Transcription of Interview with
Lt. Gen. Mr. Omar Hassan Ahmad El-Bashier
President of Republic of the Sudan
Date: 02.10. 2000 Khartoum

Welcome. In fact we are very pleased to have you in Sudan, hoping that with the effort and help of medias such as yours, our voices will be heard abroad, because as you said, the picture or the image of the Sudan has been damaged, therefore there is a general misconception of our current situation. We would like therefore to discuss the reality and set aside this fictitious Image. We believe the 'Independent' is a very respectable and reputable news paper, and we have no doubt this report will be seriously taken by your readers. We welcome this initiative because we are heading towards general and Presidential elections, where we are going to start implementing our new program for the new Presidential era.

Q: Thank you. We are honored, and we will try our best to portray the current socioeconomic panorama of Sudan objectively. Honorable president; what have been the key factors behind Sudan's recent growth, and how do you see it continuing into the future?

A: We want to establish some basic standards from the very start. First of all we recently stated that, we have restructured the economy of our country and built new foundations without any external assistance, in fact even without the conventional economic aid. I think, this is one of our biggest achievements, and it has been recognized by the IMF itself. Secondly, the formal government used to rely intensively for 80% of the revenue of the country on external help, and with our government that figure has been reduced to even less than 2%. Economic growth has reached over 6% while the general rate of growth in Africa does not succeed to reach 3%.

Q: You have also reduced high inflation as well as stabilized interest rates: can you comment on this please?

A: Indeed, We have succeeded so far to reduce the rate of inflation to between 6% and 9%, in fact our aim is to reach zero inflation. We are hoping, next year our average inflation to be under 6%. Moreover, the rate of exchange in the country for the first time, has settled at a stable level. Also, many negative factors have been cleared up, especially the black market. We are very serious in our objectives and unlike many other countries in Africa, corruption is not contemplated in ours. That is why we have achieved this success.

Q: Yes, African governments are often perceived as corrupt. But changing tack, what is the current situation regarding phase two of the privatization program?

A: We have established a very clear program for privatization in the country., however, it has not ched our expectations, This was due to the fact that investors feared coming in for obvious reason, as you may know our image abroad is always related to a general situation of unrest, mind you we are still facing war, not very encouraging for foreign investment. We set a model for privatization for the telecommunication sector with a very positive feed back. This proved to a very high extent, how viable privatization is in this country. One of the problems we face regarding privatization, is the activities of trade unions, who look negative manner the privatization process. Another issue is the pressure of the public opinion, they believe that these institutions belong to the Sudanese people, this is due to the socialist schools built up in the May regime 1969 onwards. Our belief is that the government is not a manufacturer, not a trader nor a farmer, it is a government.

Q: Changing the mentality of the public opinion is one of the biggest challenges a government can face. How do you plan to encourage people to gear their mentality towards this new horizon ?

A: The wide stride that took place in the field of Tel-communication, encouraged us to convince the public opinion in how successful privatization can be and the rewards that came back to the workers in the field itself, it convinced others to the reliability of privatization. Those who learned the lesson agree with us.

Q: How do you propose to develop the country's massive natural resources, and what role will the U.K. play?

A: In fact Sudan as you know is one of the forthcoming countries that has a very rich potential that as far as un-exploited natural resources. If we talk about agricultural lands, which is quite large and not yet, exploited you find that we have a very vast reserve. The immense animal resources of the country and the natural grazing in the country make of these animal resources a real vast potential that should attract others. For the time being the owner of the cattle or animal resources looks at it as another social habitat, but not yet as a revenue and income generated factor. The improvement of the quality and the economic credibility of the process itself as far as the animal resources is concerned, has not yet being tapped. As far as petrol is concerned all signs proved that what we are starting to export now is just insignificant compared to what exists as potential. Once one of the French experts once said if Total company came and operate with the concession given to it in the area of Bor and Pibor, Sudan will export oil to Saudi-Arabia. We actually in the Sudan, started the project with the petrol in the Sudan. They are now coming back to realize that petrol in the Sudan is of commercial size and this especially after some British company has taken part in the pipe line and they help in different machinery and so forth. As you mentioned about the British companies, I believe that Traditional relations between Sudan and Britain former relations, and to what you have said is that Britain is the second commercial partner of the Sudan. There is no linguistic barrier; this should encourage a comeback.

Q: O.K. the oil. So if say, you become a member of OPEC, how will this influence the economic direction taken by Sudan?

A: So far what we have achieved can be presented in the following: The balance of trade. For the first time we are in the positive side, the second thing, the availability of hard currency for foreign investors whether for local administration, purchasing spare parts and for those they want to wind up their money outside the country. Thus this should encourage investors more and more. Actually we want to help in the development of the country, for instance we have in our plans as far as roads are concerned 5,000KM to be erected as roads. We are to enhance our capability of the infrastructure in the country. We have to develop railways, education, health, and social activities and to enhance the private sector itself to have more capital access to different markets etc.

Q: The UK is Sudan's second largest trading partner. How important is British investment for your plans?

A: As far as the British investors are concerned they have an excellent knowledge of the Sudan, so they do not need to come and explore the country like others. So they just start and this is a credit on their side. Some others who come they take a long time to know the country. The British investors are in a comfortable position as far as this concerned because it limits the time. There is no time wasted. Now there is no complex as far as citizens are concerned. For example some of our teachers in the schools used to be British. All of us here have been influenced by British education.

Q: So, how important is the UK?

A: Usually political relations are the key when there is a fair game, and mutual interests. As far as we are concerned we have no objections to have commercial and economic relations with the British investors. Here in the Sudan we prefer the British market industry and products. They carry a reputation for quality. With the absence of the British products from the Sudanese market, others have taken their place. Thus this needs a lot of effort from the British companies to come back and take their normal place in the Sudanese market.

Q: What areas do you see the potential for UK investment in Sudan?

A: As far as the potential capacity of the Sudan, we can cover the whole of Europe with vegetables and fruits during winter. The second, thing is animal resource. Our cows are not mad. The third, is the transformation industry; we have sugar, and oil seeds. Now we are members of the COMESA we need to develop our industry to enter this market, we have energy, the infrastructure, we are also in the basis of privatizing this sector as well as road and airports.

Q: How does the international image of Sudan affect investor confidence?

A: The image portrayed about the Sudan as I said, had negatively affected investment in Sudan, this may not all be true or all wrong. Actually there are certain things that affected negatively the investment in the country. One: there was lack of energy in the county, the lack of foreign currency here, also the strong trade unions which were so powerful and could have dissuaded investors and the non clarity of the policy of the state itself. Actually now we improved a lot as far as investment is concerned, we solved many problems and improved the image. First: Clarity of the policy of the state. Second: the availability of the foreign currency. Third: the stability of the state, there is no strikes. Fourth: The question of energy and we are working on solving it but there are shortcomings. Actually we have specific program to build 1,200 M.W and build some dams which will give 1,800 MW. Moreover, there is the question of steady policy, and the general economic climate, inflation and rate of exchange, which we managed to improve it.

Q: Finally, what is your vision. What will Sudan be like in 25 years?

A: Our plan, for 25 years, we want to reach welfare for the Sudanese people. These plans divide into 5 year plans. In the first period we are going to concentrate in roads, railway, river transport airports and the different general services connected to development, with concentration to the area affected by war.

Q: What is your direct message to the UK?

A: Our direct message is, we need justice from people, and to know us really. We do not want to be affected by non-factual and non-realistic allegations against us.