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Embassy of India
Khartoum
June 2006
Market Survey
Information Technology
OBJECTIVE OF MARKET SURVEY
• Provide an insight into the Sudanese IT market.
• Increase in the Indian market share in Information Technology exports to
Sudan.
• Examine investment opportunities in the IT sector.
• Analyse the business environment and Sudanese tax structure.
Sources of information
1. This survey is based on primary, secondary and tertiary sources, including, but
not limited to, interviews with Government officials, industry players, market
regulators, importers, tax officials, exporters and the Embassy’s own cumulative
experience over several years. Market intelligence has also been gathered by paid
surveyors.
FACT SHEET
OFFICIAL NAME Republic of Sudan
1. CAPITAL Khartoum
2. POPULATION 35 million (2005)
3. GDP (2005) US $ 27 billion
4. CONSUMER PRICE 11%
INFLATION (2005)
5. REAL GDP GROWTH 2005 8%
6. COMPOSITION OF GDP Agriculture 45.6, Industry 24.1, Mining 9.6 6, Construction 4.7,
(2004) % Services 30.2
7. TOTAL EXTERNAL DEBT US$ 25 bn
(2005)
8. FOREIGN TRADE 2003 - US$ 5078.3 mn (Exp: US$ 2542.2, Imp: US$ 2536.1 mn)
2004 - US$ 7364 mn (Exp: US$ 3777.8 mn, Imp: US$ 3586.2
mn)
2005 - US$ 10,282 mn (Exp: US$ 5,254 mn, Imp: US$ 5028
mn)
9. OFFICIAL LANGUAGE Arabic
10. BILATERAL TRADE WITH 2003: 149.13 (Imports 115.96; Exports: 33.17)
INDIA 2004: 225 (Imports 197.10; Exports: 27.90)
(US $ mn) Jan-Sept 2005: 105.32 (Imports: 80.88; Exports: 24.44)
11. TOTAL AREA 2,505,812 Sq. Kms sq. km.
12. CURRENCY Sudanese Dinars (SD) (US$ 1 = 230 SD February 2006)
13. TIME 2 hrs ahead of GMT
14. MAJOR CROPS Sesame, cotton, sorghum, sugarcane, wheat, groundnuts and
oilseeds
15. MAJOR TOWNS Khartoum, Port Sudan, Kassala, Omdurman, El Obeid, Wad
Medani, Gedarif, Juba
16. CLIMATE Predominantly hot and dry
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17. SEAPORT Port Sudan
18. MAJOR EXPORT Petroleum, Cotton, Gum Arabic, Sesame, Livestock and meat
COMMODITIES
19. MAJOR IMPORT Foodstuffs, beverages and tobacco, raw materials, chemicals,
COMMODITIES manufactured goods, machinery and equipment , transport
equipment, textiles
20. MEMBERSHIP OF Inter-Governmental Authority on Development (IGAD), League of
ORGANISATIONS Arab States, African Union, Common Market for Eastern and
Southern Africa (COMESA)
SUDANESE ECONOMY
2. Sudan is the largest country in Africa, sharing borders with nine countries, with
a 700 km coastline on the Red Sea with Port Sudan providing an entry point for
overland trade to a number of countries. Poor economic management, coupled with the
severe economic disruption and imbalances caused by the civil war have constrained
development. However, oil income will continue to increase in 2006, owing to higher
output and stable prices. Bolstered by further gains in non-oil output and an expansion
of the tax base, revenues will climb.
THE PEACE DIVIDEND
3. The Comprehensive Peace Agreement signed in January 2005 offers an
unprecedented opportunity for millions of Sudanese for peace, prosperity and
development. Improved domestic and overseas confidence should boost consumption
and investment. Already, FDI in the first half of 2005 hit US$ 1,100 mn, the highest
ever in a single six-month period. Reserves as of January 2006 are above US$ 2.5 bn,
an all time high for Sudan which during the two decades before the development of its
oil sector had average reserves of only US$ 75 mn. The funds pledged at the April 2005
Oslo Donor’s Conference are expected to exceed US$ 2.5 bn once all pledges come in.
This will cover reconstruction in the South, the border areas that suffered the gravest
damage during the civil war, and Sudan as a whole. Although the immediate
requirement is anticipated at over US$ 7 bn, Sudan expects to make up the shortfall
through its oil revenues.
4. Under the peace deal, the South will have autonomy in its spending decisions as
well as access to 50% of all revenue (oil and non-oil) generated in the region. However,
the Southern government (that assumed charge in October 2005) has little physical,
social or financial infrastructure for policy execution. Its members have little experience
of government and even less of economic strategy.
5. Thanks to rising oil exports and the return of peace and reconciliation, Sudan
holds out bright prospects for Indian automobile exporters and investors. The Embassy
urges Indian companies to explore economic and commercial possibilities in Sudan
immediately.
INDIA SUDAN COMMERCIAL RELATIONS
6. There are over 100 companies with Indian capital in Sudan. Bilateral economic
relations reached an inflection point in 2003 with India’s decision to invest US$ 750
million in the oil sector. Current cumulative investment is over US$ 2.5 billion, the
largest part through ONGC Videsh Limited (OVL). Sudan also awarded OVL a 741 km
multi-product pipeline project (US$ 194 mn) from Khartoum Refinery to Port Sudan
Export Terminal, completed in August 2005 two months ahead of schedule.
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7. Relations between India and Sudan received a new impetus with the visit of
President A.P.J. Abdul Kalam to Sudan in October 2003. India and Sudan signed a
Bilateral Investment Promotion & Protection Agreement (BIPPA), a Double Taxation
Avoidance Agreement (DTAA) and an MOU on Cooperation in the field of Information
Technology. India announced a US$ 50 million line of credit, the first ever for Sudan. At
the April 2005 Oslo Donors conference, India pledged a grant of US$ 10 million and a
further concessional US$ 100 million line of credit. Under the Line of Credit, the US$
41.9 mn Sinja-Gedaref transmission line and substation project has been approved; the
other projects suggested by the Ministry of Finance and National Economy of Sudan
and are under our consideration.
8. In February 2006, BHEL signed the contract for the US$ 457 mn Kosti power
project (500 MW) partly funded by a US$ 350 mn loan from Exim Bank. This is the
single largest project in the electricity sector in Sudan.
9. s
India is among Sudan' important trading partners. Both countries are now
determined to achieve, once again, the highest possible performance in their bilateral
dealings. The signing by both countries of eleven agreements on trade, economic,
cultural and technological fields as well as the establishment of an Indo-Sudan Joint
Business Council and the Indo-Sudanese Cultural Forum are clear testimonies to and
examples for their shared commitment and determination to consolidate their
cooperation in all fields.
THE WAY AHEAD
10. Sudan understands India, once its largest economic partner, and actively seeks
to enhance all-round relations. Sudanese leaders at every level have talked about their
“preference” for India as a development partner. To give a sustained focus to India-
Sudan trade relations and achieve 50% annual growth, the Embassy’s commercial
policy since October 2005 is a non-exclusive “five-plus-one”. The five priority sectors in
which India can respond to Sudan’s developmental requirements are infrastructure,
agriculture, human resource development, information & communications technologies,
and small & medium industries. The “plus-one” is commercially viable investment in
the energy sector (oil, electricity, gas, construction). To achieve this, the Embassy has
formulated a Target and Introduce Programme (TIP) under which one new Indian
product will be introduced every semester.
11. Bilateral trade in 2004 was US$ 225 mn (up 51%) fueled by a 70 % increase in
Indian exports to Sudan (thanks to the Line of Credit). However, our exports in 2005
have declined by over 55% as per provisional estimates.
INDIAN PRESENCE IN IT SECTOR IN SUDAN
12. Global Indian giants NIIT and Aptech have been in Khartoum for nine years and
four years respectively. During this period, thousands of Sudanese have trained with
“the Indians” and found high-paying jobs. NIIT is now aiming to enter South Sudan.
Their experience has been uniformly satisfactory. They follow the model of appointing
franchisees with technical support from the Indian parent. Several Sudanese IT schools
have hired Indian teachers, with mixed results (the teachers complain of low salaries
and several have gone back).
IT SECTOR IN SUDAN
13. History of Science and Technology in Sudan
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In the early years after independence, science and technology policies were not
formulated in a comprehensive sense, but left to institutional and academic initiatives.
The first organized structure of science and technology came with the establishment of
the National Council for Research in 1970. The National Council for Research is the
body responsible for the formulation of policies and application of research for societal
benefit and development. Until 2001, efforts were made to initiate technology
capabilities in various organizations in the country, but with varying outcomes.
The National Center for Research was reorganized after the establishment of a Ministry
for Higher Education and Research in 1989, with an ambitious plan for expansion in
higher education and enhancing applied and scientific research to development. The ten
year strategic plan (1992-2002) sought to enable Sudan to acquire the means of modern
technology. It also called for the introduction of modern technology in the educational
curricula and development of scientific research methods. The plan adopted
programmes for popularization of science and technology.
Since 1992, the Ministry of Science and Technology emerged as the vital catalyst for
building competitive knowledge-based economy.
14. Sudan’s IT ambitions
Sudan seeks competitiveness in the following IT sectors:
1. Hardware (digital equipment)
2. Software
3. IT products Design
4. IT support
5. Corporate administration services
6. Maintenance services
7. Integrated systems development services
15. Is it possible?
There are several significant developments in recent years:
a) Electricity production is on the increase. The forecast is to top 4,000 MW by 2008
and cover most urban areas and the surrounding suburbs
b) The fiber optics network exceeds 5, 000 Km and is planned to be doubled in the next
few years. VSAT network is already in place, linking most remote areas
c) TV and radio broadcasting coverage is on the increase
d) The country is rich with its large base of graduates in IT fields. These include B.Sc.,
M.Sc. and PhD holders.
e) Computer science and engineering education has high demand and attracts the best
students.
16. Government support
IT is a major priority of the Ministry of Science and Technology (MOST). In
collaboration with other concerned ministries and institutions, MOST seeks to
encourage development of IT industries through six programs:
Informatics Policy & Legislation Program
1. Formulating Legislation on Sudan’s Policy of Informatics Industry
2. Formulation of policies, regulations and motivations to attract High Tech industries
such as enhancing the macro-economic, investment, foreign exchange, financial,
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banking, import and export policies and seeing reduction of import levies on inputs,
reducing or eliminating of taxes, encouraging finance rules, reducing risks and
supporting Research and development (R&D) programmes. It also seeks to encourage
private sector participation through assurances and clear free market policies and
regulations.
3. Drafting and issuing financial legislations that take into account that informatics is a
large income generating industry that depends mainly on talented human resources
and their efforts
National Information Network Project
Informatics industries strongly rely on local and international networks. The national
network will be the backbone for information services and the means for interaction
with the global information society. The national information project (not very
successful so far) was at the forefront of the government and society priorities for the
last decade. Its aspects include the need to draft and ratify the National Network Law,
the design of a National Database and its operating systems, a data entry program
based on long term support, training and follow-up efforts according to fixed time
schedules.
Infrastructure Program
This program aims to address local production of hardware, human resources
development, information super high way and the supporting environment (Silicon
valley). In collaboration with the universities and higher education institutes, the aim is
to develop the educational curricula and teaching material in the fields of computer
engineering and sciences. Radio and TV educational channels are to be established.
Software Industry Programme
The intention is to assess Private Sector IT needs and encourage talented individuals to
produce software in English as well as in Arabic so that neighboring Arab countries
could utilize the potentials of the technology.
Information Services Programmme
This includes a Digital Library Project.
17. MOST INFORMATION TECHNOLOGY & INDUSTRY PROGRAMMES:
PROGRAM PROJECT
(A)Informatics Policies & Legislations 1. Drafting and Ratifying Informatics
Legislations.
2. Drafting and Ratifying Related
Financial Legislations.
(B)Establishment of a National Information 1. Drafting and Ratifying National
Network. Information Network Law.
2. Design of Database and its
Operating System.
3. Data Entry System and
procedures.
4. The Interconnection of the Local
Networks
5. Training.
(C)Infrastructure Development 1. Creating the National Committee.
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2. Development of Human Resource.
3. The Model Feasibility Study.
4. Network of National Research
Center.
5. Hardware Industry.
6. The Super Gateway.
7. Sudanese Silicon Valley.
(D)Software Industry 1. Survey of the Private and public IT
Needs.
2. Care and Encouragement of
Talented Workers.
3. Encouragement of Support for
Arabic.
4. Contributing on the Data
Processing Using Arabic Language.
(E)Content and Electronic Publishing 1. An Exploratory Project in
Educational Content Delivery.
2. A model Sudanese Tourism
Content.
3. A model Sudanese Cultural
Content.
(F)Informatics Services 1. The Program of the Digital Library.
2. Assessment of Size of the Present
Information Services.
18. List of Dealers in IT Products in Sudan
Company Name Contact Person Tel Fax
Nile Technical Agencies Mr. Mahmoud Amin 83787833 83787837
P.O. Box 1292 (Projects Sales Manager) 83787835 83787838
Khartoum 83787838
Mahmoud.amin@niletechna.net
Mohammed Abdalla Ali Mr. Mohammed Abdalla 83431276 83431281
Khartoum 83431277 83431283
Toktok16@hotmail.com
I-Com Mr. Amir Yusuf 83766860 83766856
P.O.box: 671 (Executive Director)
Khartoum
icomafrica@yahoo.com
Comsuda for Computer Eng.Sev. Mr.Yasir Ahmed Aloob 83488799 83-472886
Khartoum (General Manager) 83479488
yaloob@hotmial.com 83479487
912305755
Ashraf International Group Eng.Gamal.M.Hussain 83795741 83-795740
P.O.Box. 11796 (Chairman) 9123-
Khartoum 01518
ashraff@sudanmail.net
Mierag Space Technologies co. Mr.Gamal M.Hussain 83798771 83798770
Khartoum
Mstc2002@sudanmail.net
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19. List of importers of computer equipment in Sudan:
Name of the Company Telephone Fax
Computer Art Technology Co. Ltd. 83774376 83758723
P.O. Box: 376. Khartoum
Al-Ruad Engineering Co. Ltd 83776370 83771032
P.O. Box: 8047. Khartoum
Al-Shuraa Commercial & Engineering Co. Ltd. 83785919 83777309
P.O. Box: 11311. Khartoum
Best Communication & Electronic Co. 83551111 83779731
P.O. Box: 226. Khartoum
Computer Science& Engineering Center Co. 83465336 83472547
P.O. Box: 44731. Khartoum
El-Nilien Computer & Communication Co Ltd. 83771992 83785687
P.O. Box: 1722. Khartoum
Hantoush Engineering & Computer Co. Ltd. 83781019 83773505
P.O. Box: 370. Khartoum
Imam Technology Co. Ltd. 83468904 83472547
P.O. Box: 44721. Khartoum
Khartoum Audio & Visual Co. Ltd. 83784421 83776107
Parliament Street. Khartoum
Leader Computer Co. Ltd. 83466259 83466647
P. O. Box: 13057. Khartoum
National Research Information Services Co 83782950 83781051
P.O. Box: 3149. Khartoum
Ram Computer Co. Ltd. 83784069 83784102
P.O. Box: 6458. Khartoum
The establishment of a Ministry of Investment reflects the attention the state pays to the
investment processes through creating a suitable investment climate and developing the
promotion means to raise them to an international level. The Ministry has carried out
efforts to prepare a suitable environment through facilitating procedures, unifying them at
one window and put in place the rules and procedures to facilitate protecting investor’s
rights.
For further information, please contact Embassy of India in Khartoum. We respond to all
email commercial queries within eight working hours.
Address 61, Africa Road, Mailing Code 11111, P O Box 707, Khartoum II
(Sudan)
Telephone Country Code 249, Khartoum City Code 1
8357 4001, 8357 4002, 8357 4003, 8357 4004
Fax 8357 4050/1
Email ambassador@indembsdn.com
commercial@indembsdn.com
Website www.indembsdn.com
Local Time IST (-) 21/2 Hours
Working Hours 0800 to 1700 Hrs (Monday through Friday)
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