146 thE sudan handbookprosperous capital has boosted demand for consumer products as well.
Around 38 per cent of import spending was on machinery in 2008,
compared with 23 per cent on manufactured goods and 16 per cent on
transport equipment. A high proportion of these imports are from China- about 25 per cent in 2008, up from just three per cent fifteen years
before. Saudi Arabia, India, Egypt and the United Arab Emirates are also
important sources.
Oil development has therefore dramatically changed Sudan’s current-
account structure. Flows of money out of the country have increased,
not only as a result of import spending, but also owing to rising repatria-
tion of profits by foreign firms and increased spending on trade-related
services. Until recently, these flows were only partly offset by oil export
earnings and increased transfers home from the large Sudanese diaspora.
As a result, the current-account deficit widened sharply, peaking at over
fiG 8.3 Sudan’s current account deficit 1998–2008-15-15 -12 -9 -6 -3 020082007200620052004200320022001200019991998% GDPThe Sudan Handbook, edited by John Ryle, Justin Willis, Suliman Baldo and Jok Madut Jok. © 2011 Rift Valley Institute and contributors
(www.riftvalley.net).