Sudanese Companies Decry US Sanctions
By Ismail Kamal Kushkush, IOL Correspondent
"How can we solve Darfur by ending the
work of those in the Sugar industry?" Osman asks.
KHARTOUM Sudanese companies affected by American economic sanctions
complain of being punished for a crime they never committed.
"This has nothing to do with Darfur," insists Farouk Osman, the technical
manager of the Sudanese Sugar Company.
"This is food stuff for the poor. Sugar is the cheapest source of
carbohydrates for the poor. Why do they sanction such a company?"
The company, which deals with the cultivation and processing of sugar cane,
is one of thirty-one companies of various specializations barred from the US
financial system.
US President George Bush announced the new package of sanctions in late May
as part of efforts to pile up pressures on Khartoum to solve the Darfur
conflict, raging since 2003.
The sanctioned companies, which are mostly public-owned, include companies
that provide food and medicine.
Osman admits that his company depends on American technology for some of the
cane loading equipment.
"We are trying to manufacture all the sugar cane processing equipment here."
He does not buy the American argument that the sanctions would help solve the
Darfur crisis.
"There are many Darfuris working here. How can we solve Darfur by ending the
work of those in the Sugar industry?" Osman asks.
"We think that this is a war on Sudans economy because this is an important
economic sector."
Medicine
One of the sanctioned companies is WafraPharma, the only public-owned
pharmaceutical company in Sudan.
"We are working in a humanitarian area for the production of essential drugs
to help poor people," insists Dr. Abdalla Gargar, the companys general manager.
"We were astonished!"
WafraPharma, according to Gargar, focuses on the production of anti-malarial,
anti-diarrhea and anti-biotical drugs.
He maintains that these "essential drugs" are prescribed and recommended by
the World Health Organization for poor third world countries.
"WHO sends inspectors from time to time to make sure of our compliance with
good manufacturing standards."
In addition to manufacturing inexpensive pharmaceuticals, WafraPharma also
maintains small stocks of medicine for emergency crisis, such as Darfur and the
recent floods that hit eastern and central Sudan.
"We have just completed our program for circulating pharmaceuticals for
Darfur and other provinces," says Gargar.
Less Effective
"We are doing nothing illegal. We are only a pharmaceutical
plant," insists Dr. Gargar.
Gargar does not think that the American sanctions will have a direct impact,
because most of WafraPharma's raw material and machinery is not from the US,
but from Europe.
"If sanctions are expanded to Europe it will create a problem. We are not
going to wait for the axe to fall on our head."
The fear of Europe joining the US in its sanctions gained more credence after
British Prime Minister Gordon Brown and French President Nicolas Sarkozy
threatened on August 31 of "toughening sanctions" if no progress was made on
Darfur.
Gargar he has already begun contacting suppliers in Europe to avoid any
future problems.
"You have seen our premises. We are doing nothing illegal. We are only a
pharmaceutical plant," is what Gargar intends to explain to his European
suppliers.
Abd al-Latif al-Buni, a political columnist with the widely-read Al-Rai
Al-Aam newspaper, does not think that the sanctions will have a great direct
impact.
"The US left Sudan gradually since 1983, politically and economically, that
is why it will not have a serious impact because there are no relations."
Khartoum has already agreed to the deployment of a UN-African Union
hybrid-force, scheduled to replace the 7000-strong African peacekeeping mission
in Darfur on December 31.
Despite this political arrangement, the US has not indicated if it will lift
sanctions against Sudan.
In addition to the new package of sanctions, Washington maintains an earlier
set of economic sanctions slapped against Sudan in 1997 on the ground of
sponsoring terrorism.
Affecting Investments
Al-Buni, the political columnist, makes the point that the declaration of
sanctions may have an indirect effect.
"This is an image issue. When the US says it boycotts a county
even some Arab
countries may become reserved [to invest in Sudan]."
Dr. Abu al-Qasim Abu al-Nur, a professor of economics at the University of
Khartoum, believes the sanctions impact depends on various factors.
While Sudans trade with the US is "insignificant" he argues, the move may
have an impact on the investment environment.
"Since the signing of the Comprehensive Peace Agreement (CPA) [which ended
civil war in South Sudan] there has been a flow of foreign investment. This
might be affected by the sanctions."
Ahmed El-Fadol, a 40-year-old businessman from Khartoum, believes that
sanctions will not help the Darfur issue.
"The US always uses a policy of arm-twisting," he says.
"The only way to solve the Darfur crisis is through dialog and diplomatic
work."
Ahmed Fethi, 56, a bank employee, agrees.
"We want a solution for Darfur and peace for its people, but not out of the
fear of sanctions."
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