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 government’s 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 Sudan’s 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 country’s 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 Construction, Transport & Utilities Co-Chair: Minister of Transport, Roads & Bridges Min. Urban Planning, Khartoum State Co-Chair: PS Banking & Finance Co-Chair: Gov Central Bank of Sudan 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.