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ECONOMY AND COMMERCE SECTOR
Introduction: The Sudanese economy, like other economies, is classified as underdeveloped since it depends on the production of raw materials and primary goods specially agricultural commodities which depend on the primitive means with the existence of a wide traditional sector and small modern one that both depend on imports for provision of agricultural and industrial inputs. The Sudanese economic problems had been aggravated in the 1980s because of the increase of the Sudan's foreign debts, the depreciation of the national currency against hard currencies and the decline of the agricultural export revenues specially the main cash crops. The Sudan economy had suffered external blows top of which was the deterioration of commercial exchange conditions, surge of energy price and the influence of the International Monetary Fund's policies which led to soaring inflation which in turn caused a wide gap between the prices and incomes. The IMF's policy had also caused and aggravated a deficit in the trade balance. Under these situations, the successive governments adopted various policies to contain the crisis. Since its outbreak in 1983, the war in the South had been worsening the severity of the economic crisis. The last democratic government (1986-1989) adopted an economic policy aiming at halting the economic deterioration, rehabilitating the large-scale projects and stopping dealing with the International Monetary Fund. Thereof, the government actually rejected an IMF's plan proposing structural adjustment. Instead, the government presented a four-year programme which was encountered by many drawbacks top of them was the political instability arising form the differences among the political parties themselves, the continuation of the southern Sudan war and weakness of the national infrastructures. The four-year economic programme was recommended by an economic conference held in 1986 in which experts and economists had taken part along with political sectors.
THE ECONOMIC RECOVERY PROGRAMME: President Omer Al Bashir's government came to power amid sharp internal crises top of which was the economic issue, therefore, the new government adopted several policies to resolve the economic problem through a temporary and decisive handing in the first months of its coming to power in 1989. One of these policies was the pricing of commodities and services, imposition of taxes and customs on the commercial activities, combating inflation and restricting the dealing in the hard currencies. These policies were followed by a three-year economic recovery programme (1990-1993) which came in accordance with the recommendations of the Economic Salvation Conference organized in October, 1989, which decided the objectives of the three-year economic programme in the following points: 1 - Revitalizing the Sudanese economy with a focus on agricultural development. 2 - Mobilizing of the domestic and other available energies and opening the door before the national and foreign participation (private investments). 3 - Adopting economic, financial and institutional restructuring. 4 - Creating a social balance so that the economic reactivation should not be on the account of the low-income sector. 5 - Furthering the Islamization of the governmental and non-governmental banking system, insurance companies and expansion of zakat (alms) levying. In compliance with the programme's recommendation, several policies and a procedures were adopted: First: In July 1990: 1 - Continuation and restriction of deficit founding on development only. 2 - Introduction of commercial pricing system for subsidized commodities and the adoption of free-foreign exchange market policy. 3 - Privatization of public institutions and that their ownership should go to either national or foreign private sectors. 4 - Full liberalization of agricultural products and gradual liberalization of agricultural products and gradual liberalization of prices of imports. 5 - The increase of revenues and the cutting of the government's expenditure by freezing employment, encouraging optional retirement, leave without pay and paying due concern to taxes especially direct taxes as well as the expansion of the consumption tax scope. Second: In May 1991: Another measure was declared in May, 1991, involving change and replacement of the national currency with new one. In October, 1991 the government approved a new Sudanese pound's exchange rate policy against the other hard currencies. Third: In October 1991: The government ratified another policy in October, 1991, devaluating the Sudanese pound and two exchange rates were introduced, one was an official rate and the other was an encouraging one. Fourth: In February 1992: In February, 1992, the Sudanese pound's exchange rate was totally liberated against the US dollar and that the banking system was entrusted with determining the exchange rate for the state's dealings along with liberalizing all prices, lifting subsidy from bread, fuel and sugar, raising the minimum wages and giving the Government's employees a monthly grant ranging between 60-150 Sudanese pounds. Fifth: In May 1992: In May, 1992, a 10-year National Comprehensive Strategy (NCS) was passed (1992-2002) comprising economic and social planning at all the productive and services sectors level. The strategy included an economic liberalization measures represented in cancelling of all restrictions on foreign exchange dealings, approval of complete prices liberalization, salvage of the national currency, and the privatization of the different economic sectors by turning their ownership or private sector. The NCS has decided the economic performance goals in the following : 1 - Redoubling of the national income. 2 - Guaranteeing an equal income distribution. 3 - Guaranteeing of national currency stability. 4 - Increasing of the volume of the foreign commercial exchange. 5 - Increasing the investment volume at rates that go in line with targeted national income. 6 - Funding the government's expenses in a way that coup with the economic growth goals. 7 - Increasing the insurance volume tenfolds. 8 - Redoubling the banking units cheques 50 folds. 9 - Levying zakat (alms) from financers and expanding sources of insurance and solidarity official funds. 10 - Redoubling investment and saving deposits 60 folds. Sixth: In July 1992: In July, 1992, the government issued a policy regulating the foreign and local currency as follows : 1 - Cancellation of customs declaration of foreign currencies when entering or leaving the country. 2 - Encouraging imports through non-supported credits. 3 - Raising the cost of funding to attract savings with high proceeds for depositors. 4 - Allowing possession and dealing in hard currencies within the banking system only. 5 - Allowing the transfer of hard currency within the banking system from one client's account to another's. 6 - Confining the Free Market Company's dealing in hard currencies on passengers and diplomats only. 7 - The policy approved any amount of the Sudanese currencies freely go outside the country or come in without restrictions. Seventh: In August 1992: 1 - The production of the Sudanese crude oil has commercially started at Abu Jabra field, Al-Mujlad, Western Sudan along with a refinery producing 60 barrels a day. This amount meets 10% of the domestic actual needs. 2 - The International Monetary fund (IMF) had welcomed the government economic measures and stressed readiness to provide technical assistance to Sudan at local level. The 1992-1993 budget, the first budget after the elapse of the three-year programme, has come in compliance with the National Comprehensive Strategy's directives as the economic growth rate was starting to increase positively till it reached 13.1% by the end of three-year programme. From the economic view and regarding it as a foundation, the 1993-94 budget opted for realizing a self-reliance policy. The Bank of Sudan issued the financing policy for 1996 on December 31,1995 to start on January 1,1996 and to be valid up to the end of December, 1996. The financing policy for 1996 was intending to serve the objectives of the state's economic plan which aimed at achieving a self-reliance and boosting production and productivity rates to reduce the high inflation and stabilize the exchange rate and prices. Accordingly, the policy targeted attaining a gross rate of 7% and reducing inflation to 30% by the end of 1960. The Aims of the Declared Financing Policy: They include realizing the National Comprehensive Strategy's objectives, achieving the macro-economic goals at the different levels including sectors development, reduction of inflation, stabilization of exchange rate, development and mobilization of resources, realization of fair income distribution, helping banks to adjust its situation in accordance with requirements of banking laws for 1991, boosting islamization of banking system and handling of banking unpaid debts. The financing policy has given priorities to agricultural sector, imports, transport, and storage, housing estates sector, medicine imports and raw materials for drug manufacturing, selling and purchasing shares registered to Khartoum Stock Exchange. According to the financing policy, clients are forbidden to receive funding, to deal in purchasing hard currencies or buying shares from the Khartoum Stock Exchange or funding hard currencies exchange offices. For the regulation of Bank liquidity, the financing policy has fixed the bank' Monetary reserve to not less than 25% out of the over all deposits (current and saving deposits) and that the banks are decided to preserve an internal liquidity of not less than 10% out of the total current and saving deposit. Moreover, the Central Bank has given licenses to exchange companies to deal in selling and buying hard currencies and obliged these companies to keep the selling and buying vouchers documented by the stamp duty administration at the taxation chamber. Regarding the importation policy, craftsmen requirements, electricity generators, children food were annexed to the imports list. Objectives of the Ministry: 1 - The National Economy: To provide national leadership for mobilization of the national Economy through optimal utilization of indigenous resources for the attainment of financial self-sufficiency, economic stability and Socio-economic development. 2 - Financial Management: To soundly manage national finances through appropriate fiscal and monetary policies and programmes for achieving maximum revenue and regulating expenditure resulting in greater financial stability and national economic growth. 3 - Custody and Accounting of Public Funds, Monies and Assets: To effectively fulfill the role and responsibilities of custodian of public funds, monies and assets of the government of Sudan. Maintaining proper records of all accounting transactions and producing statement of national accounts. 4 - Integration of Overall Economic and Financial Planning and Development at National Level: To provide sound national leadership and an effective Machinery for Coordination and Integration of Economic and Financial planning and development Related Policies and Programmes at national sector and state levels. 5 - External Finance and Economic Cooperation: To actively liaise with regional and international agencies, governments and other non-governmental organizations with a view to promote and strengthen economic and social cooperation between Sudan and other countries of the world for mutually beneficial socio-economic development. 6 - National investment policy and strategy: To provide a sound national strategy, policy buildings and propagate incentives for encouraging greater local and foreign investment in priority sectors. targeted for rapid socio-economic development. 7 - National Statistics and Socio-Economic Data Bank: To develop and maintain an effective national integrated information system through which data and statistics are collected, safe-guarded and retrieved for national socio-economic development planing and for operational and policy related decision making.
Some Economic Indicators 1996 - 1997
Some Social Indicators
Ministry of Finance and Economy Consists of the following directorates: 1 - Directorate General of Fiscal Management and Budget. 2 - Directorate General of Macro Economic Policies and programmes. 3 - Directorate General of External Finance and Economic cooperation. 4 - Directorate general of ministry management. 6 - Other technical units such as central purchasing, salvage assets, central stores, computer center, security office. 7 - Directorate General of Taxation. 8 - Directorate General of Customs and Excises. 9 - The Central Bureau of Statistics. Addresses: Nile Street Khartoum - Sudan P.O. Box 298. Fax : 249-11-776081 Dr. Abdel Wahab Osman-The Minister Tel. : 249-11-777563 Fax : 249-11-770576 Dr. Sabir M. Hassan- State Minister Tel. : 249-11-774570 Fax : 249-11-770282 Dr. Izzadin Ibrahim Hassan- State Minister Tel. : 249-11-770917 Fax : 240-11- Abu Bakr Yehia Elfadli -State Minister Tel. : 249-11-771619 Fax : 771983 Dr. Hassan Ahmed Taha -Under Secretary Tel. : 777003
Name : Dr. Abdel Wahab Osman Sheikh Musa Born in 1936. Graduated in U. of Kh. 1961 B.A. Employed in Min. of Finance May 1961. in 1964 diploma Course in ISVE in ITALY in Economic Planning. 1971 Ph. D. Economics Charles University, Brague, 1973-1975 Sudan Gov. Purchasing Agent, London, 1975-1976 Director of Procurement Department, 1976-1977 Director of Budget, 1977-1981 Under Secretary Min. of Finance Jan. 1981 - June 1082 Minister of Finance Northern Region. 1982-1986 Private Business. 1986-1989 Member of Constituent Assembly, 1988-1989 Minister of Industry, 1989-May 1996 Private Business and Chairman of Board of Directors Al Shamal Islamic Bank, From May 1996 till now Minister of Finance and National Economy. Father of 2 sons and 4 daughters.
Name: Sabir Mohamed Hassan Current Position: State Minister, Ministry of Finance Address: Ministry of Finance, P.O. Box 298 Telephone: Office 774570, Residence 445665 Place and Date of Birth: Dongola, Sudan, January 1945 Undergraduate Studies: * Urbi Elementary School, Urbi, Dongola, Sudan 1952-1956. * El Golid Intermediate School, El Golid, Sudan 1956-1960. * Wadi Sayedna Secondary School, Omdurman, Sudan Faculty of Economics,1969-1964 University of Khartoum, Sudan, 1964-1968. Academic Qualifications: * B.Sc. Economics, University of Khartoum, Khartoum, Sudan - 1968. * Special Diploma in Commercial Law, University of Khartoum, Khartoum 1974. * M.A. Economics, Syracuse University, Syracuse, New York 1978. Ph. D. Economics Trade and Development Financing, Syracuse University, Syracuse, New York, 1982. Experience and Training: Financial Inspector, Export Section. Exchan Control Dept. Bank of Sudan, 1968-1971.
Research Work and Articles:
Money Supply and Inflation in the Sudan, 1970-1981, (Co-author), Economic Research Dept. Bank of Sudan, Khartoum Sudan, 1983.
Voluntary Social and Religious Activities: Secretary General, Islamic Society of Upstate Mew York, 1978. President of Dar Al-Higrah Mosque Washington, D.C., 1985-1986.
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