Ismail vows to punish Sudan’s investment ministry staff accepting bribes

May 15, 2013 (KHARTOUM) – Sudan’s minister of Investment Mustafa Osman Ismail accused unspecified parties within his ministry of deceiving investors by promising to facilitate their work and offering investment zones.

The Sudanese official, who addressed the Council of States on Tuesday, also warned his ministry’s staff of swift punishments if it is proven that they accepted bribes in the course of their work.

Ismail also criticized Sudan’s current constitution saying that it does not help advance investments in the country and creates problems between the National Investment Council and the state governments which derive their authority from local laws.

“State taxes imposed on cement factories in Nahr al-Neel state have led to a 50% reduction in cement production” the minister cited as an example.

But Ismail acknowledged that lack of coordination between the federal government and the states is the main cause behind the stumbling of domestic investments.

Despite these challenges, Ismail said that Sudan is the second highest investment-attracting country in the world over the last decade worth $29 billion.

The Sudanese official noted that the government annulled the Value Added Tax (VAT) on investment equipments.

He also revealed that Saudi Arabia requested over million acres of land for investment in food security and agreed to contribute to the building of infrastructure stressing that the government has given the Arab Gulf States priority in these projects.

Ismail further added that Sudan’s livestock exports to Saudi Arabia reached 3 million heads last year but also spoke of problems facing investors regarding land ownership.

Since the 2007-2008 global food crisis, Saudi Arabia has been encouraging private and public firms to invest in farm projects abroad. In 2008, the government there also abandoned a 30-year self-sufficiency in wheat programme.

Saudi Arabia wants build stocks of basic commodities such as wheat, rice, oil and sugar to avoid the implications of rising global food prices and also to meet the needs of the population that is growing at a rapid pace.

The government-owned Saudi Industrial Development Fund (SIDF) offers credit guarantees to companies wishing to invest in farming projects abroad.

But the Saudi land grab has not always been trouble-free.

Late last month, hundreds of Om Doum residents in Khartoum staged demonstrations, blockading the main street and setting tires on fire to express fury against what they say are government plans to give away part of their lands to a Saudi investor.

(ST)