Five-Year Programme for Economic Reform 2015- 2019

The Five-Year Programme for Economic Reform 2015- 2019 Production for Export and Improving Living Standard Volume One 1 The Ministry of Finance and National Economy Khartoum, Nile Street Telephone: + 249183776519, Fax: + 249183775630 P.O. Box 196, Khartoum, Sudan Email: info@mof.gov.sd Internet Website: www.mof.gov.sd 2 The Almighty Allah Says: “And I said, 'Ask forgiveness of your Lord. Indeed, He is ever a Perpetual Forgiver. (10) He will send [rain from] the sky upon you in [continuing] showers (11) And give you increase in wealth and children and provide for you gardens and provide for you rivers. (12)” Surat Nuh 10-12 ‫ﺼﺩﻕ ﺍﷲ ﺍﻝﻌﻅﻴﻡ‬ {‫}ﺴﻭﺭﺓ ﻨﻭﺡ‬ 3 Contents p Introduction…………………………………………………..………….…7 The Principles on Which the Programme is Based…………..…….10 The General and Quantitative Objectives and Policies …………....12 Restoration of Sustainable Economic Growth: …………..……..13 The Gross Domestic Product (GDP):………………………..………..13 The Investment:……………………………………………………..……14 The National Savings:…………………………………………………...15 The Public Finance:……………………………………………..……….16 The Monetary and Banking Sector:……………………………………30 The External Sector: The Foreign Trade:……………………………39 The Production and Services Sectors:………..……………….....45 The Industrial Sector:…………………………………………………….45 The Extractive Industries:………………………………………………..46 The Petroleum:……………………………………………………..…….46 The Minerals and Metallic Industries:……………………………..…..51 The Other Industries (agricultural manufacturing, localization of miscellaneous engineering industries .... etc) ………………………56 The Agricultural Sector ………………………………………………….62 Agricultural Production: ..………………………………………………..63 Animal Production: ……………………………………………………….74 The Forests: ……………………..………………………………...….. 83 The Infrastructures: …………………………...……………….,.……. 85 The Electricity: …………………………………..………………………..86 Irrigation Structures: …………………………………………………….. The Railways: ………………………………………………………………95 4 Transportation, Roads and Bridges: …………………………………….96 Market Structure: ………………………………………………………….97 Tourism: …………………………………………………………………….98 The Environment: ………………………………………………………..100 Standards and Metrology: ………………………………………………101 The Meteorology and Weather Forecasting: …………………………102 Communications and Information Technology:……………………….103 Services and Social Welfare: …………………………….………….105 Social Services: ………………………………………………………….108 Health: …………………………………………………………………….108 Education: ……………………………………………………………..…111 Water Supply and Sanitation: ………………………………………….114 Social Welfare: …………………………………………………………..115 Work, Employment and Micro-Finance: ……………………………..117 Social Assistance: ……………………………………………………….118 Eradicating of Poverty: ………………………………………………….119 Reduction of Unemployment: …………………………….……………120 Human Development and Capacity Building: ……………………122 Higher Education and Scientific Research: ………………………127 The States: ……………………..…………………………….….……..129 Factors Supportive of Programme: …………………..…………..134 Security and Defense …………………………………………...…… 134 Justice: ..………………………………………………………….……..135 Guidance, Culture and Sports: ………………………………….……136 Information: ……………………………………………...……………..138 Informal Sector: ……………………………………………….………..140 5

Priorities of the Development Programme: ……………….……..141 Public and Private Sectors Partnership: …………………..….…148 The Role of the Private Sector and Partnership in the Execution of the Programme: …………………………………………………….……….148 Priorities of Joint and Private Investment: …………………………..150 General Policies for Attraction and Encouragement of Joint and Private Investment: ……………………………………………………..152 Creation of Conducive Investment Climate: …………………………152 The Institutional and Legal Reforms: …………………………………152 Fiscal Policies: …………………………………………………………..155 Training, Qualification and Total Quality Requirements: …………..158 Foreign Trade: …………………………….…………………………….159 Foreign Economic Relations: ………………………………………….161 Sources of Financing the Programme: ……………………………….162 Follow – Up of Programme Implementation: ………………………..164 Annexes …………………………………………………..……………..166 6 Introduction: - The Five-Year Economic Programme (2015 - 2019) takes in consideration two important developments: o The completion of the Three-Year Economic Programme 2012-2014, which sought to absorb the shock of South Sudan secession of 2011 and its negative effects on the economy. Besides it aimed at bridging the two gaps of internal and external resources and controlling inflation to restore stability and achieve positive growth rates. o The country's constitutional, political, economic and social developments which coincide with the present constitutional tenure of the Presidency of the Republic (2015 – 2019). These require mobilizing the National efforts to develop and implement an integrated economic Programme compatible with the nature and requirements of this stage. At the same time the Programme should overcome the pitfalls and shortcomings of the past experiences, support the gains and achievements and be appropriate for future challenges. Additionally, it aims at high rates of 7 economic growth, sustainable development leading to improvements in the standard of living and alleviation of poverty and destitution. - Based on this vision, the Five-Year Economic Reform Programme is based on the following terms of references: • The Interim Constitution of 2005 • The Quarter Century (Twenty Five –Year) Economic Strategy (2007-2032) • The objectives and results of the Three-Year Economic Programme for sustainability of economic stabilization (2012-2014). • The recommendations of the Second Economic Forum 23 to 24 November 2013. • Sudan's Initiative to achieve the Arab food security. • The speech of H.E the President of the Republic about the reform initiative 27 January 2014. • The proceedings of the hearing sessions with the Sudan workforce Trade Unions General Federation, the Sudanese Businessmen and Employers Federation and the ministers of finance of the country States. • The peace agreements currently in force. 8 • Sudan's Interim Poverty Reduction Strategy Paper (I- PRSP). - The Programme is prepared in two documents. The first is a summary of the evaluation of the National economy developments since independence with special focus on the evaluation of the Three-Year Programme (2012-2014) performance. The final year of the programme has been adopted as the baseline year of the Programme. The other document includes the terms of reference and the general principles on which the Programme, its quantitative objectives, macro and sectoral policies are based. Moreover, it includes priorities of the socioeconomic development programmes and institutional reforms required for its implementation under the main and supportive pivotal themes. - The Programme documents also include an annex of essential development projects matrices and a set of working papers associated with the Programme. - A large group of experts, specialists, academicians, representatives of Public and Private Sector, technicians, concerned officials from the Ministries and the States' Governments and some competent National dignitaries

9 participated in the preparation of Programme totaling about 440 participants. - Besides, the Programme was discussed in workforce Trade- Unions, Businessmen and Employers' Federations and in meetings of the Ministers of Finance of the 18 States of the country. The Principles on Which the Programme is Based: - The guidance and good governance of the principles of the Islamic Shari'a together with the principles of the economic moderation and pragmatism. - The creation of a suitable environment for the implementation of the Programme through the achievement of political stability, the building of National consensus on economic reform to put an end to the armed and tribal conflicts, to spread peace and to affirm the sovereignty of the National Government all over the country. - Commitment to the principles of free market, economic liberalization and transparency. 10 - Affirming the pioneering role of the Private Sector (domestic and foreign) to lead the economic activity and achieve the Programme's objectives. - Improving the standard of living and securing decent living for the citizens. - Guaranteeing the fairness of income distribution among the citizens in all States and the establishment of social security, based on the values of Takaful i.e. interpersonal support, solidarity and compassion which are deeply rooted in the Sudanese traditions and cultures. - Commitment to the principles of the individual and collective self-reliance in the areas of food and National security. - Commitment to good governance, democracy, transparency and the rule of law. - Strengthening institutional oversight, improving transparency, accountability, public auditing and enforcement of laws governing the National Government and Private Sector enterprises (local and foreign). Furthermore, measures will be taken to combat extravagance, corruption, favoritism, nepotism, monopoly, fraud, market dumping and money laundering. 11 The programme General, Quantitative Objectives and Policies - The all-inclusive vision of the Programme is the achievement of a steady increase in the National production and directing it to exportation. It also aims at ensuring a decent living for all citizens, social justice and a comprehensive balanced development. To achieve this vision a package of general and quantitative objectives of macro as well as sectoral and institutional policies is prepared to mobilize financial resources for Public and Private investment within the framework of the following key and ancillary areas:- 1- The Key Areas: • The restoration of economic stability and sustainable growth to include the objectives and policies for the sustainable economic growth and the policies of economic stability in the fiscal, the monetary and banking sectors as well as the external sector. • Goods and services sectors. • Infrastructure • Social welfare • Human resources development and capacity building 12 • Scientific research • Role of the States in the programms implementation. • Development priorities • The leading role of the private and joint sectors (domestic and foreign) in the economic activity. 2- The supportive Areas: • Security and Defense • Justice • Culture and Sports • Economics Media • The Informal Sector • Programme funding • Programme implementation and follow-up Restoration of Sustainable Economic Growth: The Gross Domestic Product (GDP): - The Programme aims to: • Create job opportunities and a sustainable GDP annual growth rate of 6.6percent in the first year of the Programme to reach a rate of 7.1percent by its end.

13 • Achieve significant increases in production and productivity in all economic sectors commensurate with the targeted growth. Focusing mainly on the industrial sector (extractive, manufacturing and agricultural processing) to become the main engine of economic growth. The Investment: - Raising the overall investment rate as a percentage of gross domestic products (GDP) from 19percent in 2015 to 23percent in 2019. - Raising the size of the total investments of the Programme from 121.8 billion pounds at the beginning of the Programme to 316.6 billion pounds at its end, with the Public Sector’s share of only 17percent of the total investment. The Private Sector induced by economic policies and institutional and legal reforms is expected to take the leading investment share of 83percent of the total investments. In this regard, the Private Sector assumes the economic growth leadership during the Programme period 14 based on the economic and social policies and the institutional and legal reforms and the required additional incentives cited in the Programme. - Giving priority to the Sudan initiative to achieve Arab Food Security as of the year 2015 in coordination with other Arab countries and with funding from regional financial institutions. The National Savings: - Raising the savings rate from 8.3percent in 2015 to 22percent of GDP by the end of the Programme by: • Attracting personal savings into the banking system by an integrated Programme of incentives and the geographic spreading of the banking services. • Implementing the financial inclusion strategy by increasing the customers and beneficiaries from the banking services. • Generating a surplus in the current General Budget of the National Government to increase the financial savings 15 • Encouraging the flow of the savings of the Sudanese Nationals working abroad into the banking system by stabilizing and unifying the exchange rate. • Encouraging and expanding of savings funds in the rural areas. • Activating and augmenting the surpluses of the social funds, microfinance, Zakat, Awqaf (Endowments), charity donations, and the Saving and Social Development Bank, the Family Bank and the banks allocations for the support of working families, employment of the youth, graduates and the self- employment. • Creating new saving holders like the Haj and Umrah Fund and the Education Fund….etc. • Developing Khartoum Stock Exchange Market to enable it to attract the private savings. • Developing and liberating the insurance market to increase its coverage of all commercial activities. The Public Finance: 16 - The Programme aims to reduce the budget deficit from 1percent of the gross domestic product (GDP) in 2015 to 0.4percent by the end of the Programme. Whereas the government revenues are expected to rise from 9.4percent of the gross domestic product (GDP) in 2015 to 12.3percent by adding the revenues of the central government to that of the 18 States. Consequently, the total revenues are expected to amount to 14percent of the GDP in 2019. On the other hand, the spending rises from 10.4 percent of the GDP in 2015 to 12.7 percent in 2019. - The Programme includes stringent procedures and policies to reform the public finance in the following areas: • To affirm the Ministry of Finance and National Economy’s jurisdiction over public revenues. Consequently, finances will be tightened and transparency will be enhanced. • Upgrading the National Government General Budget Unit along with the use of appropriate technology to improve the efficiency of budget implementation.

17 • Commitment to the economic planning methodology approach • Increasing the National Government financial effort to reach around 14percent of the gross domestic product (GDP). • Controlling and putting in order the priorities of the government spending by focusing on key sectors • Achieving the institutional reform and capacity building on budget preparation, implementation and follow up • Repayment of government debts to the Central Bank of Sudan (CBOS), in accordance with the law of the Central Bank of Sudan (CBOS) while maintaining the budget deficit within safe limits. Maximizing the National Revenues Through the Following: - Increasing the contribution of direct and indirect taxes to the gross domestic product (GDP). - Increasing the production of operating oilfields and promoting further oil explorations. - Assessing, evaluating and rectifying administrative fees in commensuration with the cost of the rendered services 18 - Reviewing the rates of royalties - Increasing the contribution of National Government owned companies to National revenues by strengthening administrative capacities, activating the role of the Boards of Directors of these companies and abiding by the rules of corporate governance. - Increasing the competitiveness of the Sudanese ports by reconsidering their fees . - Activating the free economic zones and providing adequate transportation to the countries that clear their goods in Port Sudan (Chad, Ethiopia, and Central African Republic). Taxation and Customs Duties Reform Policies: - Revising the provisions in the special laws granting tax exemptions in contravention to the provisions of the Income Tax Act of 1986, Capital Profits Tax Act, Stamp Fee Act, Value Added Tax Act and the Customs Act to achieve justice, equity, increase revenues and expand the taxation coverage. 19 - Public enterprises, private companies and individuals shall adhere to taxation laws and pay taxes proceeds to the Chamber of Taxation - Benefiting from the experience of the countries applying the system of oil Exploration and Production Sharing Agreements (EPSA) with the aim to increase the National Government's revenues - Before including tax and customs duties exemptions in contracts or agreements, the advance approval of the Ministry of Finance and National Economy must be obtained. Other financial commitments must likewise be cleared with the Ministry. - Improving the work environment in the Taxation Chamber and the Customs Authority. - Supporting the efforts of the Taxation Chamber and the Customs Authority of expanding the taxation coverage and combating tax and customs duties evasion and smuggling - Raising the proficiency and building capacities of personnel through internal and external training, considering the other countries experience in taxation and customs duties collection and participating in workshops, conferences, 20 forums and seminars held outside Sudan in the field of taxation and customs duties. - Developing the processes of monitoring, evaluation and reviewing plans and Programmes through a quarterly control and inspection Programme to evaluate the performance and achievements. In the light of which corrective measure will be taken. - Continuing taxation and customs duties reform and creating mechanisms to follow up implementation. - Promoting partnership with the Private Sector to ensure achievement of taxation justice while increasing the taxation effort. - Encouraging research in the field of taxation and customs duties by establishing research centres. A-Direct Taxes: - Reviewing the fatwa (edict) providing for the exemption of profits of insurance companies from taxation. - Raising rates of businesses' profits tax to achieve tax justice and increasing the contribution of the direct taxes to the gross domestic product (GDP)

21 - Representation of the Ministry of Finance and National Economy and the Taxation Chamber in the committee for reviewing and auditing oil costs formed by the Ministry of Petroleum - Adherence to the provisions of Article (70) of the Income Tax Act of 1986 regarding the clearance and acquittal certificate as a precondition for doing business with the National Government - Strengthening the sections of public relations and information and tax payers services at the Taxation Chamber - Simplifying taxation appeal procedures by putting effective and objective principles specifying the taxation obligations and adopting an accounting system to speed up tax reviewing procedures - Paying thorough attention to auditing for taxation purposes and closing evasion loopholes. - Strengthening the abilities of the Chamber of Taxation to collect information about tax payers and linking it with the National Centre for Information. 22 - Supporting the procedures currently pursued by the Taxation Chamber to automate and computerize the taxation and administrative work in the Chamber to cover all the stages of assessment, collection, revision and the exchange of information - Emphasizing the unity of legislation and taxation management to exclude conflict in taxation policies and the overlapping in the enforcement of tax laws. Value Added Tax (VAT): - Activating the legal text in Article (37/4) of Value Added Tax Act regarding the tax exemptions cited in other laws - Exemptions powers shall be exercised according to the Tax Law only - Developing accounting systems for small taxpayers - Maintaining the VAT rate of 17percent, the special rate of (30percent) on telecommunications and exempt exports from the tax. 23 - Amending Article (21 paragraphs 1 and 2) concerning the printing and issuing of the tax bill and Article (43/4) concerning tax evasion. - Expediting the ratification of Tax Rules and Procedures as a basis for shortening the revision period to protect the rights of the taxpayers and the Chamber of Taxation. - Coordination with the Ministry of Foreign Affairs to develop a mechanism of similar treatment in cases of tax withholding. - Developing controls to identify the persons, commodities and services and the minimum and maximum of withheld sums of money in coordination with the Ministry of Foreign Affairs. Experience of other countries, consideration of administrative cost and discounting specific percentages will be considered. - Applying the value added tax (VAT) to imported sugar based on the provision of Article (12) of the law along with the cancelation of specifying the price for the purposes of computing the value added tax (VAT) - Forming a committee from the competent officials from the Taxation Chamber, the Sudanese Petroleum Corporation 24 and companies representatives to conduct studies on the problems of value added tax (VAT) in the petroleum sector - Pre-import procedures will not be applied in full to taxpayers filing correct tax declarations supported with relevant documents. whole import procedures will considered after auditing. - Providing enough financial resources through a separate budget to meet the growing cost of operations. These costs include internal and external training and raising awareness on taxation through designing training Programmes, printing directories and guidelines to taxation employees, the taxpayers and the accountants. Symposiums, lectures and workshop will be held at different venues, while working for the provision of specialized training opportunities in the field of taxation and participating in specialized conferences and workshops .Experience of other countries will be considered and mass media will be enlisted in enlightening and educating the eligible taxpayers. - Raising the taxation awareness through the inclusion of the value added tax (VAT) in universities' curricula a- Customs Duties

25 - Keeping the current structure of the customs tariff on imports at the rates (zero- 3percent- 10percent - 25percent - 40percent). Remedial measures will be taken in accordance with the approved rates. - Reducing the percentage of imports exempted from imports tax from 40 percent to 25 percent throughout the period of the Programme by reviewing the provisions for exemptions cited in special laws on annual basis, especially the entities whose foundation phases have been completed. In these cases, the investment imports shall be subjected to the Investment Act and the commercial imports to the Customs Act. Exemption to authorities enjoying diplomatic immunities will be in accordance with the principle of similar treatment. - Rescinding the development tax on imports gradually at a rate of 3percent per annum during the years 2016-2018 then to 4percent in the year 2019. - Removing discrimination in excise taxes on imports so the rates shall be equal for the imported and similar locally produced goods 26 - Reviewing the imposition of excise taxes on domestic industrial commodities taking into consideration their competitiveness with the similar imported goods - Cancellation of customs duty on exports to improve their competitiveness to reduce external trade imbalance. Other procedures will be used i.e. quota system on scrape iron by specifying a quota sufficient to meet the needs of the local iron foundries. The remainder may be exported with exemption from customs duties. - Imported wheat for making bread will be subsidized, but not for uses in other flour products. The unsubsidized products may be exported with exemption from customs duties. - Keeping the export duties on raw animals hides with the aim to achieve an added value for the economy while encouraging the export of manufactured hides and the related processed products - Reconsideration of customs duties imposed on food additives of medicinal characteristics based on the recommendations of the joint technical committee between 27 the Customs Authority and the National Council for Drugs and Toxins. - Keeping abreast of international standards in commodities classification and evaluation based on the international agreements sponsored by the International Customs Organization (WCO). - Adopting importers' voluntary control plan based on risks evaluation and commodities monitoring to achieve a high degree of integrity and discipline - Intensifying efforts to develop mechanism for control and monitoring customs exempted goods through specific procedures and intensifying anti-smuggling operations. - Expanding the use of advanced technologies and techniques of computer and communications in goods examination and detection. Additionally, mechanisms will be developed to reduce the time taken in the clearance before and after the arrival of goods subsequent to auditing. Work systems will also be improved and upgraded. - Affirming the continuation of Sudan membership in the Common Market for Eastern and Southern Africa 28 (COMESA), the Greater Arab Free Trade Area (GAFTA) in its free trade phase. - No entry in any Customs Union (COMESA, the GAFTA) before the completion of the procedures and steps of Sudan accession to the World Trade Organization (WTO) so as not to commit Sudan to customs tariffs ceilings that might be set by the Union - Maintaining, for the time being, the reservation on signing the full partnership Agreement ( EPA ) with the European Union (EU) as well as the interim agreement within the Eastern and Southern Africa (ESA) group. - The provision of the resources required to cover the requirements of preserving and protecting the unity, sovereignty, safety and security of the home-country - Directing our own resources, loans and grants to production based on the Programme priorities with special emphasis on the industrial sector in the field of mining, oil production and manufacturing industries - Coordination with the States Governments to direct development spending and current allocations in line with the targets of the Programme

29 - Periodical review of the minimum wage limit to maintain the real incomes of law paid workforce. - Graduation in restructuring the subsidies to hydrocarbons, wheat and electricity to transfer resources in favour of those with limited incomes and the poor segment of the society - Developing the internal debt mechanisms and instruments to provide inflation protected funding to the development programmes - Reviewing and updating criteria of resources allocations among the National, the States and the Local Governments to secure fair distribution of resources, faster economic growth and the enhancement of the fiscal effort. The Monetary and Banking Sector: - The Programme aims to reduce the money supply growth rate from 11.4percent in 2015 to 8percent in 2019. This requires the implementation of an appropriate package of policies and procedures, the most important of which are: - Reforming the exchange rate regime to achieve the exchange rate stability by emphasizing the freedom of 30 dealing in foreign exchange, unifying its markets and setting it according to the supply and demand in the unified foreign exchange market. - Reducing the inflation rates to a single digit by the end of the Programme by controlling the money supply growth within the safe limits while achieving the targeted economic growth rates. - Taking into account the limits of safety in financing the National Government budget deficit. - Rationalizing the Central Bank of Sudan (CBOS) policies of gold purchases. - The reduction of financial guarantees in the general budget and linking them to the development of the real resources. - Activating the mechanisms of monetary policy, including the role of sukuk (bonds) in the open market operations. - Activating the Central Bank of Sudan (CBOS) instruments and tools to control the liquidity in the economy by stimulating the open-market operations, launching the liquidity management fund and reviewing the policy of the application of the legal reserve ratio. 31 - Developing laws, regulations and legislations providing for the activation of the role of the Central Bank of Sudan (CBOS) branches. This entails reviewing the powers and jurisdictions of these branches to enable them to play a bigger role during the Programme period. Furthermore, supporting institutions will be developed and activated and banking safety will be achieved. - Affirming the integration of the fiscal and monetary policies to achieve the sustainable economic stability. - The concentration of funding in foreign currencies and directing them to increase the production and productivity of commodities targeted by the programme. - The establishment of joint banks with foreign trade and investment partners - Continue to address banks non-performing loans by increasing allocations of reserves, upgrading the quality of banks' assets and increasing capital adequacy ratio. - Completing the programme for the development of banking technology and electronic payment systems. Moreover, more technology projects will be lunched such 32 as the mobile phone project and the development of Siraj system, besides issuing the payment systems law. - Meeting the requirements of the regional agreements relating to financial and banking fields. - Giving priority to financing the Private Sector to increase the commodity and services production and especially the processed raw materials to raise their added value. - Developing and modernizing the principles and mechanisms of banking control. - Increasing the legal reserve ratio for the foreign deposits. - Reconsidering the current structure of the banking system and the sector activity categorization i.e. establishing comprehensive banks and specialized developmental banks to finance the investment and small projects to have an inclusive economic growth. - Implementation of the banking objectives cited in the strategy of the Central Bank of Sudan (2012-2016) and revising it to coincide with the Programme period while focusing on the following:

33 • Developing and upgrading the performance of banks and financial institutions and building the capacity of their staff. • Achieving credit worthiness consistent with the international standards. • Raising banking awareness, the geographical spreading of its services and creating a qualitative shift in the banking expansion as well as increasing the financial deepening in the economy. • Deepening the Islamization of the banking system while maintaining its identity. • Paying due attention to microfinance, small finance and finance with social characteristics and developing mechanisms and channels of implementation. In this regard, the Central Bank of Sudan (CBOS) strategy will be applied in the field of microfinance as a tool of economic growth and as an instrument for achieving fair income distribution. • Developing the means and systems of controlling the banking system as well as the financial institutions that practice some functions of banking. 34 • Expanding the base of financial inclusiveness and monetary policy performance effectiveness by increasing the resources available to the banking system. • Setting a minimum limit for the rate of saving and working to achieve it in light of the Programme targeted indicators. • Coordination between the Ministry of Finance and National Economy (MOF&NE) and the Central Bank of Sudan (CBOS) for subjecting all the financial institutions to control so as to satisfy the internationally known financial safety indicators. • Building Central Bank of Sudan (CBOS) foreign exchange reserves to cover the imports of Sudan for at least one year • Improving Sudan’s foreign relations to enable it to get the appropriate treatment for its foreign debt within the framework of the current international initiatives. • Activating the Zero Option Agreement with the Government of Southern Sudan and take joint 35 movement together with the African Union (AU) to secure Sudan's debt exemption. • Reducing the National Government's purchases in foreign currencies and limiting it to priorities and necessities. Thus restricting the purchase of imported goods that can be produced locally. • Rationalization of guarantees and credits in foreign currencies. • Increasing the foreign exchange inflows from the services sector, such as:
Urging the Sudanese private airline companies to enter into partnerships with foreign airline companies.
Establishing an integrated medical city and attracting investments and professionals to work in it.
Raising the efficiency of seaports and airports operation to reduce the cost of exportation and importation.
Ports fees will be revised based on thorough studies to reflect the cost of services rendered to make them competitive compared to other Red Sea ports and 36 attractive for transit trade to landlocked neighbouring countries.
Using the foreign exchange reserves to cover the gaps in the basic and necessary needs to ensure the availability of supplies to meet the growing demand in a sustainable manner.
To minimize the expenditure abroad on medical treatment, well equipped and adequately staffed medical facilities will be provided locally. - The Central Bank of Sudan (CBOS) will continue to buy gold from local sources while taking the necessary measures to remove cash leakage - The policy of not providing foreign currencies from official sources to foreign exchange companies will continue until the exchange rate is stabilized. - In decision making, consideration will be given to weighty factors involved in conflicting policies and objectives e.g. the need to have revenue from customs duties on imported goods and at the same time give priority to importation of essential commodities to lower inflation and increase production. Essentials are either exempted from

37 customs duties or charged lower customs rates. Similar conflicts arise between the objectives of monetary and fiscal policies and allocation of resources between the Central Government on one hand and the States and Local Governments on the other. - Opening branches of the Sudanese banks groups in the countries recipients of Sudanese expatriates and the countries with which Sudan has trade and investment relations. - Establishing joint venture banks (domestic/foreign) abroad to break the US embargo and facilitate trade and investment movement between Sudan and its trade partners. - Restricting outward bound current payments, furthermore non-essential imports will be curbed to release more foreign currency for importation of inputs essential for production of more exports. For the same purpose , efforts will be made to reduce cost of finance especially from specialized banks - Organizing training for local manpower to replace the foreign manpower to reduce the remittances. 38 - Banning of initial public offerings (IPOs) of shares of companies registered in Sudan abroad as well as banning the IPOs of shares of foreign companies inside the country. - Facilitating and simplifying the procedures of remittances of savings of the Sudanese expatriates. - Establishing offices in countries to provide services for the movement of people to the other countries. - Establishing Sudanese partnerships with the Private or the Public Sectors of Sudan trading partners. - Making arrangements for the exchange of the Sudanese Pound with the Chinese Yuan, the Saudi Riyal and other currencies for the purposes of external payments settlement. - Dealing with Sudanese banks which have extensions abroad. The External Sector: - Foreign Trade: - Since the loss of oil resources, following the southern region secession in 2011, the deficit in the balance of trade became the main source of economic instability affecting the 39 National economy. The substantial imbalance led to a deterioration in the rate of exchange which in turn led to higher inflation. - The Programme aims to implement policies to achieve a surplus in the balance of trade by increasing exports. Particularly, the industrial exports such as petroleum byproducts, mineral products like gold, copper, iron, chromium and cement and building materials. Moreover the agrarian industry will export products such as sugar, ethanol, fodders, processed meat and cotton cloths, leather products and Gum Arabic. - The Programme also aims to raise exports growth rate by more than the imports growth rate in affirmation of self- reliance policy and Sudan ability to overcome the negative effects of U.S. economic sanctions. - The Programme aims to increase oil and non-oil exports proceeds coupled with the rationalization of imports and the encouragement of inflows of remittances of the Sudanese expatriates working abroad. In addition, the inflow of foreign direct investment (FDIs) will be encouraged and concessional resources for financing development will be 40 attracted. Inflows of foreign currencies from the services will also be encouraged leading to an expected reduction in the current account deficit from $3.7 million in 2015 to $809 million in the last year of the Programme Moreover, the trade imbalance is expected to improve from a deficit of about $979 million in 2015 to a surplus estimated at two billion dollars in 2019. Consequently, this will lead to an improvement in the overall balance which is expected to rise from a surplus of $306 million in 2015 to a surplus of about $3.9 billion in 2019.

The Main Foreign Trade Reform Policies: - Ensure the freedom of trade and the removal of administrative barriers that hinder the movement of exports and imports. - Study the competitiveness of the Sudanese exports in the regional and global markets and take the necessary policies and actions in coordination with Ministries and States' Governments to promote competitiveness in the following areas: 41 • Raising the agricultural and industrial productivity up to the global standards while reducing the production cost. • Activating the role of the National Council for Exports in the fields of promoting, marketing, mergers and integration with the global markets • Strengthening the mechanism of following up the global prices of Sudanese exports. Coordination will be reinforced with banks, customs and the Central Bank of Sudan (CBOS) to get the best international prices. Exporters are expected to deposit their foreign earnings in the local banks. • Developing trade policies to encourage the production, processing and export of mineral commodities and also promote the production and exportation of the available untapped minerals. • Developing and implementing trade polices supportive to the production, manufacturing and exporting non-oil and non-metallic goods especially goods of high added value. 42 • Maintaining coordination with the Sudanese Free Zones and Markets Company Ltd (SFZ), the General Secretariat for Investment and other relevant authorities for the expansion of free zones as bases for manufacturing for export, re-export and foreign investments venues. • Taking all policies and arrangements necessary to expand the scope of transit trade and re-export with the landlocked neighboring countries. Building foreign trade information database for exporters and importers and developing, upgrading, modernizing and strengthening points of foreign trade. • Establishing an institute for exporters training in coordination with the Federation of Businessmen and Employers and the Chamber of Exporters. • Increasing the local component of assembled cars and other similar products to qualify them to be designated of Sudan origin to gain the benefits of exportation to neighbouring markets. 43 • Attracting foreign investments in coordination with the relevant authorities. • Directing the foreign investments to support the country's exports • Close coordination between the Ministry of Foreign Trade, the Ministry of Finance and National Economy, the Central Bank of Sudan (CBOS), the Customs and other relevant authorities to formulate and implement a package of non-administrative procedures such as the (banking, customs taxation policies) to trim down the bill of importation of unnecessary goods and those competing and replacing locally produced goods. • Coordinating with the relevant authorities to increase production and productivity to replace and substitute key imported commodities such as petroleum products, wheat and sugar by the end of the Programme period. • Following and monitoring work under regional free trade agreements (COMESA, the Arab States) with the aim to protect the domestic industry and to prevent market dumping. 44 • Coordinating with the relevant entities to complete the accession of Sudan to the World Trade Organization (WTO). • Organizing and regulating trade in services such as:
Exporting manpower.
Export of service abroad.
Codifying, legalizing and expanding cross- borders trade. The Production and Services Sectors:

- As Stated in the introduction of this document, the fundamental objective of the Programme is to increase production and productivity in all the economic sectors. However, the Programme has given top priority to increase the industrial production, including extractive industry, with emphasis on producing and processing products to increase exports and substitute imports. The industrial sector is considered as the main engine of economic growth of the economy. The Industrial Sector: 45 - The Programme aims to double the value of industrial production during the Programme period from about 142 billion pounds in 2015 to about 302 billion pounds in 2019, an increase of approximately 112percent. The main objectives and policies in the sub-sectors of the industry include: - The Extractive Industries: - Petroleum: o The quantitative objectives for the oil sector:
Increasing crude oil production from 55 million barrels per annum in the year 2015 to 65 million barrels per annum by the end of the Programme
Refining around 31 million tons of crude oil per year in Khartoum Refinery during the Programme years.
Refining around 3.3 million tons of crude oil in Al-Obeid Refinery in 2015 to rise up to 5 million tons by the end of the Programme.
Increasing the production of petroleum byproducts and hydrocarbons from Khartoum 46 and Al-Obeid refineries during the Programme years.
Reducing the purchase of Al-Fula crude oil from the partners from 7.4 million barrels in 2015 to 5.8 million barrels by the end of the Programme.
Exporting Nile Blend crude oil by increasing production to 4.3 million barrels in the year 2017 to 6.8 million barrels by the end of the Programme . - The Associated Policies: - Intensifying and developing oil exploration, mining and development operations in all oil blocks and applying effective regulation. - Reducing the size of the blocks by dividing large ones into smaller blocks, while taking into account the area's geological structure and avoid holding back large land-areas for a long time. Technical studies will be made in preparation for promotion. - Increasing the capacity of the means of transportation and distribution of petroleum products and upgrading their efficiency to meet different needs. 47 - Developing infrastructures to meet the expansion in the oil industry operations by enlarging refining capacity, storage, transport, the distribution system and upgrading the petrochemical industry. - Applying investment incentives and concessional approach to attract the Private Sector to the oil sector. Oil companies with technical and financial capabilities and previous experience in the oil industry will be selected for unallocated blocks. - Strengthening the role of the National company (Sudapet) in the joint operating companies (consortium) in the technical, financial supervision and operations follow-up. - Security will be strengthened to enable the investors and foreign oil companies to operate effectively in coordination with the competent authorities. - Using modern scientific methods to reduce waste and preserve the environment in all oil industry stages as well as reducing the costs. - Draw up a list of laws, regulations pertaining to the oil sector and study their consistency with the general legislations, laws and regulations. Furthermore, investment laws will be updated and developed to attract investors.

48 - Developing necessary arrangements to increase production and increase the National Government share to meet the needs of the refineries. Additional requirement will be purchased from partners. - Implementing development projects to promote stability and raise the standard of living of the population in the environs of the petroleum industry. - Expanding and developing the Refinery of Khartoum, promoting the establishment of Port Sudan new refinery and diversifying the petrochemical industry. - Developing the organizational controls to monitor the actual consumption of petroleum byproducts to ensure the proper planning for the flow of supplies. Awareness of the citizens on the rationalization of energy consumption will be raised through media campaigns. - Develop and raise the efficiency of strategic storage capacities in compliance with the international standards. - Adherence to the standards and specifications for hydrocarbons by apply National standards which keeps pace with the global developments. 49 - Encouraging the domestic petrochemical industry and those linked to oil exploration and production, provide them with the opportunities to contribute to the development of the sector and finding solutions to the obstacles facing them. - Adopting an integrated information system capable of producing accurate information and allow the security, preservation, protection and exchange of information between the relevant authorities in easy and convenient manner. - Developing the systems that ensure the continuity and integration of training in the oil sector while identifying the training needs. The latest and most efficient methods will be used to attract the human resources, building their capacities and raising their efficiency. - Adopting the means to connect the education outputs with the needs of the labor market in the oil sector. - Endeavoring to ensure the rights of the National Government while protecting those of investors in the oil and gas industry and following the rules of sound governance and control over the standards and specifications for oil crudes and byproducts. Furthermore, the role of the internal auditor and financial control will be strengthened and the public awareness on the 50 rules of the internal control and the application of internationally acknowledged accounting policies appropriate to the requirements of the oil industry in Sudan will be improved. - Developing an informational and media message that promotes the achievements of the oil sector and contributes to the promotion, investment and protection and security of the oil wealth and reflects the role of the sector in socioeconomic development. - Working to fulfill the partners entitlements in the field of oil and meeting the government commitments in coordination with the relevant entities. - Working for the protection of the environment and the natural resources, safeguarding the safety of the oil industry workforce and curbing the accidents and the loss of life and property by intensifying environmental safety and control procedures. - Holding workshops and seminars to raise awareness on the objectives of the environment, the safety and health of workforce in the oil industry and the general public. The Minerals and Metallic Industries: - The Minerals: - The Minerals Sector's Quantitative Objectives: 51 - To Increase the production of minerals and quarries' ores as follows: o Gold from 76 tons at the beginning of the Programme to 103 tons by the end of the Programme. o Chromium from 60 000 tons at the beginning of the Programme to 80 000 tones by the end of the Programme. o Iron from 350 000 tons at the beginning of the Programme to 500000 tons by the end of the Programme. o Clinker from 4 million tons at the beginning of the Programme to six million tons by the end of the Programme. o Manganese from 35 000 tons at the beginning of the Programme to 46 000 tons by the end of the Programme. o Kaolin from 40 000 tons at the beginning of the Programme to 60 000 tons by the end of the Programme. o Gypsum from 160 000 tons at the beginning of the Programme to 200 000 tons by the end of the Programme. o Food salt (sodium chloride) from 60 000 tons at the beginning of the Programme to 80 000 tons by the end of the Programme. o Feldspar from 40 000 tons at the beginning of the Programme to 60 000 tons by the end of the Programme.

52 o Copper from 10 000 tons at the beginning of the Programme to 70 000 tons by the end of the Programme. The Associated Policies: - Increasing the production of minerals and localizing their industry domestically and building and upgrading the mining capacities and capabilities for the purposes of exportation and creating jobs opportunities in the sector of minerals. - Building and developing the mineral sector database and providing infrastructures, work aides and transportation at the production sites and improving the minerals marketing operations to get remunerative prices. - Increasing the inflow of foreign direct investment (FDI) and increasing the National Private Sector investments. - Re-extracting gold from dirt remnants - Training and qualifying cadres in the field of geology and mining engineering. Attention will be made to the health of miners and workforce in the field of traditional mining and developing policies to reduce the risks of mercury used in the extraction of gold 53 - Apportionment of production ratios between the government and partners and reviewing the Mineral Resources Act and the Traditional Mining Regulations. Additionally, smuggling will be combated and the flow of production through the official channels will be improved and reviewing it from time to time to ensure that Sudan gets its full rights in the depleting natural resources - Improving the technologies and techniques used in minerals exploration. - Intensifying the exploitation of mineral reserves and continue developing, prospecting and exploring for other promising minerals. - Developing local laboratories to increase the minerals added value by raising the proportion of extraction, concentration and encouraging the use of clean gold extraction techniques to increase production. - Granting a new concession blocks to companies, particularly the National companies in the field of gold and other minerals based on the available geological information. 54 - Contributing to the development of local communities in minerals production regions and the employment of National cadres. - Encouraging banks to engage in financing mining projects - Addressing the security problems in some production sites and maintaining stability in the chromium producing areas. - Building the capacity of workforce and improving management and operation systems and linking them to the research and informational activity. - Organizing, expanding and developing work in quarries and processing quarries' materials with the purpose of raising their added value. - Producing new materials in which the country is rich such as lime which is a raw material used in sugar, leather, textiles and buildings industries. - Manufacturing clay mud that enters as a main ingredient in the Bentonite material used by wells drilling machineries for the purposes of extracting water and oil. - Developing Natron/Chloralkali material for the production of chlorine soda. 55 - Manufacturing food salt (sodium chloride) for different uses and exporting it to neighboring landlocked countries, especially the State of South Sudan. - Producing thermo/refractory bricks and increasing the production of ceramic and other non-metallic materials for the purposes of building, construction and exportation. - Increasing cement production from 6.5 million tons in 2015 to more than 7 million tons in 2019. - Increasing the production of ceramics from 15 million square meters in 2015 to 19 million square meters by the end of the Programme.

The Other Industries (agricultural manufacturing, localization of miscellaneous engineering industries .... etc.): A / Food Industries: - Raising sugar production from 984 000 tons in 2015 to 1.5 million tons in 2019. - Raising the production of vegetable oils from 280 000 tons in 2015 to 360 000 tons in 2019. - Raising the production of flour from 1.7 million tons in 2015 to 2 million tons in 2019. 56 - Increasing the production of mineral water, biscuit, beverages, juices…..etc. - Manufacturing and exporting meats (slaughtered and processed) B/ Engineering Industries: - Achieving varying increases in engineering industries products and localizing them (autos/tractors/agricultural machineries/pivotal irrigation equipment/buses/concrete bar/ rebar/refrigerators/ air conditioners (A/C)/ metal, steel and iron products). Other Industries: - Raising the production of medicines (powder, liquids, tablets, capsules). - Raising the chemical industries production (oxygen, nitrogen oxide, carbon dioxide, ethanol, powdered soap, paints). - Increasing the production, processing, manufacturing and exporting leather and leather products/artifacts. - Expanding the industry of spinning, textile and readymade cotton cloths. 57 - Increasing the production of printing and packaging, especially the notebook and schoolbooks by 80percent. - Manufacturing and exporting gum Arabic. The Associated Policies: - Developing a National strategy for an industrial revival and development that changes the structure of the National economy based on the results of the industrial survey , the diagnostic studies and the investment map. The capacity of the industrial Private Sector will be built by introducing production and manpower planning systems (take advantage of the specialized expertise) and increasing the income by targeting the separation of the internal and external markets and the introduction of the overall quality control in the production of goods and incidental services. - Encouraging small industries and linking them to microfinance. - Reducing the cost of energy (electricity, fuel and furnace…) and reducing the cost of imported inputs by reducing the customs tariff in addition to reducing the cost of local agricultural inputs. 58 - Enacting the legislations that protect the industrial sector from market dumping and monopoly. - Establishing partnerships between the public and the Private Sectors. - Rehabilitating textile, vegetable oils and leather products factories and return then to production. - Developing a Programme for retiring factories that have exceeded their designed lifespan and their competitiveness decreased because of obsolescence. - Re-evaluating industrial assets in specific periods for the proper calculation of the depreciation expense. - Encouraging the establishment of industrial research units and developing them technically. - Setting quotas for specific industries’ production for export and helping them in solving exportation problems facing them. - Directing the government procurements towards domestic products (clothing - shoes - food commodities..etc.). - Rehabilitating the existing industrial areas and creating new ones. 59 - Continue the privatization of successful industries and utilizing returns in building other industries such as fertilizers, engineering industries, petrochemicals and infrastructures. - Promoting flexibility in the National labor market by adopting just approaches to regulate the way and conditions of hiring or firing workforce in case of production interruption, factory closure or malfunctioning. - Addressing the serious phenomenon of replacing the Nationals with cheap, skilled and disciplined foreign workforce, by: o Holding training courses to upgrade the workforce attitudes towards increasing the production efficiency and upgrading production while linking them with material and moral incentives. o Availing opportunities for rehabilitation and overseas training for technical and professional cadres to keep pace with the international developments. o Establishing centres for industrial training to raise the capacity of workforce besides bringing experts to train on modern and advanced technologies. In addition a city for advanced information and technologies will be created.

60 - Attracting the foreign investment and linking it to the industrial areas and encouraging the establishment of industries in the free zones. - Paying attention to the services incidental to industries (packing, storage, cooling…etc.). - Developing legislations to ensure the protection of domestic industries (Industrial Products Support Act). - Applying price and non-price incentives systems to encourage the manufacturing of high added value domestic products and benefiting by the food research and industrial research centres in improving the quality of manufactured goods. - Expanding and developing the traditional industries and crafts scattering in the different regions of the country. Such as leather, textile, food drying, handicrafts and folkloric works and other goods expressing culture. - Providing sufficient raw materials and medium inventories. - Using modern technologies and techniques in refining and producing high-quality vegetable oils. - Encouraging the establishment of canning and packaging industry in cooperation between the government and the Private Sector. 61 - Building industrial cities and free regulated and organized markets. - Developing research and information centres and adopting innovations and promising initiatives for the development of the industry. - Providing strategic inventories within the limits of half the annual consumption to be stored in newly established modern facilities. - Encouraging investments for the processing of highly refined oils with the latest technologies and providing and facilitating the necessary operation funding from the Industrial Development Bank along with increasing the financing to purchase oilseeds. - Activating the bilateral agreements with friendly countries. - Preparing Programmes for the promotion of the industrial goods exports. - Creating a public shareholding State-owned companies with the participation of local and foreign Private Sectors to produce the goods and services that the Private Sector is reluctant to produce especially for exports. This either because of big capital requirement or inaccessibility to technology, such as the electronic chips, glass and petrochemicals. In the case of non 62 participation of Private Sector, the National Government shall establish the project on its own. - Paying the capital of the Industrial Development Bank in full and building the capacities of its staff so the Bank can provide the necessary funding to increase production and productivity in the industrial sector. - Supporting Al-Nilin Bank for Industrial Development and confining its financing activity to the industrial sector. C/ The Agricultural Sector The Programme targets increases in production and productivity of both agriculture and animal husbandry. The Programme also aims to improve the balance of trade by increasing exports and substituting imports and achieve a significant increase in food supply for the purpose of stabilizing prices, reducing the cost of living and improving real incomes. In general, the Programme seeks to increase the value of the agricultural production (plant and animal) from about 206 billion pounds in 2015 to about 425 billion pounds in 2019, at an annual growth rate averaging 6.8percent. Agricultural Production: 63 Dura (Sorghum): Increasing Dura (sorghum) production from 5.6 million tons in 2015 season to 9.5 million tons by the end of the Programme in 2019 and increasing productivity of 277kg/acre at the beginning of the Programme to 430kg / acre at the end of the Programme, an increase of 55percent. Millet: - Raising the production of millet from 890 thousand tons in 2015 season to 1.2 million tons by the end of the Programme and increasing the productivity from 148kg/acre at the beginning of the Programme to 169kg/acre by the end of the Programme, an increase of 14percent. Wheat: - The Programme aims to raise wheat production from 1 million tons in 2015 season to 3.4 million tons by the end of the Programme in 2019 and raising the productivity from 1190kg/acre at the beginning of the Programme to 1619kg/acre at the end of the Programme, an increase of 36percent. Cotton: - Raising cotton production from 500 000 tons in 2015 season to 882 thousand tons by the end of the Programme in 2019, and increasing the productivity from 1,000kg/acre at the beginning of the Programme to 1000kg/acre at the end of the Programme at a fixed rate.

64 Sesame: - Increasing the production of sesame from 400 thousand tons in 2015 season to 1.8 million tons by the end of the Programme in 2019 and raising the productivity from 133kg /acre at the beginning of the Programme to 500kg/acre at the end of the Programme, an increase of 276percent. Peanut: - Increasing the production of peanut from 1 million tons in 2015 season to 1.5 million tons by the end of 2019 and raising the productivity from 200kg/acre at the beginning of the Programme to 250kg/acre at the end of the Programme, an increase of 25percent. Sunflower: - Increased production of sunflower from 125 thousand tons in the 2015 season to 1.1 million tons by the end of the Programme in 2019 and raising productivity from 500kg/acre at the beginning of the Programme to 1200kg/acre at the end of the Programme, an increase of 140percent. The Associated Policies: - Continue the institutional reform policy by restructuring the Ministry of Agriculture and the management of the National irrigated projects in addition to the establishment of bodies for the management of the agricultural activity in the Nile States (the 65 Northern, River Nile, Sennar and White Nile States) and in South Kordofan. - Introducting modern farming systems in the existing irrigated projects (El-Gezira/ Rahad/ Halfa/ Al-Suki / Tokar / Al-Gash and the projects of the White and Blue Niles, Northern State and River Nile State projects). - Developing and modernizing agriculture in the traditional and mechanized rain fed sector to increase the productivity. Furthermore, the necessary infrastructures (roads, branch roads and water) and the improved seeds, financing, and pest control will be provided. - Implementing the strategy of expanding and developing the traditional rain fed sector. - Stimulating the increase of the production of food security commodities (meat, sugar, cooking oils, wheat) - Working to reduce agricultural crop losses - Activating the laws and procedures for the protection and development of natural resources. 66 - Limiting the adverse effects of U.S. economic sanctions on the vital agricultural sector. - Raising the capacities of the strategic reserve of important crops such as wheat, Dura (sorghum) and millet. - Activating the anti-monopoly law and anti-dumping law. - Expanding cotton cultivation in both the irrigated and rain fed sectors by using the highly productive genetically modified seeds. - Diversifying agricultural production and expanding the high value fruits production. - Expanding the production of fodder to fill the local gap between supply and demand. - Expanding the production of promising crops like (soybean and maize) in the irrigated and rain fed sectors for export. - Pursuing the policy of agricultural diversification, intensification, the reducing in cost of production and taking the advantage of the summer production season in the Nile States. - Introducing the animal in the agricultural cycle in the irrigated areas starting initially with pilot projects in partnership with the Private Sector. 67 - Reducing costs and increasing production in the existing projects. - Reducing the encroachment of urban housing, industry and construction on agricultural lands. - Disseminating the technical packages with the most appropriate applications to commercial production which blend plant density, fertilizers, land preparation, improved seeds and the use of modern technology such as laser soil flattening. - Linking agriculture and animal husbandry production to the industry and exportation.

- Encouraging wheat farming by declaring remunerative prices for wheat purchases before planting. - Continuing to raise the efficiency of agricultural operations. - Providing the services incidental to agriculture including various prevention measures, extension and pasture improvement services in addition to training and capacity building. Further, the following is aimed at: o Adopting water harvesting techniques and technologies to stabilize and increase production. 68 o Helping producers’ organizations to get advanced technology, financing and access better marketing. o Expanding the agricultural research applications and adapting technologies and successful models to domestic conditions, especially the zero tillage farming as a method of proven effectiveness. o Expanding and developing the traditional rain fed sector. o Emphasizing the adoption of agricultural insurance policy against natural and financial risks. o Raising the efficiency of the existing projects and integrating agricultural and livestock production as well as agro- processing and manufacturing. o The provision of high yield improved seeds for peanut, sesame, millet and wheat. o Reducing the cost of production through the electrification of irrigated projects and merging them together. o Continuing the policy of encouraging cultivation of wheat and cotton to increase self sufficiency and reduce wheat imports. Wheat and cotton exports will be increased by giving price incentives to producers. 69 o Protecting the locally produced oilseeds from sharp prices decreases by raising customs tariff . o Spreading microfinance to States to support the active small farmers especially women. o Encouraging investment and smart partnerships with the local and foreign private investors in the agricultural sector in the fields of production, marketing and exportation. Targeting the integration between agricultural and industrial sectors by focusing on the main crops and the required policies of reform. Requirement for integration will be provided including physical infrastructures such as railways, roads and branch roads, power and energy and technical research. This in addition to the necessary supportive services of health, education, water and social safety net. Value of agriculture goods will be increased by processing, manufacturing, marketing, storage, transportation and distribution. o Reforming the marketing systems and linking them to commodities exchanges in the major exchange markets. o Raise the Agricultural Bank capital to increase the number of its beneficiaries. 70 o The rapid spreading of microfinance institutions in the States to support and finance active small scale producers, especially women. o The provision of concessional financing by the banking system to farmers in the appropriate time and place and in the required amounts. o Raising the productivity of Dura (sorghum) annually by the application of a technology package using fertilizers and providing improved seeds in the irrigated, the traditional and mechanized rain fed sectors in large areas. o Raising millet production through the use of improved seeds and the development of farm water harvesting and supplemental irrigation technologies. o Increasing wheat production by rehabilitating land in upper terraces in the Northern and River Nile States. This requires the following: - The provision of capital investments. - The provision of high yield improved seeds. - Moving and reviving partnership with the international agricultural research centres for providing technologies and seeds.

71 - Organizing producers’ mobilization Programme. - Declaring the encouragement incentive for wheat farmers early in August each year so farmers can have adequate time to react to the Stated prices. - Identifying the purchasers of wheat from farmers, the delivery centres and linkage with the flour mills. - Reducing the cost of production through electrification of irrigated projects and gathering them in large units. - Increasing cotton production through: - Preparing cotton types map to achieve balance between supply and demand for the different types at the level of local and export markets. This is along with the return of indicative agricultural cycle to identify specific areas for cultivation of certain varieties to avoid their mixing. - Supporting the production of rain fed cotton, which is characterized by reasonable cost and high quality. - Supporting agricultural research to develop the best varieties of cotton with outstanding spinning qualities and high productivity, as well as breeding new varieties suitable for the local consumption. 72 - Encouraging scientific research in genetic engineering and enacting and enforcing laws in this field and working for the application of bio-resistance in the long staple cotton varieties for export. - Adopting a pricing policy for the production of cotton to encourage the producers along with the early announcement of prices in each season. - Linking prices to the adherence of farmers to quality, using modern technologies, agricultural finance and the creation of a fund for cotton prices stabilization. - Expansion in the use of genetically modified cotton seeds - Increasing the production of oilseeds through: - The provision of high yield improved seeds. - Encouraging investment and smart partnerships with local and foreign Private Sector in production, marketing and exporting. - Protecting the locally produced oilseeds from sharp prices fall through the use of customs duties - Expansion in the use of field water harvesting and supplemental irrigation to increase the productivity in the traditional rain fed sector. 73 - Using the agricultural mechanization in the preparation and harvesting operations. - Introducing sesame crop in the irrigated sector. - Selecting samples from sugar cane in a scientific manner consistent with the soil, climate and resistance to disease and pests. - Applying modern technology in sugar cane irrigation and harvesting. - Repeating the "Amtar" project in the Northern State, the Qatari project and the Lebanese project in the River Nile State as models for modern irrigated agriculture from the River Nile and groundwater. - Follow-up the implementation of the project of Sudan Initiative for Arab Food Security, which includes the production, manufacturing and exporting of meat, sugar, cooking oils and wheat. Animal Production: - Increasing the number of cattle from 30.2 million heads at the beginning of the Programme to 31.5 million heads by its end. 74 - Increasing the number of sheep from 40 million heads at the beginning of the Programme to 41 million heads by its end. - Increasing the herd of goats from 31 million heads at the beginning of the Programme to 32 million head by its end. - Increasing the herd of camels from 4.8 million heads at the beginning of the Programme to 4.9 million heads by its end. Livestock Products: - Increasing the production of meat from 1.48 million tons in 2015 to 1.54 million tons at the end of the Programme. - Increasing dairy production from 4.9 million tons in 2015 to 7.9 million tons at the end of the Programme. - Increasing fish production from 0.11 million tons in 2015 to 0.13 million tons at the end of the Programme. - Increasing poultry production from 0.06 million tons in 2015 to 0.08 million tons at the end of the Programme. - Increasing egg production from 0.05 million tons in 2015 to 0.07 million tons at the end of the Programme. - Increasing the leather (animal skins/hides) production from 26 million pieces in 2015 to 26.9 million pieces at the end of the

75 Programme. Livestock Exports: - The Programme targets the exportation of slaughtered and processed meat instead of live animals exports, by the establishing six factories to process, manufacture and export meat from Al-Obeid, El-Gedaref, Kosti, Omdurman, Nyala and El-Fasher. - Meat Exports: - Raising cattle exports from 13,860 tons in 2015 to 16,846 tons at the end of the Programme. - Raising lamb meat exports from 16,170 tons in 2015 to 19,655 tons at the end of the Programme. - Raising goat meat exports from 693 tons in 2015 to 842 tons at the end of the Programme. - Raising camel meat exports from 138 tons in 2015 to 168 tons at the end of the Programme. Live Animals Exports: - Increasing cattle exports from 23,000 heads in 2015 to 34,000 head at the end of the Programme. 76 - Raising sheep exports from 5.3 million head in 2015 to 7.7 million head at the end of the Programme. - Raising goats’ exports from 250.1 thousand head in 2015 to 366.3 thousand head at the end of the Programme. - Raising camels exports from 192,000 head in 2015 to 282,000 head at the end of the Programme. Animal Leather: - Raising leather exports from 12.52 million pieces in 2015 to 18.33 million pieces at the end of the Programme. Vaccination: - Preventing diseases by providing 85 million doses of vaccines in 2015 and 115 million doses by the end of the Programme. - Increasing locally produced vaccines from 110 million doses in 2015 to 161 million doses by the end of the Programme. The Associated Policies: - Building a modern database showing the real numbers of livestock populations by conducting animal census survey. - Conducting field surveys to provide information on markets development in the country. Furthermore, 77 obtaining Sudanese livestock reproduction and productivity to use it as database in the network of the Ministry of Animal Wealth. - Innovation of appropriate means for the maximum benefit from the available productive capabilities to increase dairy (milk) production. - Improving the genetic component of milking animals and improving production environment and production inputs to increase productivity. - Cooperation with the Government of South Sudan to facilitate the entry to its natural pastures, to include joint campaigns to combat animal diseases and to take advantage of the possibility of the expansion of pastures and grasslands in the non-border States to attract livestock from contact areas to pastures inside the country. - Increasing the production of green fodders, especially in the River Nile State, the Northern State and El-Gezira State (models: Al Rajihi, Amttar Company, Osama Da'wood Company (Dal Company) and Western Omdurman Projects) and the introduction of animal 78 husbandry in the irrigated projects and rain fed mechanized agriculture. - Introducing animals in the agricultural cycle in the irrigated projects - Modernizing animal feed systems by raising pastures' quality by using improved seeds and the production of concentrated fodders. Industry and agriculture leftovers can be used to improve animal breeds and health, to raise the unit production efficiency and to increase the added value of animals and their byproducts for exports. - Expanding financial services to the livestock sector and directing a significant proportion of microfinance to poultry sector, fishery production, manufacturing and processing. - Stimulating partnership between the public and Private Sectors in the production of vaccines and antidotes and in the field of animal research. - Encouraging strategic partnerships in the fields of meat production, exports services and the organization of markets. - Strengthening the infrastructure and supporting services for livestock and meat production by:

79 • Expanding the storage facilities (dry - cold). • Providing fences in ports and emptying the ports from containers by setting specific deadlines. • Creating more health quarantines. • Encouraging red meat processing, manufacturing and exporting using distinctive trademarks. • Providing mid-term and long-term financing and attracting capitals from international and regional institutions for the projects of animal husbandry and its products. Additionally, establishing modern markets that encourage the specialized companies in the field of marketing for the purpose of exportation. - Developing regulatory controls in the local markets to limit the intermediation between the producers and the exporters. - Disseminating the technologies of embryo transfer, artificial insemination and ultrasound diagnostic techniques. - Improving local strains by the selection of mating parents and offspring and registering them as intellectual property right. Furthermore, breeding a local 80 strain for dairy and meat production while applying the international standards and quality control of animal products. - Breeding bees domestically to substitute their imported products. - Conducting scientific research, experimentation and extension services in the field of animal production and veterinary services. - Introducing approved technologies to increase the production and productivity. Furthermore, the National herd will be protected, pastoralists and producers will be enabled to build their capacities and have access to the supportive services and the required information necessary to keep abreast of changes of concern. - Covering local needs with appropriate vaccines and conducting research and studies for the production of new ones from locally isolated antigens (to be environmentally safe and of high economic and preventive feasibility) with the aim of localizing the vaccines industry and exporting the surplus. 81 - Improving veterinary services and maintaining the National herd health. - Improving the competitiveness of livestock and meat exports, which require the application of total quality systems and the development of the means of transportation and refrigeration. Also using the modern techniques of detection and analysis for drug residues and pollutants as well as the appropriate storage facilities. - Completing the infrastructure related to leather production and improve its manufacture. - Conducting field surveys of dairy cattle, manufacturers of dairy products, organizing the milks harvesting Programme in the countryside and sponsoring dairy producers' organizations. - Producing primary poultry stocks domestically for the sector. - Implementing land-use map in the country particularly for pastures and protecting natural sanctuaries and nomads tracks. 82 - Rehabilitating and upgrading the existing abattoirs to keep pace with the international standards and metrologies. Additionally, Hazard Analysis will be implemented as well as Critical Control Point (HACCP) systems and good manufacturing practices (GMP) to obtain the ISO certificates and quality control granted by specialized centres. - Encouraging the strategic partnerships in the field of production and exports services and achieving self- sufficiency in animal products. - Encouraging white meat production (poultry and fish) by applying additional incentives to reduce prices and the cost of living. - Supporting the Animal Wealth Bank (AWB) to carry out its role in providing the necessary funding for the development of the livestock sector.

The Forests: - Doubling the production of Gum Arabic from 150,000 tons in 2015 to 300,000 tons in 2019. 83 - Increasing gum Arabic exports from 73,000 tons in 2015 to 200,000 tons in 2019. - Preparing and implementing a strategic plan and a feasibility study to process raw gum Arabic to export it as a final product. The Associated Policies: - Protect and increase the tree cover and activate the Anti-Desertification and Vegetation Protection Laws. Furthermore, designing and implementing a plan of land uses and activate the National Fund for Combating Desertification. - Coordinate the policies of the uses of energy from the biomass with the uses of conventional energies (cooking gas). - Follow-up the planting of the tree-cover, which is to be increased by 5percent and 10percent in the irrigated projects and the mechanized agriculture areas, respectively. the Tree belts Law will be disseminated to increase awareness.. 84 - Re-enumerating and surveying gum Arabic belt and legalizing holdings of acacia areas by farmers and strengthening the associations of Gum Arabic. - Providing microfinance for small-scale producers. - Establishing infrastructures in the Gum Arabic Belt. - Identifying and codifying areas for the cultivation of Jatropha using sanitation drainage water. - Issuing certificates of quality, standards, specifications and origin for the forestry products. - Developing wood sawmill industry in Sudan by the Private Sector. - Providing work aides besides building and raising capacities by training, guidance and advice and disseminating information about the successful experiments. Infrastructures: - The Programme targets the rehabilitation and expansion of physical infrastructures. Emphasis is on electricity, railways and irrigation canals in addition to the completion of roads, branch roads and bridges 85 connecting the production sites with the markets and ports. These are as follows: The Electricity: - Adding electricity generation from hydro, thermal, wind power and solar energy. The new capacity is 4,190 megawatts to meet the expected demand during the period 2015-2019. - Providing the necessary electrical energy from its diverse sources while reducing its cost. - Extending the National electricity grid to all the States of Sudan and electrifying all the irrigated projects on the Nile and the areas of groundwater basins (Nubian Sandstone Basin / Sag Al-Na'am Basin... etc). - Adding 6499km of electrical transmission lines to include the agricultural, industrial production sites, the mining areas and the States still outside the National grid. 86 - Raising the ratio of the population benefiting from electricity from 34.2percent in 2015 to 49percent in 2019. - Adding 405 megawatts of electricity from Al-Fula Plant, extending electricity to the States of Kordofan and Darfur by benefiting from the gas associated with the oil production from the two oilfields of Neem and Balila. - Adding 600 megawatts from Port Sudan steam generation coal plant. - Adding eight gas units with a capacity of 800 megawatts from the gas power generation plant in Khartoum State. - Extending electricity from Babanusa to Al-Mujlad with a length of 35km. - Extending electricity from Abu Jebaiha to Lagawa with a length of 298km. - Extending electricity from Kelougy to Heiban in the State of South Kordofan with a length of 80km. - Extending electricity from Er Roseires to Kurmuk with a length of 240km 87

- Extending electricity from Umm Ruwaba to Abu Jebeha with a length of 179 kilometers. - Extending electricity from Rebek to Nyala with a length of 980km. - Extending electricity from Port Sudan to El-Gedaref with a length of 270km. - Completion of Al-Fula Electricity Plant - Completion of Kosti Electricity Plant. - Generating 53 megawatts from garbage and wastes. - The provision of electricity supply to the States of North, South and West Darfur by adding 150 megawatts of diesel generated electricity after the connection to the National grid. - Increasing the generation of Sennar reservoir from 15 to 26 megawatts. - Generating 186 megawatts from solar cells - Generating 40 megawatts from small waterfalls power - Generating 40 megawatts from biomass. - Converting irrigation pumps from diesel to electricity in 144 projects along 628km on the banks of the Nile in the River Nile State, extending from Shendi up to 88 Al-Buhaira. Moreover,180 projects will be converted in the Northern State extending from Merowe up to Wadi Halfa at a distance of 1000km along the two banks of the River Nile as well as 129 projects in the White Nile State. The Associated Policies: - Meeting the country demand of electric power, maintaining electric current stability and developing the electricity marketing services. - Focusing on the provision of the electric power needs in the priority sectors of agriculture, industry, livestock, mining and basic services. - Spreading the use of alternative energies in the country side (solar and wind power) rather than relying on thermal energy. - Rationalizing the electric energy consumption and reducing the loss in the various stages of the electric power production, transmission and distribution networks. - Encouraging investment in the field of electric power generation and distribution. 89 - Paying attention to the projects of electrical interconnection with the neighbouring countries to support the electricity stability and reduce its cost. - Regulating and controlling the generation, transmission and distribution activities to ensure the quality of the power supply. Also protecting the consumer, conserving the environment and taking safety precautions in accordance with the international safety standards. - Building workforce capabilities and encouraging the scientific and applied research in the sector of electricity and dams. - Following up the implementation of electricity generation projects (Al-Fula Electricity Plant - Kosti Electricity Plant) and extending the National grid in addition to the creation of isolated plants in the States and linking the States capitals and big cities with the National electricity grid. - Encouraging private generation of electricity by the adoption of policies, laws and agreements of power purchase and providing incentives and favourable tariff for National and foreign investors. - Reaching a deal with the Republic of South Sudan to supply Kosti Electricity Generation Plant with fuel. 90 - Reviewing the economic policies in the electricity sector with the aim of encouraging production sectors and the rationalization of the residential sector consumption. Emphasizing the policy of commercializing operations of the electricity companies to meet the growing demand for electricity in a sustainable manner with the provision of quality electricity services. Irrigations Infrastructures: - Rehabilitation of infrastructures and services in El-Gezira, El-Rahad, Halfa Al-Jadeeda and Al-Suki Schemes. - Increasing the areas of the irrigated sector from 4 million acres to about 7 million acres (3 main irrigation canals from Merowe, Er Roseires and Upper Atbara and Setait dams), in addition to the exploitation of the renewable groundwater resources. - Rehabilitation of infrastructures and services in El-Gezira Agricultural Scheme including:

Sennar Reservoir • The two Canals of El-Gezira and Al-Managil 91 • Doors of the main archways, mouth doors, small canals and gates of Abu Ishreen. • Electrification of the diesel pumps and rehabilitation of electric pumps. • The provision of a floating suction to remove the silt and mud from the main canals. • The establishment and rehabilitation of technology transfer and guidance centres in the Scheme. - Rehabilitation of infrastructures of irrigation facilities (El- Rahad-Halfa- Al-Suki): - Rehabilitation of Khasm Al-Girba scheme. - Rehabilitation of mina pumps. - Rehabilitation of main archways gates, mouth gates, gates of small canals and gates of Abu Ishreen - Maintenance of irrigation infrastructures in the Nile States (the Northern State, the River Nile State, the White Nile State and Sinnar State). - Rehabilitation of irrigation structures in 6 major projects in the Northern State and 10 projects in the River Nile State in addition to the projects scattered along 628 kilometers on 92 both banks of the White Nile (129 Project) in addition to 29 projects in Sennar State. Irrigation Management Projects - Rehabilitation of control and monitoring points. - Rehabilitation of the General Administration of Irrigation Operations. - Rehabilitation and reconstruction of Delta Al-Gash and Delta Tokar. The Associated Policies: - Monitoring, collecting and analyzing hydrological data of the Nile and its branches to determine the volume of water resources and their uses, as well as the rains, groundwater and valleys' and creeks water. - Conducting technical and economic studies for the projects of water resources to achieve the optimum utilization and water security. - Continue the rehabilitation of irrigation infrastructures (in El- Gezira, Al-Suki, El-Rahad and (New) Halfa Al-Jadida schemes). 93 - Expanding the flooding irrigation operations in Al-Gash and Tokar Deltas. Also in dams' projects, terraces and hafir for harvesting rain waters and exploiting the renewable groundwater. - Preserving the rights of Sudan in the Nile water and supporting the regional cooperation among the Nile Basin countries. - Exploiting the water stored in dams in agricultural expansion. - Adopting modern irrigation techniques and technologies and enhancing the uses thereof in the different regions of Sudan. - Rationalizing the use of waters through the use of adequate technologies and raising awareness of water issues through the scientific and educational media. - Ensure that the withdrawal water from shallow sedimentary reservoirs does not exceed the annual feeding rates to preserve the underground water table. - Seeking to integrate land use with water resources development planning to achieve social justice and economic efficiency. - Managing floods with the required efficiently to minimize their risks to the individuals, property and facilities. 94 - Supporting the applied research and the continuous training of workforce in the field of water resources while updating the hardware used in water measurements. - Paying attention to water uses related laws and strengthening coordination mechanisms between the different organs in the Centre and the States. - Increasing the government spending on scientific research in the field of water resources. The Transportation Sector The Railways: - The Programme aims to continue the implementation of the railways rehabilitation Programme and modernization of the railways (the Third Millennium Railways).Furthermore, it targets the construction of dual lines of standard width and operating electric-powered locomotives. - The implementation of the railways Programme, as follows: - Rehabilitation of 1213km of railways network. - The construction of 1919km of parallel dual lines of standard width.

95 - Provision of 66 goods cargo locomotives, 30 passenger locomotives and 38 maneuvering locomotives in addition to 3,000 goods wagons. Transportation, Roads and Bridges: - The execution of the following roads and bridges by the end of the Programme: - Ongoing cross-country highways and roads with the length of 2,980 kilometer. Omdurman- Bara Road - The Ring Road in Southern Kordofan with a length of 198km. - Ongoing branch roads for the agricultural renaissance with 108km length. - New rehabilitation projects with 426km length. - Converting 18 slippers to road-crossing tunnels on Al- Jaili/ Shendi /Atbara Road. - Conducting feasibility and design studies of the new roads and bridges. - Increasing the capacity of seaports. 96 - Increasing the capacity of sea transport of passengers, baggage, cargos and cars by up to 50percent by the end of the Programme. - Raising the capacity of the river ports. - Rehabilitation of Sudan Airways. - Rehabilitation of Sudan Sea Lines. The Associated Policies: - Completion of trans-States National roads to promote States development. - Linking the transport, roads and bridges sector plan to the State's National socioeconomic development plan. - Completing the implementation of the new Khartoum International Airport project and other airports. - Taking advantage of the new landing fields, airfields and airports in the States for goods and passengers’ transportation and cross-border traffic. Market Structure: The Programme Aims to: 97 - rebuild markets structures and systems to stabilize prices and increase the producer's share of income. This requires the implementation of the following policies: • Establishing key commodities' exchanges and linking them to the marketing research and studies centres and the information and telecommunications network. • Expanding the storage facilities (dry - cold). • Increasing the efficiency in the existing ports and clearing containers by specific deadlines. Tourism: The Programme Targets: - Raising the contribution of the tourism sector to the gross domestic product (GDP). - Increasing the returns from tourism in the balance of payments and the Private Sector. The Policies: - Developing ways and means of promoting and publicizing the potentials of tourism in Sudan and spreading its culture. The Private Sector will be encouraged to build tourist facilities. 98 - Cooperating with the concerned authorities for the rehabilitation of infrastructures related to tourism in Sudan. - Conducting the tourist survey for the preparation of a master tourist map, an investment map and reserving lands for tourism projects. - Dissemination of National culture and promoting foreign relations through the awareness of the history of the country and its contribution to civilization and human knowledge. - Conserving and developing wildlife and make it an economic resource by developing the existing protected sanctuaries. - Increase the National manpower in the tourism sector, Improving their capability and train the required technical personnel to manage and operate tourist facilities. - Strengthening international relations and activating agreements in the field of tourism, antiquities, wildlife and entering into new agreements for the same purpose. - Taking into account the quality of tourism services, applying the rules and regulations and earmarking Quality Awards. - Securing and protecting the tourist sites and antiquities and combating their smuggling.

99 - Removing the conflict between laws and overlapping in responsibilities between the different levels of government which hinder the achievement of the overall tourism development. The Environment: - The Programme targets the improvement of the standard of the environment at the National, State and Localities through the following policies: • Developing a strategy to conserve depletable as well as renewable natural resources and optimize their uses. The strategy will take in consideration sustainably and development of resources in cooperation with the Republic of South Sudan and other neighbouring countries. • Studying the environmental impacts associated with the development projects. Assessing the return from projects and their impact to achieve the actual output without harming the environment. Also, effort will be made to obtain the ISO in this regard. 100 • Developing and updating legislations and regulations in the field of the environment in accordance with the international obligations and keeping abreast of developments. • Adopting the principle of smart partnership to activate cooperation and coordination with partners locally, regionally and internationally. • Using the different mass media to highlight the importance of preserving the natural environment, its balance and sustainable development. • Developing the environmental concepts through the educational curriculums in coordination with the competent authorities. • Establishing a National training centre specializing in the field of environment and urban physical development. • Working for finding additional sources of funding. Standards and Metrology: • The Programme aims to increase the competitiveness of the Sudanese goods in accordance with the international standards. 101 • The Programme aims to achieve the quality and standards in the National production to achieve reliability, international status and spreading the culture of standardization in the community. The Policies: • The universal use of the metric system in all the types of production, consumption, commerce and services. • The exchange of international expertise and knowledge in standards and metrology. • Developing human resources by training and upgrading capabilities and talents. • Linking standards to the proper planning and scientific research. The Meteorology and Weather Forecasting: • The Programme aims to raise the performance efficiency in the field of meteorology and weather forecasting up to the international standard. This will be done by rehabilitation and modernization of the monitoring and forecasting network on horizontal and vertical levels, modernizing the 102 telecommunications network and spreading it to cover most parts of the country. The Policies: - The rehabilitation and modernization of the forecasting network on horizontal and vertical levels as well as modernizing the telecommunications network to cover most parts of the country especially the remote areas without weather monitoring and forecasting stations. - Capacity building and training to keep up with the expansion of the forecasting network and modern technology. - Strengthening relations with authorities relevant to the services of Sudan Meteorological Authority. - Accommodating the National policies, plans and programmes of development, investment and natural disasters management. - Maintaining and establishing monitoring stations.

Communications and Information Technology: 103 - The Programme aims to raise the proportion of citizens having access to the communications and information technology services and email. - Connecting all parts of the country with advanced levels of different communication services. The Policies: - Expanding the telecommunications networks to cover all parts of the country - establishing the infrastructure of the telecommunications and information technology - Encouraging the National industry of telecommunications and information technology - Reviewing the laws and regulations governing the activity of telecommunications and information technology sector in a manner leading to the development of the sector's performance. - Raising capabilities in the information and telecommunications technology - Implementing the applications of the information technology 104 - Marketing the expertise of technological corporations and institutions and their achievements at the local, regional and international levels. - Encouraging the Private Sector to invest in the field of technical and technological education. - Adherence to the ethics of dealing in the field of communications and information technology and respecting the intellectual property rights - Encouraging the use of open sources and their statutes - Implementing the policies of information security and building trust in the electronic uses - Extending telecommunications services to the rural areas of least development - Making maximum use of the frequency spectrum as it is a limited National wealth. - Activating and encouraging the international and regional cooperation in the field of telecommunications and information technology. Services and Social Welfare: 105 - The Programme aims to achieve the economic growth along with the social justice and the guarantee of a decent living for all the citizens and establishing social welfare, through the implementation of the following policies: o Implementing the projects of the National Strategy for Alleviation of Poverty which aims at reducing poverty rate to about 35percent by the end of the Programme. o Guaranteeing the quality of primary education free of charge for all by the end of the Programme period. o Guaranteeing the provision of primary health care for citizens free of charge and health insurance for all by the end of the Programme period. o Providing safe drinking water for all. Implementing programmes, policies, procedures and remedies targeting a significant reduction in the cost of living. o Giving top priority to the provision of basic commodities, namely: Wheat, sugar, vegetable oils, medicines and petroleum byproducts. Also directing 106 sufficient resources for their production to raise the level of self-sufficiency in these commodities. o Contain the rise of the essential commodities prices by interventions in the market using the appropriate fiscal and monetary policy tools and using the strategic stocks of commodities. o Establishing effective partnerships with the Private Sector to import the essential commodities while establish public stocks companies and cooperative societies to import these commodities and ensure their equitable distribution. o Developing the performance of the Chamber of Zakat to meet the needs of the vulnerable segments in the field of basic services. o Developing the performance of Awqaf (Endowments) - Encouraging the civil society organizations working in the fields of social solidarity e.g. (Takaful), Al-Shaheed (the Martyr) Foundation and corporate social responsibility to expand the scope of their activities

107 - Strengthening, expanding and reviewing the role of the present networks and mechanisms of social protection to provide protection for the targeted groups including the Supreme Council for Wages, the National Pensions Fund, the National Fund for Social Insurance, the Chamber of Zakat, the Awqaf (Endowments), the National Fund for Students' Support, the National Health Insurance Fund, the National Fund for Popular Housing and Al-Shaheed Foundation. Moreover, there will be expansion in the free treatment of children in accidents and emergency units, the free treatment for the patients in need of dialysis, the civil society organizations, the corporate social responsibility and the direct financial subsidies to poor families. Social Services: The Programme aims at the completion of the implementation of the third millennium goals in the areas of health, education and clean drinking water. Health: 108 - Providing primary health care services free of charge for all and increasing the percentage of coverage of health insurance from 37 percent to 70 percent by the end of the Programme period. Inclusion of children, mothers and school pupils and expanding the health insurance to the Private Sector. - Providing medication for children free of charge at emergency clinics and for patients of renal failure. - Guaranteeing the provision of medication for Malaria patients by the end of the Programme . - Conducting epidemic surveys by the end of the Programme. - Providing health care for at least 85percent of the population affected by civil strife and wars. - Providing 80percent of emergency medicines reserves to the States by the end of the programme. - Covering all primary schools in the States by the basic package of health service including latrines and the appropriate means of waste water drainage by the end of the Programme. 109 - Construction of five reference hospitals at Elobied, El Dien, El Gadedarif , Atbara and Geneina by the end of the Programme period. Health policies: - Conducting surveys of epidemic diseases to strengthen the database. The appropriate information will be disseminated to increase awareness. - Focusing efforts on fighting Malaria Bilharzias and other endemic disease , epidemics , cancer and renal diseases, malnutrition affecting children and pregnant mothers. Giving support to health research in the field of general health and environment. - Expanding preventive health care by enhancing milk products and bakery flour by dietary additives. Furthermore, encouraging the use of iodine enriched salt, fighting Malaria, Pneumonia, Bilharzias and malnutrition in primary schools by providing free meals and paying attention to primary health care. Vaccination will also be spread to cover a large segment of the targeted groups. - Developing specialized and educational hospitals. 110 - Developing telemedicine and diagnosis to the benefit of the States having shortage in specialists. - Building and developing a decentralized health systems and improve the capabilities of the workforce in the medical field. - Building health cities in the States for the purpose of providing medical services domestically. - Upgrading of the administration and systems of medical emergencies and humanitarian work. In addition, instruments, tools and medical aids to the health facilities at the centre and States will be provided. - Lowering mortality rate of mothers and children under five years of age by improving the work environment in rural hospitals and supporting the dietary and therapeutic medical centres at the States. - Developing monitoring and evaluation systems at both the Central and States levels.

Education: - Providing quality primary education free for all by the end of the Programme period. 111 - Improving the wages of teachers and building their capabilities through continuous training and upgrading of qualifications. - Finalizing the process of seating all pupils and rebuilding all schools with permanent materials. - Honoring pledges of making primary education mandatory by the end of the Programme. - Constructing 2000 school classes by the end of the Programme . - Providing 800 school grants of admission by the end of the Programme. - Upgrading the capabilities of 12,000 teachers by the end of the programme. Associated Education Polices: - Improving the education environment by good maintenance of schools and seating of pupils. - Upgrading the qualities of education at all levels. - Achieving balance in educational opportunities between the States and between the two sexes, granting special 112 consideration to the education of pupils with special needs and those affected by natural disasters. - Establishing upgrading and training centres for teachers. - Completing the process of building the structure of general education within the framework of federal rule. Improving the school environment to make the education profession attractive to teachers and pupils. That includes the provision of health services, nutrition, school activities and the introduction of computers. - Linking universities with the issues and requirements of society in development and employment opportunities. - Enabling students to acquaint themselves with active languages and the application of computers in addition to the provision of text books, periodic and inveterate the university syllabus. - Supporting research, information and studies centres, and establishment of centres of excellence in a number of selected universities .A prerequisite conditions is to improve the status of teachers and working environment. - Consolidating efforts on the expansion of intermediate technical and technological colleges especially in the 113 medical, engineering and information technology fields. These are required to fill the gaps in specializations resulting from migration of qualified people. - Expanding technical and technological education. - Continuation of efforts to implement the programme for eradication of illiteracy. Water Supply and Sanitation: - Bridging the gap, by the end of the Programme, in the consumption of drinking water and the actual need for both urban and rural communities which is estimated at a daily per capita of 90 liters in urban areas and 25 liters a day in rural areas - Establishing 1,000 underground water stations1,500 hand pumps and 300 small water pumps in addition to 50,000 house latrines and 1200 school latrines by the end of the Programme. Water Supply and Sanitation Associated Polices: - Exerting diligent efforts to bridge the gap in the consumption of potable water supply for both urban and rural communities. 114 - Achieving the millennium development goals by expanding the provision of safe drinking water to include resettled refugees. A sustainable and clean water supply will be provided by water utilities using a cost recovery system while improving water quality - Encouraging the Private Sector to invest in water supply and sanitation services and allowing the communities to manage their water utilities. - Increasing the percentage coverage of sanitation services in rural and urban population centres. Encouraging the link between water supply and sanitation and environmental health would definitely improve the overall health situation. - Sponsoring research on ground and surface water resources, in addition to the management of these resources and their rational use.

Social Welfare: - Increasing the Zakat revenue, both vertically and horizontally, in keeping with its law, from SDG 1.2 billion to SDG 3 billion. At the same time, increasing the devolution of its collection as well as the range of its allocation. 115 - Covering 2.5 million poor families through the intervention of the socially enhanced initiative and through the Zakat Chamber. This will enable thousand poor families to rise above the poverty line by the end of the Programme. Social Welfare Associated Policies: - Reviewing the wage structure annually for the purpose of maintaining real wages for low income persons. - Taking necessary measures and polices to improve pensions and after employment benefits, to a level that guarantees a decent livelihood for pensioners - Achieving comprehensive health insurance coverage, for those interested in subscribing to the National Fund for Health Insurance, while improving the provision of quality health services to them. - improving the system of health insurance as well as Increasing its coverage. - Continuation of the provision of support for, and development of activities of the Student Support Fund to create a suitable environment for higher education e.g. accommodation, finance, bursaries etc……. 116 - Supporting capacity building of the Zakat Chamber staff to increase zakat collection to reach 90percent of estimates compared to the current level of 80percent annually. Furthermore, efforts will continue to decentralize collection and disbursements. - Expanding the Awqaf establishment (endowments) while supporting and developing its projects to serve the society, all the while encouraging the dissemination of its culture of charity giving. Work, Employment and Micro-Finance: - Increasing the percentage of utilization of the micro finance delineated ceiling from 5percent to 12percent by the end of the Programme. - Raising the capital stock of the Savings and social Development Bank from SDG 130 million to SDG 500 million . Furthermore, the Bank will be strengthened to enable it to better provide microfinance, and open branches in big towns in all the States by the end of the Programme . Also giving support to the Family Bank, the Agricultural Bank of Sudan and the Bank for Industrial Development 117 Associated Polices: - Continuation of the implementation of micro-finance strategy approved by the High Council for Micro-finance , while increasing the financial resources of micro-finance institutions, both banking and non- banking. These include : • The Agricultural Bank of Sudan (ABS) • The Savings and Social Development Bank (SSDB) • The Family Bank (FB) • Industrial Development Bank (IDB) - The spreading of micro finance institutions to the National, States and Localities levels. Social Assistance: - Special importance is to be given to the poor in zakat expenditure allocation starting from 70percent of total zakat collection in the base year increasing to 75percent by the end of the Programme. Social Assistance Associated Polices: 118 - Developing the Martyr institution to enable it to sponsor the families of the martyrs. - Encouraging National voluntary organizations to fulfill their roles in social development. Poverty Reduction: - Reducing poverty rate from 46.5percent to less than 35percent of the entire population by the end of the Programme. Poverty Reduction Associated Policies: - Preparation and execution of the National strategy for poverty reduction under the following nine headings: • Maintain economic growth and stability. • Focusing public expenditure on poverty alleviation. • Reviving the agriculture sector and its growth. • Environmental surveillance and increasing the contribution of the social sector in poverty reduction. • Paying attention to the water sector. • Advancement of women. • Social Welfare and social security net. • Good governance 119

• To continue drawing up detailed Programmes , while conducting studies and household surveys to assess the causes, as well as the extent and distribution of poverty. • Set up the required policies that reduce the poverty rates to their minimum levels as prescribed in the Millennium Development Goals (MDGs). Reduction of Unemployment: - Reducing unemployment from its current levels, estimated at 20percent to less than 15percent by the end of the Programme period. Unemployment Reduction Associated Polices: - Giving unemployment priority because of political, economic and social considerations. - Taking unemployment reduction as the main indicator of macro-economic performance of the country’s plans. - Giving importance to the integration of macro-economic policies at all levels of government to the extent that serves stabilization, economic growth, creating work opportunities and increasing the employment rate. This will be made 120 possible by the active participation of the Private Sector in economic activities. - Study the foreign labor markets and prepare a plan for training, retraining and upgrading of Sudanese workforce; especially in professional and technical field to enable it to compete in the regional labour market. - Emphasizing the polices that support self-employment and strengthening the culture of self reliance through microfinance and projects for graduates employment. - Linking educational policies and plans with the requirements of the domestic labour market. - Encouraging the Private Sector to provide substantial contribution to employment by providing job opportunities for the graduates especially in the field of agriculture, livestock and industry. - Carrying out evaluation studies for measuring the impact of projects and programmes implementation on graduates unemployment rate. Based on the results of the evaluation, the role of the National Fund for Employment of Graduates will be strengthened to achieve its required objectives. 121 - Expanding the centres of professional training, technical and technological education and link them to the labour market to meet the demand for jobs. - Completion of labour enumeration, the revision of foreign labour laws and the classification of their skills. - Designing programmes that create demand for socially unaccepted jobs. This entails a change in social attitudes towards menial technical jobs. The programmes will also encourage the culture of self-employment and entrepreneurship. - Preparing specific Programmes to reduce unemployment rate by listing job opportunities in the various sectors. - Drawing up a unified plan of technical education by the National Council for Technical and technological Education. Human Development and Capacity Building: - The Programme aims at building and upgrading the capacities of the civil servants, institutions and systems. - Reforming and developing the civil service to match up to the requirement of good governance. This is a requisite for the realization of the Programme objectives. 122 - Developing human recourses to levels commensurate with international standards by intensive training and improving of technical skills. - Using information and telecommunication technology in the process of commodities and services production and delivery. The Human Development and Capacity Building Associated Polices: - Designing programmes for building capacities to meet the needs in the fields of economic management and community development. Furthermore, capacities of producers, researchers and the workforce in the civil service, judiciary, security and defense will be upgraded. - Removing disparities in education and health services, water and energy deliveries and differences in investment and employment opportunities between the States. - Improving the work environment through tangible administrative and legal incentives in addition to enhancing awareness of the value of time in increasing productivity.

123 - Building the capacities of civil society organizations to increase their contribution to poverty reduction, social security and human development. - Reviewing higher education policies with respect to the following: • Meeting the requirements of economic growth and sustainable development. • Taking in consideration the new developments taking place in scientific research and technology. • Linking higher education outcomes with the needs of the labour market. - Bridging the gap between academic higher education technical and technological education through increasing graduates of intermediate technical education to serve the purpose of economic growth and betterment of social livelihood. - Undertaking the task of building centres of excellence in higher education. Public institutions, research and technology. - Establishing and developing the capacities of the producers and distributors of goods and services. 124 - Preparing special Programmes for the development of working women. This would strengthen the role of women in society. - Encouraging innovations, personal and collectives initiatives in the field of science, research and production. - Implementing the capacity building Programmes provided by the African Development Bank (ADB), the World Bank (WB), the Arab Funds, the Islamic Development Bank group (IDB) and other development financing institutions. - Studying the possibility of establishment of a National centre to monitor and record information, statistical data and the preparation of studies and research on economic, education and training related to the labour market. The aim of the study is to reveal the needs of the labour market in the near, medium and long-term future. - Educating and training candidates in institutions where quality control in performing activities is taught - Supporting advance technical institutes and their research projects that are geared towards training the domestic labour force in ways and means of international competitiveness. 125 - Training the workforce in up to date technical and technological developments, in flexible approaches towards nascent problems and the application of modern information and telecommunication technology. - Developing programmes for electronic training as well as for National systems and self training and education. - Setting up conditions that would improve labour market competitiveness at locally and international levels. - Establishing research centres to find ways to encourage the domestic labour force to participate in the creation of the national wealth by providing it with the required know how. - Providing the best international means to establish advanced technological education. - Encouraging the Private Sector to invest in the technical and technological education. - Developing Programmes to acquainting students with the jobs required by the market; help them to select the appropriate specialization for better chances in finding jobs. - Providing incentives for self- financing by benefiting from production and capabilities of trainees. 126 - Marketing the expertise of technological institutions and their achievements at local, regional and international levels. - Establishing an endowment fund for the benefit of technical and technological education in addition to public financing. Higher Education and Scientific Research: - The Programme aims at improving scientific research and technologies to higher level country-wide Higher Education and Scientific Research Associated Policies: - Launching the second higher education revolution Which aims at achieving quality development in higher education , giving appropriate attention to human resources, institutional capacities, technical and technological education. - Establishing centres of excellence in different scientific fields. - Making the best use of expatriate scientists and researchers. - Paying attention to updating and developing legislations governing scientific research.

127 - Introducing quality concepts, continuous evaluation and use of results of scientific research. Furthermore, using science and its concepts to create and develop intellectual and innovative ideas capable of being implement, while paying attention to humanitarian, social and economic studies. - Importation of up to date technologies and dissemination them to increasing productivity. - Developing natural and environmental resources to improve production and productivity and enhance the value of goods and services. - Building partnerships and exchange expertise with the relevant national, regional and international research institutions. For the same purpose foreign relations are to be developed to the extent that serves scientific research ,information and communication technology and attracts foreign funding. - Designing policies, plans and programmes for the stimulation and development of scientific research. Carrying out applied research to employ its results for the development sponsored by the Public, Private Sectors and 128 civil society to increase production, productivity and improve services. - Sponsoring innovations and inventions by providing incentives and rewards for innovations in modern technology and providing advice for registration of intellectual property right. - Coordinating efforts of public and private agencies in the fields of applied research. Such coordination aims to bring about policy recommendations of relevance to large national projects. - Strengthening cooperation with international and regional institutions to increase technology transfer. - Increasing public expenditure on scientific research and in development of new knowledge and technology. The States: - The Programme aims at achieving fair distribution of national resources and enables all levels of government to discharge their constitution functions to improve the quality of life of citizens and betterment of their livelihood. This includes the expansion of essential services of health, 129 education, potable water and increasing incomes in the rural activities. General Objectives: - Bridging the development gap between Sudan’s regions. - Enhancing the States’ capabilities to mobilize resource to minimize dependence on transfers from the central government. This is to be carried out as follows: o Evaluating regional development and the relation between the central government and the States. o Involving the States in the process of drawing up plans, Programmes and setting priority in the identification, preparation and execution of National development projects located in States. o Continuation of financing and implementation of peace agreements for the purpose, of inter alia, restoring sustainable peace and accelerating the pace of regional development. o Achieving balanced socio-economic development that appreciates the specific needs of local communities. 130 This is reflects the notion that the citizen is the beneficiary as well as the means for development. o Support the integration between the States and the Localities on one hand and the central government on the other. o The decentralization of the essential services of health, education, potable water, environmental protection and feeder roads all over the rural and remote areas. Associated Polices of Support to the States: - Reducing the size of governments in the States by streamlining their administrations. - Development and activation of the Law of the Fiscal and Financial Allocation and Monitoring Commission (FFAMC). - The use of comparative advantages of each State in the integration between them for the purpose of spurring production, productivity and the creation of job opportunities. - Developing the real potentialities of the States.

Balancing and Sustaining Regional Development: - Dismantling the refugees camps by encouraging voluntary return or integrating them in cities. The voluntary 131 participation of the refugees in the reconstruction of their return areas will be encouraged. - Supporting the provision of means of production and income generating projects for the benefit of rural community. An intervention that will restrain urban drift and reduce the pressure on urban areas. - Evaluating and reviewing regional development projects that the Central Government supports annually. - Securing the approval of the four parameters for the development finance allocations between States. - Emphasizing and activating the role of international development partners in the transition from humanitarian aid to reconstruction and development aid. - Drawing up the required policies and measures to legalize border trade with neighbouring countries. - Pursuing rigorously the utilization of the renewable energy sources and granting priority to the finance of environment friendly projects. 132 Fighting Unemployment in the States: - Educating rural people about the microfinance opportunities available to them. - Intensification of training Programmes in the area of self- employment and the income generating projects. Human Development and Institutional Capacity Building: - The establishment of human developmental institutions at the level of the States. - Preparing and executing development Programmes targeting the empowerment of women in rural areas. - Enhancing the active role of the youth in the development and revival of their rural communities. Factors Supporting the Programme: Security and Defense: - Insuring the sustainability of Peace and National security require strengthening capabilities of security and defense institutions. This includes improvement in their work environment and the upgrading of their capabilities to enable 133 these vital institutions to contain domestic threats and repel foreign aggression. The following steps will be taken: • Providing the required resources to train and build the capabilities of defense forces and to develop them technologically. • Support the strategic defense and security related industries. • Providing the required logistics to safeguard the country from terrorism, extremism and chaos. • The use of information media to popularize the National service and mobilize popular support to defend the country. Justice: - The successful implementation of the Programme requires the vigilant maintenance of the judicial system to safeguard constitutional rights and foster an environment of law, order and justice. This can be attained through the following policy measures: • Reviewing and reforming laws to ensure their conformity to the society’s religious values, the system of 134 governance, the economic system with its fiscal, financial and related institutions as well as to peace agreements. • Reviewing the legal aspects pertaining to the integration of the functions of the government institutions concerned with public finance, national statistics, development projects and foreign finance. This will be done in conformity with balanced economic development and the maintenance of social justice. • Reviewing the existing legislations and issuing new laws and regulations consistent with the Programme’s broad- based objectives, while removing conflicts between the jurisdictions at the various levels of government. • Re-delineating the powers of the various judicial institutions with a view to removing conflict between them. • Granting support for training and up-grading of the judiciary’s human and institutional capabilities. • Establishing electronic networks linking the various judicial institutions to facilitate the exchange of information amongst them and the related institutions.

Guidance, Culture and Sports: 135 - Strengthening the infrastructure of Sport, Culture and Guidance through the propagation and development of youth centres, sports clubs in rural and urban areas. - Facilitation of the exchange of the various cultural activities between the States - Encouraging the development of cultural activities, including cultural handicrafts, folklore and providing training venues and exhibition halls. - Upgrading the capabilities of athletic, cultural and artistic organizations and clubs. - Encouragement of the culture of punctuality, excellence in work and productivity. - Supporting cultural, information and athletics institutions. - Recognizing and rewarding the accomplishment of outstanding persons in the fields of sports, culture, information media and arts. - Developing and consolidating the role of media organizations locally and abroad. Establishing free and responsible information media apparatus capable of taking initiatives and expressing the identity of the nation and its prosperity and progress. 136 - Activating the role of culture, sports and mass media in raising the awareness of the society. - Encouraging investment in the fields of culture, information media and sports. - Disseminating the culture of moderation, rectitude and temperance. - The implementation of programmes promoting religious, literary, technological and health education. - The Upgrading of technical and managerial capabilities of civil society organizations. - Combating harmful social misconceptions, negative deleterious social habits. - Propagation and enhancement of the culture of peace. - Providing full support to the institutions involved in the propagation of religion (D’awa) and religious guidance, with its promotion of virtue and the enjoinment of moral deeds, whilst forbidding immoral acts and prohibiting vice. - The incorporation of applied sciences and practical skills into the means and ways of production to modernize them, to achieve an increase in production whilst fostering a culture of development. 137 - Encouraging cultural interactions and exchanges with foreign societies whilst maintaining religious and societal values. - Attracting domestic and foreign investments for the purpose of developing infrastructure of small producers. - Creating a suitable environment for youth and athletic activities to foster excellence and leadership. - The encouragement of dialogue between different factions of society as means of achieving National unity and social security. - Consolidating the society’s development culture and expanding social safety nets. - Strengthening the role of higher education in the development of the society and the encouragement of technical and vocational training as well as upgrading Programmes. - Recognizing the role of corporate social responsibility of large companies in support of social development. - Appreciation of the role of social solidarity in the development of the society. - Sponsoring and directing the activities and ingenuities of youth to consolidate peace and sustainable development. 138 The Economic Information: - Building the capabilities of information media personnel and the provision of the necessary logistics and the appropriate environment to consolidate the role information media at both the centre and the States. - Reinforcing the role of economic information media in showing the developments in the economy, the National socio-economic plans and programmes. - Reflecting the role of organizations such as the social groups and trade-unions in realizing the objectives of the programme and in the provision of necessities such as food, clothing, medicine, shelter and social security. - Strengthening the role of audio-visual and readable information mass media in promoting virtue and forbidding vice.

The Informal Sector: - Following –up, combating and monitoring harmful activities to the economy and society, such as money laundering as well as activities that are religiously and lawfully prohibited. 139 - Monitoring the growth and development of the informal sectors, estimated at 30percent of GDP. At the forefront of these sectors which show potential for development are the handicrafts and traditional industries, the non-banking financial service and the horticultural production. The purpose is to rehabilitate and develop these activities and to eventually include them in the formal sector. - Launching the “popular development project” based on the purpose of mobilizing the unutilized human capacities (of individuals and groups) to produce goods and services that include among other things the following: • Gardening at houses, public squares and streets. • Preparing of food, handicrafts as well as athletic, cultural activities and handicrafts. • Civil society organizations are the main participants in such activities. They include; the NGOs, students unions, youth clubs, union and camps as well as women union and others. Priorities of the Development Programme: 140 - Volume three of the Programme details the list of ongoing and new development projects financed within the framework of the budget. - Core development projects of priority especially in the agro- processing and infrastructure would receive priority in financial resources allocations. Additional incentives will be provided and institutional policy reforms will be undertaken to the extent that guarantee the execution of these projects by the Public or Private Sectors or through public and private partnership (local and foreign). These projects of priority in the Programme are: - projects Types of investment public private joint Petroleum Sector: Petroleum and petrochemical industries   Mining: 141 Processing of metals and building materials   Industrial Sector: Engineering Industries: - Manufacturing /assembling of cars,    machineries and equipment of modern irrigation system.   - Manufacturing of solar panels and    accessories. Other Engineering Industries: Sugar industry: - Increasing sugar production to 3 million tons. The proposed locations for new sugar projects: White Nile State; Radis, Sabina, kharafi, Gafa, Mashkur and ElDuiem sugar projects. 850 thousands acres (1 acre=0.42 hectar). Blue Nile State; Projects at Roseiris and Damazin of total 142 area of 220 thousand acres. Sennar State; Kassab/Taktuk,Norania, ElRamash, Blue Nile, Karkog,Rahad new canal,sugar projects covering area of 953 thousand acres. Gezira State; AbuGuta,Garbel Hosh, Hafira, ElThamarat, of total areaof 716 thousand acres Central Darfur State; Wadi Azum and Yari, Um Khier/Wadi Salih –rain fed sugar projects covering a total area of 900 thousand acres North Darfur State; Kabkabia sugar project covering area of total 70 thousand acres irrigated from ground water and rain water harvesting. South Darfur State; Wdi Kaya sugar project covering a total area of 40 Thousand acres irrigated from ground water 143 and rain water harvesting. Rehabilitation of sugar factories of the   Sudanese Sugar Company

Edible Oil Processing:   - Rehabilitation /reinstruction of the existing edible oil factories Meat Processing - Installation of abattoirs for the export of   finished and processed meat(sheep, cattle, and camels)at the following locations: Elobied, Elgadarif, Kosti, Nayala, Elfashir and Umdurman Electricity: - Kagbar dam electricity  - El-Sheriek dam electricity  - Completion of Kosti electricity station  - Completion of Elfula electricity station  144 - Generation of electricity from solar   energy - Extension of electricity network to all  States - Extension of electricity to all agricultural  schemes along the Blue Nile , White Nile and the Nile - Extension of electricity to the projects  utilizing groundwater in the Nubian Sandstone aquifer and other water basins The Agricultural Sector: - Wheat production projects:   - Gezira, New Halfa, River nile, White  Nile, Upper Water reservoirs and the Nubian Sand Stone acquifer)  - Repetition by 6 times “Amtar” project in  the Northern State - Execution of Qatar agricultural project  145 - Rahad Scheme: construction of a canal    to irrigate around 800 thousand acres - Upper Atbra and Stait :digging of a    canal to irrigate about 800 thousand acres - Merrawi dam project: construction of a    canal to irrigate one million acres - Rehabilitation and reconstruction of    Gezira scheme - Rehabilitation and reconstruction of    Rahad and Suki schemes - Rehabilitation and reconstruction of    New Halfa scheme - Increasing the area under flood    irrigation at Tokar and Gash delta - Increasing productivity in the rain fed    146 traditional and mechanized agriculture - Water harvesting   Railways : Rehabilitation and modernization of the  existing railways - The railways of the new millennium;   • Wide range • Double line • Electric powered Roads :  Completion of the Western Salvation road Public and Private Partnership (PPP): The Role of the Private Sector and Partnership in the Execution of the Programme: - International and regional economic developments have led to an increase in the roles of both foreign direct investment and Public and Private Partnership. Meanwhile the traditional type of economic financing has receded in 147 importance. Public private partnership has taken many forms and is associated with several types of financing. Such as the build, operate and transfer (BOT) type of ownership that requires legal arrangements for the partnership between the private and public sectors. Sudan experience in this regard in the oil sector is a testament to such partnership. - The realization of the Programme’s objectives of increasing income, providing job opportunities, fulfilling the requirements of a growing population and meeting the National needs require large investment. This is beyond the capabilities of the public sector alone. The Private Sector is to provide the bulk of the necessary investment and serves as the program driving force to realize its objectives. - The realization of the total investment required by the Programme requires building a strategic partnerships between the public and Private Sectors. The Private Sector is to have a bigger role in resources mobilization, to a tune of 83.4percent of the total annual investments against 16.6percent for the public sector.

148 - The active roles of the Private Sector and partnerships depend on the nature, volume, types of the Programme investments. Moreover, they also depend on their distribution among the various fields specified by the Programme. These include the geographic locations of investment projects, the extent of provision of the supportive services, the conducive businesses environment at the respective locations, the systems and types of incentives. This in addition to the positive signals provided by the government and other components required for the improvement of the investment climate in general. - Developing and upgrading the Private Sector organizations and involving them in the institutions and mechanisms of decision making. - Involving the businessmen/women organizations and other stakeholders in the process of drawing up the policies related to academic, technical and technological education and their outcomes. Priorities of Joint and Private Investment: 149 - The attainment of the Programme objectives requires granting priority to the joint and Private Sector investments in the following areas • Petroleum and petroleum industries • Minerals sector • Production of the main food commodities related to betterment of livelihood of citizens • Contribution to the implementation of poverty reduction projects. • implementation of Sudan’s initiative of achieving the Arab food security (the study of the Arab Fund for Economic and Social Development) • Imports substitution industries including spinning and weaving, garments and readymade clothes. • Industries that promote the exports including the processing of Gum Arabic, meat and leather industries (shoes, bags and cases). • Engineering industries including vehicles, agriculture machinery and gyrated irrigation devices. • Basic services represented in health, education and water. 150 • Construction and building material industries. • Tourism, technology, information technology and consultancy services. General Policies for Attraction and Encouragement of Joint and Private Investment: Creation of Conducive Investment Climate: - The success of the Programme requires taking all institutional and legal measures in addition to economic and political reforms that are necessary for creating a conducive environment for investment. These include the following: • Political stability and security. • Economic stability ( a stable exchange rate and a single digit inflation rate) • Establishment of infrastructure e.g. electricity, communication, roads, railway, ports…etc. • Financial incentives related to customs duties and taxes • Reviewing the labour law. • Easy access to lands. • Easy indictment and settlement of investment disputes. 151 • Ease of doing business (carry out periodic reviews of World Bank “ease of doing business index”). The Institutional and Legal Reforms: - Establishment of legal structures supportive of good governance, the democratic and transparent economic orientation and economic performance. Another requirement is the availability of conscious political will for the requisites of financial, administrative and legal reforms. In addition, it is necessary to strengthen the surveillance institutions to protect public and private funds and monitor the expenditures according to approved programmes and budgets, - Activation of the Land Commission and giving it enough powers to reviewing the land acquisition and real State laws. The purpose is to protect the economy and society by safeguarding public, community and individual rights. The land commission is to initiate the necessary mechanisms

152 and laws required to resolve disputes over land ownership and land acquisition. - Review the labour law to reflect correctly the relation between wages and output. - Continuation of privatization policy of government companies that compete with similar ones in the Private Sector. - Establishing public shareholding companies in agricultural, industrial and service sector. - Appointment of government overseers for the large companies. - The partaking of the Private Sector in the drawing up of plans, Programmes, macroeconomic policies, in addition to the Participation in government machineries of relevance to development and production. - Encouraging and strengthening the Private Sector’s role in building smart partnerships with the foreign Private Sectors, the relevant unions, institutions and organizations to attract foreign investment and technology to the country. - Establishing of research and consultancy services centres. In support of this, expenditure on scientific research and technology, knowledge creation and academic education will 153 be increased. As a result, the Private Sector capabilities will be strengthened in the fields of production planning , inventories, marketing and the management of the labour force. All of this will also be reflected in the increase of the workforce capabilities. This is especially so in new innovations, total quality and the interaction with the labour market. - Providing training opportunities and capacity building especially in the areas of technical, technological and artisan education. - Adoption of the measures prescribed by the committee on remedies for the lower productivity in both the agricultural and industrial sectors (2006). - To spread the ethics of work and encourage innovation and the ability to interact with globalization. - Developing storage and handling facilities and establishing a hub for the food industry and link it with the research and consultancy centres. Fiscal Policies: 154 - Applications for shared and private investments will be subjected to scrutiny to ascertain compatibility with the Programme objectives. That includes the impact of investment in increasing foreign exchange receipts, budget revenues, incomes generation, creation of jobs and transfer of technology. - Giving appropriate financial signals to stimulate Private Sector investment such as tax reforms, bank finance portfolios, price and non-price incentives. - Activation of mechanisms of integration of fiscal and monetary policies associated with joint and private investment. - Adoption of the system of a single window for taxes collection and administrative charges. - Strengthening financial investments in the stock exchange market and developing financial Islamic instruments, Sukuk (Islamic Bonds) and other Islamic products. - Promoting the development of private banks, financial firms and institutions specializing in development finance with the purpose of inviting them to participate in financial portfolios, 155 together with non-banking institutions, the stock exchange market and government securities. - Encouraging the establishment of joint types of financing and portfolios with participation of banks, non-banking institutions, the capital market and government securities. This is to be established on harmonious basis with Islamic rules and regulations and in pace with the developments in regional and international capital markets. - Amending the insurance and reinsurance law to liberalize it and strengthen its mechanisms of monitoring and surveillance. - In line with the policy of giving the Private and joint sectors (Public and Private) the leading role in realizing the aims of the programme, their share in total finance will be increased. - Limiting the purchase of government securities by banks while at the same time accrediting the other securities and bonds as bank loan guarantees. Furthermore, a mechanism will be adopted for overdrafts by first class customers. - The ratio of mandatory banks reserves is to be determined, taking in consideration, the requirement of improving banks

156 liquidity management and the need of the Private Sector to acquire sufficient financing. - Revising the laws of development banks and social safety- nets institutions including microfinance to enable them to mobilize their resources in accordance with the priorities and requirements. - Developing the legal environment that limits non-performing bank credits. This however requires development of banks’ accounting systems and physical and technological infrastructure. - Lowering the cost of banking finance especially for investment and production that benefit from the results of research, innovation and employing specialized workforce. - Supporting the Private Sector in its quest for foreign finance and providing the necessary guarantees for it. Training, Qualification and Total Quality Requirements: - Developing the capabilities of the Private Sector, both human and technological required by total quality management. 157 - The speedy improvement in the World Bank Index of “ Ease of Doing Business”, in the mobility of investors and the drawing up of the investment map. - Simplification and improvement of measures to increase investment in non-petroleum export sector. Special attention will be given to the production of gold, livestock, Gum Arabic, cotton, and edible oil. Particular consideration will also be given to substitution of imports such as petroleum, wheat, sugar and drugs. - Activation of the Private Sector role in traditional tourism as well as the medical, educational, training and technological tourism. - Opening opportunities for National contractors to participate in the construction works carried out by foreign firms. Moreover, a percent of equity of foreign communication and other leading companies will be allocated to the domestic Private Sector. Foreign Trade: 158 - Giving priority to the activation of the joint (Private and Public) and Private Sectors roles in foreign trade. This includes: o Developing the labour market and giving high priority to qualify, train and build human capabilities in the Private Sector. In addition the work environment, information and knowledge about foreign trade and international markets will be improved. o Restricting local trade activities to Sudanese Nationals. o Organizing markets, managing aggregate supply in the economy, activation of “Organization of Competition and Prevention Monopoly Act 2009” and “Anti-money Laundering Act 2003” to protect the society, the economy and contain price increases. o Reducing subsidies on certain commodities and studding the effect of such action on their costs of production, inventories, the labour force, transportation, distribution, marketing, taxes, customs duties and charges. Action will be taken to reduce the impact on each of these to get the benefits of the reduction in subsides . Improve the law of standards and metrology 159 to monitor and controlling the standards of locally produced and imported commodities especially food items. o Raising the capital stock of the National Agency for Financing and guaranteeing of Exports. This is to enable it to enlarge its activity in the exports of non- petroleum commodities. o Reviewing the activities of government companies in foreign trade, especially those competing with the Private Sector. Those companies will be put on equal footing with the Private Sector companies by rescinding their tax and customs duties exemptions. o Activation of the government trade point and strengthen its relation to the Private Sector organizations.

Exports: - Developing and organizing trade in services for export as well as the services of the Sudanese Nationals working aboard (expatriates). - Improving the competitiveness of Sudanese exports 160 - Pursuing a strategy of segmentation of markets for Sudanese exports. - Establishing research and studies centres for marketing Sudanese exports. - Promoting new commodities of high value such as horticultural products and forestry fruits. - Establishing marketing centres in trade partner countries. Foreign Economic Relations: - Activation of the role of economic and trade consulates at the Sudanese diplomatic missions abroad. Also directing the concerned government authorities to activate Sudan’s membership in international and regional organizations to increase the share of Sudan in the international trade and acquire development finance. - Expanding the range of cooperation with the investment guarantee and trade finance institutions, the international and regional stock exchange markets. 161 - Establishing sea transport companies in collaboration with regional and international companies, establishing free market zones, seaports and activating transit and border trade. - Activating Sudan membership in international organizations, international cooperation agreements and regional economic blocs. - Strengthening the role of the Private Sector to garner the benefit of foreign trade with neighboring countries especially with South Sudan Republic. - Affirming the polices of openness towards the East specially China, Malaysia, India besides the Arab, Islamic and African States. Sources of Financing the Programme: - The Programme is to be financed from the following sources: • Government intervention through audacious and integrated programme aimed at encouraging mobilization of domestic and foreign investment resources in addition to preparing a conducive 162 environment commensurate with the Programme objectives. • Creation of new financial means and institutions capable of attracting the financial resources available at the international and regional stock exchange markets. Preference will be given to stock exchange markets compliant with Islamic Sharia law. Resources could also be obtained by extracting natural resource to finance both private and public investments. • Resources available in the National and States Governments’ budgets including internal debt instruments. • Resources of the Sudanese expatriates. • Resources of banking system • Development finance coming from regional, international and bilateral sources especially the Arab and Islamic sources. Other sources of financing include economic blocs such as the bloc of Brazil, Russia, India and China (BRIC). • Continuation of the efforts to resolve the issue of foreign debts to enable the country to increase foreign 163 resources flows from the traditional international and regional sources. • Creation of new mechanisms that facilitate the acquisition of finance and external guarantees by the Private Sector to enable its access to windows of finance available at the international, regional and bilateral institutions. Follow up of the Programme Implementation: - Establishing a mechanism for supervision, evaluation and follow–up of the stages of the Programme implementation. The mechanism is to be shared by the National and States Governments, the Private Sector and the civil society organizations. - The Programme implementation monitoring and follow-up will be through the general budget mechanisms.

164 - Drawing up an implementation matrix for the Programme which explicates the competent authorities responsible for implementing the policies and achieving the objectives of the Programme . - Establishing administrations for Programme follow – up and evaluation in each and every government Ministry and unit at the National and States levels. - Issuing periodic reports for the following up, the evaluation and monitoring of the performance of the Programme. Recommendations are to be made for consideration by the high level follow up authorities. 165 Annexes - Macro-economic Indicators: Annex (1-A) - Macro-economic Indicators for the Period 2015-2016 2015 2016 2017 2018 2019 Population 38.4 39.5 40.7 41.9 43.1 Economic Growth Rate 6.6 6.8 6.2 7.3 7.1 percent Real GDP SDG million 31,244 33,383 35,452 38,032 40,745 Average Inflation rate 25.90 20.80 14.80 10.20 8.00 percent GDP Deflator 20.4 24.7 28.4 31.2 33.7 GDP at Current price SDG 638,876.9 824,596 1,005,30 1,188,482. 1,375,1 .4 7 2 13.8 million Aggregate Consumption 551,390.0 686,425 815,672. 938,466.5 1,065,9 3 .00 99 5 12.75 SDG million Government Consumption 56626.00 71001.0 90013.0 110352.60 133766. 0 0 80 166 Private Consumption SDG 494764.03 615,424 725,659. 828,113.9 932,145 .00 99 5 .95 million Total Domestic Savings 87,486.89 138,171 189,633. 250,015.6 309,201 .43 86 8 .05 SDG million National Savings SDG 53,180.09 113,549 172,635. 238,385.9 301,758 .47 02 6 .25 million Total investments SDG 121793.69 162,793 206,632. 261,645.4 316,643 .39 70 0 .85 million Government Investment 16,379.00 22,612. 30,704.0 47,718.60 62,247. 00 0 80 SDG million Private Investment SDG 105,414.6 140,181 175,928. 213,926.8 254,396 9 .39 70 0 .05 million Net current Account SDG - - - - - 34306.80 24621.9 16998.8 11629.72 7442.80 million 6 4 - Source: Ministry of Finance and National Economy Annex (1-B) Macro-economic Indicators as Percentage of GDP percent 167 2015 2016 2017 2018 2019 Aggregate consumption 86.31 83.24 81.14 78.96 77.51 Government Consumption 8.86 8.61 8.95 9.29 9.73 Private Consumption 77.44 74.63 72.18 69.68 67.79 Total Domestic Savings 13.69 16.76 18.86 21.04 22.49 National Savings 8.32 13.77 17.17 20.06 21.94

Total Investment 19.06 19.74 20.55 22.02 23.03 Government Investment 2.56 2.7 3.05 4.02 4.53 Private Investment 16.5 17 17.5 18 18.5 Current Account -5.37 -2.99 -1.69 -0.98 -0.54 - Source: Ministry of Finance and National Economy Annex (1C) GDP at Current Prices (2015-2019) SDG MILLION Years 2015 2016 2017 2018 2019 168 Agriculture 205655.7 262153.8 319592.2 372340.4 425314.1 Industry 141723.7 185034.5 223619.4 264400.8 302460.6 Services 291497.5 377408.1 462095.4 551741.0 647339.1 GDP 638,876.9 824596.4 1005307.0 1188482.2 1375113.8 - Source: Central Bureau of Statistics Annex (1-D) Sectors Contribution to GDP (2015-2019) percent Years 2015 2016 2017 2018 2019 Agriculture 31.721 31.792 31.791 31.329 30.929 Industry 22.183 22.439 22.244 22.247 21.995 Services 46.096 45.769 45.966 46.424 47.075 GDP 100 100 100 100 100 - Source: Central Bureau of Statistics 169 Annex (1-E) GDP growth Rate by sector (Percent) Years 2015 2016 2017 2018 2019 Agriculture 7.31 7.26 6.81 6.34 6.10 Industry 9.26 7.62 7.62 6.97 5.34 Services 4.63 6.08 6.77 8.10 8.93 GDP 6.65 6.85 6.20 7.28 7.13 - Source: Central Bureau of Statistics Annex (1-F) Average Per Capita Income (2015-2019) Years 2015 2016 2017 2018 2019 170 GDP (SDG million) 638876.9 824596.4 1005307.0 1188482.2 1375113.8 Population (million) 38,4 39,5 40,7 41,9 43,2 Average per Capita 16637 20875 24700 28304 31905 Income(SDG) - Source: Central Bureau of Statistics 171 Annex (1-G) GDP at Constant Prices (2015-2019) Base 1981/82 Million SDG Years 2015 2016 2017 2018 2019 Agriculture 8879.8 9524.5 10172.9 10817.9 11477.8 Industry 8718.5 9382.9 9823.3 10507.5 11068.5 Services 13646.0 14475.9 15456.1 16707.2 18199.1 GDP 31244.3 33383.3 35452.3 38032.6 40745.4 - Source: Central Bureau of Statistics 172 GDP by Sector Annex (1-H) Agricultural Sector (2015-2019) Million SDG Years 2015 2016 2017 2018 2019 Current Prices 205655.7 262153.8 319592.2 372340.4 425314.1 Constant Prices 8879.8 9524.5 10172.9 10817.9 11477.8 Growth Rate percent 7.30 7.25 6.80 6.34 6.10

Current Prices in 31.7 31.7 31.7 31.3 30.9 GDPpercent Source: Central Bureau of Statistics Annex (1-I) Industrial Sector (2015-2019) Million SDG Years 2015 2016 2017 2018 2019 173 Current Prices 141723.7 185034.5 223619.4 264400.8 302460.6 Constant Prices 8718.5 9382.9 9823.3 10507.5 11068.5 Growth Rate 9.25 7.62 4.69 6.96 5.33 Share in GDP 22.1 22.4 22.2 22.2 21.9 Constant Pricespercent - Source: Central Bureau of Statistics Annex (1-J) Services Sector during (2015-2019) Million SDG Years 2015 2016 2017 2018 2019 Current Prices 291497.5 377408.1 462095.4 551741.0 647339.1 Constant Prices 13646.0 14475.9 15456.1 16707.2 18199.1 Growth Rate 4.63 6.08 6.77 8.10 8.93 Share in 46.0 45.7 45.9 46.4 47.0 GDPpercent Current Prices 174 - Source: Central Bureau of Statistics Annex (2) Average Inflation Rate in percent (2015-2016) 2015 2016 2017 2018 2019 25.90 20.80 14.80 10.20 8.00 - Source: Central Bureau of Statistics Annex (3) Total Investment Distributed Between the Public and Private Sectors 2015-2019 2015 2016 2017 2018 2019 Total Investment (billions 121,8 162,8 206,6 261,6 316,6 SDG) Public Sector 16,4 22,6 30.7 47.7 62.2 175 percent of Total Inv. 13.5 13.9 14.9 18.2 19.6 percent of GDP 2.6 2.7 3.1 4.0 4.5 Private Sector(SDG bi) 105.4 140.2 175.9 213,9 254.4 percent of Total Inv. 86.5 86.1 85.1 81.8 80.4 percent of GDP 16.5 17 17.5 18 18.5 Source: Ministry of Finance and National Economy 176 Public Finance and the Budget: Annex (٦) National Government Budget (2015-2019) Million SDG 2015 2016 2017 2018 2019 Public Revenue & Grants 59,381 77,461 102,105 134,426 167,224 Revenues 56,601 74,328 98,471 130,126 162,824 Tax Revenue 33,250 45,500 58,138 78,447 94,076 Other Revenue 23,351 28,828 40,333 51,679 68,748 Petroleum Sales 13,274 14,412 15,079 15,696 16,336 Transit fees on S. Sudan 524 524 524 524 524 Oil Transport Transitory Financial 7858 7858 0.0 0.0 0.0 Arrangements Grants 2,780 3,133 3,634 4,300 4,000 Total Expenditure 65,926 83,793 108,331 140,520 172,766 177 Current expenditure 56,626 71,001 90,012 110,353 133,766 Compensation of 17,294 24,477 28,171 33,986 30,964 Employees Goods & Services 5,900 8,082 14,000 19,000 25,000

Subsidies for Strategic 6,850 4,935 3,275 2,065 1,633 Commodities Fuel 5,343 3,751 2,489 1,033 0.0 wheat 1,507 1,184 786 1,032 1,633 Cost of Finance 6,040 6,700 7,000 7,200 7,500 Subsidies 62 66 72 78 86 Subscription on Foreign 385 400 450 500 550 Organizations Social Benefits 3,500 5,177 9,651 12,000 15,000 Other Expenditures 1,156 1,024 846 573 555 Transfers of the States 15,439 20,140 26,547 34,951 43,478 Current Transfers 8,360 10,320 14,162 17,399 20,431 Capital Transfers (local 1,540 3,722 4,650 8,187 13,987 component) 178 Capital Transfers(foreign 5,365 5,879 7,296 8,724 8,178 component Petroleum share of West 174.0 219.0 439.0 639.7 882.8 Kordofan States Net Operating Account 2,755 6,460 12,092 24,073 33,458 Acquisition non financial 9,300 12,792 18,319 30,167 39,200 Assets Local 2,946 5,735 11,578 23,913 31,740 Foreign 6,354 7,057 6,741 6,254 7,460 Total Deficit ( 6,545) ( 6,332 ) ( 6,227 ) ( 6,094 ) (5,742 ) Financing of Deficit 6,545 6,331 6,227 6,094 5,742 Net Foreign Financing 3,254 3,681 3,910 2,448 4,041 Loans Withdrawals 7,719 8,114 7,461 7,146 7,363 Loans Repayments (4,465 ) ( 4,433 ) (3,551 ) (4,698) (5,323 ) Net Domestic Finance 3,291 2,651 2,3117 3,646 3,702 and Securities Shahama 500 0.0 0.0 0.0 200 New Issuance of Securities 3,500 2,400 2,080 1,864 1,700 179 Repayment of costs of (3.000) (2.400) (2.080) (1.864) (1.500) post securities Government Securities 3,050 3,071 3,972 3,658 3,173 New Issuance 4,000 4,151 4,799 5,300 4,419 Repayment of costs of (950 ) (1,080 ) (827 ) (1,642 ) (1,246) post securities Government Bonds (48) 0.0 0.0 0.0 0.0 New Issuance 0.0 0.0 0.0 0.0 0.0 Repayments (48) 0.0 0.0 0.0 0.0 guarantees 804 1,001 372 2,112 1,790 New Issuance 5,950 6,250 6,560 6,990 7,000 Repayments (5,146) (5,249) (6,188) ( 4,878) (5,210 ) CBOS Credit Allowance 485 129 73 26 18 Borrowing from CBOS 4,280 4,453 4,222 3,803 3,438 Repayment of CBOS debt (3,795) ( 4,324 ) ( 4,149 ) (3,777 ) ( 3,420 ) arrears (1.500) (1.500) (2.100) (2.150) (1.479) Repayment of Arrears (1.500) (1.500) (2.100) (2.150) (1.479) 180 Resources Gap 0.000 0.000 0.000 0.000 0.000 Source: Ministry of Finance and National Economy Annex (7) National Budget as Percentage of GDP (2015-2019) 2015 2016 2017 2018 2019 Public Revenue & 9.29 9.39 10.16 11.31 12.16 Grants Revenues 8.86 9.01 9.80 10.95 11.84 Other Revenue 3.66 3.50 4.01 4.35 5.00 Tax revenues 5.20 5.52 5.78 6.60 6.84 Total public 10.32 10.16 10.78 11.82 12.58 Expenditure

Current Expenditure 8.86 8.86 8.95 9.29 9.73 Current expenditure 2.71 2.97 2.80 2.86 2.91 Compensation of 2.71 2.97 2.80 2.86 2.86 181 Employees Goods & Services 2.86 0.98 1.39 1.60 1.82 Subsidies for Strategic 1.07 0.60 0.33 0.17 0.12 Commodities Transfers of the States 2.42 2.44 2.64 2.94 3.16 Current Transfers 1.31 1.25 1.41 1.46 1.49 Capital Transfers( 1.08 1.16 1.19 1.42 1.61 National Development 1.46 1.55 1.82 2.54 2.85 (Acquisition non financial Assets) National Development 0.46 0.70 1.15 2.01 2.31 Local National Development 0.99 0.86 0.67 0.53 0.54 Foreign Total Deficit -1.02percent 0.77 0.62 0.51 0.42 percent percent percent percent Financing of Deficit -1.02percent 0.77 0.62 0.51 0.42 percent percent percent percent Net Foreign Financing .51 percent 0.45 0.39 0.21 0.15 percent percent percent Net local Financing .52 percent 0.32 0.23 0.31 0.27 percent percent percent percent 182 Borrowing from Central 0.08percent percent percent percent percent 0.02 0.01 0.00 0.00 Bank of Sudan (CBOS) Central Bank of Sudan 0.67 percent 0.54 0.42 0.32 0.25 percent percent percent percent (CBOS) Credit Allowance Repayment of Borrowing 0.59 percent 0.52 0.41 0.32 percent percent percent 0.25percent from Central Bank of Sudan (CBOS) Net Deficit (financing .00 percent .00 .00 .00 .00 percent percent percent percent gap) Source: Ministry of Finance and National Economy Monetary and Banking Sector Annex (٤) Monetary Survey (2015-2016) Million SDG 2015 2016 2017 2018 2019 183 Money Supply 86,751.3 95426.4 104969.1 116515.7 125836.9 Annual Growth 11.4percent 10.0percent 10percent 11percent 8percent Rate Source: Central Bank of Sudan 184 The Foreign Sector Annex (5-A) The Foreign Sector 2015-2019 Description 2015 2016 2017 2018 2019 Current account -3729 -2676.3 -1847.7 -1264.1 -809 Trade Balance -979.1 -334.8 696.3 1246.5 2008.7 Total exports 6859.1 7433.2 8378.3 8674.9 9457.5 Petroleum 2493.5 2854 3571 3555.4 3899.2 Gold 2451.2 2568.6 2719 2935 3312.3 Other 1914.4 2010.6 2088.3 2184.5 2246 Total imports -7838.2 -7768 -7682 -7428.4 -7448.8 Net Account Services -334.1 -225.5 -113.5 33.1 123 Net income account -4071.4 -3848.6 -4213.2 -4269.9 -4338.3 Net transfers account 1655.6 1732.6 1782.7 1726.2 1397.6 Net services, income and transfers account -2749.9 -2341.5 -2544 -2510.6 -2817.7

The capital and financial account 4035 4141 4262 4515 4719 Errors and Bin 0 0 0 0 0 Overall Balance 306.0 1464.7 2414.3 3250.9 3910.0 Statement 2015 2016 2017 2018 2019 Current account -3729 -2676.3 -1847.7 -1264.1 -809 185 - Source: Central Bank of Sudan 186 187 Annex (5-B) Balance of Payments (2015-2019) Millions Dollars Description ٢٠١٥ ٢٠١٦ ٢٠١٧ ٢٠١٨ ٢٠١٩ ٣٠٥.٦ ١٤٦٤.٩ ٢٤١٤.٣ ٣٢٥٠.٧ ٣٩٠٩.٧ Source: Central Bank of Sudan Annex (5-B) Balance of Payments (2015-2019) Millions Dollars Description ٢٠١٥ ٢٠١٦ ٢٠١٧ ٢٠١٨ ٢٠١٩ Exports ٦٨٥٩.١ ٧٤٣٣.٢ ٨٣٧٨.٣ ٨٦٧٤.٩ ٩٤٥٧.٥ Imports (٧٨٣٨.٢) (٧٧٦٨.٠) (٧٦٨٢.٠) (٧٤٢٨.٤) (٧٤٤٨.٨) Balance of Trade (٩٧٩.١) (٣٣٤.٨) (٦٩٦.٣) ١٢٤٦.٥ ٢٠٠٨.٧ Source: Central Bank of Sudan Productive Sectors 188 Annex (7) Quantitative Objectives of Oil Production (2015-2019) field Measurement 2015 2016 2017 2018 2019 Crude oil Barrel ٥٤,٨٨٤,٥٨٥ ٦١,٨٧٢,٣٠٠ ٦٣,٥١٥,٨٤٠ ٦٤,٢٤٢,٥٥٥ ٦٤,٥٧٦,٨٩٥ Refining crude at Khartoum Barrel ٣٠,٩٩١,٢٢٥ ٣٤,٤٠٤,٠٠٠ ٣٠,٠٨٠,٠٠٠ ٣٤,٣١٠,٠٠٠ ٣١,٨٨٠,٠٠٠ oil Refinery Refining crude at El-Obied Barrel ٣,٣٤٥,٩٠٧ ٣,٦٩٨,٢٧٤ ٤,٩٥٠,٠٠٠ ٤,٩٥٠,٠٠٠ 4,950,000 oil Refinery Petroleum Butane Gas Metric Tone ٣٦٥,٠٤٥ ٤٠٥,٢٤٤ ٣٥٤,٣١٢ ٤٠٤,١٣٧ ٣٧٥,٥١٤ products benzene Metric Tone ١,٢٢٨,١٦١ ١,٣٦٣,٤٠٦ ١,١٩٢,٠٤٩ ١,٣٥٩,٦٨١ ١,٢٦٣,٣٨٢ Jet Fuel Metric Tone ١١١,٣٧٠ ١٢٣,٦٣٤ ١٠٨,٠٩٥ ١٢٣,٢٩٦ ١١٤,٥٦٤ Gas Oil Metric Tone ١,٧٩٦,٦٠٨ ١,٩٩٣,٩٢٩ ١,٧٩٩,١٥٦ ٢,٠٢٩,٥٢٢ ١,٨٩٧,١٨٤ Furnace Metric Tone ٥٨٦,٥٢٣ ٦٤٩,٧١٧ ٧١٦,٨٢٥ ٧٥٧,٣٠٠ ٧٣٤,٠٤٨ heavy diesel Petroleum coal Metric Tone ٢٥٦,٧٦٩ ٢٨٥,٠٤٥ ٢٤٩,٢١٩ ٢٨٤,٢٦٦ ٢٦٤,١٣٣ kerosene Metric Tone ٢٦,٧٦٧ ٢٩,٥٨٦ ٣٩,٦٠٠ 39,600 39,600 189 Crude Purchase Fola Barrel 7,458,906 7,325,261 4,915,945 6,103,072 5,778,389 from companies

Crude Oil Export Nile Mixture Barrel - - 4,335,974 3,497,959 6,763,734 Source: Ministry of Petroleum The Minerals Sector Annex (8) Quantitative Objectives of Minerals Production (2015-2019) Production Unit Actual/Estimate Target for Target for Target Target for Target for Total for 2014 2015 ٢٠١٦ ٢٠١٧for ٢٠١٨ ٢٠١٩ Gold Tone ٦١ 76.6 80.27 84.97 91.72 103.51 ٤٣٧.٠٧ Chromium Thousand Tones ٤٠ 60 65 70 75 80 350 Iron Thousand Tones ٦٨ 350 360 400 450 500 2,060 Clinker Million Tones ٣.٥ 4 4.5 5 5.5 6 25 Manganese Thousand Tones ١٥ 35 40 42 45 46 208 Kaolin Thousand Tones ٢٠ 40 45 50 55 60 250 Gypsum Thousand Tones ١٥٠ 160 170 180 190 200 900 Salt Thousand Tones ٤٠ 60 65 70 75 80 350 Feldspar Thousand Tones ٣٥ 40 45 50 55 60 250 Copper Thousand Tones ___ 10 20 30 40 70 170 Source: Ministry of Minerals 190 Industry: Annex (9) Quantitative Objectives of Industrial Sector (2015-2019) Commodity Unit ٢٠١٥ ٢٠١٦ ٢٠١٧ ٢٠١٨ ٢٠١٩ Programme’s Targeted Industries Thousand ٩٨٤ ١٢٠٠ ١٥٠٠ ١٥٠٠ ١٥٠٠ Sugar Tone Thousand ٢٨٠ ٣٠٠ ٣٢٠ ٣٤٠ ٣٦٠ Vegetable Oils Tone Million Flour ١.٦٨ ١.٧ ١.٨ ٢ ٢ Tone Medicines: Syrups powder Million 61 65 70 75 80 and suspensions Bottles Million Liquids 12.8 13.7 14.7 15.7 16.8 Bottles Million Tablets 360 370 382 393 405 Tablets Million Capsules 643 655 669 682 696 Capsules Other Industries Million Cement ٦.٥ ٧ ٧ ٧ ٧ Tone Food Industries Million Mineral Waters ٨٨٠ ٩٠٠ 990 1000 1100 Liter Thousand Biscuit Tone ٨٥ ٩٠ 100 110 120 Thousand Sweets Tone ١٠٧ ١٠٧ ١٠٨ ١٠٨ ١٠٨ Thousand Juices Tone ٦٥ ٧٠ 75 80 88

Thousand Jams Tone ١٨.٥ ١٩ 21 23.0 25 Tomato Paste Thousand ١٤.٥ ١٥ 16.5 17.5 19 191 Tone Chemical Industries: Oxygen, Cubic ٣.٦ ٣.٧ 4.07 4.5 4.9 Nitrogen, Stalin Meter Nitrogen dioxide, Tone ١.٣٤ ١.٣٥ 1.5 1.6 1.8 carbon dioxide Million Ethanol ٧٠ ٧٠ 77 84.7 93.2 Liter Thousand Soap Powder Tone ٩٠ ٩٥ 104.5 115.0 126.4 Thousand Paints Tone ٨٠ ٨٥ 93.5 103 113 (Emulsions) Building Materials Million Ceramics Square ١٥ ١٦ ١٧ ١٨ ١٩ meter Engineering Industries: Thousand Refrigerators Unit ١٨٠ ١٨٥ ١٩٠ ١٩٠ ١٩٥ Thousand A/C gas/water Unit ١٩ ١٩.٥ ٢٠ ٢٠.٥ ٢١ Thousand Iron/Metallic Tone ٥٠٠ ٦٠٠ ٦٥٠ ٧٠٠ ٧٥٠ Products Printing and Packing: School Million ٢٥ ٣٠ ٣٥ ٤٠ ٤٥ Notebooks Dozens School Million ٣٦ ٣٦ ٣٧ ٣٧ ٣٨ Textbooks Piece Sources: Ministry of Industry 192 Agricultural Sector Plant Production Annex (10) Quantitative Objectives of Agricultural Sector (2015-2019) Indicator Unit ٢٠١٥ ٢٠١٦ 2017 2018 2019 Dura (Sorghum) Area Thousand ٢٠٢٣١ ٢٢٠٥٤ ٢٢٠٥٤ ٢٢٠٥٤ ٢٢٠٥٤ Acre Production Thousand ٥٦٠٠ ٧٥٠٠ ٨٧٠٠ 9100 9500 Acre Productivity Kg/Acre ٢٧٧ ٣٤٠ ٣٩٤ 412 430 Millet Area Thousand 6000 6350 6500 6800 7100 Acre Production Thousand 890 950 ١٠٠٠ 1100 1200 Tone Productivity Kg/Acre ١٤٨ ١٥٠ ١٥٤ 162 169 Wheat Area Thousand ٨٤٠ ٩٠٠ ١٠٠٠ ١١٠٠ ١٢٠٠ Acre Production Thousand ١٠٠٠ ١٣٠٠ 2250 32450 3400 Tone Productivity Kg/Acre ١١٩٠ ١٦٢٥ ١٨٠٠ ١٩٦٧ ١٦١٩ Cotton Area Thousand ٥٠٠ ٦٠٠ ٨٠٠ 840 882 Acre Production Thousand ٥٠٠ ٦٠٠ ٨٠٠ 840 882 Tone Productivity Kg/Acre ١٠٠٠ ١٠٠٠ ١٠٠٠ ١٠٠٠ ١٠٠٠ : Oil Seeds (Sesame, Peanut, Sunflower Sesame Area Thousand ٣٠٠٠ ٣١٠٠ ٣٣٠٠ ٣٤٠٠ ٣٦٠٠

193 Acre Production Thousand ٤٠٠ ٨٠٠ ١٢٠٠ ١٤٠٠ ١٨٠٠ Tone Productivity Kg/Acre ١٣٣ ٢٥٨ ٣٦٤ ٤١١ ٥٠٠ Peanut Area Thousand ٥٠٠٠ ٥٢٠٠ ٥٥٠٠ ٥٨٠٠ ٦٠٠٠ Acre Production Thousand ١٠٠٠ ١١٠٠ ١٢٠٠ ١٣٠٠ ١٥٠٠ Tone Productivity Kg/Acre ٢٠٠ ٢١٢ ٢١٨ ٢٢٤ ٢٥٠ Sunflower Area Thousand ٢٥٠ ٥٠٠ ٧٥٠ ٨٠٠ ٩٠٠ Acre Production Thousand 125 ٣٠٠ ٧٥٠ 880 ١٠٨٠ Tone Productivity Kg/Acre 500 600 1000 1100 1200 Source: Ministry of Agriculture and Irrigation 194 Agricultural Sector Livestock Production Annex (11) Quantitative Objectives of Livestock Sector (2015-2019) Description ‫ﺍﻝﻭﺤﺩﺓ‬ ٢٠١٤ ٢٠١٥ ٢٠١٦ ٢٠١٧ ٢٠١٨ ٢٠١٩ Number of Heads Cows Thousand Head ٣٠٢٤٠ ٣٠٣٧٦ ٣٠٦٣٢ ٣٠٩٢٦ ٣١٢٢٣ ٣١٤٨٩ Sheep Thousand Head ٣٩٦٩٠ ٤٠٢١٠ ٤٠٦١٢ ٤٠٧٥٢ ٤٠٨٤٦ ٤٠٨٩٦ Goat Thousand Head ٣١٠٣٠ ٣١٢٢٧ ٣١٤٨١ ٣١٦٥٩ ٣١٨٣٧ ٣٢٠٣٢ Camel Thousand Head ٤٧٨٠ ٤٨٠٩ ٤٨٣٠ ٤٨٥٠ ٤٨٧٢ ٤٨٩٥ Livestock Wealth Products Meat Thousand Tone ١٤٧٦ ١٤٨٤ ١٤٩٧ ١٥١٩ ١٥٣٩ ١٥٤٣ Dairy Thousand Tone 4490 ٤٩٣٩ ٥٩٤٨ ٦٥٤٣ ٧٢٠٣ ٧٩٢٣ Fish Thousand Tone ٧٢ ١١٠ ١١٥ ١١٧ ١٢٢ ١٢٧ Poultry Thousand Tone ٥٥ ٦٠ ٦٥ ٦٨ ٧٠ ٧٥ Egg Thousand Tone ٦٠ ٥٥ ٦٠ ٦٣ ٦٥ ٧٠ Leather Thousand Piece ٢٥٨٨٩ ٢٦٠٧٧ ٢٦٣١٣ ٢٦٥٥٩ ٢٦٧٤٥ ٢٦٩٣٠ Exports: Live Head Cows Head ٢١٢١٦ ٢٣٣٣٨ ٢٥٦٧٢ ٢٨٢٣٩ ٣١٠٦٣ ٣٤١٦٩ Sheep Head 4827295 5310025 5841027 6425130 ٧٠٦٧٦٤٣ ٧٧٧٤٤٠٧ Goat Head ٢٢٧٤١٩ ٢٥٠١٦١ ٢٧٥١٧٧ ٣٠٢٦٩٥ ٣٣٢٩٦٥ ٣٦٦٢٦٥ Camel Head ١٧٤٩٩٤ ١٩٢٤٩٤ ٢١١٧٤٣ ٢٣٢٩١٧ ٢٥٦٢٠٩ ٢٨١٨٣٠ Meat Cows Tone ١٣٢٠٠ ١٣٨٦٠ ١٤٥٥٣ ١٥٢٨٠ ١٦٠٤٤ ١٦٨٤٦ Sheep Tone ١٥٤٠٠ ١٦١٧٠ ١٦٩٧٩ ١٧٨٢٨ ١٨٧١٩ ١٩٦٥٥ Goat Tone ٠.٦٦٠ ٠.٦٩٣ ٠.٧٢٨ ٠.٧٦٤ ٠.٨٠٢ ٠.٨٤٢ Camel Tone ٠.١٣٢ ٠.١٣٨ ٠.١٤٥ ٠.١٥٢ ٠.١٦٠ ٠.١٦٨ Leather Thousand ١١٣٥٣.٠٦ ١٢٥٢١.٤ ١٣٧٧٣.٥ ١٥١٥٠.٩ ١٦٦٦٥.٩ ١٨٣٣٢.٥ Pieces Animal Health Million Dose ٧٥ ٨٥ ٩٥ ١٠٢ ١١٠ ١١٥ and Fighting

195 Epidemics (No. of Vaccinations) Supportive Million Dose ١٠٠ ١١٠ ١٢١ ١٣٣.١ ١٤٦.٤١ ١٦١.٠٥ Services: Produced Vaccines Source: Ministry of Animal Wealth and Fisheries Forestry: Annex (9) Quantitative Objectives of Forests Production (2015-2019 Thousand Tones Descr ٢٠١٤ ٢٠١٥ ٢٠١٦ ٢٠١٧ ٢٠١٨ ٢٠١٩ iptio Prod Ex Prod Ex Prod Ex Prod Ex Prod Ex Prod Ex n uctio por uctio por uctio por uctio por uctio por uctio por n ts n ts n ts n ts n ts n ts Gum ١١٠ ٦٧ ١٥٠ ٧٣ ٢٠٠ ١٠ ٣٠٠ ١٣ ٤٠٠ ١٦ ٥٠٠ ٢٠ Arabi ٠ ٠ ٠ ٠ c Char ٨٠ ٢١ ٧٥ ٢٥ ٦٠ ٢٠ ٤٥ ١٥ ٣٠ ١٠ ١٥ ٥ coal Musk ets Othe ٢٠ ٣ ٢٠ ١٠ ٢٠ ١٠ ٢٠ ١٠ ٢٠ ١٠ ٢٠ ١٠ r Char coal Firew ٣٧٢ ١٤ ٢١٦ ٧٢ ٢٨٠ ٩٣ ٣٤٥ ١١ ٤١٠ ١٣ ٤٣٢ ١٤ ood ٤ ٠ ٠ ٨ ٦ ٦ ٥٢ ٤ ٦٨ ٠ ٤٠ Sawn ٤٥٠ - ٥٤٠ ٤٣ ١٢٦ ٦٧ ٢١٦ ٧٢ ٣٢٠ ٨٣ ٤٢٠ ١٠ Woo ٢ ٠ ٠ ٠ ٠ ٠ ٠ ٠ ٠٠ d Source: National Forests Authority 196 Development Program Priorities: Annex (13-A) Public Sector: Investment by Sector (2015-2019) Million SDG ‫اع‬ 2015 2016 2017 2018 2019 Agriculture, Livestock 3,647.34 5,378.76 9,409.79 22,500.86 27,438.78 and Irrigation Sector Industry sector 441.96 459.48 1,145.53 1,287.17 979.70 Roads and bridges 5,125.45 6,428.24 6,209.77 6,969.40 11,821.65 sector Energy and water 2,466.84 3,171.76 4,163.28 5,632.42 6,985.08 resources sector Service sector 4,296.89 6,454.77 8,769.65 9,913.84 13,425.64 Economic and Financial Sector 28.50 47.00 61.00 58.00 77.00 Total Small Asset 372.00 672.00 945.00 1,354.00 1,520.00 Projects Total of 16,378.98 22,612.02 30,704.02 47,715.69 62,247.85 Development Sectors Source: Ministry of Finance and National Economy 197 Annex (13-B) Public Sector: Investment by Sector ( Percent) Sector 2015 2016 2017 2018 2019 Agriculture, Livestock and 22.3percent 23.8percent 30.6percent 47.2percent 44.08percent Irrigation Sector Industry sector 2.7percent 2.0percent 3.7percent 2.7percent 1.6percent Roads and bridges 31.3percent 28.4percent 20.2percent 14.6percent 19.0percent sector Energy and water 15.1percent 14.0percent 13.6percent 11.8percent 11.2percent resources sector Service sector 26.2percent 28.5percent 28.6percent 20.8percent 21.6percent Economic and Financial 0.2percent 0.2percent 0.2percent 0.1percent 0.1percent Sector Total Small Asset Projects 2.3percent 3.0percent 3.1percent 2.8percent 2.4percent Total of Development 100percent 100percent 100percent 100percent 100percent Sectors

Source: Ministry of Finance and National Economy 198 Annex (13-C) Private Sector: Investment by Sector (Percent) Sector 2015 2016 2017 2018 2019 Agriculture, Livestock and 13,690.81 17,845.89 20,361.09 18,751.81 22,299.11 Irrigation Sector Industry sector 17,093.54 22,884.40 28,212.27 34,679.78 41,240.19 Roads and bridges 12,026.20 16,684.42 23,377.01 30,454.57 36,215.70 sector Energy and water 14,923.24 20,101.83 25,365.37 31,501.12 37,460.22 resources sector Service sector 12,976.72 16,687.75 20,945.76 28,299.86 33,653.38 Economic and Financial 17,538.17 23,314.50 29,262.61 35,610.50 42,346.98 Sector Total Small Asset Projects 17,165.76 22,662.41 28,406.17 34,628.94 41,179.73 Total of Development 105,414.44 140,181.20 175,930.28 213,926.58 254,395.31 Sectors Source: Ministry of Finance and National Economy 199 Annex (13-D) Private Investment Contribution to Total Investment by Sector (Percent) Sector 2015 2016 2017 2018 2019 Agriculture, Livestock and 13.0percent 12.7percent 11.6percent 8.8percent 8.77percent Irrigation Sector Industry sector 16.2percent 16.3percent 16.0percent 16.2percent 16.2percent Roads and bridges 11.4percent 11.9percent 13.3percent 14.2percent 14.2percent sector Energy and water 14.2percent 14.3percent 14.4percent 14.7percent 14.7percent resources sector Service sector 12.3percent 11.9percent 11.9percent 13.2percent 13.2percent Economic and Financial 16.6percent 16.6percent 16.6percent 16.6percent 16.6percent Sector Total Small Asset Projects 16.3percent 16.2percent 16.1percent 16.2percent 16.2percent Total of Development 100percent 100percent 100percent 100percent 100percent Sectors Source: Ministry of Finance and National Economy 200 Annex (13-E) Summary of Public and Private Sectors Contribution to Investment (2015-2019) Million SDG 2015 2016 2017 2018 2019 Description Value % Value % Value % Value % Value % Public Sector 16,379.00 ١٣.٤ 22,612.0 ١٣.٩ 30,704.00 ١٤.٩ 47,718.60 ١٨.٢ 62,247.80 ١٩.٧ Investment Public Sector 105,414.44 ٨٦.٦ 140,181.2 ٨٦.١ 175,930.28 ٨٥.١ 213,926.58 ٨١.٨ 254,395.31 ٨.٣ Investment Total 121,793.44 ١٠٠ 162,793.2 ١٠٠ 206,634.28 ١٠٠ 261,645.18 ١٠٠ 316,643.11 ١٠٠ Source: Ministry of Finance and National Economy 201