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Q: How do you view Sudanese economic condition?
A: I think the Sudanese economic condition has not reached the stage of collapse or disastrous state as some are describing it. However, there is a real crisis in Sudanese economy, which the government is doing its best to overcome. Therefore, the government’s obligations to infrastructure, developmental and service project have not been affected.
Q: In your opinion, what are the causes of Sudanese economic crisis?
A: Certainly, the international financial crisis has overshadowed the Sudanese economy; besides Western sanctions on Sudan, which further aggravated the situation, especially after the secession of South Sudan. As a result, the country lost huge resources, which culminated in increase of inflation by 40 percent and decrease of value of national currency, which is harming the low income class.
Q: That is the tripartite economic plan is based on and aimed at?
A: Estimates show that 95 percent of foreign currency was lost as direct loss of oil revenues in addition to the decline of gross national production (GDP). Therefore, the relief tripartite program was set up for 2012-2014 to handle decline in revenues in foreign currency and general budget resources. The state pumped huge amounts of foreign currency to meet the repercussions of the international financial crisis within the period 2008-2010, and later came amendment to exchange rates due to the exit of oil revenues from the general budget, followed by increase in fuel prices in 2012, import development tax and value added tax (VAT). The tripartite program was aimed at handling this crisis to stop deterioration of economic performance indicators via care about exports such as cotton, gum Arabic, gold, oil seeds, animal resources and leather. Cotton revenues were estimated at $150 million dollars, $110millions for gum Arabic, $.5million for gold, $170million for sesame, while gum Arabic revenues were expected to reach USD80 million. The program was based on achieving a great degree of development rate in addition to bridging gap in resources for general budget, supplying goods, basic services, specially fuels, sugar, drugs, wheat and all supplies. Unfortunately, the program failed and official organs began to call for necessity for amendment to and review of the tripartite relief program.
Q: How can problems regarding the programme be solved?
A: I think taxes and customs were not activated properly therefore taxation umbrella needs to be expanded to include capital taxes on banks and increasing customs on luxuries. It was decided to cut government spending by 25v percent in 2012 via restructuring the government institution but no such a thing has happened, especially regarding spending on security and military apparatuses, whose spending went up due to continuous fighting in Darfur and Blue Nile. The solution lies in continuous spending on developmental project as well as real productive sectors in order to generate further resources and better tap natural resources. There must be a shift to food production, which accounts for 20 percent of income. Genuine efforts are needed to achieve transparency and good governance to integrate in world economy to get out economic isolation Sudan is going through. Also partnerships with Arab and African countries should be enhanced.
Q: How can South Sudan oil be tapped?
A: Once South Sudan oil exportation resumes via Sudan facilities it will help the country get estimated USD2.4 billion, accounting for around 40 percent of budget deficit, which occurred as a result of loss of oil revenues. It will also bridge gap in shortage of estimated 80 percent foreign currency. South Sudan, which is lacking ports, will also benefit in return from Sudan facilities.
Q: Has the new investment law addressed questions related to attracting foreign investment?
A: The law of 2013 represents a unique ideal not only internally but also at international level. It has handled all the shortcomings of the past that accompanied the implementation of the law of 2003 amended in 2007. The new act provides guarantees for investment; besides the establishment of mechanisms and monitoring bodies to enforce the law. It also included introduction of transactions via a unified window to save time and minimize procedures; in addition tax exempt on business profits. Furthermore, a center was established to promote investments in the country and special attorneys. The new investment act provides protection of investments from nationalization, confiscation as well as confiscation of real estates.
Q: Will external economic conference aimed at resuscitating Sudanese economy be a success? A: The conference which was held in Germany was fruitful. There was also a meeting with French and Moroccan businessmen last December, in addition to efforts by our embassies to attract additional investments by amending the laws so that they are in harmony with activities being carried out. There also have been efforts to gain the membership of World Trade Organizations. All these moves have contributed to breaking international isolation imposed on Sudan. A progress was made in foreign investment that accounted for 12.3 percent in the mid of 2012. Q: How transfers by expatriates can be exploited?
A: According to some statistics, there are more than two million Sudanese nationals are working abroad in various occupations, 90 percent of them are in Saudi Arabia, whose transfers to other foreign countries amount to estimated USD5billions and USD1.7 billions to Sudan. If the recommendations of the conference on immigration held in Khartoum are adopted, said transfers to foreign countries can be used in domestic investment via facilitating measures, increasing exchange rate, tax cut, in addition to granting a Sudanese expatriate a car and a house in case they decide to return to the homeland for good.
Q: How immigration is affecting development in the country?
A: In fact the country has no capabilities to absorb all university graduates estimated at two million persons. Therefore, I think it is wise to provide proper training for such groups so that they are able to land decent jobs abroad to support their families and the same time the country can capitalize on foreign currencies from their transfers. The state has to secure jobs for them via establishing focal points at the embassies and attaches like many other countries do to secure lucrative contracts and care for them. I am of the view of easing immigration measures so that economic emigrants can improve their living standards.
Q: How do you look at ongoing random gold mining in Sudan?
A: This very complicated issues because mining has become attractive to traditional miners. Gold constituted 1 percent of gross domestic production (GDP), but after loss of oil revenues there has been remarkable shift to gold mining to make up for the loss. At the moment gold revenues account for 63 percent out of total exports due to exodus of oil revenues from the general budget.
On the other hand, traditional mining has brought about many social and environmental problems in additional to lamentable interpersonal disputes some of which resulted in deaths in some regions where this kind of mining is taking place. The Central Bank of Sudan has intervened to ensure marketing and encourage production as major gold purchaser to benefit from foreign currency to supply petroleum and consumer goods. This intervention led to regulating gold business in Sudan. In my opinion, the Central Bank has not jurisdiction to meddle in gold purchase, but should set up policies for allowing opportunities for private sector in accordance with liberalization policy. Such uncalculated intervention has cost the bank great loss thus prompted it to reduce buying gold from traditional miners, which eventfully harmed the producers themselves.
Q: What do you make of liberalizing prices and increasing tax and customs?
A: Islam permits liberalization in purchase and sale, but prohibits extravagant profit, usury and monopoly. Prices are hiking by 100 percent, which is harming persons of limited income. Therefore, the government decided raise pay and wages in a bid to alleviate suffering. I called for further pay raise and pensions so that liberalization policies do not harm civil servants. Tax and customs constitute 95 percent of general budget. I am for increasing customs and tax on luxuries in favor of public basic services.
Q: Why do think agriculture has deteriorated?
A: I think the focus shifted to oil after exploring petroleum in the country; in addition to spending on agricultural operations. Now the government has embarked on agricultural reforms, which is in want better management of human resources and resolving land disputes.
Q: What are the challenges to Sudanese economy and your recipe for uplifting?
A: Sudan’s economy is faced with mounting challenges manifested in supply of foreign currency, ongoing spending on war in Darfur, Blue Nile and South Kordufan, economic sanctions on Sudan; in addition to strategic goods such as sugar and wheat which are costing the state huge amounts of hard currency; reducing present inflation that has gone up by 40 percent; foreign debts, failure of a tripartite relief program, recession, monopolization by the central bank and curbing other banks from entering into major projects. As for industry, there is a need for injecting capitals in sector and encouraging agricultural and processing industries such as dried onion and fruits canning. Q: Gum Arabic has notably declined over the past years. How Sudan can regain control on gum Arabic production? A: The radical remedy for the ongoing problem of gum Arabic simply underlines taking action to prevent smuggling and encouraging producers to employ modern technology; in addition to indigenizing packing process to satisfy growing international demand; and most importantly seeking new markets in East Asia and China.
By Ibrahim Al-Jack | 
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