Introducing Luri River Development -- South Sudan's largest property development project

Juba and most of the southern reaches of South Sudan are poorly served in terms of freight handling, transportation nodes, and the ability to fully utilize the Nile as a transportation asset.

Luri River Development (LRD) is a solution that addresses all of these challenges, and more.

LRD is a 60-plus hectare mixed-use development site within the city limits of Juba, South Sudan. The project site is a mere 5 kilometers from Juba International Airport and includes 1200 meter of deep-water river front.

LRD envisions a 3-part, mixed-use development scheme; a port, storage and handling facility; a hotel, retail and commercial area; and of course residential properties. This project is the largest of its kind; no where else in the Juba area can one find river front property, privately owned and managed, and ready for immediate development and occupation.

We are currently meeting with developers and those who are interested in this optimally-located, pristine site.

Questions about the LRD project can be sent to us at david @ dra-ltd.com. We'll be happy to discuss the many opportunities this property can offer.

Agriculture in Southern Sudan

In simple terms, Southern Sudan is a pre-emerging market. It is not yet an agriculture-based economy; it's more of what an economist would describe as a transitional environment: transitioning from a conflict-zone/relief-dependent environment to a trading/post-war/subsistence economy. The principal economic endeavors include importation/retail activities and servicing local government and bilateral donors' development projects. Not much more.

There exists almost every demand one would imagine in Southern Sudan. The most lucrative, and the one with the highest potential is agriculture. With surplus arable land, getting into the business of farming is becoming a issue to on-the-ground investors of a question of not if, but when and how big. Almost all of the food is imported form Uganda (!) at remarkable cost (taxes and transport). There is unlimited potential.

Farming and agricultural activities do exist in Southern Sudan, but they were hammered by the war and the subsequent flooding of the market by donors of their free grain, oils and relief aid. Most of the farming that does take place is subsistence. Food for work programs exist still, and donors are just now getting into the scale-back-the-free-food-and-let-the-industry-develop concept. This means opportunity.

DR&A has a great deal of experience in Southern Sudan's agricultural sector. We've worked in every state and have years of local/government interfacing under out belts. If you have questions about agricultural activities there, be sure to email us at the address to the right or at david ( at ) dra-ltd.com

South Sudan Banking: Kenyan Co-op Bank's Q1 profit up 29 percent, eyes South Sudan

As I've written in earlier posts, South Sudan's banking sector is an area of investment with real possibilities. Kenya's Co-Op Bank sees this and has shown its intent.

In simple terms, this is an enormous market that is still incredibly underserved. If your organization has an appetite for a pre-emerging market like South Sudan, get in touch with us to help formulate a plan. The time is now.

Click on the entry header for the story.

US Africa Investment

From a submitter, Fabiane Dal-Ri;

I'm reaching out to you because I thought you and the readers of South Sudan Business Blog would be fascinated by what my firm has recently uncovered about the attitudes toward corporate investment in Africa among leading U.S. corporations -- according to senior officers of 30 American Fortune 100 corporations we interviewed. Why has Africa not attracted more interest from the U.S. business community? We have collected all of the answers and case studies into a news release introducing a study that launched today commissioned by the US Chamber of Commerce:

http://www.usafricainvestment.com

We're very excited about the revelations in this paper and would love it if you could let your readers know about what we've uncovered.

We aim to please.

It's certainly worth a read. Check it out.

Southern Sudan Commission on Statistics

There's a few stories in the news lately about the Government of Southern Sudan disputing the 2007 and 2008 Sudanese national census effort.

Not to understate the argument, but the crux of the concerns involve a general under counting of the population of Southern Sudan. Any under counting would have longer term implications for resource distribution and representation in government and the Government of Southern Sudan (and frankly all of the regions and groups "not aligned with the center") are wise to voice their concerns and challenge the results. If the results of the census are based on sound research and sampling, then they are dependable. If not, then they need to be remedied quickly. Either way, it is an issue worth observing.

The Government of Southern Sudan has established an autonomous commission that compiles population data on Southern Sudan. The data includes livelihood profiles, and at-a-glance regional reports.

Reuters Video Report: Sudan to hold elections in coming year

An interesting visual report on some background to Sudan's civil war, the Comprehensive Peace Agreement, and the coming elections. See the report here.

Sudan says economy to grow 4-6 percent in 2009

* Sudanese economy to grow 4-6 percent in 2009

* Animal resources exports to contribute to growth

* Inflation to fall to 8-9 percent in 2009

* U.S. sanctions shielded Sudan from global crisis

By Yara Bayoumy

KHARTOUM, May 11 (Reuters) - Sudan expects its economy to grow by up to 6 percent this year, helped by increasing revenues from the export of livestock and related products, the country's finance minister said.

Sudan, a modest oil producer, had recorded GDP growth of 8-9 percent last year, Finance and National Economy Minister Awad Ahmed al-Jaz told Reuters in an interview on Sunday.

The central bank recently revised down its growth forecast to 5 percent because of the global financial crisis and falling oil prices.

"We are estimating that we will achieve 6 percent growth, even though others are reporting negative and zero growth, we are comfortable with 4-6 percent growth and that is versus 8-9 percent in 2008," Jaz said in his office in Khartoum.

The whole story is here.

Sudan Telecommunications Report Q2 2009

An interesting snapshot from telecoms industry followers on Sudan.

Sudan Telecommunications Report Q2 2009 Sudan has a telecoms market with high growth potential. Mobile penetration was estimated at just over 27% at the end of 2008, leaving nearly 29mn potential subscribers in the country - a fairly attractive prospect for operators. However, in common with many high growth potential markets, demand is coming from the bottom of the market, and therefore ARPUs are low.

Read the whole article here.

Businesses in Southern Sudan: ABM

We're always looking to write about successful enterprises in Southern Sudan.

ABM, Aggregate and Building Materials, is such a business.

South Sudan's newest and largest supplier of crushed stone and building aggregates, ABM is a great example of investors applying energy and capital to meet an obvious long-term demand. As a construction novice myself, aggregate is needed for any concrete-related construction. It is mixed with cement to make concrete (overly simplistic, I know, but bear with me folks).

Anyway, the point to highlighting ABM is due to a few readers contacting us about business ideas. To give a blanket answer to that question, the businesses that will flourish in South Sudan are development related, simple in concept, and scalable. Oh and properly managed.

Check out ABM's website here.

A notable snapshot

Introducing White Bull Lager, Southern Sudan's first locally-produced beer

Another Juba first!

From their release:

Southern Sudan Beverages Proudly Introduces White Bull Lager!

JUBA -- Southern Sudan Beverages Ltd, (SSBL) is proud to introduce Southern Sudan’s first locally produced beer, White Bull Lager. White Bull Lager is a carefully crafted beer, specifically brewed to meet the tastes of the Southern Sudanese consumer. It is the culmination of several years’ planning, testing, delivery-process development, local partnership building, and most importantly, quality assurance second to none.

White Bull Lager is an easily recognized symbol for the people of Southern Sudan; it has an important status in the many cultures of this land and promotes the positive feelings of celebration, success and peace. It is a culturally treasured symbol that the team at SSBL respects and admires.

SSBL’s team spent years getting to know the Southern Sudan consumer, their tastes, their demands, and their expectations in a quality beer. Our team understands that the consumer wants a product they can call ‘Made in Southern Sudan’, but they also demand the high quality of a globally-recognized product. SSBL is proud to say we’ve more than met those criteria in our White Bull Lager.

Our products’ motto means more than just “Celebrating Peace and Prosperity.” It is a snapshot of the collective will of every Southern Sudanese we’ve met. An emerging and diverse community like Southern Sudan has had its challenges, but what’s important is that there is an intense set of common ambitions throughout the country: a desire for peace, prosperity, a need for celebration and most importantly a strong hope in our future. SSBL shares those hopes and dreams.

SSBL’s new beverage plant situated in Juba, and is a pioneer in developing an indigenous manufacturing capability in Southern Sudan. SSBL is a subsidiary of SABMiller, Plc. one of the leading international beverage businesses, who, to date, has invested in 35 operations across Africa.

“The introduction of White Bull Lager marks a proud day for both the people of Southern Sudan and Southern Sudan Beverages,” says Mr. Ian Alsworth-Elvey, Managing Director of Southern Sudan Beverage Ltd (subsidiary of SABMiller plc). “We’ve only just emerged from civil strife and already we’re showing the world that Southern Sudan can produce a product that can stand side-by-side with any in the world. It’s a remarkable achievement.”

This new facility offers the initial capacity to brew 180 000hl of clear beer and 60 000hl of carbonated soft drinks, annually. Brewing operations have been underway since February 2009 and production of soft drinks will commence shortly. The local Juba community has a land lease agreement with SABMiller that will ensure they receive royalties from the manufacturing development, the first of its kind in Southern Sudan.

The community surrounding the facility will receive a further enhancement to the quality of their lives through access to clean, safe water from the Nile, which is the main water source for manufacture by the business.

The approximate US$37m investment has considerably more than an economic impact as it will create employment for hundreds of Sudanese locals once manufacturing commences and has already employed a large number of skilled labour in the construction of the plant. Further investments are also planned to upweight capacity and develop the route to market assets and capability during the next year

We believe that through the strength of our brands, operational capability and investment for growth, we can ensure a sustainable and growing business that also benefits the communities we operate in.

DR&A is proud to be a part of this project's historic effort in Southern Sudan.

A hearty congratulations to the whole SSBL and SABMiller team on this historic and momentous occasion.

South Sudan's development has knock on effects for whole regions' economy

A newish link to a East African Business Week story on how the emergence of Southern Sudan's economy is impacting the whole region's financial situation.

Already the effects of opening up to South Sudan are paying off dividends for Kenyans and Ugandan farmers.

Prices of animals and produce have doubled and quadrupled. This is good for business. There is pretty much to tap from Sudan, including jobs, construction and tourism. The reverse is also true. In the coming years, road and rail will form a significant part of life. Rail on.

South Sudan has leap-frogged many of Uganda's traditional trading partners and become the third after Kenya and the EU.

Read the full story here.