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Britain on Sudan: Selling out or cashing in?

July 28, 2010
Britain’s new coalition government made its priorities on Sudan very clear as Henry Bellingham, the minister for Africa, used 90 percent of his opening remarks at his first press conference in Khartoum to outline how Britain could increase trade with Sudan.
The other 10 percent dealing with the run-up to the south’s referendum on secession which is likely to create Africa’s newest nation state and the International Criminal Court arrest warrant for President Omar Hassan al-Bashir for genocide all seemed like just an after thought.
On first glance many would say Britain was selling out — engaging economically with a government whose head is a wanted man would destroy the global divestment campaign’s years of efforts to make investing in Sudan a poisoned chalice no one wants to touch in the hope of isolating Khartoum to pressure it to stop rights abuses and allow democratic freedoms.
Many Darfuris and rights activists who have been victims of torture and harassment will be dismayed by the move which clearly extends a hand of friendship to Khartoum who had until now been reduced to almost pariah status since the ICC warrant for Bashir last year which propelled him to international fame — for all the wrong reasons.
Is Britain selling out?
In fact many ordinary Sudanese say no. They say U.S. sanctions, imposed since 1997 has had little effect on the government who took control in a 1989 bloodless coup and was elected in expensive and heavily disputed April elections.
The economy has grown on average eight percent a year, Khartoum extracted the oil pretty much without Western companies, built hundreds of miles of tarmac roads, and erected high-rise government buildings which sparkle so much in the sun the rays mock the Americans even far out of town in their heavily secured embassy compound.
But sanctions have made life almost impossible for any normal Sudanese to do business abroad or at home. It’s those struggling to become an emerging middle class who welcome initiatives Bellingham suggested to use the 35,000 Sudanese living in the UK to facilitate small and medium sized businesses investments in Sudan bringing much-desired jobs and training with them.
Britain is the former coloniser of Sudan and many families have close links with the country often visiting to shop and visit family there. They would welcome British products instead of the often cheap and poorer quality Chinese goods flooding the market here in Khartoum. It would certainly lessen their excess baggage bills.
But Bellingham went one step further saying British companies were lagging behind Chinese companies and missing out on great investment returns in Sudan, emerging from decades of civil war. He also mentioned the unmentionable. Oil.
Most Western oil companies pulled out of Sudan citing rights abuses during the north-south civil war which ended in 2005 with a shaky peace deal which has just about held if only partially and reluctantly implemented. Some firms were even implicated by rights activists in those rights abuses.
But for example a battered British Petroleum, a move into an oil industry in a country whose government has historically shown scant regard for its population or the environmental effects of exploration might be a silver lining to the clouds gathered over its HQ of late.
So is Britain cashing in?
Only if they can make it happen.
Western oil companies have been reluctant to enter to a post-war Sudan. Oil exploration is a long-term and costly venture and the stability of the country is far from guaranteed.
Many are waiting to see what will happen after the southern referendum on independence in five months because the oil lies mainly in the south. They worry contracts signed with a united Sudan may not be honoured post secession by a new nation fighting to survive as a country in its own right.
British banks in the past five years all but stopped transactions to/from or those with any mention of Sudan, no matter what the currency and no matter who the recipient.
Sudanese abroad had their bank accounts closed down regardless of who they were, foreigners working in Sudan received similar treatment and mortgage companies turned down anyone whose work brought them to the war-torn nation.
Lloyds TSB, which also owns Halifax and Bank of Scotland, last year paid a massive $350 million fine to the United States for fraudulent transactions to U.S.-sanctioned Sudan, Libya and Iran.
So how will Whitehall convince them it’s a good idea to facilitate investment in an opaque Sudanese economy dominated by companies many of which have been hijacked by government organs or ruling party officials?
They will need considerable help from Sudan’s government to increase transparency and allow private businesses to flourish free from government interference.
The jury is not only out on the moral implications of Britain’s new policy but also on whether London can convince UK businesses and banks to invest in a country which regularly ranks in the top five of failed states indices.

Britain’s new coabellinghamlition government made its priorities on Sudan very clear as Henry Bellingham, the minister for Africa, used 90 percent of his opening remarks at his first press conference in Khartoum to outline how Britain could increase trade with Sudan.

The other 10 percent dealing with the run-up to the south’s referendum on secession, which is likely to create Africa’s newest nation state, and the International Criminal Court arrest warrant for President Omar Hassan al-Bashir for genocide all seemed like just an afterthought.

At first glance many would say Britain was selling out — engaging economically with a government whose head is a wanted man would destroy the global divestment campaign’s years of efforts to make investing in Sudan a poisoned chalice and to pressure Khartoum to stop rights abuses and allow democratic freedoms.

Many Darfuris and rights activists who have been victims of torture and harassment will be dismayed by the move, which clearly extends a hand of friendship to Khartoum, virtually a pariah since the ICC warrant for Bashir last year.

Is Britain selling out?

In fact many ordinary Sudanese say no. They say U.S. sanctions since 1997 have had little effect on the government, which took control in a bloodless coup in 1989 and was elected in disputed elections in April this year.

The economy has grown on average eight percent a year, Khartoum extracted the oil found on its territiry pretty much without Western companies, built hundreds of miles of tarmac roads, and erected high-rise government buildings which sparkle nicely in the sun, visible from the heavily secured U.S. embassy compound.

But sanctions have made life almost impossible for any normal Sudanese to do business abroad or at home. It’s those struggling to become an emerging middle class who welcome Bellingham’s suggestions to use the 35,000 Sudanese living in the UK to help small and medium sized businesses invest in Sudan, bringing much-desired jobs and training with them.

Britain is the former colonial power and many families have close links with the country. They would welcome British products instead of the often poorer quality Chinese goods flooding the market here in Khartoum. It would certainly lessen their excess baggage bills between London and Khartoum.

But Bellingham went one step further, saying British companies were lagging behind Chinese companies and missing out on great investment returns in Sudan as it emerges from decades of civil war. He also mentioned the unmentionable. Oil.

Most Western oil companies pulled out of Sudan, citing rights abuses during the north-south civil war which ended in 2005 with a shaky peace deal. Some firms were even implicated by activists in those rights abuses.

So is Britain cashing in?

Only if they can make it happen.

Western oil companies have been reluctant to enter to a post-war Sudan. Oil exploration is a long-term and costly venture and the stability of the country is far from guaranteed.

Many are waiting to see what will happen after the southern referendum on independence in five months time because the oil lies mainly in the south. They worry contracts signed with a united Sudan may not be honoured post secession by a new nation fighting to survive as a country in its own right.

British banks in the past five years all but stopped transactions with Sudan, no matter what the currency and no matter who the recipient.

Sudanese abroad had their bank accounts closed down regardless of who they were, foreigners working in Sudan received similar treatment and mortgage companies turned down anyone whose work brought them to the war-torn nation.

Lloyds TSB, which also owns Halifax and Bank of Scotland, last year paid a massive $350 million fine to the United States for fraudulent transactions to U.S.-sanctioned Sudan, Libya and Iran.

So how will Whitehall convince them it’s a good idea to facilitate investment in an opaque Sudanese economy dominated by companies hijacked by government organs or ruling party officials?

The jury is not only out on the moral implications of Britain’s new policy but also on whether London can convince UK businesses and banks to invest in a country which regularly ranks in the top five of failed states indices.

Comments

The bottom line is that China isn’t going anywhere and will remain doing business in Sudan. The US sanctions are not going to work against Sudan and US companies will lose out as a result of it. Southern Sudan would be foolish to split off from Sudan and create, yet another, European inspired African nation/state. Umar al-Bashir isn’t ever going to be arrested under the ICC warrant. Britain is doing what’s best by looking for ways to do business with Sudan.

T. West
CART/AfriSynergy

Posted by westthea | Report as abusive
 

this is a massive opportunity which the British government needed to take long time ago, it will open up a huge opportunities for the businesses to explore the Sudanese raw and unexplored land and therefore a massive return.
As the US sanction didn’t work and China is well placed in Sudan, with the fast growing economy in Sudan it would be foolish of Britain not to invest in Sudan.

Posted by khorsheed | Report as abusive
 

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