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To: Tomas who wrote (1653)	5/12/2000 11:26:00 AM
From: Tomas	Respond to of 2742

Sudan Sees Fruits of Painful Economic Reform - Oil Boosts Economy KHARTOUM, May 12 (Reuters) - Sudan, clawing its way back to financial respectability, expects its war-battered economy to grow strongly again this year and inflation to drop to single digits, Finance Minister Mohamed Khair al-Zubeir said on Friday. "Our economic programme has achieved its major objectives of high real growth rates in an environment of economic stability," he told Reuters in an interview. Zubeir said the exchange rate had stabilised and the economy had grown six percent in calendar 1998 and 1999. The government has set a growth target of 6.5 percent for 2000. Inflation fell to 11.9 percent year on year in April, compared to an annual average of 14 percent in 1999. "We hope to reach nine percent inflation by the end of the year," he said. Sudan, now in the second year of a medium-term International Monetary Fund staff-monitored programme, expects the IMF to restore its voting rights at an end-August review. "Once we have normal relations with the IMF, we will be eligible for various debt relief initiatives," Zubeir said, adding that he believed Sudan could qualify for a poverty reduction and growth facility being put together by the IMF. Sudan has been making nominal repayments on its $1.4 billion debt to the IMF since 1997 as part of steps towards lifting the suspension of its rights in place since 1990 when the fund declared the impoverished African country non-cooperative. "By the end of the year we are confident that we will have normal relations with our international and regional creditors," Zubeir said, putting Sudan's total foreign debt at $20 billion. He said Khartoum had agreed on a programme to settle its arrears to the Arab Monetary Fund and had already restored normal ties with several Arab development funds. OIL BOOSTS ECONOMY Zubeir said oil production that began last year and the completion this year of a 50,000 barrels per day (bpd) refinery near Khartoum would help the balance of payments. The refinery will save Sudan about $300 million it used to spend on importing oil products. The government is only getting 40 percent of oil export revenue now, but this will rise to 80 percent once the producing consortium has recovered its investment after four years, Zubeir said. Production from southern oil fields is running at about 185,000 bpd after starting at 120,000 bpd in August. Zubeir said Sudan's adjustment programme had cut government spending and abolished subsidies on bread, sugar and oil products with painful results for people on fixed incomes. "Reform itself brought higher inflation and depreciation of the exchange rate for the first five years after 1992," he said. "Fixed income groups and consumers bore the brunt." Among the beneficiaries of economic liberalisation are traders, producers, farmers and cattle grazers, he said. Sudan, which has already partly sold its telecoms utility, hopes to privatise at least 35 public concerns, including the state airline, shipping line and cement plants, Zubeir said. "We want to reduce state intervention to a minimum," he said. "It should be limited to things like security and the provision of basic human needs and perhaps infrastructure projects that the private sector cannot provide." The government, however, had to put social justice above free competition and tailor fiscal, monetary and social policies to ensure even distribution of wealth and development among different regions as well as income groups, Zubeir said. The minister defined the major challenges for Sudan as reducing poverty among its 30 million people, improving transport, irrigation and power systems, and extending basic health, education and safe drinking water to all. "It's a tremendous task for a country whose population is scattered over one million square miles," he said. Zubeir declined to say how much the Islamist government is spending on its 17-year-old war with rebels demanding self-determination for the mainly Christian or animist south. The conflict has cost an estimated 1.5 million lives in fighting and war-aggravated famine and disease. "It's costing lots of money," Zubeir said. "It is really draining our resources tremendously."

To: Tomas who wrote (1653)	5/15/2000 11:53:00 AM
From: Tomas	Read Replies (1) \| Respond to of 2742

More Malaysia-Sudan Joint Ventures Underway - Bernama, Malaysian National News Agency, May 14 KUALA LUMPUR, May 14 (Bernama) -- Malaysian and Sudanese companies are expected to undertake joint venture projects in areas such as agriculture, infrastructure development, power generation and energy, says Sudan's Minister of Industry and Investment Dr Abdul Halim Ismail Al-Muta'afi. He said if ongoing discussions between various parties were successful, Malaysia's participation in the vast African country would go beyond the petroleum industry. He said one Sudanese company was discussing with Perusahaan Otomobil Nasional Berhad (Proton) on the possibility of importing Malaysian cars for the 30 million strong Sudan market. "We see the smart partnership concept as very fruitful and with technical experience and resources on your side plus the political will on both sides, these kind of cooperation will materialise," he told Bernama in an interview. Abdul Halim arrived here on Tuesday for a week-long visit. He attended the just concluded Umno general assembly and will be meeting International Trade and Industry Minister Datuk Rafidah Aziz. Sudan, sharing boundaries with nine countries in north-east Africa, is the largest country in the continent with a total area of 2.5 million square kilometers. It is rich in agriculture, livestock and mining. In the agricultural sector, Abdul Halim said there are huge potentials in food processing, both for for local consumption and export, as Sudan has vast tracts of arable land suitable for crops such as rice and more than 130 million heads of cattle. Abdul Halim said the massive development in the petroleum sector had brought about major changes in many aspects of the Sudanese people's lives and as such Malaysian investors were welcomed to develop the infrastructure sector including road, rail and river transport. He said the Malaysian private sector, with its wide experiences in developing the country's tourism sector, can grab many opportunities in the fast growing tourism sector in Sudan, especially hotel and resort construction and safari park development. As Sudan has fully embarked on market economy, Abdul Halim said the textile industry was now open for privatisation, following the opening of other sectors such as powrer generation and telecommunications. He said the lack of direct trade links between the two countries can be overcome when more joint-venture projects are carried out and the trade expands. Currently trade between the two countries is conducted through third countries, particularly the Gulf nations. Malaysia's exports to Sudan comprise electronic and electrical products, palm oil, spare parts, pharmaceutical products, fertilizers and furniture while its main imports are agriculture products, seeds, cotton, groundnuts, sugar and Arabic gum (for printing inks). Abdul Halim said Sudan appericiated Malaysia very much as national oil company Petronas had ventured into the country a few years ago at a time when others were reluctant to do so. Petronas has a 30 percent stake in a consortium called Greater Nile Petroleum Operating Co Ltd (GNPOC) which is involved in the Muglad Basin Oil Development project in Sudan. On political stability, Abdul Halim assured foreign investors that there was nothing to be worried as Sudan is a peaceful country which gives importance to economic and social development.