Lex Africa Guide 2012 Full - Afrer.org

use of interest rates or usury transactions.SUDANMEKKI OSMAN & PARTNERSFirm InformationLanguages spoken: Arabic, English & FrenchContact person: Mr. Osman MekkiTelephone: +249 183 463 249Fax: +249 183 493 363Email: om@mekkiosman.comCountry InformationSudan covers 1,886,068 square kilometres. It is the third largestcountry on the continent and the sixteenth largest in the world.Political SystemSudan has a Presidential System within a multiparty democracy.Latest GDP FiguresThe World Bank classified Sudan among the fastest recoveringeconomies from the world financial crisis. According to itsestimates, (based on performance in the first quarter of 2011),Sudan came third in the Middle East and North Africa after Qatarand Saudi Arabia. Sudan’s GDP is US$ 66.6 billion with a growthrate of 5.5%.Country comparison to the world: 62GDP per capita (PPP): $ 2380.Gross Domestic Product (per sector):Agriculture: 31.6% from the national product (9% fromnon- oil exports);Labor force in the sector: 50.23 % of the population;Industry: 26% (9% from non –oil exports);Services: 42.1%;Unemployment Rate: 11%;Absolute Poverty: 8% of the population.Direct Foreign Investment (in billions of dollars): 2 981Sudan ranks second in Middle East and North Africa.Third in Africa.Percentage of Revenues to GDP: 18.1 %Percentage of Current Expenditure to GDP: 18.2%Percentage of Current Expenditure on Development to GDP:3.7%Percentage of Total Expenditure to GDP: 21.9 %Inflation Rate: Annual average: 13 %National livestock herd (cows/camels/sheep): 102 846 331.IndustriesOil, gold, cotton ginning, textiles, cement, edible oils, sugar,soap, shoes, petroleum refining, armaments, automobiles,pharmaceuticals, meat, and leatherGrowth Rate of Industrial Sector: 23%;Growth Rate of Services Sector: -1%;Growth Rate of Agricultural Sector: 3.6% .Interest RatesSudan implements Sharia Islamic laws which do not permit theInflation Rate11.2%.Investment ClimateThe government has endeavoured to create favourableinvestment conditions.Procedural reforms have been implemented. For example thestate monopoly on agricultural and industrial products, theeconomic services sector and marketing has been abolished.The state has also withdrawn from some public sectorcorporations and institutions.Radical reforms of investment statutes and laws regulating alleconomic activities have led to the removal of obstacles thathinder investment.Economic, trade and financial policies have been implementedto promote a free market economy.In terms of the 1999 Investment Act:foreign capital proprietors may remit their profits andinitial financing costs or debts provided that all the legallybinding commitments pertaining to the project are met;raw materials may be imported for projects;freedom of movement, residence or transfer of theproject’s expatriate employees is guaranteed;one of the most important guarantees granted by the 1999Investment Act is that investors’ assets may not benationalized.The Investment Authority has been established to promoteinvestment in Sudan.Forms of BusinessAll companies in Sudan are incorporated under the CompaniesAct and are limited liability companies. Companies are eitherpublic or private. A public company must have at least sevenshareholders. A private Company must have a minimum of twoand a maximum of 50 shareholders.Foreign companies intending to conduct any kind of business inSudan must register a branch of their company in Sudan. Alicense is issued for the purpose and duration of the company’sproject.Public concession companies are companies which have beengranted specific concessions by ministerial decree. Only jointstock companies conducting activities required by the countryare granted specific concessions.To register a partnership, an authenticated statement signed byall the partners must be submitted to the Commercial RegistrarGeneral. Partnerships are regulated pursuant to the theRegistration of Partnerships Act 1931.Exchange ControlsSudan has no restrictive exchange control regulations. Dividendsand capital gains on equity investmentsreceived from a foreign source are, subject totax being paid, freely remittable out of thecountry in foreign currency.Interest on capital of foreign loans can freely73