Due to armed conflicts in Sudan, once the largest country in Africa, its economy is in disarray, with a projected shrinkage of 28 percent in 2024. The one-year-long civil war has inflicted significant damage to infrastructure, public facilities, and properties nationwide. Sudan’s economy primarily relies on agricultural exports, mining, and manufacturing, with the industrial sector serving as its backbone, albeit relatively small.
Due to armed conflicts in Sudan, once the largest country in Africa, its economy is in disarray, with a projected shrinkage of 28 percent in 2024. The one-year-long civil war has inflicted significant damage to infrastructure, public facilities, and properties nationwide. Sudan’s economy primarily relies on agricultural exports, mining, and manufacturing, with the industrial sector serving as its backbone, albeit relatively small.
Food and beverage processing dominates the industrial landscape, with major industries including petroleum oil refining, sugar production, vegetable oil processing, cotton ginning, textiles, cement, and chemical fertilizers. Sugar production, led by the renowned Kenana Sugar Factory, which boasts an annual refined sugar capacity of 400,000 tons, stands out as a key industry. However, due to the civil war and outdated machinery, sugar production is on a steep decline despite Sudan’s possession of five sugar mills.
Sudan’s abundance of natural resources, including petroleum, gold, minerals, and agricultural products, contributes significantly to its economy. The country ranks third in gold production in Africa and is the world’s top producer of Arabic gum, exported globally, notably to the United States. Karkade, derived from dried Hibiscus flowers with medicinal properties, also enjoys a robust export market. Additionally, Sudan exports petroleum, cotton, metals, precious stones, and electricity, facilitated by projects such as the Merowe Dam and Hydroelectric Power Plant, a major hydropower venture exporting electricity to neighboring African nations.
Sudan holds significant potential for expanded trade with Pakistan, far surpassing the current trade volume of $242 million. Opportunities abound for Pakistani exports, particularly machinery and equipment for sugar, cement, chemical, and petrochemical plants, as well as various light engineering goods such as tractors, agricultural implements, and mining equipment. Despite internal conflicts, Sudan is committed to extensive reconstruction and industrialization, presenting new avenues for trade and economic collaboration.
Reflecting on past engagements, during President Omar al-Bashir’s tenure, Sudan and Pakistan enjoyed a special relationship, marked by educational exchanges, investments, and industrial cooperation. However, subsequent years saw a lapse in furthering these ties, neglecting a crucial market for engineering goods in Africa. Pakistan imports from Sudan in 2022-23 amounted to $ 211 million and exports to Sudan only $ 31 million, which does not reflect the true export potential.
There are identified opportunities for export of Pakistani machinery and equipment for sugar, cement, chemical and petrochemical plants. A variety of light engineering goods are also required such as tractors, agricultural implements, irrigation pumps, machine tools, power transformers, electricity transmissions, mining equipment, air-conditioning equipment and domestic appliances. Pakistan exported industrial and electrical machinery valuing $ 973,070 in 2021-22.
Many years ago, the writer visited Sudan as a member of the government delegation and had fruitful meetings with the Sudanese ministers for industry, commerce, planning and defence, and also received a message from President Omar al-Bashir who had studied in the Pakistan Army’s Command and Staff College at Quetta for the Prime Minister of Pakistan. During this period many Pakistani engineers and technicians were working in sugar and textile industries there. We could finalise orders for the supply of equipment and spares for sugar and cement industries, pumps, railway equipment, and electric cables valuing $ 10 million. This was a major breakthrough in exports of engineering goods to Sudan rather than to Africa. Sadly there was no follow up in subsequent years to further develop trade relations as Pakistan simply ignored for many years this important market for engineering goods.
The Khartoum International Trade Fair is a premier event for industry professionals as it brings together exhibitors from all over the world to showcase the latest industrial, agricultural and IT machinery and equipment. The Fair, which is held every year in January, thus provides an excellent opportunity to explore Sudan’s trade and investment potential primarily in energy, mining, and construction sectors.
As Chairman SEC the efforts were made by the writer during President Musharraf period to avail possibilities for export of engineering goods to Sudan and the response of the Sudanese ambassador to Pakistan was very positive. He suggested Pakistan to effectively participate in the forthcoming Khartoum International Trade Fair. During a subsequent meeting with the Minister for Commerce, who was holding additional charge of the Ministry of industries and Production, the Sudanese ambassador invited him as chief guest at the Fair. The suggestions were accepted, and a summary was prepared for the approval of a business delegation to visit Sudan led by the Minister.
However, there was no further development, and the Fair date was getting close, and the Sudanese ambassador, who had to travel with our minister, had made arrangements for the chief guest from Pakistan. When continually persuaded by the writer to confirm his visit to Sudan, the minister in charge of industry, trade and exports, and a prominent businessman himself, said: I have better places to go. And indeed, he did. To the entire Western states but not a single country in Africa.
As Africa remains the most potential export market and geo-strategically a significant part of the world, Pakistan is now developing deep relations with many African countries. Trade Development Authority of Pakistan (TDAP) now participates almost on a regular basis in the Fair having secured export orders valuing $ 5 million in 2021 Fair. It is however imperative that Pakistan takes concrete steps In terms of policy measures as well as through providing institutions to tap optimally export potential for engineering goods, particularly in Sudan to ensure sustainable trade relations and mutual economic growth.
The writer is a retired chairman of the State Engineering Corporation.
