Sudan Turns to the Legacy of Cooperatives to Tackle High Prices and Poverty

As poverty continues to spread across Sudan and families’ ability to meet their basic needs diminishes amid the ongoing war between the army and the Rapid Support Forces (RSF), now entering its 40th month, economists believe that reviving cooperative societies could offer a potential glimmer of hope for alleviating poverty and curbing profiteering by crisis traders, amid highly complex economic and security conditions that have worsened as the conflict expands across the country.

Despite Sudan’s long experience with cooperatives—whether in government and private sectors or within residential communities—as one of the mechanisms for economic and social protection and a means of organizing citizens’ limited resources to obtain goods and services, observers believe that the experience may now be weighed down by the crises facing a country exhausted by war, with weakened state institutions and an economy suffering collapse.

A Historical Legacy

The roots of Sudan’s cooperative movement date back to the late 1920s, when agricultural credit societies emerged in the Tokar Delta in eastern Sudan. In 1937, the first popular cooperative society, known as the “Cooperative Company,” was established. The movement’s legal framework came in 1948, when a memorandum was submitted to the British colonial government, eventually leading to the enactment of Sudan’s first Cooperative Law in 1952.

Despite changes in successive political regimes, cooperatives experienced significant growth and expansion during President Jaafar Nimeiri’s rule in the 1970s. Their number eventually doubled, reaching around 10,000 organizations by 2007, contributing to improved living standards and greater social security for various segments of Sudanese society.

Fadlallah Al-Reeh, a farmer in River Nile State, said: “It is well known that agricultural seasons across Sudan have suffered catastrophic failures due to obstacles that have caused enormous losses as a result of the ongoing war. This requires rebuilding the social fabric torn apart by the conflict. Given the shortage of bank financing from the relevant institutions, as well as the looting of agricultural equipment and warehouses, there is a need to revive cooperative societies that can contribute to agricultural reform, particularly since they have lost their long-standing legacy due to political and social interference and weak cooperative awareness.”

Al-Reeh added: “The ongoing conflict has been one of the main causes of the paralysis of cooperative societies as a result of displacement and the destruction of state institutions. They had previously been active as community initiatives to prevent agricultural projects from coming to a standstill, particularly for small-scale farmers. However, the war has weakened their role through the loss of capital.”

He continued: “Informal cooperatives among farmers in Sudan’s rural areas, including the Northern State, emerged as early as 1921, before the enactment of Sudan’s first cooperative law. This confirms that they have a historical legacy that provided farmers with a stable resource before the stage of legislation and formal establishment began, including the enactment of the Cooperative Law in 1984. By the late 1960s, agricultural and consumer cooperatives had expanded significantly and experienced major growth.”

The farmer noted that “given the deteriorating living conditions, there are growing calls for cooperative societies to return to their former role. However, they now face a new test after the war hit production areas, markets and transportation routes and forced millions of Sudanese to flee their homes. In addition to its direct impact on the economy and society, the war has created an urgent need for mechanisms capable of easing the suffering—not only among farmers but across all segments of society impoverished by the conflict.”

He pointed out that “pooling a specific resource, as was done in the past, could give cooperatives an advantage, particularly in affected areas. Instead of farmers working individually, groups of members could share the costs of production, purchasing, storage and marketing.”

Hardship and Protection

Jibril Adam, an employee in the railway sector, said: “The primary purpose of cooperative societies is to serve their members, whether through consumer or financing cooperatives, by pooling their resources to meet common needs. They reduce the need to rely on the market individually.”

He explained that “these forms of solidarity-based services, which operated on a wide scale before the outbreak of the war, supported family stability. No household of government or private-sector employees was without consumer goods. We used to receive them every month, including all the necessities of daily life, and they played a major role in helping people cope with economic crises.”

Adam said that “the current living conditions have placed a heavy burden on citizens and pushed them to the brink of famine. Millions are suffering from hunger because most people live without sources of income, while prices rise every day amid traders’ greed.”

The railway employee noted that “cooperative societies provide opportunities for participation to different segments of society, including women, young people, artisans, persons with disabilities and people on low incomes. Many countries consider the cooperative sector the third sector after the public and private sectors, as it represents a form of social economic organization based on cooperation among people willing to volunteer their time and efforts because they believe in the benefits of collective action.”

Meanwhile, Israa Al-Sir, an activist and community affairs advocate, said: “The war in Sudan has contributed to the spread of poverty among citizens, highlighting the need for social protection systems in various sectors and residential communities as a means of easing the burden of deteriorating living conditions.”

Al-Sir added: “Cooperatives had already been suffering from structural weaknesses as a result of years of economic and political crises. Despite efforts to implement social protection programs, including cash assistance and consumer-goods programs, the decline of state institutions made these programs limited and unable to respond to growing needs as the conflict intensified. This led to the collapse of protection systems, with their role shifting toward emergency rooms and reliance on external humanitarian assistance.”

The community activist continued: “Humanitarian organizations and civil society played a pivotal role in filling the gap by providing financial support, food aid and health services to those in need. As life gradually normalizes following the return of citizens to their areas, including state employees, calls are growing to restore cooperatives to their former role in meeting household needs amid inflation, rising prices and the collapse of the local currency.”

A Tool for Economic Recovery

Economist Abdelwahab Juma noted that “in the context of the war, the economic repercussions continue to place an increasing burden on citizens, particularly with regard to rising prices of consumer goods and essential services. This calls for activating cooperative societies that can protect economically vulnerable groups from market fluctuations.”

Juma explained: “Cooperative societies can indeed provide stability and ease the severe cost-of-living crisis worsened by the ongoing conflict by purchasing essential goods directly from manufacturers at factory prices, without the involvement of traders, brokers or intermediaries. This can help confront price chaos, traders’ greed and the collapse of the Sudanese pound.”

He continued: “The cooperative movement experienced major leaps and expanded across the government and private sectors, reaching around 9,000 organizations in 2007 and contributing to improved living standards. However, it lost much of its historic role due to political interference and weak cooperative awareness.”

The economist warned that “to overcome these obstacles, the cooperative movement needs government support, infrastructure development, and stronger institutional and organizational capacities. This would enable cooperatives to regain their role in providing social and economic services to their members and contributing to economic recovery.”