Sudan Private Sector Forum

1
Sudan Private Sector Forum

• A Forum to support Sudanese
• Public Private Sector Dialogue
• Prepared by
• Amin Sid Ahmed- World Bank, PSD Advisor
• Presented by
• Maisoun A. Badawi
• Private Sector Development Coordinator
• World Bank- Khartoum

2
Background

• PSD-Sudan project identification mission has
  identified key areas of immediate concern to the
  private sector business entry, land acquisition,
  customs administration, and tax and tax
  administration.
• The identification project areas of focus aimed
  at several issues which where endorsed by the
  Ministry of Finance are namely
• identifying key Administrative constrains to
  investment in the Sudan, at the federal and the
  state level and therefore
• Recommend a reform agenda aimed to reduce the
  burden of doing business on investors
• Help design solutions and practical action plan
  for reform
• Help build the capacity of the key implementing
  institution, including a policy dialogue
  framework for building consensus around the
  reform agenda.

3
PPD Forum Context Particulars

• WB consultations in mid 2005-2006 involved a
  cross section of governments ministers/
  Officials, and from the Private Sector,
  lawyers, bankers, businesswomen/men, and
  employers federations. Consultations from both
  ends,
• Expressed the need for closer consultations
  between the two sectors in areas of policy
  formulation and reform.
• Welcomed the idea of establishing a Forum for
  Public Private sector dialogue on issues that
  impact Sudans Investment Climate.
• The Forum role was collectively identified as
  not a one or two meeting process, rather as
  continuous consultation process over various
  policy issues that may impact Sudan Investment
  Climate.
• The focus of the forum should be on an amicable
  resolution of outstanding issues with specific
  recommendations that will allow P.S. to operate
  efficiently and for the Government to review its
  regulation that have direct impact on the
  countrys economic activity.

4
Forum Particulars

• The Forum is not a dialogue for complaints or
  political issues rather its aimed at building
  constructive, problem-solving process based on
  partnership and understanding of the
  complementary role of each member concerned about
  Economic Growth and sustainability.
• All issues presented to the Government have to be
  substantiated and should be accompanied by
  specific recommendations.
• The role of World Bank Group is to catalyze the
  establishment of the Forum, which should then
  become self sustaining. In the initial phases,
  the Bank can serve as a facilitator and honest
  broker providing impartial advise and analytical
  support maximizing lessons learned from other
  Forums.
• - Government is to inform/ provide periodic
  updates on economic developments, bilateral
  economic cooperation agreements to P.S.

5
Proposed PPD Forum Structure

• Seven Working Group suggested.
• Each Group will be chaired by a Minister from the
  line Ministry and a recognized leader of the
  private sector in that business area with the
  consent of peers.
• The seven working groups may meet monthly or
  bimonthly basis.
• The forum is headed at the top by Co-chairs from
  Presidency of the Republic and Chairperson of
  Economic Sector Ministerial Committee on one side
  and Private Sector Representative from the other
  side.
• Private Sector should develop Agenda and present
  position papers on outstanding issues for
  discussion.
• Meeting headed by the Presidency of the Republic
  is held every six months.
• Issues that can not be resolved at working party
  level would be raised to bi-annual Private Sector
  Forum.

6
Proposed Structure of Partnership
Public-Private Sector Forum Chairperson
Presidency of the Republic
Chairperson, Economic Sector, Ministerial
Committee Co-Chairs President, Businessmen
Employers Federation
FORUM
Working Groups
Agriculture Livestock Co-Chair Minister of
Agriculture Co-Chair PS
Banking Finance Co-Chair Gov Central Bank of
Sudan Co-Chair PS
Construction, Transport Utilities Co-Chair
Minister of Transport, Roads Bridges Min.
Urban Planning, Khartoum State Co-Chair PS
Commerce and Trade Co-Chair Minister of
International Trade Co-Chair PS
Law and Governance Co-Chair Co-Chair PS
Manufacturing/ Industry Co-Chair Minister of
Industry Co-Chair PS
Small Medium Size Ent. Co-Chair Minister of
Investment Co-Chair PS
Private Sector Working Groups
7
Proposed General Agenda

• Some of the proposed items agenda reflects
  outcome of extensive meetings
• with Private Businessmen in the various
  associations/ business chambers
• employers Federation included
• Legislative Reform of commercial legal codes
• Tax/Fees Issues
• Land acquisition and leasing opportunities
• Infrastructural cost of utilities
• Regional Comparative Operating Costs for
  manufacturing
• Access to Finance/Microfinance.
• Capital Markets.

8
Challenges

• Public-Private Dialogue requires the continuous
  and consistent support of both the Government and
  the Private Sector.
• Private sector remains disorganized, since
  historically negotiations are done on individual
  basis rather than on a collective basis.
• Both sectors- Private and Public need to work on
  building its capacities to establish the
  appropriate mechanisms to sustain such dialogue.
• Government bureaucracy could cause delays on
  follow ups.

9
Status of Partnership Next Steps

• Finalized the approval of the forum concept by
  the cabinet, however, the bureaucratic process
  has been delaying the launching phase of the
  forum.
• Working Group Co-Chairs to be nominated
• Members to be nominated cross-Ministerial
  selection from government, private sector from
  different size and type of firm
• Agenda for each working group to be drafted by
  private sector and circulated to Government
• Private sector develops proposed solution to each
  agenda item, reflecting what both parties (public
  and private sectors) can do to resolve problem.