Sudan. A. Definitions and sources of data

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1 Sudan A. Definitions and sources of data The Bank of Sudan collects data on FDI inflows into the country. FDI data are also reported by the International Monetary Fund in its balance-of-payments statistics. In Sudan, the Encouragement of Investment Act, 1990 (1990 Act No. 64) defines foreign direct investment (FDI) in the context of "invested capital". In the Act, invested capital means, among others, the foreign exchange transferred through one of the banks, registered with the Bank of Sudan, and used in the establishment, operation, modernization, rehabilitation or expansion of the project; the local exchange which is discharged with on the approval of the bodies concerned, to meet obligations in foreign exchange due for payment to the investor, where it is used to establish, operate, modernize, rehabilitate or expand a project; machinery, equipment, apparatuses, materials and other requirements, imported or local means of transport for the establishment operation, modernization, rehabilitation or expansion of the project, in accordance with the provisions of section 23 (4)(g); intangible rights, used in the projects, such as patents, studies, and otherwise, provided that such rights shall be registered, in accordance with the provisions of the law pertaining to each and owned by the investor or he is licensed to use the same by the person who owns the same; profits realized by the project, including those liable to transfer abroad, if used to complete or augment the capital of the project, or invested in any other project. To support growth, reduce the drain on public finances and fund infrastructure development projects that remain beyond the reach of its own resources, the Government has sought to draw foreign capital into areas of the economy that were previously reserved for the state, and has committed itself to privatizing state-owned enterprises. The divestment programme actually began in the early 1990s, with the passage of the Privatization of State Corporations Act in 1992, which earmarked 190 public corporations for sale. Although 17 public corporations were sold during Phase 1 ( ), the privatization programme failed to build momentum, and the planned high-profile sale of several key assets, including the National Electricity Company and Sudan Airways, has failed to materialize. Other, smaller sales have taken place in recent years, such as the divestment of the Atbara cement factory in late 2001, and the privatization of the Sudan Duty-Free Zone Company and the Bridges and Road Corporation in the second half of The recent focus for investors is in the oil industry and foreigners have played a leading role, funding the building of upstream resources, construction of industry infrastructure, including the export pipeline, and downst ream facilities such as the new al-jeili refinery. In March 1997 Canadian firm, Arakis signed a consortium agreement with the China National Petroleum Corporation (CNPC), the Malaysian state oil company, Petronas, and the Sudanese stateowned firm, SudaPet, forming the Greater Nile Petroleum Operating Company (GNPOC). A number of other TNCs including a Swedish company, Lundin Oil, is operating the industry, in partnership with Petronas, OMV of Austria and SudaPet in line with an exploration and production sharing agreement. Gold is also mined in Sudan, largely in joint ventures with Chinese or French companies. Reserves are estimated at 37 tonnes and are concentrated around the Red Sea Hills. Sudan equally has untapped deposits of minerals, including chromite, silver, iron ore, copper, lead, mica, asbestos, talc, tungsten, zinc, diamonds and uranium.

2 The Sudanese Government had traditionally participated in the regional integration schemes both at the sub-regional and regional levels. As of the end of the 2003, the country belonged to several of the existing bodies such as the Inter-governmental Authority on Development, League of Arab States, Common Market for Eastern and Southern Africa countries, the African Union and the New Partnership for African Deve lopment.

3 B. Statistics on FDI and the operations of TNCs

4 Table 1. Summary of FDI Variable Inward Outward 1. FDI flows, (annual average) FDI as a percentage of GFCF, , (annual average) FDI stock, FDI stock as a percentage of GDP, Source :Based on tables 3, 4 and UNCTAD, FDI/TNC database.

5 Table 3. FDI flows by type of investment Table 3b. FDI flows, by type of investment, Inward investment Outward investment Intra- Intra- Reinvested company Reinvested company Year Equity earnings loans Total Equity earnings loans Total Source : Central Bank of Sudan. Inward investment Outward investment Intra- Intra- Reinvested company Reinvested company Year Equity earnings loans Total Equity earnings loans Total Source : International Monetary Fund, Balance of Payments CD ROM, August 2003.

6 Table 4. FDI stock, by type of investment Inward investment Outward investment Intra- Intra- Reinvested company Reinvested company Year Equity earnings loans Total Equity earnings loans Total Source: UNCTAD, FDI/TNC database. Data are estimated by accumulating flows since 1970.

7 Table 6. FDI flows in the host economy, by geographical origin, Economy Belgium / Luxembourg France Malaysia Sweden United States Note: data based on investor data.

8 Table 9. FDI flows abroad, by geographical destination, Economy Belgium / Luxembourg China France Saudi Arabia Note: data derived from recipient countries. Table 11. FDI flows in the host economy, by geographical origin, Economy Czech Republic Germany Malaysia United Kingdom United States Note: data based on investor data.

9 Table 21. The number of home-based TNCs in the United States, Economy United States Note: data derived from recipient countries. Table 23. The number of foreign affiliates in Sudan, by geographical origin, Economy Germany Italy United States a a Majority-owned affiliates of Home-based TNCs Note: data derived from source (investing) countries. Table 28. Assets of United States affiliates in Sudan, Economy United States Note: data derived from recipient countries. Table 30. Assets of the United States affiliates in Sudan, Economy United States a a Majority-owned affiliates of Home-based TNCs Note: data derived from source (investing) countries. Table 35. Employment of affiliates of foreign TNCs in the host economy, by geographical origin, (Thousands of employees) Economy Italy United States a a Majority-owned affiliates of the United States TNCs in Sudan. Note: data derived from source (investing) countries.

10 Table 40. Wages and salaries of the United States affiliates in Sudan, Economy United States a a Majority-owned affiliates of Home-based TNCs Note: data derived from source (investing) countries. Table 45. Sales of affiliates of foreign TNCs in the host economy, by geographical origin, Economy Italy United States Note: data derived from source (investing) countries. Table 50. Value added of the United States affiliates in Sudan, Economy United States a a Majority-owned affiliates of Home-based TNCs Note: data derived from source (investing) countries.

11 Table 88. Largest affiliates of foreign TNCs in the host economy, 2002 (Millions of dollars and number) Company Home economy Industry Sales Employees A. Industrial Shell company Netherlands Petroleum Port Sudan Refinery Netherlands Petroleum B. Tertiary Nile Corporation Republic of Korea Trade.... C. Finance and Insurance Assets Employees Sources: The Banker s Almanac, 2003 (London, Reed Information Services Ltd., 2003); Thomson Analytics ( Who Owns Whom, 2003 (London, Dun and Bradstreet, 2003).

12 D. Sources of information A. Official Bank of Sudan ( B. Secondary African Development Bank (ADB) (1998). "Study on the identification of rehabilitation needs of selected industrial sub-sectors" (Khartoum). Alfaro, Laura et al. (2002). "FDI and economic growth: the role of local financial market". Arab Communication Consult (ACC) (2002). Sudan Report (Beirut: ACC). Burr, J. Millard and Robert, O., Collins (1995). Requiem for the Sudan (Colaroda: Westview). Craig, G. M. (ed) (undated). The Agriculture of the Sudan (London: Oxford University Press). Economist Intelligence Unit (2002a). Country Profile 2001/2002: Sudan (London: Economist Intelligence Unit Ltd). (2002b). Country Report: Sudan (London: Economist Intelligence Unit Ltd., September). United Nations Conference on Trade and Development (UNCTAD) (2002). FDI in Least Developed Countries at a Glance (Geneva: UNCTAD) ( pdfs/countries/sudan.pdf). United Nations Industrial Development Organization (UNIDO) (1999). Republic of Sudan, Integrated Programme for Capacity Building to Enhance Industrial Competitiveness and Sustainability in Sudan, with Emphasis on SMEs and Agro -Industries (Vienna: UNIDO). (2001). Industry and Sustainable Development in Sudan: Achievement and Prospects (UNIDO: Vienna). Woodward, Peter (1990). Sudan, (London: Rienner). Woodward, Peter (ed) (1992). Sudan since Nimeiri (London: Croom Helm).