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Sudan: an Exceptional Investment Attraction

20/02/2014 0 53 views

Kuala Lumpur – “ASWAQ”

Africa hosts numerous investment opportunities, many of which are in Sudan. The country classified as the second investment attraction location in the continent. Realizing these facts, the government of Sudan established the Ministry of Investment in 2002. More recently it issued the “Investment Act of 2013” considered to be one of the best in the region.

Sudan is reach with natural resources and comprise more than one climate. Along its excellent agricultural nature and resources, the country petroleum industry adds an important dimension. The geographic location of Sudan having common boarders with Egypt, Libya, Chad, Eritrea, Ethiopia, Central African Republic and more recently South Sudan and having shores on the Red Sea, give the country a lead in the distribution network within the region.

The Agriculture in Sudan

On the agriculture front, Sudan has approximately 300-400 million acres of fertile land. Its crop portfolio is incredibly diverse, including cereals such as wheat and rice, oil-seeds, beans, lentils, and others. It produces cotton, hemp, fodder, and forestry resources as well. Moreover, the land in Sudan is suitable for animal husbandry, with its horticultural offerings of vegetables and fruits and it is rich with herbs used in fragrances and medicines.

According to a paper published by the Food and Agriculture Organization of the United Nations, present circumstances and Foreign Direct Investment (FDI) policy trends reflect a promising, emergent climate for sustained investment in Sudanese agriculture. The report says ”This huge and diversified spatial view of Sudan’s natural endowments should not only attract foreign direct investments, but in fact provide a long and diversified menu of investment opportunities for foreign investors to choose from. The vector of profitable agricultural investment undertakings ranges from crop production to animal production, fodder, poultry, organic vegetables, fruits, and even tropical flowers”.

Investment Encouragement Act

Sudan introduced two substantial investment reforms in the last few years, lowering the corporate tax rate and capital gains tax and improving the timeliness of customs clearances. The Economic Development Sector of the Cabinet passed the “National Investment Encouragement 2013 bill” in January 2013. Where as early as 2003, an Investment Encouragement Act was passed to explicitly: ban discrimination based on the source of investment. That still sustained in the more recent Act of 2013; prohibit discrimination against foreigners.

The African country has various trade and bilateral investment agreements with more than 25 countries and bilateral taxation treaties with Egypt, United Kingdom, Malaysia, South Africa, Turkey and Syria. While China, Malaysia and India have major investments in the Sudanese oil sector and some of the GCC countries have major investments in the agriculture sector.

Investment Attraction Polices

Currently, the government is said to be working on the development of infrastructure, services and facilities in light of the investment attraction polices. Some of these are said to include a shift towards enhancing the state of industrial areas, as well as building new industrial cities. However, for the time being, Sudan already have free zones like Suakin and El-Jaili cities, which grant encouraging exemptions to investors. Sudan also features the availability of banking and insurance sectors, auditing, financial, technical and legal consultancy services. In addition to high standard education and health facilities.

The country is politically stable and despite some conflicts along the boarders the core was always stable and the growth was always sustained. The federal system ran by the central government in capital Khartoum have been sustaining consistency in government policies for a quarter of century. Moreover the judicial system is said to be indiscriminate among Sudanese citizens and foreigners.

Some of main investments attractions are said to be:

Some of main investments attractions are said to be:

  • complete exemption from customs fees for capital projects
  • freedom of capital transfer
  • grant exemptions from profit taxes of 5 to 10 years for investment projects
  • grant customs exemptions for strategic projects and non-strategic capital goods
  • strategic projects are given the necessary land free-of-charge
  • non-strategic projects are given land at an encouragement price
  • the investor has the right to operate without a Sudanese partner

 

Some of main investments attractions are said to be:

  • complete exemption from customs fees for capital projects
  • freedom of capital transfer
  • grant exemptions from profit taxes of 5 to 10 years for investment projects
  • grant customs exemptions for strategic projects and non-strategic capital goods
  • strategic projects are given the necessary land free-of-charge
  • non-strategic projects are given land at an encouragement price
  • the investor has the right to operate without a Sudanese partner

The investment law has provided the following fundamental guarantees:

  • no confiscation of property will occur except through the legal system and after payment of a reasonable compensation
  • the investor has the right to re-transfer the capital in case the project isn’t executed or is liquidated
  • transfer of profits and costs of finance will be executed in the currency of import and on the date due (after payment of the legal duties)
  • the project is  automatically included in the registry of importers and exporters

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