Economic Vision: The Strategic Commodity

Sudan is largest Gum Arabic producer and exporter; it exports 80% of the world total production, despite the comparative advantages, Sudan suffers from the bad policies and illegal exercises such the mediation of brokers and the intervention of smugglers.
The earning export of the Gum Arabic totaled to US$ 70 million, it doesn’t match the volume of the Gum Arabic production, every year Sudan produces 80,000 tons, and the contribution of Gum Arabic didn’t appear in the budget.
Sudan own strategic yield “Gum Arabic” which is considered more important than “Oil” it is used in different industries, it has multi functions.
In the upcoming May, Sudan will review the future of Gum Arabic production and its impact on the economic development domestically, regionally and internationally. Many challenges stand on the way of Gum Arabic promotion, among them policies, laws and regulations.
The unilateral economic sanctions imposed on Sudan in 1997 by US has affected the market of Gum Arabic, I think it is an African issue, there three ideas and proposals were discussed in the Gum Arabic workshop recently, it is a good attempt to develop Gum in Sudan.
The idea of establishing Gum Arabic Bank means protection to producers, the Bank can play a crucial role to set an attractive prices which encourage producers to increase production, the other important proposal is the African Gum Arabic Center, suggested to be hosted in Khartoum, the Center coordinate the efforts of the produced countries.
But the significant point to discuss in the expected conference is African Union of Gum Arabic Produced and Exported Countries, the new body will compete with other economic regional and international locks and bodies.
The three proposals are the pillars of Gum Arabic economic contribution to Sudan public treasury, the missed idea is the transformative industry of Gum Arabic, and two goals can be achieved, to export Gum Arabic manufactured products and to create job opportunities to the unemployed.
The room for that is available, because many US companies desire to invest in Gum Arabic in Sudan, it is the only excluded commodity during the economic sanctions period, which confirms its strategic importance.

Mohamed Abdalla

Economic Vision
Mohamed Abdalla

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Mohamed Abdalla

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