August 19, 2017

Sudan Economy

Sudan Economy

Introduction:

Since independence Sudan economy had suffered continuously from a lack of resources and great natural wealth by which it was characterized , and also one of the wealthiest country in the world , and the ….. the Salvation revolution came to set concepts for economy plans and programs that shall make changes in Sudan real economy , and to … energies , the unemployed capabilities , and to push the production steer in all domains . It was a great and complicated task, but from the beginning, the revolution pledging that the people will support its programs that yielded from the results and decisions of (The Dialogue Conference) which includes the most educated and experts. Then the government starts applying these decisions practically. So the Sudanese people had bearing in order to stop the aids calling

The Tripartite Program (1990-1993):

Strategic planning level – as outline in the Comprehensive National Strategy (1992-1993), and the quarterly strategy (2006-2013). The tripartite program had focused initially on moving the … economy and direct it towards the production since it was a salvation program. So it directed to mobilize resources and   assuring the contribution of banks institutions in development, particularly in agriculture, and to be consider of administrative and structural reforms. Prioritizing on issues of peace, security and defense. And to be self-dependence in financing such project s, after the suspension of international aids, and seeking towards freeing the economy. Then came the stage of strategic planning which was done via the recognition of the Comprehensive National Strategy (1992-2002) which determine the most important objectives of economic plans representing in: stabilization of the national currency value internally and externally, achieving a positive and realistic growth rate in the Gross Domestic Product (GDP), decreasing the inflation rate , and to complete the required arrangements for self-sufficiency from oil , and to start its export .

This polices entail amendments in the structure, financial laws and tax reforms. So investment Act   and financial laws were issued, introducing the Value Added Tax (VAT), to follow a strict monetary rules such as: to ban the banks from exceeding their financial capability, binding them to keep up the legal reserve (15-20%) , decreasing the minimum rate of profits margin in order to encourage investment and encourage the flow of foreign exchange , and to provide foreign currencies through formal channels .

Through such polices, Sudan begins arranging its position with the international institutions, and paying the accumulation debts, establishing portfolio to finance agriculture by which the mainstream of Sudan economy based. The Investment Act was successes by the facilities provided for attracting investors from Europe, Turkey, Southeast Asian countries, and some Asian Arab countries. All these leads to a clear improvement in the economic performance representing as follows:

  • The strictly monetary polices had contributed in reducing the inflation rate to 15.5% by the end of 1999, then decline to the average 7%.
  • The exchange rate of Dinars/ SD had witnesses a noticeable stability .
  • The growth rate of the Sudanese economy had transferred from the negative to the positive it reach 8% as the highest rate in the region.
  • The export volume had increased due to the entrance of oil export in the list of the Sudan export.
  • In the domain of national development, the expenses on greater projects, such as the operation of exploring oil, increasing the agricultural arable lands, education, recon structuring the infrastructure of irrigation, electricity, and roads utilities. some of the achievement : exploitation of oil wealth , establishing Sarya Industrial Complex , Giad City for Heavy Industries , Merwi Dam , Roads and Bridges , development of communication and banks techniques , since then the achievements …
  • Considering Sudan economy begins to recover , a national economic program was implemented to cover periods (2001-2007), includes the following :

–          To concentrate on improving the living standards of citizens, and combating unemployment and poverty.

–          The countries refrain from the service and production activity in favor for the private sector with providing guarantee.



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