Lex Africa Guide 2012 Full - Afrer.org

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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agricultural and industrial products, theeconomic services sector and marketing has been abolished.The state has also withdrawn from some public sectorcorporations and institutions.Radical reforms of investment statutes and laws regulating alleconomic activities have led to the removal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
74be remitted in foreign currency upon disinvestment. A nonresidentmay remit capital in foreign currency at any time.TaxationBusiness profits and rental income are taxed at a maximumrate of 35%;Profits from agricultural businesses are exempt from tax;Public and private companies, including banks, investmentof funds companies, insurance companies, companies andindividuals distributing oil and gas products directly toconsumers are taxed at a rate of 15%;Industrial companies and businesses are taxed at a rate of10%;Tobacco and Cigarettes manufacturing companies aretaxed at a rate of 30%;Withholding taxes are levied at a rate of 5%;Residents of Sudan or individuals who reside in Sudan forover six months are taxed on their worldwide income at amaximum rate of 15%;Sudan has signed double taxation agreements with theUnited Kingdom, Egypt, the United Arab Emirates, Chinaand Malaysia;Value Added Tax (VAT) is 15%.ImportsThe Government of Sudan has implemented importliberalization policies but licenses are required for all imports.These are obtained from the Ministry of Foreign Trade. Allimports must be by letters of credit from a local bank.Items such as food, beverages, live animals and animal productsare classified as restricted and require approval from therelevant government department. Goods such as opium,narcotic drugs, alcohol, indecent or obscene materials, false andcounterfeit coins and money may not be imported.Percentage of National Income: 14 %Commodities: Food, manufactured goods, refinery andtransportation equipment, medicines, chemicals, spices,textiles, wheat, fertilizers, rubber, paper.ExportsLicenses must be obtained for exports from the ministry ofForeign Trade and exports must be through a local bank. Exportsof certain items such as gum Arabic and livestock may only bemade by local companies.Percentage of the National Income: 17 %;Commodities: Gold, copper, chromium, oil and petroleumproducts, cotton, sesame, groundnuts, gum Arabic, sugar,hibiscus, seeds ( sunflower, watermelon seeds, senna),maize, fruits, vegetable, livestock, leather, and medical gas.Monetary PolicyThere is an Islamic banking system in Sudan. However theCentral Bank of Sudan implements a single monetary policy toensure price stability and maintain a stable exchange rate. Themonetary policy relies primarily on market-based instrumentsinstead of administrative allocation of credit.Legal SystemPrimary sources of law at all levels ofgovernment are Acts passed by the NationalLegislature and State Legislature, within thescope of the powers assigned to each levelas prescribed under the constitution.Another important source of law is statutory or subordinatelegislation under the authority of an Act of Parliament. The legalsystem rests on the constitution. The ultimate aim of the FederalNational Government is the protection of the rights andfreedoms of individuals as stipulated in the Bill of Rights. Theconstitution provides that religions, customs and beliefs aresources of moral strength and inspiration for Sudanese people.All laws must comply with the constitution. The constitutionprovides that nationally enacted legislation shall have as itssource of legislation Islamic Shar'ia.Nationally enacted legislation applicable to southern statesand/or the southern region has as its source of legislationpopular consensus, and the values and customs of the people.Case law provides an important source of law at all levels ofgovernment. Commercial law practice is influenced by theEnglish common law system.The Judicial institutions in the country are the ConstitutionalCourt and the Judiciary. The Constitutional Court is a SupremeCourt independent from the Judiciary with a jurisdiction overthe constitutional matters and inter-state conflicts. The Judiciaryis an independent organ which regulates and administers theCourts of Justice.Intellectual PropertySudan is party to most of the significant international treatiesrelating to intellectual property.Financial Services/InsuranceFinancial Services and insurance businesses are regulated by theBank of Sudan, Khartoum Stock Exchange and the InsuranceSupervisory Authority.Membership of International and Regional OrganisationsSudan joined the Arab League on 19 January 1956.Sudan is a member of the Intergovernmental Authority onDevelopment (IGAD) comprising Djibouti, Eritrea, Ethiopia,Kenya, Somalia, Sudan and Uganda.Sudan is also a member of the Common Market for Eastern andSouthern Africa (COMESA) and the Community of Sahel-SaharanStates (CEN-SAD)and numerous other international and regionalorganisations.Road and TransportPipelines:Crude oil pipelines:3 830 km;Refined products pipeline: 1 556 km.Railways: 4 239 km.Federal Roads:Paved: 11 000 km;Under construction: 34 021 km.Airports with Paved Runways: 15.Heliports: 87.Length of Waterways: 2567 km.Sea Ports: 7 ports namely: Port Sudan, Sawakin (Uthman DignaPort), Bashayer, Southern Port , Osaif Port, Green Port and Al-
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Page 28 and 29: investments signed with Germany, It
Page 30 and 31: EGYPTNADOURY & NAHAS LAW OFFICESFir
Page 32 and 33: In keeping with the government’s
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Page 36 and 37: protected during the author’s lif
Page 38 and 39: occurred). The tax may be paid in t
Page 40 and 41: law in the realm of marriage and su
Page 42 and 43: capital gains tax applies subject t
Page 44 and 45: Exchange ControlsThe Exchange Code
Page 46 and 47: Sole trader.SACRANIE, GOW & CO.MALA
Page 48 and 49: MALIJOHN FFOOKS & CO PROJECT FINANC
Page 50 and 51: Membership of International and Reg
Page 52 and 53: the financial year (applicable to c
Page 54 and 55: Tax holiday of freeport operators w
Page 56 and 57: MOZAMBIQUECOUTO, GRAÇA & ASSOCIADO
Page 58 and 59: protected by this legislation which
Page 60 and 61: Treaties and Bilateral AgreementsNa
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Page 66 and 67: Economic Co-operation and Developme
Page 68 and 69: SENEGALMAME ADAMA GUEYE & ASSOCIÉS
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Page 76 and 77: Khair Port.Sudan has a modern road
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Page 82 and 83: UGANDAKATENDE, SSEMPEBWA & COMPANY
Page 84 and 85: exemption for interest paid abroad
Page 86 and 87: estrictions on externalising profit
Page 88 and 89: ZIMBABWESCANLEN AND HOLDERNESS LEGA
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