Sudan - its new beginnings

In January 2011 the people of Southern Sudan voted overwhelmingly to secede from the north and create a new State. Despite Sudan’s recent unstable and violent past, there seems to be some positive sentiments about future opportunities. Sudan’s population of approximately 39 million people is mostly resident in the North but the poorest people live in the South. The whole country is complex in terms of demographics, language, religion and ethnicity.

With a long, recent history of conflict and civil war, Southern Sudan, with government support must, with help from the international community, overcome its main obstacles to development which is the lack of infrastructure and essential services.

INFRASTRUCTURE

According to the Institute of Economic Affairs, approximately 27 million people in Sudan lack access to electricity, the country as a whole has a 31% electrification rate. Healthcare is basic, with overcrowded facilities lacking skilled staff. Sanitation is poor, as are the roads and power supplies. Russia, China and India are contributing to the uplifting of the infrastructure by investing billions in roads, pipelines, airports and health services as well as financing and support being given by the World Bank and the African Development Bank. The UK, with strong historical ties to Sudan, is investing in roads in rural areas, primary and secondary schools, teacher training centres, health care centres and other facilities to reduce insecurity and increase access to basic services.

OIL AND GAS

In 2009, according to the International Monetary Fund, oil represented over 90 percent of export earnings, playing a major role in the economy. The country's oil and gas reserves are vast. In the oil and gas sector, Sudan's North and South are discussing the possibility of sharing the ownership of oil and gas blocks on both sides of their borders when the country splits in July, said the head of the north's state-oil company, Sudapet. The majority of oil reserves and production in Sudan--about 500,000 barrels a day--are in the south, but the pipelines, refineries, and port of export are all in the north. So the two sides will have come to a new agreement on how to share oil revenues.

Other industry sectors, especially agriculture, food and beverages are expected to grow. SABMiller is investing an additional US$15 million in its operations in Juba, Southern Sudan to increase production capacity for carbonated water and soft drinks. But China is winning the foreign investors game hands down, there are more than 200 Chinese companies active in Sudan, now other countries will follow.