This paper talks about the effect of the US sanctions that were imposed on the Sudanese government by the US in the late nineties of last century It was prepared for the European Union office in Sudan

1. The Effect of the
American Sanctions
on
Sudanese Industries
By:
Eng. Mohamed Suliman
MBA – Project Management
Member of the Foreign Agreements Secretary
Sudanese Businessmen Federation

2. • The US government first imposed sanctions in 1997, after they
found that:
“the policies and actions of the Government of Sudan, including
continued support for international terrorism, ongoing efforts to
destabilize neighboring Governments, and the prevalence of human
rights violations, including slavery and the denial of religious
freedom, constituted an unusual and extraordinary threat to the
national security and foreign policy of the United States”.
• These sanctions were designed to restrict foreign investment,
ban defense exports and sales, and terminate commercial
activities between the two Countries.
Overview Of US Economic
Sanctions

3. • There were further sanctions imposed in relationship to Darfur in 2006.
• These were designed to maintain economic sanctions against the government
of Sudan while allowing relationship with the Southern regional government
established after the Comprehensive Peace Agreement was signed.
• These sanctions, US EO 13412, were also designed to especially hit Sudan’s
petroleum industry.
• The current number of Sudanese companies blacklisted by the American
government now comes to 160.
• One of these companies is GNOPC, the consortium responsible for most of
the oil production in Sudan.
• Equally, these sanctions singled out members of al Bashir’s government –
Ahmed Haroun, the state minister for humanitarian affairs, and Awad ibn
Auf, the country’s director of military intelligence – for directed personal
sanctions.
Overview Of US Economic
Sanctions

4. The industrial sector is composed of the following sub sectors:-
1. Food Industries
2. Spinning And Textile Industries
3. Leather Industries
4. Chemical And Pharmaceutical Industries
5. Oil And Soap Industries
6. Engineering Industries
7. Building materials and refractories
8. Printing and packing
9. Mining & Petroleum
10. Telecommunication
11. Transportation
Activities of the Industrial
Sector

5. 1/ Food industries sub -sector:-
• This is a principal sector in the country considering its
necessity and it's linkages with the agricultural sector,
which represents the backbone of the Sudanese economy.
• Available capacities are very high and can supply the
requirements of the local market with surplus for export.
Activities of the Industrial
Sector

6. 2/ Textile Industries sub sector:-
• Considering the availability of raw materials (cotton)
textile industry has emerged in the country.
• The total capacities of spinning 59 thousand tons, textile
300 thousand tons million yards and 21 million pieces of
ready-made clothes.
Activities of the Industrial
Sector

7. 3/ Leather Industries sub- sector:-
• Leather can be considered as one of the important economic sub- sector
oriented for export. Animal wealth of the country is estimated at 125
million heads of cattle, sheep, goats, camels,…etc. The raw hides and
skins are distinguished by hard fibers and consistent texture.
• The available infrastructure is composed of about 20 tanneries (large,
intermediate and small) having design capacity of about 15 million
pieces of sheep and goat and about 3 million pieces of cattle hides.
• The sector is also distinguished by high install capacity for production of
leather products and in particular leather shoes to about 17 million pairs
of leather shoes.
Activities of the Industrial
Sector

8. 4/ Chemical and pharmaceutical Industrial Sector:-
• This is a large sector and includes a number of important
products such as:
• Tires,
• Batteries,
• Matches,
• Plastics,
• Pharmaceuticals and
• Medical gases and
• Paints
Activities of the Industrial
Sector

9. 5/ Oil and Soap Industries sub- sectors:-
1.Soap Industry: -
Soap industry is distinguished by high range of manufacturing
capacities estimated at 520 thousand tons washing soap, 40 thousand
tons powder, 20 thousand tons toilet soap which can supply all the
demands of the country and also and there is surplus for export.
2. Oil Industry:-
Installed capacity of is estimated at about 3 million tons and can deal
with cotton, seeds, sunflowers, sesame and peanuts and groundnuts, etc.
Activities of the Industrial
Sector

10. 6/ Engineering industries:-
• It represents an important sub-sector in the economy and
included basic industries such as foundries, spare
parts, refractories, metal products and Corrugated sheets.
• The installed capacity of this sector is estimated totally at 250
thousands tons a year.
• In addition, there is a factory for cars, tractors and agricultural
equipment assembly.
Activities of the Industrial
Sector

11. 7/ Building Materials:-
• This sub-sector distinguished by the abundant of its raw materials.
Natural marble is available in abundant and granite with capacity of 9
square meters yards also available in the country.
• Portland cement is manufactured in 5 factories with a capacities up to
800 thousand tons a year, now there are some exports to neighboring
countries.
• Ceramic industry had also started in the recent years and now there
are two big factories producing tiles for the local market
Activities of the Industrial
Sector

12. 8/ Printing and packing sector: -
• This sector that feed other sectors with their requirements
of packing materials along with feeding the open market
with all needed printed material from books to other
stationary related printed material.
Activities of the Industrial
Sector

13. 9/Mining and Petroleum:-
This is the biggest industry in Sudan divided into two sectors:
• Mining: After the discovery of big reserves of gold and other
industrial chemicals raw material mines a big attention had been give
to this sector and a lot of investment is now drawn to this sector
• Petroleum: This is the main source of revenue for the government
and a promising sector though it was affected by the separation of the
South of Sudan but still Sudan have its own resources and there is
still of exploration which is going on, also the pipe line which was
constructed is still the best way for the South of Sudan to export its
crude oil
Activities of the Industrial
Sector

14. 10/Telecommunication:-
• Though it is not an industrial activity, but it can be considered
an industry and a the same time it is a main service that affects
the industrial sector
• Sudan have 4 operators, three of which are providing mobile
services while two provide fixed terminal services, all
operators provide internet services
• The sector is the biggest in the size of investment and labor
contribution to the economy after the petroleum sector
Activities of the Industrial
Sector

15. 11/Transportation:-
Same as Telecommunication, though it is not an industrial activity but it is a main service
that is defined as industry, it consist of three main activities:
• Road Transportation
• Air Transportation
• Water Transportation
This is a field where there is a lot to be done as it depends on the countries’ strategy on
development as it needs a lot of infrastructural support such as roads, ports and airports to
support the development of such sectors
This sector highly affect the costing of all other sectors as all are transporting something
to somewhere , the sector have developed in the road transportation capacity but not
distance travelled, the water transportation and air transportation are still to develop more
Activities of the Industrial
Sector

16. Sector Membership
Food Industries 990
Spinning And Textile Industries 112
Leather Industries 152
Chemical And Pharmaceutical Industries 182
Oil And Soap Industries 295
Engineering Industries 1190
Building materials and refractories n/a
Printing and packing 190
Mining & Petroleum 675
Telecommunication 4
Transportation n/a
how big are they?

17. Banking
transactions
Exchange rate
losses
Import Export Services Technology
Engineering Industries x x x x
Textile x x x
Leather & Footwear x x x
Food industries x x
Chemicals & Pharmasutical x x x x x
Oil & Soap x x x
Printing & Packaging x x
Plastic & Paints x x
Telecommunication x x x x
Mining & Petrolume x x x x x x
Transportation x x x x x
effects on Sudan's
various industries

18. The most affected sectors are:
• Petroleum and mining
• Chemicals and Pharmaceuticals
• Transportation
• Engineering Industries
which ones are affected
most?

19. • The EU and the Gulf countries though they are
not imposing sanctions they have an undeclared
boycott or un-willingness in cooperation to avoid
American reaction same as what happened to
BNP Paribas when discovered helping Sudan in
transactions
Side effects

20. • The main components of the effects are:
- Transaction – Using other currencies
- Exchange rate – Doing deals with fixed currencies
- Export – alternative markets (Africa, Asia and Europe)
- Import – alternative markets (Africa, Asia and Europe)
- Services – alternative suppliers (Asia and Europe)
- Technology – alternative suppliers (Asia and Europe)
which ways out do and
can industries find?

21. THANK YOU