Reliance on oil revenue hurts Sudanese economy – official

June 12, 2009 (KHARTOUM) – Sabir Mohamed Hassan, Governor of Central Bank of Sudan said Sudanese economy has been suffering from the Dutch disease because it depends on oil revenue and neglects other non-oil exports.

The Dutch Disease is the economic theory saying that an increase in revenues from natural resources (exploitation) will de-industrialise a nation’s economy by raising the exchange rate, which makes the manufacturing sector less competitive.

The Sudanese official was speaking at a symposium, organized by the Bank of the Sahel and Sahara, under the title: the promotion and development of non-petroleum exports held at Al-Fatih tower in Khartoum.

Saber also said the oil, although it is fast cash product, relying upon it is “tricky”. He further added that the oil is a depletable product.

He pointed out that this dependence on oil caused the migration from the production areas to major cities.

He also said that a committee led the minister of agriculture has been formed to find out practical steps to help in improving the non-oil exports.

(ST)