THE JOYS OF TRADING IN SUDAN
Kanini Evans Kariuki
April 29, 2009
AGAINST the backdrop of a welcoming environment,friendly and accomodative citizens of Sudan, scores of enthusiastic Kenyans are savouring every moment of the joys of accelerating trading avenues in the vast African nation, buoyed by the spirit of doing so,while trying to overcome the obvious challenges of the whole process.
And this has been great.
His Excellency Majok Guandong, the Sudanese ambassador to Kenya ,recently shed light to the press on the incentives for investing in Southern Sudan, among other issues in the country.
Guandong explained that people in Sudan and especially in the South are starting their lives from scratch following many years of civil strife..
Following the signing of the landmark comprehensive peace agreement (CPA) in January 2005, however, the government has been using its restricted resources in collaboration with a combination of investors, NGOs and other governments (especially of neighboring states), to help in the reconstruction of the war -affected areas in the Sudan.
Currently, a good number of technical and skilled workers in southern Sudan are from Kenya. Moreover, Kenyan education institutions have helped the south, during and after the war in building capacity. The Governments of southern Sudan and Kenya have signed agreements to that effect.
Even to date, the Sudanese government is very grateful to Kenyan authorities for having hosted hundreds of Sudanese refugees in the past, and facilitating signing of the CPA in January 2005.
80 percent of goods and services used in the Southern Sudan, come from Kenya. Moreover, the port of Mombasa is nearest to Southern Sudan, and therefore, viable for importation needs of the country.
The Kenyan government allows tax-free and easy transportation of goods to southern Sudan from the port, a situation for which the Sudanese government is ever grateful.
The government of the Sudan is committed to the Jan 2005 CPA ideals of making unity of the Sudan attractive to all people to Southern Sudan, and thus help Sudan reach the goals of its 6th transition.
Guandong explained that Sudan is the only state with the highest rate of foreign direct investment (FDI) in the continent, and is very keen to keep attracting investments especially in the southern, from Kenya and other neighboring states.
Already, several companies and Commercial Banks (KCB) and Stanbic Bank, have already set up operations in southern Sudan. Others are working out partnership for investing in the area.
Outlining areas where investment opportunities exist such as in infrastructure and building construction; roads; housing and sanitation; oil exploration, mining and distribution and construction of public utilities, Guandong-a brilliant and plain-speaking envoy,emphasized that Kenyans and the Sudanese are one people , separated only by the artificial boundaries created by colonial forces.
The Sudanese government is happy over the cordial relations existing between Kenya and Sudan which is a recipe for increased trade and bilateral relations.
The Sudanese government has proposed to sell oil to Kenya at attractive prices.
Further, there is a proposal to extend the oil pipeline from Sudan into Kenya up to Mombasa, and more preferably to Malindi.
Already, Sudanese private companies are working to rehabilitate and upgrade capacity at the Mombasa Port. Warehousing facilities specially earmarked for Sudanese goods and services are already operational at the Mombasa Port.
Warehousing facilities specially earmarked for Sudanese goods and services are already operational at the Mombasa Port. Other investment opportunities also abound in the health, water, education and agriculture sectors and wood sector too, where vast stocks of hardwoods such as teak and mahogany are waiting to be tapped.
The Sudanese government has put in place investment policies at national level that include several tax exemptions for FDI and tax-free access to land.
More incentives shall be outlined soon once the current investments policy is revised and revamped.
The government is also sending out investment officials to different parts of the world including the Sudanese mission abroad to advocate for the need to invest in, and re-build the Sudan especially the south and other war -affected areas.
The investments and reconstruction endeavors of the government and people of the Sudan have not been without challenges, however, H.E. Guandong outlined some of these to include partial insecurity but on a minimal scale, posed by the Lord resistance Army (L.R.A) among other militias.
However, both Sudan and southern Sudan governments are working keenly to contain the situation.
While landmines are a threat around big towns, roads are yet to be cleared and paved, but the government in collaboration with partners is working ardently hard to pave roads and clear the mines.
Provision of basic services of health, clean water and education is now a priority of the government of southern Sudan,as it invites investors to partner in the sectors.
Already, the Jit beverage company from Kenya has built a processing plant in southern Sudan.
To continue boosting FDI, the 2nd two- day annual southern Sudan investment and development conference was organized in March 2007 by the Bola Associates Ltd, the CWC Group (UK) in collaboration with the new Sudan foundation, and the Prime Resource International (UK) at the Nairobi Safari park hotel.
Carrying the theme "building the foundation for growth", the conference included pre-conference briefing; discussions on main topics including current politico-economic environment in southern Sudan (GOSS); natural resources, oil and gas exploitation and implications to private investments, and investments in infrastructure, mining and industry.
The conference also included private meetings with the GOSS delegation and drew speakers from top GOSS officials, ministers and civil servants; donor community including World Bank, UNDP and EU; government of Kenya officials and international experts in investments and development.
It targeted CEOs of multinational and local firms conducting business in southern Sudan; top-level managers, their deputies and planners; policy makers in NGOs; economic and development government ministries, departments and parastatals; traders and top players and decision-makers in agriculture, manufacturing, distribution, logistics and warehousing; tourism and hotels; water resources management, energy and mining; transport construction and housing; health and education, human relief and settlements
It was also attended by consultants, logistics companies and airlines.
Guandong further explained that English is the official language of Southern Sudan, but the Sudanese in the South also speak Kiswahili, factors that have obliterated the likelihood of any language barriers to business.
Already, investors from the Gulf, Saudi Arabia, Qatar, South Africa, Kenya and Uganda have shown interest in southern Sudan while there is potential form Ethiopia and Eritrea.
The Nile commercial bank (NCB), on the other hand,is providing easy loans from local investors.
A brainchild of the SPLM (Sudanese people liberation movement), the bank also runs special investment incentives especially in the agricultural sector.
Guandong regards implementation of the 2005 CPA, consummation of the interim constitution of Sudan and Southern Sudan and government of national unity between the Sudan and southern Sudan ,as some of the major achievements in the reconstruction of Sudan.
Other achievements include putting in place the national and Southern Sudan legislative organs, and provision of basic services and continuing settlement of refugees and displaced persons.
The repatriation of refugees has been a joint effort between the UNHCR, the government of Sudan and respective governments of countries hosting the refugees.
Guandong explained that the issuance of visas to Kenyan investors to Sudan may have been slow before his arrival.
Visas for the category are processed and issued in one day. With visa priority given to investors and special consideration for Kenyans, the maximum visa issuance time is two days.
Keenly appreciative of regional cooperation, the Ministry of foreign Trade of the government of national unity and GOSS Regional cooperation ,will visit Kenya to highlight investment and regional cooperation policies.
Guandong appreciated C and I initiatives to highlight investment and reconstruction initiatives in Sudan and Southern Sudan.
The government of Sudan will continue seeking such help in order to continue delivering services needed for the crucial reconstruction process in the Sudan,according to the ambassador.
He asserted that the reconstruction period is a historical and crucial moment, and, especially so, since Kenya and Sudan are enjoying excellent relations.
Guandong noted that this will promote maximum benefits for both the people of Kenya and Sudan. He indicated
Regional cooperation, which is crucial for development, and socio-political and economic harmony, will also be promoted,the envoy concluded.
And this has been great.
His Excellency Majok Guandong, the Sudanese ambassador to Kenya ,recently shed light to the press on the incentives for investing in Southern Sudan, among other issues in the country.
Guandong explained that people in Sudan and especially in the South are starting their lives from scratch following many years of civil strife..
Following the signing of the landmark comprehensive peace agreement (CPA) in January 2005, however, the government has been using its restricted resources in collaboration with a combination of investors, NGOs and other governments (especially of neighboring states), to help in the reconstruction of the war -affected areas in the Sudan.
Currently, a good number of technical and skilled workers in southern Sudan are from Kenya. Moreover, Kenyan education institutions have helped the south, during and after the war in building capacity. The Governments of southern Sudan and Kenya have signed agreements to that effect.
Even to date, the Sudanese government is very grateful to Kenyan authorities for having hosted hundreds of Sudanese refugees in the past, and facilitating signing of the CPA in January 2005.
80 percent of goods and services used in the Southern Sudan, come from Kenya. Moreover, the port of Mombasa is nearest to Southern Sudan, and therefore, viable for importation needs of the country.
The Kenyan government allows tax-free and easy transportation of goods to southern Sudan from the port, a situation for which the Sudanese government is ever grateful.
The government of the Sudan is committed to the Jan 2005 CPA ideals of making unity of the Sudan attractive to all people to Southern Sudan, and thus help Sudan reach the goals of its 6th transition.
Guandong explained that Sudan is the only state with the highest rate of foreign direct investment (FDI) in the continent, and is very keen to keep attracting investments especially in the southern, from Kenya and other neighboring states.
Already, several companies and Commercial Banks (KCB) and Stanbic Bank, have already set up operations in southern Sudan. Others are working out partnership for investing in the area.
Outlining areas where investment opportunities exist such as in infrastructure and building construction; roads; housing and sanitation; oil exploration, mining and distribution and construction of public utilities, Guandong-a brilliant and plain-speaking envoy,emphasized that Kenyans and the Sudanese are one people , separated only by the artificial boundaries created by colonial forces.
The Sudanese government is happy over the cordial relations existing between Kenya and Sudan which is a recipe for increased trade and bilateral relations.
The Sudanese government has proposed to sell oil to Kenya at attractive prices.
Further, there is a proposal to extend the oil pipeline from Sudan into Kenya up to Mombasa, and more preferably to Malindi.
Already, Sudanese private companies are working to rehabilitate and upgrade capacity at the Mombasa Port. Warehousing facilities specially earmarked for Sudanese goods and services are already operational at the Mombasa Port.
Warehousing facilities specially earmarked for Sudanese goods and services are already operational at the Mombasa Port. Other investment opportunities also abound in the health, water, education and agriculture sectors and wood sector too, where vast stocks of hardwoods such as teak and mahogany are waiting to be tapped.
The Sudanese government has put in place investment policies at national level that include several tax exemptions for FDI and tax-free access to land.
More incentives shall be outlined soon once the current investments policy is revised and revamped.
The government is also sending out investment officials to different parts of the world including the Sudanese mission abroad to advocate for the need to invest in, and re-build the Sudan especially the south and other war -affected areas.
The investments and reconstruction endeavors of the government and people of the Sudan have not been without challenges, however, H.E. Guandong outlined some of these to include partial insecurity but on a minimal scale, posed by the Lord resistance Army (L.R.A) among other militias.
However, both Sudan and southern Sudan governments are working keenly to contain the situation.
While landmines are a threat around big towns, roads are yet to be cleared and paved, but the government in collaboration with partners is working ardently hard to pave roads and clear the mines.
Provision of basic services of health, clean water and education is now a priority of the government of southern Sudan,as it invites investors to partner in the sectors.
Already, the Jit beverage company from Kenya has built a processing plant in southern Sudan.
To continue boosting FDI, the 2nd two- day annual southern Sudan investment and development conference was organized in March 2007 by the Bola Associates Ltd, the CWC Group (UK) in collaboration with the new Sudan foundation, and the Prime Resource International (UK) at the Nairobi Safari park hotel.
Carrying the theme "building the foundation for growth", the conference included pre-conference briefing; discussions on main topics including current politico-economic environment in southern Sudan (GOSS); natural resources, oil and gas exploitation and implications to private investments, and investments in infrastructure, mining and industry.
The conference also included private meetings with the GOSS delegation and drew speakers from top GOSS officials, ministers and civil servants; donor community including World Bank, UNDP and EU; government of Kenya officials and international experts in investments and development.
It targeted CEOs of multinational and local firms conducting business in southern Sudan; top-level managers, their deputies and planners; policy makers in NGOs; economic and development government ministries, departments and parastatals; traders and top players and decision-makers in agriculture, manufacturing, distribution, logistics and warehousing; tourism and hotels; water resources management, energy and mining; transport construction and housing; health and education, human relief and settlements
It was also attended by consultants, logistics companies and airlines.
Guandong further explained that English is the official language of Southern Sudan, but the Sudanese in the South also speak Kiswahili, factors that have obliterated the likelihood of any language barriers to business.
Already, investors from the Gulf, Saudi Arabia, Qatar, South Africa, Kenya and Uganda have shown interest in southern Sudan while there is potential form Ethiopia and Eritrea.
The Nile commercial bank (NCB), on the other hand,is providing easy loans from local investors.
A brainchild of the SPLM (Sudanese people liberation movement), the bank also runs special investment incentives especially in the agricultural sector.
Guandong regards implementation of the 2005 CPA, consummation of the interim constitution of Sudan and Southern Sudan and government of national unity between the Sudan and southern Sudan ,as some of the major achievements in the reconstruction of Sudan.
Other achievements include putting in place the national and Southern Sudan legislative organs, and provision of basic services and continuing settlement of refugees and displaced persons.
The repatriation of refugees has been a joint effort between the UNHCR, the government of Sudan and respective governments of countries hosting the refugees.
Guandong explained that the issuance of visas to Kenyan investors to Sudan may have been slow before his arrival.
Visas for the category are processed and issued in one day. With visa priority given to investors and special consideration for Kenyans, the maximum visa issuance time is two days.
Keenly appreciative of regional cooperation, the Ministry of foreign Trade of the government of national unity and GOSS Regional cooperation ,will visit Kenya to highlight investment and regional cooperation policies.
Guandong appreciated C and I initiatives to highlight investment and reconstruction initiatives in Sudan and Southern Sudan.
The government of Sudan will continue seeking such help in order to continue delivering services needed for the crucial reconstruction process in the Sudan,according to the ambassador.
He asserted that the reconstruction period is a historical and crucial moment, and, especially so, since Kenya and Sudan are enjoying excellent relations.
Guandong noted that this will promote maximum benefits for both the people of Kenya and Sudan. He indicated
Regional cooperation, which is crucial for development, and socio-political and economic harmony, will also be promoted,the envoy concluded.
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