Sudan Trade

Subchapters:

  • Business Relationships
  • Foreign direct investment
  • FTAs ​​and Treaties
  • Development Cooperation
  • Prospective fields of study (MOP)

Business relations

Trade relations with the EU

(only for non-EU countries) General comment on trading with EU countries, comment on the numbers in the table, reasons for a positive or negative balance.

2017 2018 2019 2020 2021
Exports from the EU (million EUR) 956.4 706.6 821.3 802.2 665
Imports into the EU (million EUR) 161.9 143.9 275.6 233.6 255
Balance with the EU (million EUR) -794.6 -562.7 -545.6 -568.6 -410

Source: European Commission

Trade relations with the Czech Republic

Comment on the numbers in the table, the reasons for the positive or negative balance, comparison with the EU and what causes the differences.

2017 2018 2019 2020 2021
Exports from the Czech Republic (billion CZK) 0 0.2 0.3 0.3 ON
Imports to the Czech Republic (billion CZK) 0.2 0 0 0 ON
Balance with the Czech Republic (billion CZK) 0.2 -0.2 -0.3 -0.3 ON

Source: businesscarriers.com

Trade relations with countries outside the EU

Comment on the numbers in the table, the reasons for the positive or negative balance, comparison with the EU and what causes the differences.

2017 2018 2019 2020 2021
Exports from countries outside the EU (million EUR) 2,528.9 2,255.3 2,353.5 2,430.4 2,809.0
Imports to countries outside the EU (million EUR) 8,725.3 6,051.9 7,259.7 7,266.0 7,381.4
Balance with non-EU countries (million EUR) -6 196.3 -3,796.6 -4,906.2 -4,835.7 -4,572.5

Source: EIU, Eurostat

Foreign direct investment

The main target areas for foreign investors in Sudan are mineral extraction, agriculture, transport infrastructure, petroleum industry, cement production and processing, and electricity generation.

Foreign investors, including Egyptian ones, are paying a lot of attention to investment opportunities in Sudanese agriculture.

Despite its complexity and demanding business environment and the risks arising from possible further political developments, Sudan is an attraction for foreign investors. Realized investments generate further demand for goods and services. In addition, there are a number of industries in the country with development potential even for Czech entities that are still waiting for the entry of foreign investors, such as the production of agricultural machinery, the glass industry or leather processing and leather production

FTAs and treaties

Agreements with the Czech Republic No agreements of a trade-economic nature have been concluded between Sudan and the Czech Republic. In 1976, a long-term trade agreement was concluded between the then Czechoslovakia and Sudan, but it was terminated in connection with the entry of the Czech Republic into the European Union.

During the business mission in September 2007, which was led by Deputy MPA M. Tlapa, the possibility of concluding a Memorandum of Understanding between the ministries was agreed upon. In June 2010, the Czech counter-draft of the Memorandum of Understanding between the Ministry of Foreign Affairs of the Czech Republic and the Ministry of Foreign Affairs of the Republic of Sudan was handed over to the Sudanese side. The agreement was signed on April 12, 2012 in Prague.

Developmental cooperation

Development cooperation with the Czech Republic

As an EU member state, the Czech Republic actively supports the provision of humanitarian aid to Sudan by the European Commission / DG ECHO. In December 2006, it supported the Global Plan for Sudan for 2007 in the amount of EUR 45 million, to which was added another EUR 40 million in food aid (Food Aid).

Sudan is not one of the priority countries for development cooperation of the Czech Republic, and therefore development cooperation funds are dedicated only to so-called small local projects.

  • In 2012, a small local project focused on cancer prevention and treatment was prepared and developed. The topic was also chosen in connection with the supply of cobalt irradiators by the company ÚJP Prague to this territory. Unfortunately, due to the difficult situation of non-governmental organizations in the country, the Sudanese partner decided to withdraw from the project at the last minute.
  • In 2013, a small local project aimed at indirectly supporting the education of girls in Sudan took place
  • In 2017, a small local project of renovation and repair of a boys’ school in Khartoum was implemented.
  • In 2020, the provision of humanitarian aid in the form of a financial donation of CZK 5,000,000 to the Sudanese Red Crescent Society due to unprecedented floods

Development cooperation with the EU The EU helps Sudan through a number of financial instruments and development and humanitarian aid programmes. The funds collected in the EU rescue trust fund for Africa are mainly used to help Sudan, which are intended to support the stability of African states and to solve the causes of mass migration. Since 2011, the EU has allocated almost €550 million to save lives of people in Sudan affected by conflict, food shortages and malnutrition, natural hazards or disease outbreaks.

Most EU humanitarian aid in Sudan goes to food aid. The EU also contributes to nutritional treatment and care for children under 5 and pregnant or breastfeeding mothers in Sudan.

Current development cooperation and humanitarian aid programs can be found on the website of the EU Delegation in Sudan www.eeas.europa.eu.

Prospective fields of study (MOP)

The main perspective fields briefly written out from the MOP + a brief comment and below that a link to the entire MOP of the given country.

Where it exists, there is also a sectoral analysis. (Made for some trips of the minister/deputy in cooperation with the University of West Bohemia)

Mining, mining and oil industry

The Sudanese government is trying to map all potential mineral deposits in the country, which, along with oil reserves, remain underexplored. These are mainly precious metals such as gold and silver, but also copper, zinc, iron, manganese or phosphates or kaolin. The Sudanese government is trying to attract foreign investors and is introducing new reforms to make it easier for foreign companies to trade with mined products. These are opportunities in both the public and private sectors. It is Sudanese private companies that can be prospective buyers of mining equipment, as their equipment is quite outdated and competition in the country is still low.

Sudan offers great opportunities for foreign investors in the mining sector. In 2018, Sudan was among the top three gold producers in Africa, with a total annual production of 93 tonnes. The Sudanese government is trying to map all potential mineral deposits in the country, which, along with oil reserves, remain underexplored. These are mainly precious metals such as gold and silver, but also copper, zinc, iron, manganese or phosphates or kaolin. The Sudanese government is trying to attract foreign investors and is introducing new reforms to make it easier for foreign companies to trade with mined products. In 2020, it abolished the monopoly of the Central Bank of Sudan for the export of all mined gold. Fixed market prices led to the proliferation of illegal black market trade. According to the new regulation, a private mining company is allowed to sell up to 70% of the mined gold to its business partners and is required to sell 30% through the Central Bank of Sudan. Sudan aims to become a major mining center in Africa; to achieve it, it is necessary to significantly modernize outdated technologies, attract foreign investors and acquire the necessary know-how for efficient and ecological mining. Marble and limestone have also been mined for several years, mainly in the Red Sea region. The results of exploration work indicate 60 million tons of high-quality limestone reserves. Gypsum is also mined on the coast of the Red Sea, in an annual volume of 20,000 tons for the needs of two cement factories in Atbara and Rabak. Total gypsum reserves are estimated at 500 million tons. There is considerable demand for salt, whose annual production ranges from 100 to 120 thousand tons,

A major problem in Sudan’s mining and oil sector is environmental damage caused by the use of harmful chemicals, such as in gold mining. The large consumption of cyanide results in significant soil and groundwater pollution. To date, there are no qualified environmental entities to monitor mining operations in the country as required by law. The Sudanese government is trying to prevent the negative effects of mining. This presents a great opportunity for Czech companies and professional institutions that deal with the liquidation of environmental damage and already have experience from developing countries. These are not only feasibility studies, but also training, transfer of know-how or installation of the equipment itself.

In the mining sector, Sudan also continues to face high levels of workplace risk. There are frequent accidents or even collapses of gold mines. There is a great demand for expert advice on occupational safety and mine safety technology.

Energy industry

Sudan is preparing large-scale construction of solar power plants to increase energy self-sufficiency. Currently, there are regular power outages lasting several hours across cities. Backup aggregates that can be found in every public building but also in many households are products from the 60s and need to be renewed. There are thus opportunities for Czech companies to supply solar devices, transfer know-how or technical cooperation.

Sudan’s geographic location in the tropics provides an excellent supply of solar radiation, amounting to 6 kilowatt hours per square meter and 10 hours of sunshine per day. Large reserves of the necessary mineral raw materials – especially silicon, especially in the state of Nile, Kordofan and the Red Sea regions – also contribute to the benefit of the development of solar energy. Estimates indicate that Sudan’s current electricity demand is about 3,800 megawatts. The existing electricity supply supplies about 40% of the population and there are problems of insufficient supply of electricity with recurrent outages that last for long hours. The replacement of the existing widespread diesel generators with solar energy for the irrigation of agricultural areas represents not only an increase in energy production but also an increase in the efficiency of the agricultural sector. During trials with small solar panels in the North State, production of food and cash crops increased by 47%, high-value crops such as cotton and watermelon were expanded or introduced, and crop losses due to unpredictable energy shortages were eliminated. Sudan aims to apply this model in other states. This creates opportunities not only for investment by Czech companies, but also for expertise in the transfer of know-how, supply and installation of solar panels, their maintenance and streamlining of the electrical network.

Water management and waste industry

Many rural areas are not connected to main distribution systems and some areas are not supplied with water at all; people have to transport water from great distances. Inefficient distribution, leakage of water from water pipes, lack of power sources, insufficient funds and low qualification of the workforce result in water scarcity and its poor quality. Sudan is currently very interested in feasibility studies that would map the biggest problem areas in the sector and propose solutions for more efficient management of the water system, especially in the capital city of Khartoum.

According to UNICEF data, only 68% of households have access to drinking water sources, and only a third have access to both water and a sewage system. Many rural areas are not connected to main distribution systems and some areas are not supplied with water at all; people have to transport water from great distances. Inefficient distribution, water leaks, lack of power sources, insufficient funding and low qualification of the workforce result in water scarcity and its poor quality, causing serious diseases – more than 11% of child deaths are caused by diarrhea due to poor hygiene conditions. Frequent torrential rains destroy the agricultural land on which the agrarian country depends for its existence. The Sudanese government and international donors are trying to improve the situation in the country, but more fundamental investment and sector-wide reforms are needed.

Manufacturing industry

Sudan is blessed with a very large livestock population estimated at around 140 million head. Nevertheless, there is a noticeable disparity between the number of animals and the output material for further processing or export. Economic waste from hides and skins is high due to poor practices and techniques used in their production, skinning, preservation and processing. Opportunities for Czech companies are therefore found primarily in the supply of higher-quality machines for leather processing, but also in investments in their own tanneries.

Sudan is blessed with a very large livestock population estimated at around 140 million head. Nevertheless, there is a noticeable disparity between the number of animals and the output material for further processing or export. Economic waste from hides and skins is high due to poor practices and techniques used in their production, skinning, preservation and processing. Another challenge is the necessary centralization of the entire leather industry. Most skins are collected in slaughterhouses, communal yards or public markets, where they are then resold to tanneries. The low level of the entire value chain causes inefficient handling of raw materials. Sudan produces more leather than the capacity of the domestic market, a large part of the production is therefore exported with a very low added value of the product. For that reason, the Sudanese government is trying to attract foreign investors who would not only bring the necessary know-how for the modernization of the entire sector, but would also present the possibilities of further processing leather into more valuable products for subsequent domestic sales or foreign export. The textile industry is also one of the main industrial industry in Sudan. Production that annually provides thousand tons of combed cotton yarn, however, is not enough for the growing demand and consumption in the country. The government aims to make existing factories more efficient, build new yarn carding plants, build new textile mills for finished garments and medical supplies. Put into operation factories of spare parts for all types of textile machines, provide related services, training of employees, technical service, etc.

Sudan Trade