Republic of Sudan. Regional Multi-stakeholder Food Security and Nutrition Workshop THE SUDAN POTENTIAL : A KEY INVESTMENT OPPORTUNITY

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1 Republic of Sudan Federal Ministry of Agriculture and irrigation Regional Multi-stakeholder Food Security and Nutrition Workshop THE SUDAN POTENTIAL : A KEY INVESTMENT OPPORTUNITY Dr. Salih Kheiralla Hussein National Coordinator National Agricultural Investment Plan (NAIP) AMMAN, 2015

2 Agriculture Sector Overview Agriculture: important pillar of economy (%) Leading economy driver Contributes to more than one third of GDP More than 90% of non-oil exports Employs 80% of total labour force. Food security indicators and improved. Strategic Reserved Food was built.

3 Government s Vision and Aims Sustainable development /building infrastructure. Modernized and developed agriculture. increased productivity and production. strengthen private sector for economic development /built an economy of equitable supply of basic services. Supported environment for national and international investments. Government launched strategic Agriculture Revival Programme (ARP) and National Agricultural Investment Plan (NAIP): To enhance Agriculture performance to drive Social and economic development

4 Key Strategic Objectives of ARP and NAIP: Attaining food security & Nutrition (Aligned with PRI). Reforming and modernizing the traditional sector and transforming into economic driven activities aligned with local community ownership and participation (Aligned with RAI) Vertical and horizontal increase in crop productivity and production. Sustainable increase of agricultural and livestock exports Developing value chain e.g. food processing and agroindustries for sustainable FSN development. Environmental and natural resource conservation, management and development (Aligned with PRI)

5 The ARP & NAIP - Encouragement of Agricultural Investments To enhance investment in commercial agriculture, ARP & NAIP emphasis is on: Creating conducive, enabling environment to encourage private sector participation and investments, through: Enacting and improving policies, regulations Investment in infrastructure and support services Establishing international strategic partnerships: public and private

6 Sudan Initiative for Arab Food Security The main features of SIAF; Create conducive and enabling environment for private sector to play the major role in implementing initiative projects. Review investment procedures, land tenure system and enabling investors to obtain land for doing agribusiness. Review financial incentives in terms of customs duties and taxes to become more encouraging for investors. Apply the principle of fair partnership between the parties to achieve mutual benefits for investors/corporate and local community (Corporate Social Responsibility).

7 Optimal use and of agri-resources. Providing financial support by Arab Govts and financial institution in Arab states. Using the best and latest technology for more production efficiency and environmental conservation (Efficiency and Sustainability). This initiative aligned and consistent with; Emergency Program for Arab Food Security Introduced by Arab Organization for Agricultural Development (AOAD).

8 WHY INVEST IN THE SUDAN? RICH Agricultural RESOURCES DIVERSE ECOSYSTEMS TRAVERSED BY THE RIVER NILE AND TRIBUTARIES Conducive for diversified sustainable agricultural production Arable Lands: 80 million hectares Only 20% cultivated (16 million) Renewable Water Resources: River Nile, Blue Nile, White Nile, Atbara River Seasonal streams Rain-fall Under-ground aquifers (80% Sudan lies in Nile Basin) Favourable Agronomic Conditions: Two Cropping Seasons Per Year

9 IRRIGATION SCHEMES READY INFRASTRUCTURES ELECTRICITY Gezira Scheme: 0.9 million ha one of the largest agriculture complexes of the world Flow Irrigation by the fertile Blue Nile River TRANSPORT AND LOGISTICS: ROADS, HIGHWAYS, AIRPORTS, RAIL TELECOMMUNICATIONS

10 STRATEGIC Location 18 hours sea navigation PORT SUDAN to JEDDAH Smooth asphalt road to Egypt TRADE AGREEMENTS: GAFTA COMESA: FTA EU: LDC EBA

11 Adoption of the Public-Private Partnership (PPP) Model & Contract Farming for Encouragement of REAL Investment in Agriculture Production

12 SUDAN S PPP MODEL FOR DEVLOPING AGRICULTURE PRODUCTION & PROCESSING Partnership between Federal Ministry of Agriculture, State Ministry of Agriculture, Local Farmers, International and / or Local Private Company: -Land -Share Capital -Management -Profit Share

13 SUDAN PPP PROJECTS SUDANESE BRAZILIAN PPP: COTTON SOYA BEANS Maize SUDANESE PAKISTANI PPP: BASAMTI RICE SUDANESE EMIRATI PPP: GRAINS OILSEEDS FODDER SUDANESE ITALIAN PPP: BANANA FOR EXPORT OTHER HIGH VALUE EXPORT FRUITS

14 SUDANESE-BRAZILIAN PPP SOYABEAN Cost of Production: USD 419 per ha Yield: 3 tonnes per ha Revenue: USD 1,650 / ha Profit: USD 1,231 / ha

15 CONTRACT FARMING PPP MODEL PPP between Local Private Sector Companies, Local Farmers (Agriculture Scheme Corporations), Agriculture Bank of Sudan: White Nile: Sorghum, Sunflower New Halfa Corporation: Sunflower

16 SUDANESE LOCAL PPP SEEDS (WHEAT) FODDER ANIMAL FATTENING

17 INVESTMENT OPPORTUNITIES MIXED FARMING: -Grains: wheat, maize, sorghum -Oil Seeds: groundnuts, sesame, sunflower -Fodder: alfalfa -Livestock: cattle fattening and abattoir SUGAR COTTON RICE SOYA BEAN FRUIT & VEGETABLES

18 Main Challenges Optimal use of natural resources to increase productivity. improve access to services and develop infrastructure necessary to enhance the productivity of the farming systems, livestock, fisheries and forestry. Enabling environment for private sector. Availability and Accessibility of financial resources for agricultural investment. Empowering the private sector to play the major role in agricultural development. Agricultural and economic integration with the Arab countries in order to secure food Developing capacities, institutions and systems for strengthening agricultural statistics. Build the human, intuitional and technical capacities to conserve and develop natural resources and to control the environmental challenges.

19 THANK YOU..