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WEEKLY NEWSLETTER
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Sudan
Index
In 1989 Sudan's export earnings amounted to £Sd3,023.1
million and its imports £Sd5,373.4 million. Export earnings
dropped to an estimated £Sd1,800 million in 1990, with imports
remaining at the 1989 level. Agricultural products have dominated
Sudanese exports since the condominium period, and in the 1980s
they accounted for more than 90 percent of export receipts.
Cotton, gum arabic, peanuts, sesame, and sorghum were the main
commodities. Live animals; hides and skins; and peanut,
cottonseed, and sesame products (oil and meal) constituted the
more important remaining export items (see
table 8, Appendix).
Sudan has long been the world's second largest exporter of longstaple cotton, and cotton exports constituted more than 50
percent of total exports by value in the 1960s but declined to
about 30 percent in the 1980s. Gum arabic was in second place
until the 1960s when production of peanuts expanded to occupy
that position which, however was not sustained by the late 1980s.
Sesame became the third most valuable export in the 1970s.
Fluctuations have occurred in the earnings of these four
principal commodities as the result of weather conditions, local
price situations, and world market prices.
Foodstuffs and textiles were Sudan's largest imports by value
at the start of national independence. These commodities held
that position into the mid-1970s, when they were surpassed by
increased imports of machinery and transport equipment as the
government began an intensive drive for economic development. The
share of foodstuffs and textiles declined by roughly one-half
during the decade, from 40.5 percent in 1971 to less than 20
percent in 1979. In 1986 manufactured goods, including textiles,
accounted for 20 percent of imports whereas wheat and foodstuffs
represented about 15 percent. Machinery and transport equipment,
which had accounted for about 22 percent of imports in 1970,
averaged 40 percent between 1975 and 1978, reaching a high of 45
percent in 1976, and dropped to 25 percent in 1986, reflecting
the slowdown of economic development (see
table 9, Appendix).
Government plans for self-sufficiency through the development
of import substitution industries achieved limited success in
certain cases. Notable was the reduction in imports of refined
petroleum products that resulted from the 1964 opening of the
Port Sudan refinery. Substantial savings were made in foreign
exchange expenditure until the rise in world crude petroleum
prices after 1973. Crude oil and certain refined products
accounted for only about 1 percent of import values in 1973 but
had increased to more than 12 percent in 1986. Progress has been
extremely slow in sugar production, and government factories were
reported in the late 1970s to be meeting about one-third of the
domestic demand. After its opening in 1980, the new Kinanah sugar
mill and refinery, which alone had a rated capacity sufficient to
replace most current sugar imports, helped in 1981 to increase
overall sugar production to 71 percent of estimated consumption.
Domestic textile production had also increased greatly from the
1960s, and the share of textiles in total imports had declined
from about 20 percent at the end of the 1960s to less than 4
percent in 1980.
In the early condominium era, Egypt had been Sudan's main
customer. The development of the Gezira Scheme, however, resulted
in large-scale exports of cotton to Britain, which by the end of
the 1920s was purchasing about 80 percent of Sudanese exports.
Although development of the textile industry in other European
countries gradually cut into Britain's share of cotton exports,
at the start of World War II that country still was the
destination of almost half of Sudan's total export trade and at
the time of Sudanese independence continued to be the largest
customer. During the 1960s, India, West Germany, and Italy
emerged as major buyers; late in the decade Japan also became a
major customer. In the late 1980s, Britain remained an important
export destination. Other major customers were France, China, and
Saudi Arabia. In 1989 Saudi Arabia was Sudan's main export
market, buying an estimated 16.8 percent of Khartoum's exports,
particularly sorghum and livestock. The United States although
not one of Sudan's largest purchasers, became a major customer in
the latter 1980s, buying mainly cotton, gum arabic, and peanuts
(see
table 10, Appendix).
After the May 1969 coup, Khartoum took steps to expand trade
with the Soviet Union and Eastern Europe. Exports to the Soviet
Union rose dramatically in 1970 and 1971 as that country became
Sudan's leading customer. After the abortive communist-led coup
of 1971, however, relations deteriorated, and Soviet purchases
dropped to almost nil. After 1985 overtures to improve economic
relations with the Soviet Union met with little response.
Economic ties with China improved in the mid- and late 1980s,
with exports to Beijing reaching an estimated 7.3 percent of
Khartoum's total exports in 1989, making it Sudan's fifth largest
customer.
Sudan's imports were provided by a wide range of countries,
led by Saudi Arabia in the late 1980s. In 1989, Saudi Arabia
supplied nearly 14.1 percent of Sudan's total imports, with
petroleum the chief import item. Britain was Sudan's main import
source until 1980; in the late 1980s it became Khartoum's second
largest provider, supplying an estimated 8.3 percent of the
country's imports in 1989. Britain had well-established
commercial and banking operations in Khartoum and a leading
position in exporting manufactured goods, vehicles, tobacco,
beverages, chemicals, and machinery to Sudan. Among the ten or
twelve other top suppliers, the United States, West Germany
(Germany after 1990), France, Italy, the Netherlands, China, and
India were most significant. Most were also major export
customers.
Through 1978 Iraq had been a prime source of Sudan's imports
because it was the principal supplier of crude petroleum, a
function that was taken over by Saudi Arabia in 1979 after Iraq
cut off oil supplies because Sudan backed Egypt in the latter's
peace initiative with Israel. In the last years of the Nimeiri
government, bilateral trade with Egypt was cut sharply but in
April 1988, Sudan and Egypt signed a trade agreement valued at
US$225 million. In June 1991, Sudan ratified a US$300 million
trade agreement with Egypt. Improved relations with Libya enabled
Tripoli to become Sudan's third biggest importer in 1989. In
January 1989, Sudan and Tripoli signed a US$150 million agreement
for Sudan to buy Libyan crude oil. The two countries signed a
trade pact in December 1989, with Sudan agreeing to purchase
Libyan fuel, chemicals, fertilizer, cement, and caustic soda.
Data as of June 1991
Foreign Trade
In 1989 Sudan's export earnings amounted to £Sd3,023.1
million and its imports £Sd5,373.4 million. Export earnings
dropped to an estimated £Sd1,800 million in 1990, with imports
remaining at the 1989 level. Agricultural products have dominated
Sudanese exports since the condominium period, and in the 1980s
they accounted for more than 90 percent of export receipts.
Cotton, gum arabic, peanuts, sesame, and sorghum were the main
commodities. Live animals; hides and skins; and peanut,
cottonseed, and sesame products (oil and meal) constituted the
more important remaining export items (see
table 8, Appendix).
Sudan has long been the world's second largest exporter of longstaple cotton, and cotton exports constituted more than 50
percent of total exports by value in the 1960s but declined to
about 30 percent in the 1980s. Gum arabic was in second place
until the 1960s when production of peanuts expanded to occupy
that position which, however was not sustained by the late 1980s.
Sesame became the third most valuable export in the 1970s.
Fluctuations have occurred in the earnings of these four
principal commodities as the result of weather conditions, local
price situations, and world market prices.
Foodstuffs and textiles were Sudan's largest imports by value
at the start of national independence. These commodities held
that position into the mid-1970s, when they were surpassed by
increased imports of machinery and transport equipment as the
government began an intensive drive for economic development. The
share of foodstuffs and textiles declined by roughly one-half
during the decade, from 40.5 percent in 1971 to less than 20
percent in 1979. In 1986 manufactured goods, including textiles,
accounted for 20 percent of imports whereas wheat and foodstuffs
represented about 15 percent. Machinery and transport equipment,
which had accounted for about 22 percent of imports in 1970,
averaged 40 percent between 1975 and 1978, reaching a high of 45
percent in 1976, and dropped to 25 percent in 1986, reflecting
the slowdown of economic development (see
table 9, Appendix).
Government plans for self-sufficiency through the development
of import substitution industries achieved limited success in
certain cases. Notable was the reduction in imports of refined
petroleum products that resulted from the 1964 opening of the
Port Sudan refinery. Substantial savings were made in foreign
exchange expenditure until the rise in world crude petroleum
prices after 1973. Crude oil and certain refined products
accounted for only about 1 percent of import values in 1973 but
had increased to more than 12 percent in 1986. Progress has been
extremely slow in sugar production, and government factories were
reported in the late 1970s to be meeting about one-third of the
domestic demand. After its opening in 1980, the new Kinanah sugar
mill and refinery, which alone had a rated capacity sufficient to
replace most current sugar imports, helped in 1981 to increase
overall sugar production to 71 percent of estimated consumption.
Domestic textile production had also increased greatly from the
1960s, and the share of textiles in total imports had declined
from about 20 percent at the end of the 1960s to less than 4
percent in 1980.
In the early condominium era, Egypt had been Sudan's main
customer. The development of the Gezira Scheme, however, resulted
in large-scale exports of cotton to Britain, which by the end of
the 1920s was purchasing about 80 percent of Sudanese exports.
Although development of the textile industry in other European
countries gradually cut into Britain's share of cotton exports,
at the start of World War II that country still was the
destination of almost half of Sudan's total export trade and at
the time of Sudanese independence continued to be the largest
customer. During the 1960s, India, West Germany, and Italy
emerged as major buyers; late in the decade Japan also became a
major customer. In the late 1980s, Britain remained an important
export destination. Other major customers were France, China, and
Saudi Arabia. In 1989 Saudi Arabia was Sudan's main export
market, buying an estimated 16.8 percent of Khartoum's exports,
particularly sorghum and livestock. The United States although
not one of Sudan's largest purchasers, became a major customer in
the latter 1980s, buying mainly cotton, gum arabic, and peanuts
(see
table 10, Appendix).
After the May 1969 coup, Khartoum took steps to expand trade
with the Soviet Union and Eastern Europe. Exports to the Soviet
Union rose dramatically in 1970 and 1971 as that country became
Sudan's leading customer. After the abortive communist-led coup
of 1971, however, relations deteriorated, and Soviet purchases
dropped to almost nil. After 1985 overtures to improve economic
relations with the Soviet Union met with little response.
Economic ties with China improved in the mid- and late 1980s,
with exports to Beijing reaching an estimated 7.3 percent of
Khartoum's total exports in 1989, making it Sudan's fifth largest
customer.
Sudan's imports were provided by a wide range of countries,
led by Saudi Arabia in the late 1980s. In 1989, Saudi Arabia
supplied nearly 14.1 percent of Sudan's total imports, with
petroleum the chief import item. Britain was Sudan's main import
source until 1980; in the late 1980s it became Khartoum's second
largest provider, supplying an estimated 8.3 percent of the
country's imports in 1989. Britain had well-established
commercial and banking operations in Khartoum and a leading
position in exporting manufactured goods, vehicles, tobacco,
beverages, chemicals, and machinery to Sudan. Among the ten or
twelve other top suppliers, the United States, West Germany
(Germany after 1990), France, Italy, the Netherlands, China, and
India were most significant. Most were also major export
customers.
Through 1978 Iraq had been a prime source of Sudan's imports
because it was the principal supplier of crude petroleum, a
function that was taken over by Saudi Arabia in 1979 after Iraq
cut off oil supplies because Sudan backed Egypt in the latter's
peace initiative with Israel. In the last years of the Nimeiri
government, bilateral trade with Egypt was cut sharply but in
April 1988, Sudan and Egypt signed a trade agreement valued at
US$225 million. In June 1991, Sudan ratified a US$300 million
trade agreement with Egypt. Improved relations with Libya enabled
Tripoli to become Sudan's third biggest importer in 1989. In
January 1989, Sudan and Tripoli signed a US$150 million agreement
for Sudan to buy Libyan crude oil. The two countries signed a
trade pact in December 1989, with Sudan agreeing to purchase
Libyan fuel, chemicals, fertilizer, cement, and caustic soda.
Data as of June 1991
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