Appropriteness of technical innovations in the informal sector in the Sudan

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UNIrED NATIONS

ECONOMIC COMMISSION FOR AFRIGA

Public Administration, Human Resources

and Social Development Division

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APPROPRIATENESS OF TECHNICAL ,INNOVATIONS IN THE INFORMAL SECTOR IN THE SUDAN

By:

Eng. Hilmi Hussein EI Hakiem

Presented at the National Workshop on, Technical Innovation and Entrepreneurial

Development in the Informal Sector in the Sudan (Khartoum, Sudan, 15-18 October 1994)

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UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA

HINISTP'.' OF INDUSTRY AND COMMERCE

!"IANAGEMENT DEVELOPMENT CENTRE.

REPUBLIC OF THE SUDAN

WORKSHOP ON:

TECHNICAL INNOVATION AND ENTRERENEURIAL DEVELOPMENT IN THE INFORMAL SECTOR IN SUDAN

MEASURES AND POLICES FOR ENTERPRENEURIAL DEVELOPMENT KHARTOUM: 15TH-·18TH OCTOBER 1994

CONTENTS ON PAPER FOR:

APPROPRIATENESS OF TECHNICAL INNOVATIONS IN

THE INFORMAL SECTOR IN THE SUDAN

PREPARED BY:

ENG. HILMI HUSSEIN EL HAKIEM MANAGEMENT DEVELOPMENT CENTRE

OCTOBER 1994

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CONTENTS:

Page Q.HAPTER ONE:

INTRODUCTION:

1.1

1.2 1.3

1.4

. The Sudan Economy & the IndusTrial Contribution Objectives.

Res~aich MQ~hodology

Historical Background regarding the Beginning of Information Sector as well as the sector of Small--Scale tndus t.r res and Professions. in

the Sudan " ..

CHAPTER TWO:

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2.1

2.2 2.3 2.4 2.5

Definition of the Information Sector in the Sudan Handi-crafts

DefinitiOn of .Small-Scale Industries Productive Familes System

Productive Familes - Who are They?

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'CHAPTER THREE:

ECONOMIC AND SOCIAL' CHARACTERISTICS OF THE INFORMATION SECTOR AND THEIR ROLE IN DEVELOPOMENT:

3.1 Economic Characteristics 3.2 Social Characteristics CHAPTER FOUR:

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4.1 Obstacles Facing Informal Sector in Sudan 10 4.2 Problems Related to Laws, Procedures' and

Policies 10

4.3 Problems of Financial Policies and Financing

System 10

4.4. Retarding Factors Concerning Infrastructural

Services 11

4.5,

Other Problems. 11

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CHAPTER FIVE:

5.1 Standard of Technology, Innovation and Selection and Their Transfer to Information Sector 12

5.2 Equipment and Machines 12

5.3 Transfer of Technology and Selection Process 13

5.4 Self-Dependence on Technology 15

CHAPTER SIX:

6.1 Experiment of EI-Nilein Group of B.anks for

Industrial Development 16

6.2 Standard of Technology Used in the Information

Sector 16

6.3 Characteristics and Advantages of Non-Governmental

Industrial Sector . 17

6.4 The Pattern of Soap Small-Laboratories 18 6.5 Pattern of Financing Mills and Decorators 20

CHAPTER SEVEN:

PROPOSALS AND RECOMMENDATIONS:

I. In the Area of Finance

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II. Role of the State in Non-Governmental Sector

- General Proposals and Recommendations - Conclusion

- References TABLES:

22 23 24 25

1. Employment in the Sector of Professions (Table 3-1)' 26 2. Distribution Of Artisans According to Age Groups

and Years of Experience (Table 3-2) 27 3. Artisans Standard of Education (Table 3~3) 28 4. Number of Machines and Tools in Use According

to Professions (Table 5-1) 29

5. Origin of !'lachines and Equipment used in

Professional sector (Table 5-2) 29

6. Financial Analysis of the Performance of

the Electircal Flour !'lill (Table 6-1) 30 7. Financial Analysis of the Performance of

the Diesel Flour !'lills{Table 6-2) 31

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CHAPTER ONE INTRODUCTION

~ The Sudanese Economic And The Indutrial Contribution Since the be gining of the 1980's the sudane s e economy has been passing through p e r ied s of crisis due to internal and . external factors. An adverse massureimpact of these factors was

traced on the economy nature and structure. Among these internal factors were the environmental difficulties, mismanagement and la'ck so^f cerp ara.t e objectives that led to low. level of assets utilirati(lll and hence low p ro ducti vi ty and pro~itabili^t y 'in most e'cb'ilOmIcal sectors. Other exogenous external factors, ..tb at affected the sudanese economy were the second round of the increase in oil prices, the .sLow growth in the worlditr ade during the last ten years and the s ka r p fall in primary product. prices due mainly to the implementation of measure~s in the U.S. and the inte rna^t ion al commun i t y ,

Sudanese economy depends mainJy upon. three main sectors :- 1. Agriculture

2. Commerce

3 .. Anima l p roducticn sector ,

l no r de r to cup e wit h the \VOl' ld' s development and to increase the national productivity and income mechanization and antomation wa.s i nt r cd u ct e d in the agricultural and industrial sectors.

Although that was a n eed its cost was very high due to technological and f in an cia l complications

Nevertheless, the industrial sector has continued to suffer hom low production for want of n e c e s s s a r y inputs and auxiliary facto r s iras a result of that its relative iitshe.re felt' from '9.9%

d u .rIng 85/1 986 t ⁰ 8 % i n 86/1 987 r e c a I'din g 1 e s s t h an 1^% cot r ib ut ion in export. This percentage continued to fluctuate slightly indicating 9.47% , 9.69% and 10.32% contribution to GDp f'o r the yea rs 90/1991, 91/1992 and 92/1993 r e s p r e ct ive.l y .

Previously, most local factorcis continued to operate below their c a p a ci t y . On the whole the under ut i Ii z at io n of the capacity athribu l e d to :- .b"(;

1. Obsolete and inepJidii''t machinary 2. ~ack of spare parts

3. imported raw mater ials 4. Lack of foreign currency

In,spiteof that we inforl1te .t h e fact that, that those industries formed the. nliclus for o the r sma l t scale .indu st r.ies.vand handi-crafts .

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Since the dawn of h i.story anel t h r o u g h the developmental stages of .human kind and old civilizations man ha.s v.de sign e d .and biult Up his implements' and other necessities ac co r ding to his needs, in the context of the acquired capabilities and experience, -and also in the light ,of his Ii mi ted creadl\t'e

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abilities and inovat ion s . Irnmitation and simulation were also one of the means which man used to improve his life conditing .

.L..2. Objectives

The objectives of this paper can be summaries as foJ lows '-

Collection of basic data on the informal sector in the sudan to identify its nature and to deduce indicative p a p r amete r s on its e-cortomi c a l social role .and its influence on deve'lopment .

- To setup a general f s r eme to define the informal sector in the Sudan with s p e c.i a l rerrenee to handi-crafts small scale industr i e~ ~nd ^{pr o duct iv e} far~ h\l<il (svstemj., th('''.~1.

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- Lnd i.c a t Lon of the a p p r opr datenes s effICIency and effectiveness of innovations in the informal sector with

indicative examples of related local industries.

- presentation of a study paper to this workshop in qrder to enrich discussions, exchange of experiences and Ldea s with the ob/jective of drafting con~lusions, suggestions and recommendation to support this sector ..

1.3 Research Methodologgy

This ·study followed methodology using statistical computations to get specific data and imformation to be analysed for the purpose of the study . .At the same time a field survey has been conducted to see. and select life samples of handi-crafts and small scale I nduat r ies and reflect these samples

On

this paper for comparison 'purposes and also to achieve the objectives of the study.

1.4 Historical Background Regarding the Be.jning of Informal Sector as well as the Sector of Small- scale Industries and Profession in the'Sudan

The researcher did not noti~e any clear cut and known start of such sub-sectors in Sudan with the ubov e classifications. Not ..

-wi t h -standing, history has shown that man used stones to make k nive s ana 'axes and lUlter on u s e d bur ried mud to make some po^t e r ie s and othe r a r t Icl.ea for his own use. Later on man used woood and metals to improve his a.rt icl e s for more r e.l r ccbi Lit iy and avai Lub i Lit y to his needs. Development continued as such slowly by strli.illed worker s and handi-crafts operators until the break of the-ins~stria,l r e vo Lut ion , which .r e eu

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t e d in a b e^t t e r and easier methods and means of manufacturing of implements and

Industrial products . . . . etc.

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After the rat i o nal g o v e rme nt s 5pdustrial inVestment

which was then called

indep~ndence of the Sudan in 1956 the moved towards the i n c o u r a g e me n^t of 'the pytss\ltngthefirst llli-W for this sector, the Approved Concessions Act 1956.

This low is con side re d the first trial to legal is e the ofganization'of industrial investment.

Under this low several concessions and tax holidays were given to the national capitals to enter investments in industry. Some private investors entered the field ofisma I'Le-ac a l e industrIes and handi~craftsindustries, being incouraged by the low invested capitals, the minimza I number of labour required in this type of industiesand also hecC\l!tse of the avai l abi 1ity of primary raw materials and inputs of such industries.

In this context it is ~ticable from the pegining that

indus t.r.Les like edible oil, mills using s e s a mi and food

industries of d-iffe r e nt kinds (flour mills, soap industr y -c ame to 'existence). Mechanical workshop indu st r ie e , manufactureiron, wood

products and aLsot.setsring machines flourished.

As such the sector developed with the e nt ery of new industries both legally (according to the lq.w) or some times with special penni ts from local aut ho r it e s (not -according to the lctlW).

Later on gov~_t2ment ^{tried to} l"arin,g indust r si e s under the investment law to I n su r eFgood and ito legal ise tile support for the sector.

all these organization

This ~informal sector in the Sudan is known to include _ in<dilihrial activities, agricultural, s e vic e s and animal raising a ct.Tvi.t ie s . In other words it is a .m.i x e d sector with mull activities. The most prylomenente activities are centred on food industries, o thhe r SD\arC sectors handi-crafts indust r i ess- and this socalled productive familes system. ,-,-

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'CHAPTER TWO

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2...l. Definatiortof The . Informal Sector in the Sudan :- After

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studies! the different aspects of the subject the researcher" came to hIs convenience that the informal sector in the Sudan inc2J>prates all the activities (industral, ag r icu rt u r al, handi-crafts, animal rasing, services et c . ) which were not infact organized and g o.v er n e d by specific goverlhent laws but care to existance and developed spontoneously.

In _t~he same way the researcher went into defining the following activities.

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Cr aft s (R e f. in d u^Ii;t ria I sur c ey 7017 1 development of statisticsl :-

Handi-crafts could be developed as any indust,l'-rial activitey to produce commodities and 'services without usLn g moodem machi na'r y with thhe exception of tailors who normaly use ~'"

reTiilively modeVll machi^ne's.

It follows, therefore that the infoormal s s e ct o r schould include the following act i v.it ie s (Researcher view).'

- Food products (Kisra making I traditional and non traditional lakers I flour milling.

- Carpentries and lathers (Blachsmiths I carpentry 1 filing/traning.

- Pumm^{i t}u r e (wood Imetal).

Le at h e r ^vp l a s st t c leather water containers- leather bags I other leather containers and other leather products)

- Gold and iron smithes products

- Potery products (water containers I braziers .. ect) - Clothing (sewing I embroidery I womendresses-Furad - Carage services, (Automo^t ives loi l e r s Iriggers I

.m r l I wright.

- Car e l e ctn ci an s and mechanics (electncians I industries operators maintenance

- Biulding and constructions (biulds I parnters Ibricks Ilayers sewage operators I electricians 1 pipe fi 1t e r s Imasons I gazers I custodians I guarab)

- Loocal ice' conserurs for fruits and vegatables - Repair and maintenance of car tyries (Punchers) - Accumilators and batteries repair and maintenance.

- Repair and maintenance of pumps, electrial and other oppliances.

- Repair welding, painting and car polish - Salders, furniture makers and tailors

- Plants and dates trees fibers products (brousens I gufab Iprayer mates .. etc)

- Milk products (checs Ibutter I margania ... etc) - Handwewafing and spinning

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- POPl.llat cloth makery

--F-anc:;ywooding and wory articles making

- Knives, swords and women orraments articles making - Bee livery

- Teeth moulding

In addition to that - one - finds -- other industries which care under the informal s e cto r c atog er y but are not very much-related .t.o ha.nd ie-crafts these are the following-

- Time burring

- Popular sweets making

sp a g e t t L, ma k ar-oria be s c ui t s and allied products making

-, Beverages maki n'g (cold fr iut dri k s and otherwise) - Small printing pressess

- MiXers and animal facldrs ctushers - Bread flour mixers

- Bdc k s and t i!esmaking

- Decorticators mills annd siebs industry

- Weldingmachinres, fire stones and electrical drilling machines manufa.crn r«

Grinding and packing of saLt ⁱ spe lr-e s ^j cof.fee . dltC - Dry cleaning and car washing machines

- Tahnia sweets and Cahnia making - Photography and cin ama films - Textil~illdustry

,,- Soap mak ing

"",,;rhtl above classification slows different types of a.c t iv.it ie s ~ productive, services and of dual nature

"",arlis'mal industries and.v.act Lvi t i e s , An examp l e of a produt ive (mit is corpeatries,blacksmiths" whe r e is s er vi c e units provide sevice s I ike ga r g e maintenance. The unit is considered a' service . productive unit If it provides both activities. ,

The last s u r ve y of ar t I s e r a I industries in the industrial area :in the nat ional capital indicates that most of

the~ervice ~nit are con~etrated at Khartoum, Some are located in Omdurmanothers at Khartoum North.

Most of the productive units are found to be con c entrate d at omdurman , Khartoum North and at Khartoum succively (Fai881 Islamic Bank Arabic Series No 14).

I t wa.s not iced during the survey that basic metal units represent about 0.02% where is metalpToducts, ma chin a r y and.

implements making represents 41.5% this percentages dooe s not includes bakers and flour mills industries (Ref . .in d u s trLa I survey 81/1982)

2.3 Definition of Small-Scale Industries

Re s e a r e r s and e x pe n^t s on i ndustrria l deve l opme nt , locally, regionally and internationally laws differed a lot in defining sma Ll e-saceI.e industries. However many c ount r ie s used the

fo ll ow ing crit eria to identify small scale industries :-

A. Types and sises of machinary and equepments used in producing prooducts.

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B. Technology standards in use in production operating C. Typess of products, production methods, and

production processes in use' arid the quality standards or manufactured prooducts.

D. Labour fnten swe ne ss E. Vl a u e v of f^{u xe} d ^{a . ss e e}t ^s

F. Annual sales valume and sales turnover

G. Market store and competitiveness of the enterprise.

'The above mentioned criteria indicate the variation of different types of indus~ries and its specialization. At the same time it reflects the standards of 'technology, economic arid social development in the said c ount r y ,

Till noow Sudan there i no agreed definition of small scale industries. However some govermental developments and cantain enterprisesior purely managial and administfrative purposes have taken up the definition of small scale industries usinggg two main parameters as a b'asi c criteria. These are the valum of investment and thew labour intensity among these ggo ve r men.t uni ts are ministry of Industry, industrial research and consultancy Institute andtbe rural development company .. etc.

It wo^{r t} hme n.tLo ni n g that most of the small scale industries employ simple or low level of technology, managed by families and/or the owners. At the s ame time they are mostly self-financed.

The r e s e as r c h e r thinks that El Nielen Industrial Development Bank in sudan'went to a definition of a small scale in du s t rLe s which Is mo r^{e i p}ra ct i c a Lvas it is applied through financing and other conditions. The client is obkliged to submit the following documents:

a- The approval of the local authorities in case of small scale industries.

b- The commercial licence.

c- Provisional invoices from two local sources

d - Ac qui sit ion' c e r^t i fI cat e ⁰ reo n t rae t ⁰ f hi^I'e endorsed by an advocate.

e- Tax-free certificate.

f- Approval of electrLcity authorities.

g- Any other documents to support the y~quest.

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If the investment committee. of the bank approved the finance of a certain investment operation wi th a certain cl ient the bank issues' endorsed cheques for the order of the beneficiaries directly and not to tbeorder of the _~lient.

However,the client has tobearthe following:-'

1'1'- The client bears the cost of t r a.qn spo rt and

handling of the merchandise to the project's site.

b- The client pays internal fees to the value oJ 4.6% of the purchase price of the machinery and 3.6% in case of raw materials.

c- The,cl ient pays 25% as first installment in case that the total purchase prices sexceeds 5 millions Sudanese pounds.

In our opinion the size of this finance and the conclitionsof payment tend to mov e the investor outside the circle of the small scale industries as we pl'eviouslydefined it.

2.4 PRODUCTIVE FAMILESSYST?M:

This is a new term generated by EI !'Iielen Indust,rial Development Bank Group in the context. of exj:>loitinga.nd developing the capabilities and skills of men, wom",:r.Lartd f ami l e s . According' to thi s concept, product ive fami 1ie s come under the umbrella of the informal sector in the Sudan, since the fami Ly earns its lLvin g from the revenue of the produced commodities afte.r being marketed by one of the fami l y members.

2.5 PRODUCTIVE FAMILIES ::. WHO ARE THEY?

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committees.

The bank ident i f'i e s the above term as an informal s ecto r which depends on the industrial skills and9apabilities of the familymemb,ers. I t is apparent that the bank gives special first periority and attention to this sector in the area of small scale and art isenal ind ustrte s , as it forms the base for the social infrastructure which creates the productive Ind Ivi dua

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This attention is reflected in the facilities and .the sample procedures that the bank follws in case of financing p r oductiv e families. The bank ~equests only the following:

a- Res'idence certificate from the popular b-' Recommendations from the same committee . I ndLc.a.ting that the individual is paj r t of the productive .f.amiLy •.

I t is noticable that the money allocated for

profit sharing between the bank .and ^v t b e client (productive fami 1)") increases year ly.

, In 1992, it was LS.70,OOO increased to LS.200,OOO and LS.500,OOO in the year 1993 and 1994, r e s pe ct ive l v . Also the profit share margin was reduced from 25% to 15% for the fi'lvour of the cli e nt for. the year under review. Moreover,' the bank has instructed all-its subsidiaries to allocate pasrt of the. ceiling, to the productive families projects.

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CHAPTER THREE

ECONOMICAL SOCIAL CHARACTERISTICS OF THE INFORMAL SECTOR AND THEIR ROLE IN DEVELOPMENT

3.1 ECONOMIC CHARACTERISTICS:

These can be summarized as follows:

a- The massive increase of the units. in this sectnr gives an indication of the attention given by the individuals to invest in this sub-sector. This resulted in a horizontal expansion for the sector which was characterized by a muliplication of the number of the units during the decade of the 80' s , The use of simple technology and methods of p r oduct io n in addition to availability of manpower and availability of primary raw materials gave a p riv e l Lag g e to this sub-sector to develop compared to other industries.

b- The varability of commodities and services offered by this subvs e c.t.o r reflects the v a r iat ion in prices for the same commodity. This is because of the different primary materials used and the different level of quality standards achieved. Fortunately, this variation enables the consumer to select according to his income.

c- Most of the artisans have to pay in cash to get the raw materials. And because of the fl~ctuations in prices for the imported raw materials (50% of the total raw materials required) the artisans -in s i st on the client .to pay the value of the raw material in an advance payment,

d- The informal sector contributes through its different products by availing alternative commodities for the imported ones, eⁱ g . domestic f u r ni tu r e s and other some inputs such as building construction, i ^ve . bricks and some ohter spare parts,

e^r- This sub-sector also contributes in employment. The nu ymbe r of employees differ from one industry to another. It has been noticed that bakeries are the most labour intensive to be followed by lathing,carpentry,m mechanical and electrical workshops, whereas the least as far as employment concern in car tyres repair and foundries. The later employ an avera.ge of two labourers.

3.2 THE SOCIAL CHARACTERISTICS:

This is represented in the following:

a- The informal sector plays a part in creating a social e qi Li b r ium in Sudan through its economic activities. I t provides a source of income and living for individuals and families who depend wholy on it in their daily 1i fe ,

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In, fact, a series of the nat ional c a pi tal in 1985 ihdicated that more than five thousands .fami lies depend in their living on artisenal units operating at the three industrial states. This number indicates t hev'owrrer s or the managers for their units who are basically e n g g a g e d in this sector.

Accordingly and on the a.ssutnptdonthat a family consists of five persons, the number of people involved in this sector amounts to 75,000 persons. In. addi tiori to that, we ihave to consider the size of labourers workirrg vwit h them. Most of those people are coming from rural areas who are sUJ.)porting their families there.

The above indicates the importance of this sub-sector in solving the un-employment problems in Sudan; (See table 3-1).

b- One of the characteristics of the informal sector in the Sudan is it's tendency to attract rural manpower, immigrating to urban areas, looking for work. The percentage of rural labourers represents about 55% of the total a r t fse n a l manpower in the nat ional capital. This immigration 'resulted negatively in the'development of the r u aI areas beside its undesirable side effects on the Sudanese community.

c- It worth mentioning that there is a corolation between the age of the profe,s~ional a r tes an and the nuvmbe r of yers of his experiences. This 'c'oul d be noticed on two persons engaged in the same profession or in diffetent professions. In fact, the older the person is, the higher experience acquired in a certain profession. (See Table 3-2).

d- Since work in handi-crafts in Sudan does not necessitate a a specific level of education, the sector remained

attractive to those who did not earned educational qua l ifications that could lead them to other professions. In fact, we' have noticed clearly that primary school level represents 44% of the manpowe r engaged, whereas the intermediate level represents 20%.

I I H'tera.te e , on the other hand, represent 17%. The rest (19%) represents those who gained aecoridary e du c at ion or above. Those could be considered as the actual' technical manpower, in the ,sub- sector. This ,can be noted as an indication for a promi~i~g

future for the informal sector', and its positive cont r ibut Lon 'in development (see, Table 3-3) which indicates the level of education bf artisans.

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CHAPTER FOUR

~ OBSTACLES FACING INFORMAL SECTOR IN THE SUDAN:

As the final product is the end result of different efforts and activities in which all means and source~ of product ion are interacted together

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i t h various rat ios, so we find that the problems of the informal sector does not in its nature differ by any means from those prevailing in the industria l , agri cu ltur a L; s e r vi c e s or animal product ion sector, especially most of its productive activities are governed, organized and controlled by the investment encouragement law'.

Most 'of those problems, in a way or another, are c ha r a qcteriz e d or caused by the conflicting unstable or unclear policies, procedures, laws or systems, especially those dealing with various levels or c c e nt ra I level or on the overall economy level in general. Consequently, small scale industries, handi- crafts and productive family enterpreneusfailed to improve their productivity and their performance in general. Moreover, the organization overseeing them could not succeed in any type of coordination 'and/or effort to solve their problems. The outcome of this was a ^t r emendou s decline incapacity utilization down to 10-15% in certain instances. Other enterprises stopped all together, e.g. Ruralk Oil Mills.

As follows, we give summary of the main problems without going into details:

4.2 PROBLEMS RELATED TO LAWS, PROCEDURES AND POLICIES:

These concern mainly business profit taxes tariffs, application of concessions on raw materials and aleviajktion of protection of some commodities by opening the imports of alternatives. In addition to that, the labour laws and their application procedures added to the problem. unclear government policies towasrds this sector, especially with regard to

licencing and commodity aid, complexed the problem more.

4.3 PROBLEMS OF FINANCIAL POLICIES AND FINANCING SYSTEM:

This is considered as the main problem since it reflects the complexity and, in many cases, the unavailability of banking facilities. This is due to lack of confidence between the creditor and the debitor on the ability of the later to repay his loans. The result of that is the unavailability on any working capital for the enterpreneurs.

In fact, this new banking system of profit sharing (murabha ormusharaka) which the banks apply at the time being does not encourage the b e n e f I ciar Le s to apply for banking facilities either due, to their unability to understand the procedures or due to their doubts about their' ability to repay because of the high expenses in getting such facilities ..

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4.4 RE'fERDING FACTORS CONCERNING INFRASTRUCTURAL SERVICES:

This involves, electricity power cuts, not in g that the owners of this sector Can not afford hav.l ng t heir own generators.

Ev e nb i f a group of them succeeded in getting a generator, they

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i I l be faced with the problem of avai I ingthe f'uel to operate

the generator, because of the high operating costs.

Secondly, the high cost of transport of their finished products may hinder' their marketing efforts. I t can also be noticed that the supply" of l s ome local raw materials is irregular and 'weak. At the same "tilne, there are some difficulties in gett ing spare parts at the right time for the ma'chi ne.s , Also skilHullabourers are scarce due to high labour turnover.

Moreover, the prices of lends allocated to these industries are considered to be high.

'4.5 OTHER PROBLEMS:

Another important problem is, the lack of trained ski lLe d manpower due to the fact that voc a tiona I training centres capacities do not coope with the demand or this sectOY.

Normally manpower in this sub-sector gained .t-hel r experiences by practicing and immi'tat i on , ,;\ccordinglythe time taken to gain sufficient experiences depends on the type oft'he job that one pr.act i ce^s, Moreover, to f'ul'fi I any activity onevne e ds to carry ou tcsome planning, organization or administrative +tasks. All these • managerial concepts' a re lacked by those who work in the informal sector who a r e normally prima.ry 'or intermediate school Ie av e r s • '

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CHAPTER FIVE

.h.1 STANDARD OF TECHNOLOGY, INNOVATION AND .SELECTION AND THEIR TRANSFER ~ONON-GOVERNMENTAL SECTOR. ( INFORM"AL ..••. SECTORl.:

• Thetar$efdf the non-governmental sector is to make av a ilable empl.oymet nvoppo rtuni ties for those. whoar'e not absorbed in economic activities, such as of sc,hool' leaversin different stages ,. of schools, pensionists and House-wifes₁ In fact the state and other financial institutions are en'cou raggging such sector to be jnvolved in non-government activityfor the purpose of producing consumer goods in g e o g r aphi ca l districts for the avoidance. of brokers as well as transportation... Other reason,

is for creation of additional income for families as well as groups of limni.ted income who are unable to invest in large

'Schemes ^*

One of the important benefits of the expansion of the non-governmental sector, represented by small-scale industries, handi-crafts and productive f ami Lie s , is the availability of the market for the products of small and medium workshops which entered the area of producingg simple and traditional small machines and equipment as well as the production of metal and furniture which ref le.ct the professional skill of the working people in this sector who prompted such performance and who are looking fo rwa r d to create and innovate modern machines and e qwuipme nt of higher t e chnoLo'gy • Such e xperiment was led by EI Nielen Industrial Develppment. Bank as well as Fisa'l Ls d l ami c Bank of Sudan. In fact the metnioned p;attern will. be shown later while i t is still conaide rcd as new and under evaluation.

5.2 EOUIPMENT AND MACHINES:

The non-govermental sector devlops upon (low and simple technology) in the field 'of production whether i t i s : industries locally or impprted. AlSo the professional sector which in related to the above mentioned sector, mainly, depends on the manual skills, but never, the less, the machines and e qui pme nt s are used in some technical works with effecti rn e s s , l e s s s-e t-i me and lees--cost.

The following nations show the proportional distributions of the professions concerning the alone sector lronsmiths 33.3%, Filing 20%, cars' mai n t.e n a n c e and repair machines 17% pumps qngineering and turnery 5%, others show small pe r cen tage s ,

In this connection, we can say t hat.. the .mentioned professions which used machines and equipment since 1950, started withthe use of ten, one or two ma c hi n e s s or equipment, and successirly the number increased as the sector expanded.

In 1985 there were 536 in "the area of ironsmith and 150 in c a r p entr y works, 17 in c a r s eleetricand mech ani c a l field and 35 in turnery and lathe activity (see table ~-1).

12

rm m

In fact, the o r ⁱ gm of production and industrialization of most of the mentioned equipment . and, machLne s in referedto foreign producers (table 5-2). Such po s i.tion is ,also concerning other professions . Thus wqe have to take into consideration the slaw process of the transfer of technology,in Pliorticular in the area of production of Electric-Eak.eries wh,ich"is s t i l l not

Industri aiz e d locally, except few whi ch are produced to work

under solar system and wi t h limited capacity and effectiveness.

5-3, TRANSFER OF TECHNOLOGY AND SELECTION PROCESS :-

Many people who are conc e r ned wit h the transfer Of technology in theSudan,look.at the qu est ion as i f it is an ordinary commodity among various c o mmodLtLescun d er the state r espo nsibiI i ty and according to i t svI mpo r t at ion laws which take into consideration the move of. t he international trade.' Such a view point is still existing although the re in a'redu<;'tioIlin the .per,<;ci)tage. of t he exchange of goods concerning the transfer' of technology besides the interest of importers to sell technical kIlOW. How for' the achicvement of their commercial t r a.gets .

I t in necessary to to ment t ion that is a common and w~oi)iitl",frt:'lat'e'drt.or the . ins itanceof importatio n of a dv anc e d and

~(;"Jt1)' technology

w

i thout t.akinn g into con si de r at ion or economic i'\!}q socia.l sit.uat ion as well as our necd Jot s.uc h t e chno l ogy . Thc r e su l t ofs\lchunders tandin g , led US to 1bose our conf'iden ce

ihthe,.inl)ovation, creatainand selection,besides the admination bfwestern or eastern imported technology through which o u r technology follow-up is confused. Thus, we have neglected that tecIlnolo¥y.isa f r o up of human and technical know-how , and the man-kind is the. b ase, target and tool. f o r its achievemenLAlso,

it is n e c es s ary to f o rmu 1ate the minimum 'r e qu i rme'n t of measures con cerning the positive and actual t r an s s.f e r of technology better

t han .before. Mpreover, fac Ll dti e s , policies, laws anq national systems. must be introducted so as to unable us for complete benefiti from them.

the transfer depend on it

. 1.

2'.

3 •

For''t

he

sake of aviodance of the problems. facing of.technology" we have to pass t hro ug'h t he s s e which the t rnsf e r of technical Know-How, .thesse _are:~ .'

~tag~ of Selection Stage of Aquisition Stage of Absorption

It is clear that each stage is connected wi t h other" and w~·can not . separate them when we look at theproblems of transr.er.of the technology. At the. sta.ge of absorption, it seems that many scientific and industrial institutions did not achieve tIle required re s u lt s concerning the ab s o r pt ion of needed i:i;:cvhl1()l()gy and the dealing with it, so as to a.chⁱe v e positive results which r ef d l e ct e d low technical p erj f o r ma n c e of many c omp anies and corporations, low innovation and c r e at i o n of technical works, and dependancy on foreign experience in all stages. Also, extension of technological contracts for long

13

-w;? - --w _{z - g .•}

periods although there is a Weak and low availability and reliability of equipment, machines and powers in many of the productive factories ..

The process of non-rabso r pt ion according 'to needed and required standard led to poor utilization 'and handling of technology, in and out the factories, and that is due to the following reasons:

1. The mankind himself who is not adapted and satisfied with it, except in narrow limitations;

2. Many technologies are not suitable for the cir cumst an ces and situations of the Sudan due to sma l l volume of the market,weak organizational and structural building, flucuation and. poor power and non-availability of productive f a ct.o rs a c co r di n g to needed stocks. Also, it needs high technical Know-How for its use, and the look of such unde rst anding led to its low productivity, efficiency and shortage of its life-time which makes us not to r e pe atv p r o ce s s or the experiment.

3, Poor infrastructural building in the ~tate:

t his is reflected in the di fficu 1 ty of adapt ing techno logy a.c cor d Lng to environmental factors and conditions of. the Sudan and the introduction of new blood to it through inno v at io n and creative works, desi gni ngg suitable training programmes so. as to keep i t developing with the control on t r an sfee r t r an s act tcns to mee tactual ^Si t u a^t ions and needs of deve l o pme nt , and to be used as a too) for construction of self-technical ability bases and technical liberation in future. Also, extension of scientific services such as c o n s u l t an cy works , researches, information banks, technical and industrial guidance and e t c . . Thus,

industrial institutions will be able to formulate their exact technical needs and accordingly the technical Know-How can be intrdocued to the society and its productive organizations,

The fast ability of absorption reflects the duty relation between national institutional building and vario~s tee h n i cal act i v i t I e s ⁰ f t he pro c e s s per f e c t ion and its absorption. However, through our daily practices, we can see many institutions such as transportation, communication, services and others which ar" facing defficiency which shows the slow p^{TO C}e s s i n the ab SOl' P t ion ⁰ f tee h n 6 log y due ^{' 0} 1 a c k ⁰ f tech n0 1 o'g i cal pO 1 l c i e s . and the i, r to o 1~, be s I d e 1a c k 0 f professi6nal, consultancy and rgQ~arch cadres which may help in solving the aforesaid obstacles.

CO/F''''rnillg the question of technological selection, i t is ma i n ly connected with the colonialism' and national Independence. Also, it is connected with the relation of the count r.v and its integration between Africa and Arab countries.

In fact, the problem of selection and the transfer of technology, is 11<)t only a technical problem, but it indicates the aspirations of the t arg gets of d c v e l o pme ntvand its means for

14

_1. ^?

implementation. Also, i t r e.f'l e ct s the political .a n d social fo r.mu lat e d idea concerning the beneficiary sets from suc h transfer. and seIe.ct ion. .

As the technology is not a target in itself, but ,it is a tool to ^achie ve ^dev e.Lo^pmerrt targets, the last measure should be considered concerning the development targets s eLecte d by the society, becausev<Lrious ecom orni.c and social .t.arg et s need different appl Lc at i.o n s of t e c hno Logic s , (Ref. Ecc n o mi st

Richard leamy, Technologies Sui table for Developing countries, Sciences - NationaIAcademy,1977).

5.4

SELF-DEPENDENCE ON TECHNOLOGY:

. I t is <HI idea related to de e p history sLrice the old and

the .first civi Liz a t ions made by the man-kind who developed i t v.to suit the. environmental conditions and cir cumsta nce.e.vjcto meet his ne eds and wishes for survival. The idea promoted and the min- kind satisfied his needs from hand-made tools and~quipment.

Also he satisfied his needs from dress, residence and others which recently achieved through the production of high and modern techno! qgywhic h vh e Ipe d in mass-product ion so, as to meet the society nee.ds and to export the su r p Ius . to other socie.ties . Th'J.s,fromhere, started the specialization and technology in the Hrea of production of commodities and se r vi ce s in the countries owned the resources and means or able to get such resources.

T!l\ISr> the world divi d e d to industrializzedcountri,es and consuniJng coun^t r ies , In other words, Export ing countr iesvwb ich called developing countries and, f;onsuming countries which depend

on~mportation (under~deveJoping ~ountries).

As, .the Sudan is consid e r c d as an u n d erj.e-d e v e Lo.pe d country, itiworks steadily and hard to cope 'YUh the scientific and the technolqgical world .

.I'n fact, the innovation and t he creation start e d .unde r v a r.Lou s pre s s u res and restrictions regarding r aw-ma^t e r i a.ts capi tal, t rainLng., absence of perfect design and .u.dminist r a ttve direct

t

ve s ana etc. Therefore, such innovat ions were dependent on exp er I e nc ea .a n d practical experiments as well as used

t r adi t ional available .p at t e r n s . some of them were proved to be successful and. continued as a standard. practices; others were fai)ures,. The me as u r e s apply whether _to c o n t inu e or to dis appe a r are the' mea s u r e s ,of c os t sand produet Ivi ty,

15

<t '""WW'""Mrg-tttt^{n -}

ClIAP1'ER 'SIX

6. 1 THE EXPERIMENT OF EL NILE IN GROUP OF 'BANKS'FOR INIH)STRIAL DEVELOPMENT:

Within the f rauie-vwork tBeif~dllstl;ll.lfsti-at<;)gy, the target of the above bank is 'fofinancetlle wor~irrg sapitalof available .industr ie s and the. rehatii H't atfon

Iof

industries facing difficulties. Also, f'inance 9f smal Iv-Lndu st ries, prcfe s sic naLs.' sector and pr'oduct ive families .. '.' That is due to the belLefv.t.ha.t the industrialization is the base for development as well as the transformation of the society f om Premitive y13 t e m to a

modernized s y s t e m . ' ,

tn vsu d an, the sector of small-scale industries, professionals and' p r oducti v e families is considered of a wi.d.e bas:e for non ..-governtnental sector and reflects the basic deve l opment vwhLch creates the productive person or the small- p r odu ct.iv e group.

The mentioned group of banks, i nt ro d uc e d ma ny faci lit ie.s to no n-ego.ve r nme ntaI sectors in the form of machines, equipment and tools to help them to continue in these v ari.ou s activities. Most of those machines and equipment were of foreign or local origin.

6.2 STANDARD OF TECHNOLOGY USED IN NON-GOVERNMENT SECTOR (INFORMAL SECTOR):

It is r emak ab l e that the technology put into use in the sector is related to the type of industry, become some industries depend, totally, on the' imported industry, such as ready-made and tr i co clothes. Concerning others, it is clear that the r is a progress in the field of local indu s^t ri a l i z at ion which led the bank to o r g ani z e a c omp an y serve and support many activities andtoencoul'age inov ato r s and I nduet riali z c r s . Such support is being done directly or through marketing or propaganda.

Examples of some machines and e e q u l pme n t produ c e d lo c alLy ar.e :

1. Soap ind ust ry : Soap sma l Lel aboratorie s

2. o

rt

indu stry Small power oil-mills, traditional;

oil-JIIillss.

3. Flour Mill industry Flour-mi lIs, ground-nuts decorators.

4. Metal workshops tools and equipment Fil'e~stones,

welding ma c hi n e st a.b l e s c e s s o n g , hand-drilling- machines and strippers.

5. Furniture workshops equipment: bindsaw ~achines

wooden tathes.

6. Bakeries and opens and electricx mixers.

7 . units for fast-food Bakeries , Burger bakeries, cakes bakeries.

16

-- tr ₂ ""'Trtm"'-< m

8.

9.

10.

Fodder factories: Mixers) mills.

Tiles-machines industry.

Different industries:Kisra factories, bakeries and etc.

godes

The taetiology (transiered) which is used In the above industries proved absolute success which made the bank to support t hc p ro du ce rs

of

those mac hine s 'and equipment so as to get the confidence in the local market. Also; the department of projects and the engineer Lng department of the bank are gui ding the prog re s s of these ind ustr,ies, for c reatin g and producing better models of hi ghe r efficiency and productivity. Although th e s e industries found a r c a spon ab l e market but the exprment is ill i l I under evaluation due to the fact that while the t e chnol'ogy used is simple, but nevertheless it may need skills and e x p e r ie n c e s so as to b e nef I t from, t hi e r. Imput s to achieve real product i vi ty and effect i ve ne s s .

6-3 CHARACTARISTICS AND ADVANTAGES OF NON-GOVERMENTAL

- , -

INDUSTRIAL SECTOR .l.

the above me nt ioried sector has many technical, economic and social c.ha r a c t a r

t

s t I.c and a d v e n^t a g e s , but riever'theless we .ar e going t.oconcentrate on the f oLl owi n g

t e chn Lca l and material charactaristics and advantages:-

1. It has created a.makewt for workshops products which is c on s id.erd as a regular start for atnal L'<e e ngin e e ring local industrial of technicians and skill-workers (flour-mills, 011- mills etc.

2. Absence of research, scientific guiden c e of experts offices as well technical co n sul tancy services.

3. Increase of themanufacturing cost· and a c coding ly the' costs of purchasing

4. I t lacks engineering mea su r ement and. specification as well as perfect engineering design.

5. As per the above point No 4, the mentione.d Industries are not competing in forign markets except some of the products(leather, iron ... etc)

6. Little production of stocks and according to the request, therefore they are not of regular production

7. Lawpr'oductivity and quality sstandard wwwhcn compered with imported machines and equipment.

8. High cost of production due to Production of small stocks.

9. It helps in the coverage of local and regional' needs and it gives reasonable turnover to investors and accordingly it encourages for technical inovation and creation locally annd regionally.

10. I^t depends on locally produced parts and it lacks proper technical engineering application and design.

17

T - - Pm-- ,

6-4 THE PATTERN OF SOAP SMALL-LABORATORIES 1-

We hv e looked at the, studie s "made on the above patternn and our c omp e r t i v e studies showed', the following results 1, The above industry until 1980 depended on imported production inputs eqbal to 23.4% due to the use of local catfon seeds. But recently, i t depends on impor.te d materials equal to 85% and vt hat is due to the high cost of imported materials such as fats and others as well the jump in fo r ign currency prices. However the following tables shows the import of raw materials in the year between 1987 and 1992 :

sodium 'Fats

Year Value Quantaty Value Quantaty

(LS) (kilogm) (LS) (k Ll^{ogm )}

1987 1,761,063 1,257,279 2,257,784 3,443,644 1988 7,926,130 3,518,242 4,958,347 2,628,700 1989 17,204,749 6,870,001 14,063,430 6,800,860 1990 11,196,770 3,411,464 76,745

, 1991 16,293,976 2,303,229 12,586,974 2, 111 ,200 1992 93,142,338 4,817,889 53,140,521 5,990,000

Sou.rce : Forign Trade Statistics

18

, -n .en.,em t t ^{t 7'7}

The mentioned facts led to slaw process of production of s oap commodity within the abovepriod in,the large-es c a I e 'industries as well the suspension of small-laboratories which ate

produced locally. '

In _~actthe study reflect that the production designed 'capacity .of soap industries in Khartoum i s 72;960 tons pel' year 'and

die

real pa'pacity is 14, 220 tons per year, the con sumpt ion per year is equalvt o 39, 000 tons, thus means the gap is 24,780 toris, an n u a l y . 1'11(; r.e a s o n for est a b Lis h.in g s maLl es oap laboratories (or mills) is to cover such gap.,. Therefore three

.limjor (jrpesoJ SLIGh laboratories with designed capacities were

organi zed. These are as follows: '

A. Electric soap-laboratory with large capacity, 30 cartons per day (carton of45 .piec e s of soap).

B. Electdc s oap-r l a b o r ato ry with law capacity, 25 cartons per day.

C, Manual soap-il.abo r atory with capacity less than 20 . c art on s pin day.

Item cost pre piece

laboratory industry

r: .

Fats Sodium Powdet Power Emploment

24,6 23

1,6 0.9

0.04 0.09

0.28 0.5

1.2 0.4

source Eva1uat ion of. soap small":'laboratorles in Khartoum state Ni I Lei n Group of BanJ<:sfol' industries deve l opme nt.

- 00' 1 ~.. 'Tram "W

employment industries

It is clear that the cost of fats, sodium and reflect higher cost in laboratories when compered with

of soap

cosi per year for Electrical is LS.l,080·,OOO; thus, the 5- The s u rve y of soap laboratories, showed that 60% of them are out-of-order due to high coost of olin oil which is imported from outside thecount.ry.

6- Some owners of laborto r ie s tried to use fats and other materials, but they found the r e^tai 1 cost of these materiils is higher than the whole sale price.

7·- Concerning technical side, the La.bort o r ies proved their effici.enci.esand the s I mpLic Lty y of their i n st al Lat ion and oper at l on a.I use, but there is a technical defect regarding t.he trimmi.ng of the wright size olthc piece of soap as wei J as the statical c ha.r a c ta.ri.st i.c of the design. Also, some laboratories need s ome te chni c a I modifications, re-adjustment and proper a ll gment .

8 ... The study recommended the finance of small scale laboratories in thewholJe country.

6-5 ~ PATTERN OF FINANCING MILLS AND DECORATORS ~

The targets 'of such .expe r iment are :-

1. The absorption of school I c a ve r s and their rehabilitation inprooductive professions which support development and that can be achieved through introduction of incentives to small a rt i sa.n s in the area of Mills Industry.

Al.so they should be ^encou rag e d for new innoivations to ^mechani s e and automate the simple ma0hines and equipment that they operate.

2. Encouragement of the idea of self-dependence on local lnat iona l ind us ttrie s that suit Sudanese environment.

Thus, El Nilein Bank ^f'i rra n c e d 234 mi lis and decorators ill Khartoum-Bt at e . The tot a l cost amounts to LS.76,056,000.

In fad, there are two types of Mj Llsr^r-

a- Miills working with Electric Motors of power between 15-20 tIP.

b- Mills working with Diesel of 15-20 tIP.

The total inv c st me nt cost of an Electric Mill amounts_. to LS.343,375, meanwh_, i l e the Diesel Mill costs a sum of LS.527,500.

The total production Mill is LS.963,033 and t he output annual profit. is LS.116,967 ..

3. The total annual production costs of a Diesel Mill amounts to LS.l,254,666, but the output was estimated to be round LS.l,620,000 per year; therefre, the annual profit magi n is estimated to be LS.365,334.

4. From the evaluation report we found that 'although some mills are of excellent .and good performance, but nevertheless ^t h e r e are:othermills of .l aw performance and productivity and working at a loa's ^{i v} The owners were complied to sell it or to close their stores or workshops. They think of

20

T7 "$'.,{'-$'._-- l ' PO mt

seekingg for another sources of income

5. In the study, appea r e d the following r e commendat ions A. To. stopfin'ancing of miIls " in category first and second close areas. .' . , .

B: Avaidnace of failure and vuns uc ce s af'u I patterns of mills in the state concerning the' finance. It is n e c e s.sary .to take invccn s i de r erfon the mea s u r e s and protection which minimize risks factors a's well losses when financing t h o se mills. These measures and Procedures are :-

1. To avoid comp et i o n b e t wee n mills owners at certain' areas and

w

i thin the 'same places.

2. he population density within the catchment area should be reasonable and they have to consume at least six sacks of oil seeds per d ay .

3. Availablility and continuation of powe e r supply whhether i t is diesel ~r elebtricity.

C, The resposibble development of the bank have to make sure that the p r oject s <de implemented within. their . s pe'cified choo s eniar e a s .

21

qttx ' en

CHAPTER SEVEN

PROPOSALS AND RECOMMENDATIONs

~ Role of the State in Non-goveTmental Sector •

- It is necessary to formulate clear policies through central Gov. and states authorities towards the finance of the non-govermentsl sector.

- Application of Sudan encouragement'investment laws and evaluation of all organization and legal obstacles which limitate the development of their sector.

- To faci 1 i tate the re c o g ni t ion and issue of maker certificate concerning technical innovation in the areaof

informal sector.

- The cordination between various concerned authorities in very important for the purpose of encouragement and dev e l o pme nt 'of informal s e c^t o r ..

Introdution of technical and scientific asssistance and consultancy to professionals and,artisons in all areas in the Sudan .

The informal sector mu s t be given near coprehensive overview which put the question of transfer of technology and its selection in national scientific development foum for the sake of ,expandingtechnblogy to wide productive non- goverment base.

. -To applyterolechnology techniqus in product design pro cu rment availablity r e lia l i ty and maintainlility of a facility Or equipment.

22

tt , 2m ^{q -}

the and and

~ GENERAL PROPOSALS AND RECOMMENDATIONS l

'- Tl;1~ activity of Guaranteed local market is necessary for the sale production of professions and industries of non-govement sector .

.: I t is of great importance to make available, raw - materials and inputs of production, for the sake of pr'cductive purposes for this sector.

- To make information co~cernfng thiis sect~r

available for the purpose of faci.lititing its supervision, also info rmat ion which reflect c ompeti tionand internal and external factors which may effect the performance of the unit.

- I t is necessary to make spare parts available on request for the purpose of continuation of production process.

continuation of power supply and its av ai labil i ty are necessary for pr o duct icn and protection of the producer.

~ - Education and training are very essential mat te r s for the proniot Lon of the standard of employed people in-

the field of piofessions and industries inn the informal sector, these should consistof.the following :-

A. Education in the area of illiteracy andadllit .edu c at ion.

B. Technical and scientific training for purpose of flromoting the production accordingly ach icvmennt of gua r nte e d market higher ou^tput .

c.

^{Adminis.trat ive} training iss of great effect on management, organization and supervision.

23

CONCLUSION _

'f' g ? T'¥ '$"'0- tfl -. '-if>

Acco rdingvto what have been said i.n the r e sea.rch , we have to emphasise the' following :- " , .

- The, informal, sector b as e.vwhi ch wor ksvin the areas of agriculture, in du st r ry, services and animal h a sband.ey and contributes to the process of development and t r an s.f e r of society fr.om prem i.t lve system to moodern position.

'-The designed. productivity in the induatr ia l sector, exceeds the real productivity but there are various internal and external factors which create obstac,les for l a.r ge-iindu s tr ie s and not allowing them to achieve t h e i.r r maximum designed

productivity. .

-The l1on-govemental sector contributes through its various a.ct ivi t t ie s andillmi t e d potentialities, in the coveage of the gap between designed product ivi t.y and the real produced quantities. such position is achieved through the innovations and

the creative ideas in the field of science and technology.

- Practica l vis!t s , s hawe d that e qui pme nt and machines manufactured, locally, declarc their effectiveness concerning the produced quantity or the cost, or both of them together (Kisra factaies,bakeries, tiles laboratories, Gods heaters and others ), but nevertheless, there are no studies which help in making comparative study between t heir productivity and the imported simi l a r items according to agreed upon mea su r e.s and c omt er.ion .

- The a x pe ri ment is still under evaluation for the pUJ pose of recording the defects and making necessary modificatioflsso as to put them in proper direction. Therefore it

is not easy thhis stage to make the judgment because there is a large technological lllove towards rural society which reflected in the shifting from the use of ppremitive traditional systems such as (Morhaka and funduk) to modern technology of fluur-mi11s.

~ There is no c~ntral instituations which makes available statistics, information and studies 'c o c e r ning the innovation and c re at i v.e issues in the' field of non-govermental s e cot r , Therefore such knowledgesare s cut te r e d among different unit s , except that which is connected with the recognition of

innovations.

- The base of most of technical innovations depend on similarity and immitation. There is the absence of proper design, technical studies and consult an cic s .

24

1w"Ptc-"- 1m en

REFERNCES

m--

1. re p ab 1i c of sudan, Bank of Sudan, report No . twenty

senven\ 1986 ... ,^{C . ' •}

2. Repablic of Sudan, l\linistry of Finance and Economic Planning, Economic survey, 1986/1987, 1992/1993.

3, Rep.abli c of Sudan., :Fisa! }s 1amicBank. of .sud e n , al'api2}eries 14, research and statistics centre.,proKessionals a.ndvtheir economics and experiments branch of professionals, F. I .B . S •.

4. Repablic of Sudan, Fisa! Islamic Bank of Sudan, arabic series, 12, research and statistics centre, SWil-1hscale industries in Sudan.

5. Dr. Mustafa Ahmed Hassan, Institute for -i.ndust.riaI researches and c o n sul tanci es , transfer of t e c h n

oLo

g y and selection, National Conference for Iridust rial SectQr,feb.!.986.

6. Repablic of Sudan, union of Sudanese lridu~tries, future of industry in the Sudan wi th concentration..0n~r"Qlems()f

industrial [rivatesector, National conference· on iri.qtfs,t.rial sector Feb. 1986.

.... 7 . Elnielin Group of Banks for industrialpev:el;Qpment., Sudan industry and development July, 1994.

8. Elnielin Group of Banks indu.str ..\al d!'lv.(JlQpD1~pt

Sudan, ex pe r iment t of evaluation of soap smalf-s2ale lat)oTl'ltqt're;s in Khartoum state.

, 9. Elnielin Group of Banks for industrial deve.lqpD1.ent, Sudan, e x l e r Lme n^t of evaluation of financing mills and d eco rato'rs in khartoum state.

10 MOUSGl Awad Bilaland Mustafa

AhmedE!;1vl~ga;l',~i,

policies and t r a^t e gie s for Industrialization in the Sudatl' under Investment laws, National conference of Industrial .S\"Cti)T, Feb.1986.

11. Hilmi Hassan El Hakim, Cranfield t n s t i t ute.v o.r technology, application of terotechnology to appropriate t ec hno l ogy systems,M.SC. thesis, September 1988.

25

TABLE (3-1l:

%1 F " " , = "; C ~'g

EMPLOYMENT IN THE.SECTOR OF PROFESSIONS

.. ^.

.

^{. .}

.

..

PROFESSION NO. OF LAB. FORCE AVERAGE NO. OF

UNITS ·LABOUR FORCE

BLACK~SMITH

361 1727 4,78

CARPENTRY 191 1090 5,71

LATHERS/FILING AND PUMPS 49 287 5,86

CARS FITTERS AND 65 351 5,4

CAR POLISH

ELECTRICIANS 28 135 4,82

CARS ELECTRICIANS AND 62 897

^.,

5,54

MECHANICS

.

PLUMBERS 9 44 4,89

FURNITURE MAKERS AND 25 90

3,6

SADDLERS

GOLD-SMITH 8 19 2,36

TAILORS 17 49 2,7

FOUNDRIES 5

11

2,2

i

PUNCHERS 17 37 2,18

ACCUMILATORS AND 4 9 .2,25

BATTERIES REPAIR

..

TRADITIONAL BAKERIES

7

86 12,29

.

SOURCE: Faisal Islamic Bank, Research and Statistics Centre

26.