China's investment is a boon for Sudan

Chinese investment in Sudan is a valuable mediation tool for regional stability and a boost to local economic development, a senior official from Sudan's leading political party said recently in Beijing.

Ibrahim Ghandour, chairman of the external relations sector of the National Congress Party of Sudan, said the African country is benefiting politically and economically from Chinese support.

"China is seeking opportunities to put relations between Sudan and South Sudan back on track," said Ghandour, who was in Beijing in late June for the second high-level dialogue between the ruling parties of China and Sudan.

"Ties between Sudan and China have been getting stronger every day, particularly in the last few years, because of the economic development in China," he added.

Since the 1990s, Chinese companies have been involved in the oil industry in Sudan and the resource has been the major trade between the two countries.

Sudan attracted the largest amount of foreign direct investment from China to Africa, while Chinese companies had invested more than $20 billion in the country by early 2012, according to reports by 21st Century Business Herald.

Lingering disputes

Tensions between Sudan and South Sudan have risen since South Sudan split away as an independent nation in July 2011, taking with it most of the former Republic of Sudan's known oil reserves.

About 75 percent of Sudanese oil production has been controlled by South Sudan, which still relies heavily on oil pipelines in Sudan. Most oil fields that have Chinese investment are located in the border area, according to China Business News reports.

Investment from China continued in Sudan despite the two new countries' disputes on oil production.

During high-level dialogue between the NCP and the Communist Party of China in late June, the two parties signed an agricultural cooperation agreement that gives Chinese companies several options to do business in Sudan, including building local partnerships, funding agriculture processing and food production projects.

"Relations between the two countries are strongly promoted by the good relationship between NCP and the CPC, and we are very optimistic about the future of the two countries' ties," Ghandour said.

In 2012, Sudan granted China permission to set up a free-trade zone in the African country for agricultural products and livestock.

Agriculture is considered a new opportunity for Sudan to boost its economy and to enhance its ties with the region and the world.

"With sufficient soil and water, Sudan has a huge potential in the agriculture industry. Chinese companies are very experienced in farming and agriculture-related business. With Chinese support and help, Sudan can be the food basket for the world," Ghandour said.