Sudan’s parliament reiterates refusal for privatization of Sugar factories


May 24, 2013 (KHARTOUM) - Sudan’s National Assembly has renewed its
rejection for selling some sugar factories as part of a government
policy aiming at reducing financial and economic burden through
privatising public enterprises.

The sale is part of government’s plans to increase agricultural
production including sugar in order to compensate for its oil loss
after the secession of South Sudan taking with it about 75% of the
country’s oil output.

The Sudanese authroities plans to sell 70 % of its shares in four
sugar factories including Aljunied, Halfa Al-Gadida, Asalaya, and
Sinnar to the private sector and retains the remaining 30% of the
capital.

The head of the parliamentary subcommittee on Energy, Mining and
Industry, Omer Adam Rahma, warned of the negative results of
privatisation, saying that it leads to workers’ layoffs as well as
undermining the current efforts to solve the problems of the sugar
sector.

In a statement released on Friday, Rahama stressed his committee’
rejection of the move, adding that sugar factories belong to the
Sudanese people and should be dealt with in a way that preserves the
rights of the people.

Rahama further said that lack of funding is the major problem facing
sugar factories, calling upon the government to provide funds in local
and foreign currencies.

Once hoped to be the breadbasket of the Arab world, Sudan’s
agricultural sector has continued to deteriorate over the years mainly
as a result of negligence, drought, mismanagement and the overall
economic climate.

Sudan’s minister of industry Abd Al-Wahab Osman, had earlier said that
the main motive for privatization is increasing efficiency and
improving workers conditions.

He denied that privatization would lead to workers layoffs, saying,
instead, it will increase their numbers and skills through training.

Some sugar experts in Khartoum say however it is better to renovate
the four factories instead of planning to construct three new
factories, adding the privatisation may also destroy the social fabric
and the towns that emerged around it.

(ST)

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