Khartoum – Brazilians are used to hearing that Brazil has a vocation to be world’s breadbasket, but other nations aspire to the same role. The term “breadbasket” has been used extensively to describe Sudan at the 41st Conference of the General Union of Arab Chambers of Commerce, Industry and Agriculture, held this Tuesday (29th) in Khartoum, the African country’s capital. The theme of the meeting was precisely food security in the Middle East and North Africa.
In this respect, the Sudanese and other Arabs may have a perfect marriage. On the one hand, a significant share of countries in the region, especially the Gulf ones – dry, but enjoying the liquidity that stems from oil revenues –, are seeking alternatives to supply their populations. According to estimates presented at the conference, Arab nations need to invest US$ 37 billion in food production over the next five years to ensure their food security.
On the other hand, after separating from South Sudan halfway through this year, Sudan has lost most of its oil revenues, and is betting on agricultural development to make up for it. The main issue is lack of funds, which the others do possess. What the Sudanese have to offer is vast expanses of fertile land, water, labour force and a traditional vocation for agriculture.
“Our main strategy for replacing oil is agriculture, including food processing and exporting,” said to ANBA the country’s minister of Agriculture, Abdelhalim Almutafie. “The main issue facing us is funding,” he added.
Based on figures presented at the conference, the Arab Brazilian Chamber of Commerce CEO, Michel Alaby, informed that the cost of living has increased sharply in the Arab world after the 2008 international financial crisis, and that participants said the region lacks food production policies. The Brazil-based Chamber is attending the Conference of the General Union of Arab Chambers of Commerce, Industry and Agriculture as an observer.
The managing director of Kenana Sugar Company, a Sudanese sugar and ethanol conglomerate, Mohamed El Mardi El Tegani, said water availability levels are less than safe in all Arab countries but Sudan and Egypt, the latter of which is soon to join in with the rest.
The secretary general of the Council of Saudi Chambers of Commerce, Industry and Agriculture, Fahad Al-Sultan, added that agricultural productivity in Arab countries is below the world average, and that food trade between nations in the region is “insufficient and weak,” despite the existence of a free trade area between them.
“The price of food will rise even further, we will have a food shortage and we need strategies,” warned Sultan. “Sudan’s privileges [natural and human] need to be tapped,” he said.
It is high time to put this policy to work, because already the Sudanese economy is suffering from the separation. The annual inflation rate is nearing 20%, the Sudanese pound is losing value against the US dollar – official exchange rates do not reflect the reality of the parallel rate – and the foreign exchange reserves are running low, jeopardizing import financing. Add to that unsolved border disputes between North and South.
Brazil
The Sudanese are hoping to count on money from the Gulf countries and others, such as Turkey, China, and even Japan and the European Union, to fund their production, but they also need partnerships in the technical area. This is where Brazil comes in. Boasting advanced knowledge in the field, Brazilian enterprises are already carrying out pilot projects ranging from farming of commodities to irrigation in the African country.
The Sudanese are in touch with other institutions in Brazil, such as the Brazilian Development Bank (BNDES), to obtain financing to purchase implements and services, the Brazilian Agricultural Research Corporation (Embrapa) and even the government of the Federal District.
There are other options on the table. According to the Brazilian ambassador to Khartoum, Antonio Carlos do Nascimento Pedro, there are talks underway concerning an agricultural project in Sudan, with Saudi funding and Brazilian technology. He added that Brazil ranks highly on the Sudanese esteem.
“The Brazilians are not purely interested in the projects; they become involved in the social sphere. Brazilians partake with the locals, they don’t overlook the big picture. Brazil is one of a few countries to do so,” said the diplomat, adding that talks between Brazilian and Sudanese institutions include, for instance, establishing of three technical agricultural schools in the African country.
Sudan, which has 80% of its farmable land still untapped, wants to develop different types of cultures, such as soy, wheat, sorghum, sunflower, cotton, horticulture, aquaculture, cattle, sheep and chicken farming, and the industries associated with these activities. “That is why we want to bring in Brazilian technology,” said the minister of Agriculture. The most advanced area thus far is sugar, spearheaded by Kenana.
Sudan already receives foreign investment in agriculture and ships its production abroad. Kenana’s ethanol is exported to Europe and the company itself is a case in point. Its shareholders include the governments of Sudan, Saudi Arabia, Kuwait, Arab fostering organizations, commercial banks, and the Japan-based Sojitz Corporation. The president of the General Federation of Sudanese Businessmen & Employers, Saudi Al Breir, cited another example: the recent sale of 2 million sheep to Saudi Arabia. The next step is to turn all of this into a long-term strategy for the region.
*Translated by Gabriel Pomerancblum
