Grab opportunities now prevalent in Sudan
Business Times (Malaysia), January 2
BY JAILANI HARUN
MALAYSIAN investors in Sudan can look forward to a more competitive and challenging business environment as the northern African country gains international recognition as one of the fastest growing economies in the continent.
The discovery of oil and gas, which had spurred the Sudanese economic growth over the last few years, is the catalyst which leads to the increasing number of foreign investors in the country.
"The fact is that, competition is building up. As more foreign investors see the vast opportunity in Sudan, the existing investors have to beef up their investment strategy as to enhance their position.
"Malaysian investors, too, are set to feel the heat of stiff competition in the coming years as they would not be the only ones doing the same kind of business.
"However, we believe the Malaysians are as good as the Japanese, Americans or Germans. Being among the pioneers to set foot in Sudan, my Government will always have a lot of priorities for them," said Sudanese ambassador to Malaysia, Mr Mohamed Adam Ismail.
Speaking to Business Times at his office, he said his country's economic growth is attributable to assistance handed out by "friends like Malaysia", especially in paving "the road of international confidence" to Sudan.
Malaysian companies like Petronas, the Muhibah Group, Advance Synergy and Malaysian Mining Corp were responsible for setting the precedence in an internationally-organised effort to change the adverse global impression about Sudan.
"We are glad that after the arrival of Malaysian investors, more multinational corporations (MNCs) have followed suit, especially the Japanese, Chinese and Europeans.
"Of course there were foreign companies which were in participation in our local industries then but their share of the business was not as big as it is now.
"When Petronas first negotiated the petroleum contract in the early 1990s (and was awarded the concession in 1996), it sparked off an international interest for the Sudanese economy. That's when they (foreign investors) started to come," he said.
Mohamed Adam also said his Government is in the process of opening up more state-owned corporations to foreign participation.
"The Sudan Shipping Company, for instance, will be privatized soon. Any foreign company will be allowed to acquire significant stake in the company... or may even take it up entirely," he said.
The ambassador, however, hoped to see a Malaysian company taking over operations of the shipping company, citing Halim Mazmin Group as the best Malaysian private company to manage it.
Although no contact has been made with the group, Adam said he would be more than happy to discuss the matter with the board of directors of Halim Mazmin.
Apart from the national liner, he said Sudan is also looking for foreign investors to develop its eco-tourism sector which is booming over the last few years.
"Malaysian companies can tap the opportunity in this sector by operating a tourist cruise service along the Blue and White Niles. As more foreign tourists are attracted to the natural beauty of the rivers and its surroundings, this will become another business which guarantees hefty profits," he said.
The Sudanese economy, which registered a credible 7 per cent gross domestic product (GDP) growth in 1999, is set to improve to 8 per cent this year and 2001.
Being one of few countries branded by the US and its Western allies as "advocate to terrorism" during the 1980s and early 1990s, which had led to two US bombings within that period, Sudan is becoming an important economy to these capitalists today.
As it gets more self-reliant, particularly in food production, Sudan has even saw the arrival of American, British, German and other Western investors who just didnt want to miss out the boat.
"We are a friendly country. All accusations about us were unfounded. As you can see, Sudan today is getting economically stronger. No investors have left the country over the years.
"Malaysians, for example, can be rest assured that their investments in Sudan are well-protected by our set of investment laws which are compatible to the ones in Malaysia...and that apply to other investors as well.
"We would like to welcome more Malaysians to grab the opportunities which are now prevalent in Sudan, from the food industry, metal, mining, oil-related sectors, farming, etc," he said. |
