The ‘Faki Manga’ Equation in Numbers: How Can the Horticultural Sector Rescue Sudan’s Balance of Payments?
Dr Al-Haitham Al-Kindi Yousif
Historically, Sudan’s economy has been regarded primarily as an agricultural economy, with agricultural exports such as sesame, groundnuts, gum arabic and livestock accounting for the largest share of non-oil exports in the past, and later of non-gold exports. These products typically account for between 15 and 20 per cent of total exports, with the share rising or falling depending on the country’s circumstances.
Within this agricultural economy, the horticultural sector — fruit and vegetables — stands out as particularly promising. If properly developed and directed, it could become a major pillar of monetary stability, help curb the depreciation of the Sudanese pound and contribute to reducing the country’s chronic balance-of-payments deficit.
When former Sovereignty Council member Mohamed al-Faki Suleiman once spoke about the potential of mango exports to cover Sudan’s balance-of-payments deficit, his remarks were met with widespread ridicule and mockery, earning him the nickname ‘Faki Manga’.
Yet, from the perspective of economics and comparative advantage, there was a valid economic argument behind his remarks, even if his choice of words was unfortunate in limiting the proposition to a single commodity. A more accurate formulation would have been that mangoes and other horticultural products could make a significant contribution towards improving Sudan’s trade balance.
Sudanese agricultural products, particularly fruit, possess an advantage increasingly sought after in global markets: they are naturally grown, largely organic, free from genetic modification, and their taste and quality have not been compromised by excessive use of chemical fertilisers.
The introduction of new varieties that are in demand internationally has also improved both productivity and quality. With the global food supply gap expected to widen, Sudan possesses substantial export potential. Unfortunately, that potential remains largely untapped because of longstanding structural constraints, compounded today by the consequences of war.
During the current season, Sudanese farmers and domestic producers are facing extremely difficult conditions caused by the conflict.
The country has experienced a significant increase in mango production. Under normal conditions, Sudan’s annual production capacity exceeds 900,000 tonnes, while Northern State alone produces approximately 250,000 tonnes.
At the same time, however, the war has increased production costs and depressed prices in domestic markets for several reasons.
First, local demand has fallen sharply following the displacement and migration of millions of people from major consumption centres, including the capital and other cities.
Second, the purchasing power of those who remain has weakened considerably due to job losses and disruptions to household incomes.
Third, supply chains have been severely affected, and domestic transport costs have risen sharply. As a result, enormous quantities of fruit have been left to spoil in orchards. At the same time, farmers’ revenues have declined to levels that threaten to force many producers out of business altogether.
Across the Red Sea, however, lie the Gulf markets, only a few hundred kilometres away. These markets generate enormous and sustained demand for horticultural products, particularly Sudanese mangoes, which have historically enjoyed a strong reputation for their quality and distinctive flavour.
The striking disparity is that prices in Gulf markets are currently around ten times higher than those prevailing in Sudan’s stagnant domestic market.
Saudi Arabia, for example, imports more than four million tonnes of fruit and vegetables annually, worth over US$7.5 billion.
A similar opportunity exists in the European market, which is relatively close to Sudan compared with producing countries in South America, West Africa and East Asia. Those regions export mangoes worth close to US$1 billion to Europe alone.
It is here that the crisis can be transformed into an opportunity. Exports could become a lifeline for Sudanese farmers while simultaneously generating much-needed foreign currency for the national economy.
To transform this challenge into a genuine opportunity for domestic producers and the wider economy, Sudan must adopt a flexible economic approach that moves beyond bureaucracy, short-term thinking and the restrictive influence of export intermediaries.
Several measures are necessary.
First, producer co-operatives should be established. These organisations could bring together small-scale farmers to undertake agro-processing activities such as drying, concentrate production, packaging, sorting and collective marketing, while coordinating efforts to access export markets.
Second, government incentives are essential. Relevant government institutions — including the Ministry of Trade, the Ministry of Finance and the Central Bank of Sudan — should make bold decisions that allow producers to export directly in their own capacity, without requiring them to hold registered business names or commercial registrations, which create unnecessary obstacles for small farmers.
Third, Sudan needs productive economic diplomacy. Sudanese embassies in target markets, working through economic attachés, should actively assist producers and exporters with marketing, market intelligence and other forms of support. This should be coordinated with employers’ organisations and chambers representing fruit exporters.
Fourth, greater flexibility is required in the treatment of export proceeds and government charges. In the case of horticultural exports, the Central Bank of Sudan could permit the export value to be transferred after the products have been sold in Gulf or European markets.
Government fees and taxes could be deducted directly at the port of export and reduced to the lowest practicable level in order to encourage the rapid movement of exports before perishable produce deteriorates.
The state must adopt a strategic, economy-wide approach towards this sector rather than viewing it primarily as an immediate source of taxation and fees.
When farmers benefit from direct exports and earn attractive returns, they will return in subsequent seasons with larger cultivated areas and increased production.
Within a relatively short period, the government could find its foreign currency reserves increasing organically through the expansion of production and exports, rather than attempting to raise revenue by burdening producers with excessive fees and bureaucracy.
Mangoes are merely one example of what Sudan’s wider horticultural sector — and the country’s abundant agricultural resources more broadly — could contribute to economic recovery.
The real opportunity lies in transforming Sudan’s agricultural potential into organised production, competitive exports and sustainable sources of foreign exchange.
Shortlink: https://sudanhorizon.com/?p=15913