Impact of Sudan Access to World Trade Organization on the Contribution of Sudanese Commercial Banks in Financing of Infrastructural Projects 2005-2009

Abstract

This study was conducted to investigate the impacts of Sudan access to World Trade Organization (WTO) on the contribution of the Sudanese commercial banks to the development of infrastructures. The study depends on both primary and secondary data, the primary data had been collected by formal survey using structured questionnaire the study used multistage stratified random sampling. The Sudanese commercial banks represent the sampling frame, from which the sample was drawn from 32 banks. 13 banks were chosen at random, which represent 33% of the population, while secondary data were collected from relevant institutional sources. Four banks were selected: Sudanese French Bank, Farmer Bank, Savings and Social Development bank and Tadamon Islamic Bank for the period 2005- 2009. These banks are selected for reason that data are easily accessible. Commercial banks encounter several challenges on the local and international levels. Locally, they suffer from low paid up capital and high cost of operations. International problems lie in how to cope with international changes such as use of advanced technologies, qualified manpower, attraction of international savings and provision of quick and accurate services as provided by international banks. The general objective of the study was to assess the contribution of commercial banks to the development of infrastructures through analysis of the relevant data and comparing them with the total finance of the banks selected for this case study. iv The study found that access to WTO will assist banks in increasing the volume of finance to infrastructures particularly dams, electricity supply, roads, ports, health and education services in addition to preparing and increasing capacities of external trade movement in terms of imports and exports as well as eradication of obstacles which prevent such developments. The study adopted the analytical, descriptive and historical methodology in addition to analyzing the budgets of the four banks. The study revealed that commercial banks have poor contribution to infrastructure finance, that access to WTO will assist them in increasing their contribution to infrastructure development as a necessity inseparable from easy flow of international trade as well as assisting them to attract foreign capital, and introduce high technology systems of programs and training. The study recommended that, Sudan has to work hard in all economic fields to be better prepared to respond to the terms and conditions of (WTO) especially in the banking sector as it is closely linked with foreign trade. After access to (WTO) commercial banks should make serious efforts to increase their capitals, use modern technologies, train their staff and be committed to the terms and conditions of access to (WTO). Following Sudan fulfillment of (WTO) terms and conditions, commercial banks have to work more effectively in financing and developing infrastructure to facilitate trade between Sudan and other countries. v