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June 03, 2007

Sudan unveils ambitious sugar project

Sudan aims to produce an annual 10 million tonnes of sugar by 2015, up from some 850,000 tonnes at present. The vast African nation could eventually end up producing twice that amount,said Hassan Hashim Erwa, marketing manager for the Kenana Sugar Company representing Sudan at a three-day International Sugar Organization (ISO) meeting in Mauritius. Kenana is owned mainly by Arab government investors.

The majority of 13 projects included in a 10-year strategy to produce the 10 milllon tonnes are south of Khartoum between the White and Blue Niles. "By 2015, we will be ready to produce 10 million tonnes," Erwa said. "The capacity of Sudan could go to 20 million." Part of Sudanese agricultural reforms, the projects are expected to create 700,000 jobs and to improve health and education for three million people, Erwa said. The largest of the projects, the Eljazeera project, was aiming to produce 2.9 million tonnes of sugar and 205 million litres of ethanol per year, he said. Sudan, which produces 330,000 barrels per day of crude oil, is expected to legalise the blending of ethanol with petrol in July, he said.

Sudan's extra sugar production will most likely be sold on Arab, African, and internal markets, Erwa said. Linked to the presence of oil, Sudan's economy is expected to grow up to 13 per cent this year. "The Sudanese population is growing, the patterns and consumption habits of people are changing," he said.

Sudanese production could also help plug a sugar deficit in the Middle East and North Africa, equal to almost 9 million tonnes for 2006/07, according to ISO figures. This month, the ISO forecast a world sugar production surplus of 9.1 million tonnes for 2006/07. World production would equal 162.6 million tonnes, it said.


"All of these factors will contribute to a very dynamic market," Erwa said.

Daily Nation

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