Former Official: The State must Gradually Exit Economic Activity

Sudan Events_Nahid Oshi

The former Secretary General of the Gum Arabic Council, Professor Tariq Al-Sheikh, has considered the country’s exit from economic and commercial activity
A basic step taken by all countries that calls for the removal of the state from influence over the private sector and the sovereignty of a free economy provided that the market operates.
He said in his statement to “Sudan Events” that during the period from 1998 to 2004, there was control of the gum arabic company over the gum arabic sector, as producers were required to deliver all the product to the company according to the concentration prices that are announced annually by the Ministry of Commerce. Al Sheikh added that the concentration prices had nothing to do with the price. It was one of the dilemmas facing the marketing of Gum Arabic at the time.
Pointing out that Sudan has preferential advantages in some commodities, such as Gum Arabic, where it has an almost absolute advantage compared to the products of the rainfed sector (beans, hibiscus, watermelon seeds, sesame), which have superior advantages and were negatively affected by the state’s intervention. He said that the state intervenes to improve the efficiency of the products, but in many cases sometimes it harms it, pointing out that the liberalization policy, if applied correctly, would be better than policies of state intervention and control over prices and the market because it leads to distortions in the markets. However, he warned of the need for the state not to give up the commodity and leave it to monopoly because the state is within the framework of its responsibility towards the sector and those dealing in the value and supply chains of goods have a clear and tangible impact on the state’s gradual withdrawal.