North. _ Alcoholic beverages j ' Sudan Portland Cement Co Atbara Cement 180,000 tons. Modern Knitting Co Khartoum Knitwear Khartoum Knitwear Mfg. Co Khartoum Knitwear j ' Sudan-American Textile Co Khartoum North Textiles 75 million yards. Guneid Sugar Factory (Government- Guneid Sugar refinery 60,000 tons. owned). Flour Mills Co., Ltd Khartoum North. __ Flour milling 80,000 tons. Nile Match Works, Ltd Khartoum North. __ Matches 300,000 gross boxes. Sudan Government Tannery Khartoum South Tanned leather products 6,500 kgs. daily. Sudan Government Cardboard Fac- Aroma Cardboard 4,000 tons. tory. African Holloware Factory, Ltd Khartoum Enamelware, plasticware, and 2,700 tons. aluminiumware. ' Combined production of The Watania Distillery Co. and Aybee Co., Ltd. 2 Combined production of Modern Knitting Co. and Khartoum Knitwear Mfg. Co. Source: Ministry of Commerce, Industry, and Supply. Note: This list is for information on types of industries currently established in Sudan only., U.S. businessmen wishing to correspond with any of the firms may wish to write to the Commercial Intelligence Division, Bureau of International Commerce, Washington 25, D.C.. for further details on specific firms. 30 chapter V sudan government procurement . . . THE SUDANESE GOVERNMENT is the single largest buyer in Sudan. Direct government purchases from abroad in 1961 were Sd£23.6 million (US$67.7 million) out of total imports of Sd£81. 5 million (US$234 million), or nearly 35 percent. In addition, an undeterminable but large percentage of imports on private account •are ultimately designated for Government con- sumption. Procurement by the Government is not cen- tralized. As a general rule, specialized depart- ments and agencies will act as purchasing agents for items for which they are the primary consum- er. For example, drugs and medical supplies are procured and stocked by the Medical and Vet- erinary Services; gasoline, lubricants, and vehicle spare parts by the Mechanical Transport Depart- ment; telephone and telegraph equipment by the Posts and Telegraphs Department; and insecti- cides and agricultural machinery by the Agricul- tural Department. For general procurement the four main stock- holding departments are Sudan Railways; Irriga- tion Department; Public Works Department; and Stores and Ordnance Department. In addition to this group and the previously listed specialized agencies, there are a number of autonomous agencies such as the Sudan Gezira Board, Govern- ment Printing Press, White Nile Board, and the Equatoria Projects Board that purchase on their own account. The policy of the Sudanese Government on procurement is that the first source of supply shall be goods and materials already in stock. Secondly, if the specified item or an acceptable substitute is produced domestically and is readily available at competitive terms, procurement must be directed to this source. Otherwise, there is no discrimination as to foreign source. Regulations governing procurement require that all purchases and services which involve an ex- penditure exceeding Sd£300 (US$861) or execu- tion of works exceeding Sd£500 (US$1,435) must be by public tender. All contracts for expendi- tures above Sd£5,000 (US$14,350) must be approved by the Ministry of Finance and Eco- nomics. Courttsy Goifriimfiit of Sudan Expansion of technical training by Khartoum Technical Institute provides skills necessary for local in- dustries and helps to generate a market for im- ported machinery. 31 Public tenders generally are issued with a minimum period between publication and closing dates of 2 weeks for small local tenders and 4 weeks for all foreign and major local tenders. Longer periods often are allowed for bidding on capital projects. Tenders should be submitted on a Government form (Finance Form Adm. 19 and 19 A) in a sealed envelope accompanied by 2 percent of the value of tender as security to cover damages that might arise from breach of contract. Tenders may be submitted by telegram to meet a bidding deadline, but must be followed by a completed form. Following award of the contract, the successful firm will be asked to increase the security deposit to 10 percent or furnish an irrev- ocable bank guarantee to cover the period of the contract. To expedite procurement from United Kingdom and European sources, the Sudanese Government maintains a Purchasing Agent in London, England. Correspondence should be addressed to Chief Purchasing Agent, c/o Sudan Embassy, Sudan House, 3 Cleveland Road, St. James, London, S.W. 1. Main Sudan Government Procurement Agencies Department Ministry of Agriculture: Stores Section Equatorial Projects Board Gash Board White Nile Schemes Board Civil Aviation: Director, Civil Aviation Branch Ministry of Health: Chief Medical Storekeeper Ministry of Irrigation: Director Department of Mechanical Transport: Controller of Stores and Workshops. Posts and Telegraphs: Superintendent of Stores Ministry of Public Works: Controller of Stores Stores and Ordinance: Director Sudan Railways: Controller of Stores Sudan Airways Government Printing Press__ Sudan Gezira Board: Managing Director Location Cable address Khartoum Afstore. Khartoum Equab. Aroma Gashboard. Dueim Seclab. Khartoum Civair. Khartoum Bicarb . Wad Medani and El Dueim Irrigation. Khartoum Mectran. Khartoum Telstore. Khartoum Storeash. Khartoum Makhazin. Atbara Tawreed. Khartoum Sudanair. Khartoum South Almatba. Barakat Gezboard. 32 chapter VI import regulations . . . import licensing; exchange controls Trade Information Service report, part 2, No. 61-61, for additional details on application of the licensing and exchange system. All imports are subject to import licensing requirements, with the exception of goods im- ported by the Sudan Government. An extensive list of commodities are under open general license and the importer need only register the commodity he wishes to import with the Ministry of Com- merce, Industry, and Supply prior to entering into a firm contract with a foreign supplier. Normally, this is merely a formality, but the Ministry may refuse to register the import for reasons of commercial policy or exorbitantly high c.i.f. value. Goods not covered by the open general license require individual import licenses which are valid for 3 months, subject to extension. Imports of goods originating in full or in part from Israel or the Union of South Africa are prohibited. Importation of animals, plants, and seeds is subject to quarantine regulations. A few goods which compete with domestic in- dustries or are considered to be luxuries require individual import licenses. There is no dis- crimination against U.S. products. See U.S. Department of Commerce publication, Licensing and Exchange Controls, Sudan, World import duties The Sudan Government depends heavily upon import duties as a source of revenue. In the fiscal year 1961-62 over 35 percent of total revenues came from import duties and surcharges. Alcoholic liquids and tobacco products are subject to specific duties, while practically all other categories pay an ad valorem duty. The general rate is 40 percent ad valorem. Products for industrial development, as well as for agricul- tural activities, essential foodstuffs, and medicines are assessed lower duty rates; vehicles, clothing, and luxury goods pay significantly higher duties. Information on the duty for particular items is available from the Africa Division, Bureau of International Commerce, U.S. Department of Commerce, Washington 25, D.C. See U.S. Department of Commerce publication, Import Tariff System of Sudan, World Trade Information Service report, part 2, Xo. 61-21. for more details on import regulations. Heavy-duty U.S. equipment at work on a Sudanese irrigation projeet. Courtesy Gortrn mtnl of Sudan ^ '^KlWv^^^^BjpijKi Hi i Courtesy the author A wide variety of fresh vegetables is available in season at the marketplace (suk) in Khartoum and other principal towns. Courtesy Government of Sudan Increased banana production in the tropical south is planned as a means of diversifying the Sudanese economy. Processing of local products, such as dates in this modern factory at Karima in northern Sudan, also contributes to the diversification of the economy. Courtesy Government of Sudan 34 chapter VII marketing aids . . . ^T^iik united statics and Sudan have hud ■*■ negligible trade ties and only a limited frame- work of aids for specifically facilitating trade between the two countries has developed. Much work, therefore, remains to be done in this field to promote the dissemination of commercial information. U.S. publications and services A Trade List of Sudan is available at $1 a copy from the Commercial Intelligence Division, Bureau of International Commerce, U.S. Department of Commerce, Washington 25, D.C. The list contains information on importers, dealers, and wholesalers; exporters; industrial firms and govern- ment-operated plants; large plantations or growers and government schemes; American firms, sub- sidiaries, or affiliates; and trade associations. World Trade Directory Reports also may be obtained for specific firms resident in Sudan, indicating type of organization, sales territory, size of business, sales volume, trade and financial reputation, and other factors. These reports, compiled by Foreign Service officers at the Ameri- can Embassy in Khartoum, are available for $1 each, also from the Commercial Intelligence Division. Trade Contact Surveys may be undertaken by the American Embassy in Khartoum to assist U.S. firms in locating agents, distributors, or licensees. A survey report requiring about 60 days to complete will provide the inquirer with names, addresses, and brief descriptions of recom- mended prospects, plus marketing data. Applica- tions for this service should be submitted on form FC-963 (agents or distributors) or form Ft 1 965 (licensees), accompanied by sales literature and a fee of $50 for each survey requested, to the nearest Department of Commerce Field Office or to the Commercial Intelligence Division. World Trade Information Scrrice reports (now the Overseas Business Reports), published by the U.S. Department of Commerce, contain basic and authoritative information needed by exporters, importers, investors, manufacturers, researchers, and all who are concerned with international trade and economic conditions throughout the world. The Africa Division, Office of Interna- tional Regional Economics, Bureau of Inter- national Commerce, has prepared the following publications on the Republic of the Sudan. These reports are available from the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C, or from any of the Depart- ment of Commerce Field Offices. Economic Developments in Sudan. 1 OHO. WTIS, part 1, No. 61-53. 12 pp. June 1961. 15 cents. Establishing a Business in Sudan. WTIS, part 1, Xo. 62-1. 7 pp. January 1962. 15 cents. Import Tariff System of Sudan. WTIS, pari 2. No. 61-21. 2 pp. March 1961. 10 cents. Licensing and Exchange Controls, Sudan. WTIS, part 2, Xo. 61-61. 4 pp. September 1961. 10 cents. Preparing Shipments to Sudan. WTIS. part 2. No. 61-23. 4 pp. March 1961. 10 cents. Sudanese directories Several publications printed in Sudan may be obtained which contain alphabetical and classified directories of firms. These include: Directory of the Republic of thi Sudan. I960 61. Annual. Printed in English. Contains general political and economic information on the Republic of the Sudan. Section 111 contains alphabetical and classified lists of Sudanese firms and subject index. 168 pp. $5. Diplomatic Press and Pub- lishing Co., L3 Cotswold Gardens, London X.W. 2, in cooperation with the Government of the Republic of the Sudan. 35 Nile Trade Directory . 1961. Annual. Printed in Arabic and English. Contains general eco- nomic and commercial information on the Sudan, Saudi Arabia, and Kuwait, and a summary of Federal German Republic trade connections with these countries. Classified lists of firms for each country. Alphabetical list of advertisers for the Sudan only. 322 pp. $5.50. Nile Trade Direc- tory, P.O. Box 1342, Khartoum. Sudan Trade and Investment Guide. 1960-61. Annual. Printed in English. Contains general commercial and economic information on the Sudan and list of major firms and their products. 88 pp. $4.35. Diplomatic Press and Publishing Co., 13 Cotswaid Gardens, London N.W. 2, in cooperation with the Government of the Republic of the Sudan. business associations degrees of success. These include the U.S.S.R. in 1962; the Federal German Republic, Japan, and communist China in 1961; Italy, Czechoslovakia, Belgium, and India in earlier years. The Soviet Union and Rumania maintain a permanent trade exhibit and trade offices in downtown Khartoum. official representation The Sudanese Government maintains a Com- mercial Attache with the Sudanese Embassy in Washington, D.C. His office is separate from the Embassy, located in the Hotel Twenty -Four Hundred, Room 711, 2400 16th Street NW, telephone 232-4633. The Economic Officer assigned to the American Embassy in Khartoum is responsible for com- mercial matters on behalf of the U.S. Government in Sudan. The Sudan Chamber of Commerce, P.O. Box 81, Khartoum, was established in 1908 and num- bers many of the leading businessmen among its members. The person assigned commercial re- sponsibility with the American Embassy in Khartoum is usually accorded honorary member- ship and thus is able to develop important contacts on behalf of U.S. firms. A journal is issued by the Chamber containing useful commercial infor- mation and a trade list. Annual subscriptions are available at $5.74. Inquiries should be directed to the Secretary of the Chamber. fairs and exhibitions No major international trade fair has been held in Sudan. The Sudanese Government, however, stages an annual national fair in Novem- ber in conjunction with ceremonies commemorat- ing the 1958 Revolution. Resident firms custom- arily exhibit at these fairs and the opportunity presents itself for U.S. firms to show their goods through local agents. The U.S. Government has not staged a trade fair in Khartoum to date. Several countries have presented solo exhibitions with varying advertising Advertising is not widely used as a sales pro- motion method in Sudan. In general, the size of the market that can be reached by conventional advertising does not warrant its extensive appli- cation except for certain consumer products. However, limited advertising of products and services is done by a select number of foreign firms with local outlets. Media most frequently utilized are newspapers, movie theaters, radio, billboards, and neon. Newspaper. — Sudan has five Arabic and two English language daily newspapers, all published in Khartoum. Two are government-owned, pub- lished by the Ministry of Information and Labor, one in each language. In addition, 13 Arabic, 1 Greek language, and 2 English periodicals are published throughout the country that accept advertisements. Rates for overseas advertising in the daily news- papers range from 500 milliemes (US$1.44) per standard columnar inch for one insertion to 450 milliemes (US$1.31) for six or more insertions. Radio.— The Sudanese Broadcasting Service, a government-owned radio station in Omdurman, accepts commercial advertising. Programs are 36 Courtesy Gorernment of Sudan Downtown Khartoum. In the foreground, an office building with shops. In the haek- lm -imriil to right, the American Embassy. broadcast daily in Arabic, English, and southern tribal languages, and arc transmitted throughout the country. Finns seeking a low-cost means of introducing products into the market on a countrywide basis might consider using this medium as an adjunct or sales assistance device for the local agent. Advertising rates are Sd£20 (about US$60) per 'A minute once daily for 1 week, Sd£35 per l / a minute, and Sd£50 per minute. Motion-picture. —Movie theaters are an inex- pensive and highly popular form of entertainment in Sudan. Most theaters are of the open-air variety because of the warm climate. As such, they provide comfortable seating and attract all segments of the populace. Thus, a good cross section of the consumer market can be reached by means of motion-picture advertising. Western films are consistently in demand and draw large crowds. Sudan has about 30 theaters with a total seating capacity slightly in excess of 50,000, plus several mobile units that operate in the rural provinces. Total estimated audience is 1.3 million, although provincial theaters draw on areas with populations that exceed census figures in towns where theaters are located. Film advertising rates vary from Sd£28 (US$81) per 2-minute commercial for 1 week (14 projections), down to Sd£2.50 (I'SsT.l'.V per 20 seconds for 3 nights (3 projections) during midweek. Billboard and neon. -Billboard and neon ad- vertising is restricted largely to Khartoum metro- politan area. Kates vary according to location and size and are subject to negotiation with local publicity firms. Sales promotion films. U.S. business firms may arrange 1 to show company films to select Sudanese business and Government officials for trade or sales promotion purposes under auspices of the American Embassy, Khartoum. This technique has been used with success in Sudan and. if care- fully planned, offers distinct possibilities for market penetration. 37 Courtesy Government of Sudan Two familiar sights for the visitor to picturesque Khartoum — the Republican Palace, residence of the President, and sailboat racing on the Blue Nile. ■matt!- . 'gfe'^uu .«*«*>& »rit"r" : Courtesy the author 38 chapter VIII notes to business travelers . . . UCJ businessmen will find the following • k_7» information useful in planning their visits to Sudan: Banks operating in the Sudan (with number of branches in parentheses). — Bank of Sudan (3), government central bank with full commercial facilities; Agricultural Bank (8), provides loans mostly to farmers, secured by crops; Industrial Bank, government-supported bank, provides capi- tal loans for new industries; Sudan Commercial Bank, newly established privately owned Suda- nese bank providing all commercial services; Arab Bank (2), Egyptian; Bank Misr (7), Egyptian; Barclays Bank D.C.O. (14), British; Credit Lyon- nais (3), French; Ottoman Bank (4), British; and State Bank of Ethiopia. All these banks have their principal offices in Khartoum. General Business Hours. — Government offices: Winter, 8 a.m. to 2 p.m.; summer, 7:30 a.m. to 1:30 p.m.; Ramadan, 9 a.m. to 1 p.m. Private business: 7 a.m. to 1:30 p.m., and from 4 p.m. to 6 p.m. Banks: From 8 a.m. to 2 p.m. Government offices are closed Fridays. Stores and banks are closed Fridays and Sundays. Holidays.- -Sudan observes eight official holi- days: Independence Day (January 1), Revolution Day (November 17), and 2 multiday periods, Ramadan Bairn.ni (immediately following the Muslim Holy Month of Ramadan), and Kurban Bainim (occurring 70 days after Ramadan and representing culmination of Pilgrimage to Mecca period). Government and business offices work shorter schedules during the month of Ramadan. If possible, it is advisable to schedule business trips to Sudan during other months of the year. Hotel accommodations. — Hotel accommodations are extremely limited in Khartoum and the business traveler should have confirmed reserva- tions in advance. The two hotels usually fre- quented by businessmen are the Grand with 150 rooms and the Acropole with 44 rooms. Daily rates for best rooms are about $15 including meals. Because of the demand for hotel space, residence is limited to 21 days. A new 80-room luxury hotel is under construction. Electricity. — Electric current in Khartoum is 220 volts, 50 cycles a.c. Adapters are required for appliances utilizing American pings. Local transportation. — Taxis arc readily avail- able in the Khartoum area and are easily identifiable by their yellow coloring. Taxis are reasonable, about $0.50 for 2 miles. Right-hand drive prevails in the Sudan. Sudan Airways, the government-owned domestic airline, operates scheduled flights to all important commercial centers throughout the country. Non-Sudanese are forbidden to enter the three southern Provinces ami certain other western areas of Sudan without special permission from the Ministry o( the Interior. Application for permits to travel in these areas should be made at least 1 week in advance. 39 Clothing. — Sudan is a tropical country and the climate is such that wash-and-wear items are recommended at all seasons. Summer clothes are used the year round. milliemes. Paper currency in circulation through- out Sudan includes the 1-, 5-, 10-, 25-, and 50- pound notes. Coins include 1, 2, 5, and 10 mil- liemes; 2, 5, and 10 piasters. Currency and coins.— One Sudanese pound = US$2.87 at the official exchange rate. However, the pound has been trading recently at the slightly higher rate of around $2.90. The Suda- nese pound, being a decimal currency, is composed of 100 piasters and the subdenomination of 1,000 Units of measure. — The following weights apply primarily to cotton. Other measurements normally are subject to the metric system: 1 feddan= 1.038 acres; 1 kantar (small) = 99 pounds; 1 kantar (large) = 3 12 pounds; 1 rottle=0.99 pounds; 1 bale=420 pounds. appendix a bibliography . . . Sudan Almanac, 1962. An official handbook. Sudan Government Printing Press, Khartoum. About 30 cents. Economic Survey, 1961. Ministry of Finance and Economics, Sudan Government, Khartoum. May 1962. Economic and Financial Bulletin, Quarterly. Economics Department, Bank of Sudan, Khar- toum. Annual Report, 1961. Bank of Sudan, Khar- toum. March 1962. Annual Foreign Trade Report, 1959. Depart- ment of Statistics. Sudan Government, Khar- toum. Foreign Trade and Internal Statistics, October 1961. Department of Statistics. Sudan Govern- ment, Khartoum. First Population Census of Sudan 1955/1956, Final Report, Vol. 1. Department of Statistics, Khartoum. March 1961. 21 Facts About the Sudanese. Karol Jozef Krotki. Ministry for Social Affairs. Sudan Government, Khartoum. 1958. National Income of Sudan, 1955/56-1959/60 (with preliminary estimates for 1960/61). De- partment of Statistics. Sudan Government, Khartoum. April 1962. The Sudan. Middle East Bridge to Africa. U.S. Department of State Publication 6572. January 1958. Progress. 3d Anniversary Sudan Revolution. Central Office of Information. Sudan Govern- ment, Khartoum. 1961. Republic of The Sudan News. Embassy of The Republic of The Sudan. 3421 Massachusetts Avenue NW., Washington, D.C. Monthly. Dis- tributed free of charge. 40 appendix b selected economic data . . . Table 7. — Summary of Sudanese Government Expenditure Estimates Under 1961-71 Plan for Economic and Social Development ' [In Sudanese; pounds 2 ] (Government department s Total 10-year allocations Estimated expenditures 19(51-62 Estimated expenditures 1962-6:} Estimated expenditure remainder of plan Department of Agriculture 1 )cpartment of Forests Land Use and Rural Water Development Department Ministry of Animal Resources Agricultural Bank of Sudan Ministry of Irrigation and Hydroelectric Power Posts and Telegraphs Department Meteorological 1 )epartment Sudan Airways Department of Civil Aviation Sudan Railways Mechanical Transport Ministry of Education University of Khartoum Ministry of Health Labor Department Information Department Religious Affairs Statistics Department Ministry of Interior, Headquarters Police Prisons Haifa People Resettlement Judiciary Ministry of Local Government Ministry of Works Surveys Department Geological Survey Ministry of Finance Stores and Equipment Customs Department Department of Cooperation Ministry of Foreign Affairs Ministry of Commerce, Industry, and Supply Industrial Bank Central Electricity and Water Administration White Nile Schemes Board Total 1 1. 2, 5, 1, 5, 119, 2, 4, 9, 34, 34, 2, 8, 1, 2. 1, 20 10, 3 1, 11, 22, 2 10, 180, 594 474, 753 514, 258 911,086 669, 649 302, 635 754, 160 394, 000 555, 229 667, 000 984, 000 979, 000 150, 166 980, 765 510, 737 520, 119 711, 154 770, 908 574, 000 060, 000 250, 000 250, 000 000, 000 331, 505 689, 215 110, 400 635, 000 393, 063 521, 000 100. 000 36, 000 171, 000 315, 676 984, 847 500, 000 507, 000 530, 000 101, 752 118,008 558, 009 197, 677 500, 000 12, 267, 224 225, 395 "365," 467 12,320,666 925, 848 46, 500 473, 699 40, 000 4, 152, 294 757,911 1, 050, 385 468, 126 1,614, 140 21, 786, 254 700, 422 80, 000 301, 804 223, 000 8, 450, 000 227, 000 8, 055, 794 961, 250 2, 528, 779 170, 119 351, 154 386, 468 95, 000 601, 717 955, 233 121, 782 4, 300 373, 272 115,676 3,341, 732 287, 288, 919 33, 653, 291 164, 000 131, 000 8, 000, 000 60, 505 2,030, 215 583. 576 342, 000 140, 790 1, 168, 618 40. 000 18, 000 20, 000 50, 000 0, 566, 199 1, 000. 000 1. 1S9. 650 180. 000 6, 926, 548 1, 598, 834 3, 905, 864 1, 245, 283 3, 555, 509 35, 249, 157 1, 828, 343 314,000 3, 387, 958 9, 444, 000 14, 214, 000 752, 000 25, 168, 524 1, 973.015 .".. 508, 259 310, 000 360. 000 384, 440 479, 000 1, 060, 000 2, 086. 000 1. 119.000 11. 398.283 271.000 7. 703. 707 2, 405, 042 1. 203. 000 ■217. 9. 979. 300. 000 18, 000 151. 000 1 50, 000 13. 070. on; 1. 500. ooo 0. 317. 350 350. 000 073 110 7 1. 544. 153 170. 091. 175 i Some 52 projects hepim under n New Schemes Program in 1867 will be completed outside the framework of the 10-year development plan. A total of Sd £24,015,045 (US$68.fl million') has been budgeted by the Sudanese Government to complete such miscellaneous projects as a coffee plantation, local airport and Government buildiiu; construction, and acquisition of missionarv hospitals. Of the total, approximated 5d£S million CUSSS.7 million 1 Is budgeted for the fiscal year 1963-68. - 1 Sudanese pound ■•US$2.87, Source: Government, of Sudan. Printed by Sudan Survey Department, September 1962. 41 Table 8. — Sudanese Imports from the United States, 1954-59 1 [In Sudanese pounds 2 ] Commodity 1954 1955 1956 1957 1958 1959 Tractor parts 3 Motor vehicle bodies and parts Machinery, unspecified Tractors 3 Aircraft and parts Lubricating oils and greases Motor vehicles Movie film Metal cans Pharmaceutical preparations Aviation gasoline Electrical machinery Medical, scientific, and optical instruments. Automobile tires and tubes Miscellaneous iron and steel manufactures _ Paper and cardboard manufactures Wheat flour Tractors and parts 3 Tools Miscellaneous goods Condensed milk Crude iron and steel Tubes, pipes, and fittings Wire, cable, and ropes 130, 176 74, 959 121, 413 85, 798 104, 216 176, 138 120, 145 80, 775 8,579 1, 204 286, 588 4, 805 3,687 135 1,217 425 Total . 66, 228 5, 517 92, 048 23 65 3,770 198 880, 535 104, 405 89, 591 9, 996 44, 910 2,394 266, 535 3,431 3,607 76 850 13 196, 706 68, 514 5,292 149, 046 11, 751 98, 408 6, 995 31, 071 26, 913 1,074 313, 901 1,771 4,274 630 327 938 53 147, 690 1,233 44, 482 31, 452 183, 077 243, 997 76, 909 43, 462 195, 705 30, 281 59, 262 30, 154 14, 835 78, 074 8, 955 4, 088 437 77 1, 123 12 178, 720 1, 123 81, 410 333, 844 194, 175 185, 258 176, 034 174, 947 150, 461 158, 599 77, 245 20, 707 16, 495 61, 810 13, 851 7,092 6, 422 1,725 481 25 8, 836 59, 461 1, 152, 587 971, 865 2, 263, 153 1, 647, 468 39, 338 183, 556 127, 298 103, 377 35, 990 104, 920 110, 698 54, 584 18, 022 8,054 "16" 533 16, 676 401 2, 328 403 21, 343 139, 460 976, 991 1 Latest available Sudanese statistics giving commodity breakdown on imports from the United States. 2 1 Sudanese pound =US$2.87. 3 Listed as composite item until 1957, then separately. Source: Annual Foreign Trade Reports, 1954-59. Department of Statistics, Sudan Government, Khartoum. Table 9. — Sudanese Exports to the United States, 1954-59 [In Sudanese pounds '] Commodity 1954 1955 1956 1957 1958 1959 Gum, Hashab Sheepskins Ginned cotton Goatskins Senna Trochus and mother-of-pearl shells - Gum, bleached Gum, talh Skins, miscellaneous Henna Ivory, raw Miscellaneous items Beeswax Manganese 680, 532 163, 638 589, 489 8,396 3, 900 2, 800 5,036 1, 824 32 3, 881 510 24, 890 898, 106 158, 891 85, 512 14, 024 3,324 3, 725 3,372 1, 184 276 881 1, 055, 391 214, 132 124, 310 25, 913 9, 388 4, 175 1, 622 1, 134 276 985, 203 166, 154 32, 944 12, 520 974 256 726 836 80 301 061, 041 227, 843 1, 080 16, 128 14, 812 1,763 22 200 1, 413 3,896 6,803 Total. 1, 485, 528 1, 174, 578 1, 443, 144 18, 035 5,933 34, 623 1, 267, 585 2, 336 3,363 1, 129, 765 197, 224 271, 742 16, 404 18, 580 335 1, 107 10, 742 3,587 2, 772 1, 328, 588 1, 652, 258 i 1 Sudanese pound =TJS$2.87. Source: Annual Foreign Trade Reports, 1954-59. Department of Statistics, Sudan Government, Khartoum. 42 Table 10. — Sudanese Exports by Commodity Groups, 1956*41 [In Sudanese pounds '] Commodity 1956 1957 1958 1959 Jan.-Oct. I960 Jan.-Oct. 1961 Exports Food products, beverages, and tobacco. 4, 593, 181 12,003,624 8, 264 5, 386, 132 12, 969, 800 11, 251 3, 765, 088 7, 344, 952 4,935 5, 352, 038 11, 445,375 4, 554 5, 307, 580 10, 597, 486 11,313 1. 730,021 Fats and waxes, animal and vegetable _ 12, 087, 063 Chemicals. .. 5, 637 Rubber and manufactures Wood, cork, and manufactures Pulp, paper, cardboard, and manu- factures 802 77 429 1 837, 797 22, 291, 042 203 155 1, 126 247 15 Hides, skins, and leather. Textiles, mainly raw cotton Clothing and madeup textiles. .. Products for heating, lighting, power, and lubricants .. ______ 1, 075, 938 41, 711, 655 506 979, 903 21, 268, 172 94 L, 070, 669 40, 153, 107 99 853, 742 28, 450, 120 2, 167 879, 334 25, 582, 973 3, 345 Nonmetallic minerals. . . Precious metals and stones _ . . . Base metals and manufactures Machinery, apparatus, vehicles 118,323 25 63, 505 66, 826 91 81, 480 65, 500 214 19, 647 72, 597 12 78 24, 611 790 6,675 12, 455 100 10, 524 10 Miscellaneous, including gum. _. Returned goods and special trans- • actions ■ __ .. Cold metal and specie __ Parcel post __ 5, 724, 725 29, 150 11,431 272 65, 342, 401 4, 732, 894 33, 462 18, 166 157 45, 548, 505 5, 405, 548 28, 055 24, 450 81 39, 787, 942 5, 333, 575 26,811 16, 326 105 63, 475, 546 6, 301, 543 21, 622 18, 845 5, 237, 247 24, 664 1,200 75 Total domestic exports 51, 597, 620 48, 574,910 Reexports 2 Food products, beverages, and tobacco . . .. 11,558 248 20, 670 2, 939 2, 284 278 311 204, 395 34, 664 501, 337 1,506 1, 459 213, 131 241,977 129, 120 81,616 1, 429 8,036 15, 841 5, 907 1,326 142 814 248, 033 47, 020 806, 684 1, 544 1, 431 7, 789 Fats and waxes, animal and vegetable . _ - _ Chemicals.. _ 5, 211 1, 969 537 40, 491 451 179, 438 41, 739 656, 080 361 163 130, 231 887, 132 152, 066 112,427 1, 430, 720 519 3, 640, 966 43, 428, 908 4, 286 304 770 239 48 66, 164 25, 592 597, 371 312 Rubber and manufactures. ... Wood, cork, and manufactures.. Pulp, paper, cardboard, and manu- facturers. _ . Hides, skins, leather. Textiles. _. ... Products for heating, lighting power, and lubricants .. Nonmetallic minerals.. . ... 132, 989 724, 723 129, 084 79, 775 346, 856 691 2, 550, 894 48, 099, 390 125, 702 2, 216, 792 123, 654 93, 241 32, 000 750 3, 295, 014 66, 770, 560 Machinery, apparatus, vehicles Miscellaneous Returned goods and special trans- actions __ .. Gold metal and specie Parcel post .. . . 585 1,448,078 66, 790, 479 Total reexports.. .. . . Total exports .. . 2, 442, 125 54, 039, 745 2,692, 317 51. 267. 227 • i Sudanese pound -US$2.87. 2 Information t;ikon from monthly reports; no breakdown on reexports given, only totals. Information for 1966-89 taken from annual reports. Source: Department of Statistics, Sudan Government. 43 Table 11. — Sudanese Imports by Commodity Groups, 1956-61 [In Sudanese pounds ! ] Commodity Food products, beverages, and tobacco Fats and waxes, animal and vege- table Chemicals Rubber and manufactures Wood, cork, and manufactures Pulp, paper, cardboard, and manu- factures Hides, skins, leather Textiles Clothing and madeup textiles Heating, lighting, power, and lubri- cant products Nonmetallic minerals Precious metals and stones Base metals and manufactures Machinery, apparatus, vehicles Miscellaneous Returned goods and special trans- actions Gold metal and specie Parcel post Total imports 1956 12, 082, 634 327, 761 2, 595, 284 623, 482 1, 100, 789 490, 857 59, 687 8, 746, 609 3, 058, 367 3, 489, 665 806, 706 4, 538 3, 070, 500 6, 945, 637 1, 585, 268 165, 937 76, 546 18, 180 45, 248, 447 1957 16, 538, 122 789, 399 3, 639, 949 733, 933 1, 421, 834 909, 124 92, 254 10, 924, 792 3, 790, 394 4, 610, 003 1, 611, 649 37, 809 5, 327, 795 11, 086, 485 1, 500, 012 143, 432 133, 422 48, 685 63, 339, 693 1958 10, 989, 424 571, 012 3, 263, 728 626, 538 1, 496, 996 661, 355 109, 910 7, 804, 858 2, 665, 132 5, 323, 352 751, 081 7,328 8, 690, 283 13, 632, 289 2, 360, 323 164, 734 319, 586 53, 318 59, 491, 247 1959 14, 169, 729 503, 820 3, 300, 647 1, 122, 773 1, 052, 208 795, 468 98, 949 10, 151, 011 2, 829, 751 5, 026, 244 968, 079 2, 804 4, 778, 168 10, 126, 583 1, 949, 564 106, 983 36, 888 34, 930 57,054, 599 Jan.-Oct. 1960 8, 335, 886 250, 500 2, 995, 784 895, 281 996, 455 735, 066 50, 619 9, 091, 425 2, 728, 794 4, 249, 414 1, 099, 474 6,075 4, 450, 091 12, 619, 784 1, 385, 155 126, 289 26, 638 39, 387 50, 082, 117 Jan.-Oct. 1961 10, 963, 590 187, 664 3, 843, 434 910, 033 973, 457 841, 670 37, 708 11, 329, 410 2, 909, 015 4, 533, 526 1, 290, 846 10, 105 5, 465, 690 19, 222, 614 1, 901, 908 238, 692 24, 098 22, 786 64, 706, 241 '1 Sudanese pound = US$2.87. Source: Annual Foreign Trade Reports, Department of Statistics, Sudan Government. Table 12. — Principal Sudanese Imports, 1954-61 [In thousands of Sudanese pounds '] Commodity 1954 1955 1956 1957 1958 1959 1960 1961 Vehicles and transport equipment Cotton piece goods Machinery Base metals and manufactures Petroleum products Sugar Chemicals and pharmaceuticals Artificial textiles Tea Wheat flour Jute sacks Coffee Other items Total 3, 5, 3, 5, 2, 3, 2, •3, 1, 1, 13, 358 555 868 271 666 654 666 426 545 324 409 878 870 48, 490 4, 462 5,533 3, 796 4, 032 2, 693 3, 200 943 2, 294 3, 174 1, 732 1,032 1,508 14, 404 48, 803 3,500 5, 602 3, 446 3, 071 2,868 4, 638 783 2, 300 1, 731 1,318 1, 256 1, 921 12, 814 45, 248 5,271 7,308 6,760 5,891 3,917 6, 130 1, 376 2, 641 2, 832 2, 201 1, 259 2, 129 19, 842 67, 557 7,946 5,841 5,687 8, 690 4,098 3,815 1, 417 769 2,579 914 1,012 1,277 15, 446 59, 491 6,504 7,550 3,623 4, 778 4,729 3, 727 1,492 1,474 3,472 1,909 888 2, 205 14, 704 57, 055 8,481 8, 311 6, 866 5, 506 4,913 3, 662 2,098 2, 227 2,044 1, 859 1,215 972 15, 590 63, 744 10, 931 9,300 13,717 662 118 028 055 959 3,551 1,268 1,579 1, 153 18, 220 81, 541 i 1 Sudanese pound=US$2.87. Source: Annual Foreign Trade Reports, Department of Statistics, Sudan Government. 44 Table L3. — Principal Sudanese Exports, 1950-60 [In millions of U.S. dollars) Commodity 1950 1951 1952 1953 1954 1955 L956 1957 1958 1959 I960 Cotton, ginned 65. 7 7. 7 . 6 1 11. 92. 1 133. 10 ~~2.W 11 1. 9 16. 5 175. 3 83. 2 7. 1 2. 3 3. 3 7. 1 2 13. 2 118. 2 76. 8 8. 6 4. 2 5. 9. 2 2. 2 17 123. 02. 3 10. 9 1. I 3. 3 8. 5 2. 8 19. 5 111. 7 87. 2 13. 4 5. 1 0. 9 8. 2. 8 10.2 140. 2 1 19. 7 1 5. 3 5. 9 10. 9 13. 4 2. 8 20. 1 188. 1 05. 9 13. 1 8. i :;. r, 14. 8 2. 7 21. 4 140. 3 01 15 6. l '.». U 3. 8 3 42. 1 144.2 1 1 5. :'. 1 1. 7. !i lo. :; 12. 4 4. 8 17 182. 3 96 i Gum arabic. 20 Sesame 13. 2 12. 6 Oilcake and meal 8 4 All others 29. 1 Total '171. 2 ' 1960 total exports Riven by United Nations do not conform with Sudanese Government statistics of $182 million for same period. Individual commodity totals are the same, but overall total is published as $174.2 million. Source,: African Statistics, Annex to the Economic Bulletin for Africa, Volume II, No. 1, January 1962, United Nations publications. Table 14. — Sudanese Imports by Country of Origin, 1957-61 [In thousands of Sudanese pounds 1 ] Countries 1957 1958 1959 I '.Mill 1961 United Kingdom India Egypt Germany, Fed. Rep. of Italy.-.' United States France Belgium Czechoslovakia Japan U.S.S.R Communist China Others Totals 17, 8, 5, 4, 2, 2 I! i, i, 3, 23, 897 177 089 916 580 203 007 001 259 585 202 257 248 07, 557 19, 114 0, 010 3, 477 3, 445 1, 439 1, 580 1, 459 2, 128 1, 205 2, 478 100 521 19, 022 59, 491 14, 189 8, 843 I, 552 3, 043 1, 954 1, 044 2, 292 l! 229 1, 244 608 997 899 18, 056 57, 046 17, 344 7, 675 5, 339 5,210 3, 339 1, 826 1, 840 1, 252 1, 086 1, 022 2,287 ( 2 ) 14, 924 03, 744 21, 075 7, 740 5, 393 s. -2:'.< 3,732 4, 901 1, 137 1, 381 1, 257 4. 7:>7 3, 057 ( 2 ) 18, 222 si. .-.u 1 1 Sudanese pound = US$2.87. 2 Not available. Source: Economics Deportment, Bank of Sudan, Khartoum. Research and Statistical Section. Ministry of Finance and Economics, Khartoum. 45 "White Gold" Cotton is Sudan's largest income producer and accounted for about ."iO^ of export earnings i" 1 1, <>1 Here cotton is shown being harvested, transported! and prepared for shipments -V United Xations and Ooitrnmr'U of Sudan II PENN STATE UNIVERSITY LIBRARIES DDDDTlEflTSMD