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LOCAL MANUFACTURERS, FINANCIERS AND POLICY STUDY - CASE STUDY OF SUDAN,

By

Igbal Elsadig Mohamed Ahmed


EXECUTIVE SUMMARY

The aim of the study is to review the cogeneration sub-sector in Sudan with specific focus on the potential for local manufacture of cogen equipment spare parts in the country. The cogeneration industry creates jobs, promotes energy diversification, and generates additional income from agricultural and industrial sectors in Sudan. It provides a decentralized form of electricity, and improves local and general security of power supply.

The first chapter provides a brief overview of the manufacturing sector in Sudan as well as examines, in some detail, key manufacturing companies in the country. It identifies available producers and local manufacturers of cogeneration spare parts in the country. The survey within Sudan's manufacturing sector indicated that most of cogeneration parts are imported. Few spare parts in the boiler and handling system are locally manufactured.

The second chapter focuses on existing and potential sources of finance for local manufacture of cogen spare parts in the country and also identifies challenges facing investment in cogeneration. Interviews with the financial sector indicated that commercial banks are the main source of financing.

The third chapter discussing policy options that can promote local manufacture of cogen spare parts in Sudan and confirms that exemption of custom duties and taxes for the machines and local materials will encourage investment in the local manufacture of cogeneration spare parts in Sudan. The study ends with a chapter summarizing key findings and recommendations on the way forward.

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