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New projects in the industrial sector are proposed for investment. On the other hand, a large part of the existing industrial units have to be replaced or rehabilitated. The Ministry of Industry has identified five industrial sub-sectors as priority areas for rehabilitation in order to improve productivity, enhance capacity and promote export capabilities:

1.Textile Industry
2.Leather and Leather Products Industry
3.Food Industry
4.Pharmaceutical Industry
5.Packaging Industry

Following are the New Proposed Investment Projects:
Food Processing: Composite flours, edible oil refinery and fractionation, sugar (small/and large scale), vegetable & fruit processing, dairy products/ meal products, poultry feed, molasses products, bakery and fodder yeasts.

Textile: Cotton spinning, textiles/knitwear, ready-made garments, jute sacks and woolen textile.

Leather and Leather Products: Finished leather, footwear, leather garments, leather board.

The Fishing Industry: It is an area where investors can make quick returns as it has great potential as an export source. Plans are now being developed regarding the Red Sea coastline individually or in joint ventures. The River Nile is one of the greatest sources of fish - Nile Perch is in great demand.

The Spinning and Weaving Industry: In Sudan, the public sector owns eight spinning and weaving factories two of which produce yarn, along with nine large scale private sector factories and 75 small scale. The maximum production capacity for these factories combined, was initially estimated as 54,000 tons of yarn and 380 million meters of cloth per annum; but the actual annual productivity of these factories does not exceed 30 percent of the targeted output due to some constraints.

Sudan has considerable comparative advantages in the field of spinning and weaving industry-cotton is produced in bulk and in all grades with the majority still exported as raw material.

The spinning and weaving industry is an attractive sector that attracts investors whether to rehabilitate present factories or construct new ones.

The Sugar Industry: There are five sugar factories in Sudan - Al Geneid Sugar Factory, Sennar Sugar Factory, Kenana Sugar Factory and Asalaya Sugar Factory, all in the central states in addition to New Haifa Sugar Factory in the eastern part. Four of these factories are owned by the public sector, while the fifth (Kenana Sugar Co.) is the joint venture of Arab, Sudanese and foreign capital. The total productivity of the five factories combined has reached 670,000 tons during the 1998-99 season, while Kenana factory alone produced a total of 365,000 tons during the same period.

The investment potentialities and opportunities in the sugar industry can be in the form of rehabilitation of the present factories or to establish new large-scale factories for export. The government has also opened the door for the private sector to build small-scale factories to meet the domestic consumption requirements. There are also possibilities of investing in fields of sugar byproducts such as production of sugar syrup and glucose,

The Food Industry: The food industry factories operate in the areas of food packaging, canning and processing. These factories are exclusively owned by the private sector and their annual output is established to be around 9000 tons of foodstuff. This sector also includes the fruit and vegetable canning industries and the vegetable oil industries, which extract oil from sesame, groundnut, sunflower seeds and cotton seeds. Investment potentialities and opportunities in this sector can be in forms of ventures in oil seeds production, fruit and vegetable canning. There is also the possibility of building cereal mills and investing in the biscuit industries, sweets and other similar activities.

The Leather Industry: Hide and fur and other types of animal skin are all raw materials for the tanning and leather industries, and the recycling of the tanneries remnants. There are seven modern tanneries in Sudan with a maximum annual output of about 29 million square feet of sheepskin and 28 million square feet of calfskin.

There are also some 290 conventional tanneries that use traditional methods to produce around 8 million square feet of sheepskin and 8 million square feet of calfskin. The productivity of these enterprises has to be enhanced.

There are also a number of leather shoe factories and factories for other leather products, in addition to a number of small hand-made shoe workshops and stalls. Sudan enjoys a comparative advantage in the field of leather industries due to the huge animal wealth and livestock that provides more than 13 million pieces of hide annually.

Establishing modern tanneries that use advanced technology is an attractive area of investment as well as the high quality leather shoe factories. Investors are also advised to jointly invest in the rehabilitation of the current public sector tanneries by adding modern production lines, developing and diversifying products.

Cement and Building Materials Industry: There are two cement factories in Sudan, one at Atbara in the River Nile state and the other at Rabak in the White Nile state. The two factories combined have a maximum production capacity of 325,000 tons per annum.

As far as other building materials are concerned, firebrick, marble, gypsum, tiles and granite industries, there are some factories and most of them apply conventional methods.

Sudan also enjoys an advantage in cement and building materials industries because of the abundant availability of the basic raw materials, trained and skilled manpower and marketing facilities.

Investment potentialities can target the cement industries sectors in northern, eastern and western Sudan, production of quick and slaked lime for the sugar industry and water filtration installations, production of gypsum and its products, firebrick and sandstone brick industry, the glass industry as well as health utensils, ceramic and porcelain industries and low cost houses.

Chemical and Pharmaceutical Industries: The chemical and pharmaceutical industries sector includes various industries: paints, plastic, tyre, fertilizers, insecticides, sulphur and cosmetics. It also includes manufacturing of the electrical appliances and products.

There are good investment potentialities in this sector such as: investment in the field of the basic industrial chemicals like caustic soda and chemical sails; production of insecticides, and veterinary drugs; and expansion in the field of the human pharmaceutical industry, especially the antibiotics and other essential life-saving drugs from the domestic medicinal plants and herbs.

There are also good investment opportunities in the field of pneumatic tyre manufacture, sulphur and industrial paints. The availability of Neem trees in the Sudan is an inviting incentive to chemical and pharmaceutical investors. The rich Indian experience in Neem research can be utilised and promoted.

Bottling and Packaging Industry: The bottling and packaging industries consist of flexible wrapping materials, which are made of paper and plastic, and inflexible storage in bottles, wooden cases and metal kegs. Although there are several factories in Sudan that operate in this field, the low productivity calls for interested investors.

There are considerable investment opportunities in this sector created by the availability of large volumes of agricultural products and other commodities in addition to the availability of the basic raw materials and other inputs locally.

Paper and Timber Industry: The paper and timber industry includes investment in plantation of trees that yield high quality timber and other wood products. It also includes the wood preparation stages, sawmills, manufacture of chemical products from lingnin and cellulose and paper products from wood planks, bagasse and weeds.

Investment opportunities exist in the paper industry to produce all kinds of paper and paper-based products as well as to promote the present sawmills and other wood industries such as sapwood, plywood sheets, match sticks, telephone pylons, railroad ties, wooden household and office furniture.

The Engineering Industries: Engineering industries in Sudan are represented by the metal works sector such as refrigerators, air conditioners, water coolers, liquid gas cylinders, welding, household utensils, electric appliances and automobiles, trucks, tractors and agriculture equipment assembly, auto body industry and many other engineering industries. As there is increasing demand for such products in Sudan, there exist numerous investment opportunities especially in truck, tractors and assembly industries for agriculture. Establishing auto-assembly facilities and manufacturing of spare parts, household utensils, electronic devices and electrical appliances in Sudan could also be suitable investment arenas.

Minor Industry: Minor industries are a group of industries that use simple or medium technology in product, including vegetable oil factories, grain mills, ovens and improved stoves. This field is especially recommended as it helps development of rural areas. Availability of raw materials is an added incentive.

There are also investment opportunities in the field of haulage of raw materials to factory sites, provision of consultancies, marketing, warehousing and transportation services.

Small Scale and Medium Projects: The following projects are generally in great demand in both rural and urban areas:

. Sugar production mills
. Mills for production of vegetable oils
. Cold stores and ice-making factories
. Factories for production of tomato paste and juices
. Factories for production of sesame paste sweets
. Factories for production of jam and marmalade

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