Head of the Meat Exporters Division, Dr. Khaled Al-Maqbool in an interview with (Al-Ahdath)… Livestock exports are able to revive the Sudanese pound
Dialogue – Nahid Oshi
Head of the Meat Exporters Division and Vice President of the National Chamber of Exporters, Dr. Khaled Al-Maqbool, told Al-Ahdath the problems of the livestock sector and the obstacles to exports, calling on the state to pay attention to exporters and treat them with respect. He also called for the necessity of establishing a Sudanese Livestock and Meat Council in accordance with a law that regulates the sector in a good manner. He also touched on many issues related to livestock in the following dialogue…
What us the importance of the livestock sector to the Sudanese economy?
The livestock sector is a pioneering sector with its own specificity and great economic and social role. It is a unique sector that spreads in most of the states of Sudan. It covers a large geographical area across several states. Frictions occured between the components of society and the movement of commercial operations between buying and selling, which created a kind of national unity and commercial movement.
The sector provides the most job opportunities and drives a group of other sectors such as medicines, vaccines, transportation, river, land, sea, and air, and also drives large sectors, including the cultivation of fodder, its waste and the oil industry. It is also considered a stable and original source of income in hard and local currencies, as livestock is traded through different markets, crossing different lands, and generating resources for states and localities. In return, the state benefits from export revenues contribute to controlling the trade balance.
It is an ancient and deeply rooted historical sector, as livestock has been exported from Sudan since ancient times, until the animal exported from Sudan to the Arabian Peninsula was called “Suwani” in reference to the city of Sawakin. It is a sector with high specificity, large and important.
How was the sector affected by the war in Sudan?
This sector was affected by the war in Sudan, as it moved freely between the states through well-known and somewhat prepared paths for the movement of livestock, whether in relation to pastures or trade. However, after the outbreak of war, most of the paths were cut off and access to pastures or markets became a very big problem, and sometimes livestock needs to cross long distances. This constitutes a burden and great financial costs. It also passes through areas witnessing a lack of security were large royalties are imposed. Sometimes, livestock and the vehicles transporting them are looted, resulting in high costs. This has affected the rise in the value of livestock and led to a relative scarcity of supply in the markets of livestock for export or for local consumption, resulting in higher prices locally and abroad. This is a problem that affects the citizens’ livelihood within the state and increases their suffering. Externally, it causes a lack of competitiveness in the supply of livestock at prices. So in search of resources in light of the current economic situation, customs duties of 10% were imposed on livestock exports for the first time. This is unfortunate, as it harmed competitive opportunities because the production cost is high, which led to a decrease in the quantities of livestock exports.
The livestock sector was also damaged, including the infrastructure, as many quarries and slaughterhouses went out of service, which led to great pressure on other sites to complete the role assigned to them and cover the deficit of those slaughterhouses, and put pressure on officials in the Ministry of Livestock who are making every effort to fulfill all requirements to advance this large sector, as well as preserving the safety of livestock from diseases, and the fulfillment of requirements for international trade. Also, the state has imposed on many exports, including livestock, the system of advance payment or documentary credit. Because of the war and siege imposed on Sudan for years, fulfilling the documentary credit decision was almost impossible, especially since most of the exports were following the term (payment system) or (under payment). This is an administrative obstacle and a major problem that causes the exporter to reduce the quantity of exports by 50% so that they can pay the value of the export to the country in advance and spend on it, or resort to making documentary credits.
These are all real problems that must be taken into account.
The Ministry of Animal Wealth is doing its part despite all the difficult circumstances it is suffering from, whether in terms of resources or technical capabilities. However, it needs support, as it has a distinguished staff that must be taken care of more, as well as all technical and administrative problems should be addressed in order to achieve what is required.
Livestock exports during the war, how are they going?
There is a large volume of exports, and the demand for Sudanese livestock did not stop throughout the war. This is an opportunity for the proceeds of livestock exports to contribute to reviving the national currency and improving the exchange rate against foreign currencies so that it reflects on the citizens’ livelihood and their resilience in the face of the problems that they are now suffering from as a result of the war.
If the state’s policies are good in dealing with export revenues and provide the necessary facilities to serious exporters, then exporters can maximize export revenues and have a role in reviving the economy and the local currency.
What are the requirements for reviving the livestock sector?
To advance the livestock sector, we must pay attention to exporters and pay attention to the value chains that start from the animal in the pasture, through the trading markets, through the quarries, all the way to the slaughterhouses, and competitiveness in the markets, and promote the commodity in an organized manner, and return the proceeds in a good manner, and collect the source’s return that it deserves in return for this export process, meaning there must be no ban on the use of proceeds or unrewarding prices of hard currency. Also, the livestock export sector was affected by the war, especially export revenues, which required treatment because at one time the Bank of Sudan was accounting for any delayed revenue at the price of the proceeds at the time, without taking into account price differences. This is a real loss for the exporter, and many exporters have bank obligations, but they are paid at the price. What is going on is problematic, and the matter is becoming worse, especially in light of the damage caused to exporters as a result of the war. The Central Bank of Sudan must also change its policies and the state must deal with exporters as a respectable person and help him if he falls, and dismiss his stumble if any circumstance or damage occurs and appoint him, and the witness is that there is a discussion. Recently, a meeting took place between the Sudanese Employers Union and the Governor of the Central Bank of Sudan. A two-month deadline was agreed upon to collect the export revenues, but the Bank of Sudan is currently collecting through two branches in the accounts of the Bank of Khartoum and the Bank of Sudan in the State of Bahrain, and its uses and time have been recorded. The prices announced in the banks did not change until just days ago. The banks started to move and offered a real exchange rate. In order for us to promote and develop the export sector, the sector must be organized first, through the establishment of the Sudanese Livestock and Meat Council in accordance with a law that regulates the sector in a good way. All countries have livestock and meat councils.
The council can be a strong body that fights for the benefit of the sector, contributes to unifying visions through a board of directors, participates in external negotiations, and discusses quotas and prices of the unified Sudanese product with unified specifications and agreed upon prices. This will reflect on the sector and bring better prices under better conditions. The sector is developed through research and competitions by issuing international bids for the transport and deportation of exports. Sudan had an experience representing part of the council in what is called the Livestock Marketing Corporation. The council will also bring added value to the product and contribute to developing the production chain, linking it to the global market and its requirements, maximizing the benefits expected from the sector, and eliminating currency trade in the parallel market.
What do you say about the deterioration of the Sudanese currency against foreign currencies?
This terrible deterioration of the currency came as a result of the slowdown in the movement of exports due to the repercussions of the war, the increase in production costs, the lack of supply, and the lack of financing, which is one of the problems of the export sector and the difficulty of financing conditions, as the financing available from banks is not to the extent required, especially since the limits allocated to exports are weak and the banks demand quick returns from trade. While exporting requires three to four months, so banks do not tend to finance exports much. Also, the weakness of the insurance and reinsurance sector is a major problem that the export sector suffers from. Insurance is usually fictitious and exporters do not receive any compensation if any risks occur. The required guarantees are very arbitrary and the margins are high. The issue of economic regulations for businessmen, chambers of commerce and unions must be resolved because the issue is now stuck in a gray area and it must be resolved so that there would be a focus of businessmen’s activity in solving the problems of their sectors and addressing the problems of the economy in a greater way, besides having the ability to respond, dialogue and represent their sectors in a stronger way so that businessmen can make contributions to the state in boosting the economy and facing challenges.
