Sudan seeks to attract $1bn for agriculture projects

August 16, 2008 (LONDON) — Sudan is seeking to attract at least $1bn of capital for its agricultural sector from Arab and Asian investment groups that are looking for new food supplies to ensure food security following the commodity price inflation.

The Sudanese government wants to secure investments totalling $1.04bn (€694m, £543m) for 17 lead projects, which are all in northern Sudan and include wheat, maize, fruit and vegetable production.

Abdalla Elhag Mohamed, director of external relations at the investment ministry told the Financial Times that his ministry is marketing a portfolio of 17 large-scale projects that would cover an area of 880,000 hectares.

Sudan has been described as a possible bread basket for the Middle East and has great productive potential in land close to the Blue and White Nile rivers and the River Nile proper. But the farming sector is underdeveloped and in need of capital, irrigation systems, roads, machinery and technology.

The Sudanese official, however said that his ministry intends to include in the agreements negotiated with the Arab investors what they can bring to the local population is the exploited areas.

“It should be very clear in the agreements what proportion of food will remain in Sudan, what other social services they will provide, what new technology they will introduce, the employment they will create and the training for local people,” Mohamed said.

Last June Abu Dhabi showed interest to develop more than 70000 acres of land, Saudi Arabia and Egypt have also held talks with Sudan and are considering agricultural projects of their own in Africa’s largest nation.

(ST)