THE  PRIVATIZATION  PROGRAM

Objectives of The Privatization Policy:

Sudan began to implement the privatization policy since 1992 aiming to arrest declining economic performance and improve efficiency within the framework of the liberalization policy. Following are the main objectives of privatization:

Reduce Budget deficit, absorb excess liquidity and curb inflation,

  Encourage the private sector to increase expenditure and investments, and cause private companies to increase their capital stocks to assist in mobilizing the economy,

  Utilize liquidity available to the private sector according to priorities,

  Expand the range of competition between investors to serve the public good,

  Enlarge direct private ownership by converting some public entities into general joint–stock companies that accumulate small investors,

  Improve the investment climate to attract local and foreign investments,

  Acquire and utilize advanced technologies, and

  Eliminate bureaucratic behavior and practices, improve the administrative system and generalize principles of transparency.

Instruments of Privatization:

Units to be privatized have been determined and classified in a time-schedule approved by the Council of Ministers as follows:

(1)     Units to be privatized immediately (Fiscal Year 1992/93).

(2)     Units to be privatized in a medium term (2-3years).

(3)     Units to be privatized in a long term (more than 3 years).

The first program covered the period 1992-95 whereby 57 units have been privatized. Following are some performance indicators:

The main results of privatization may be summarized as follows:

           Secured an amount of SD 554 million for the Treasury.

           Reduced the burden on the General Budged by lowering government expenditure on public entities.

  Assisted in mobilizing idle capacities and increased the productivity of the concerned units as a result of the private investments that have been made. It was only possible for the privatization policy to flourish after the elimination of barriers and restrictions surrounding the public sector. A good example of the success achieved is the Sudanese Communications Company (Sudatel). Sudatel is a joint venture owned by the Sudanese government, other Sudanese investors, Qater Communications Company, Dubai Communications Company in addition to other Arab investors. Sudatel is realizing growing profits that have increased from US$ 24 million in 1997 to US$ 60 million in 1999, and

 Increased the employment rate by 14% in some privatized units.

The New Privatization Program for the period 2001- 2003

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