How Are Sudanese Coping with the War Economy and the Collapse of the Pound

A wave of rising prices is steadily making its way into every aspect of daily life in Sudan, as the Sudanese pound continues to lose value rapidly against foreign currencies. The depreciation is putting further pressure on markets already suffering from stagnation, forcing families to reduce their purchases, while authorities attempt to contain price increases through measures aimed at ensuring the availability of essential goods.

An Al Jazeera report portrays the situation in Sudanese markets, where food prices have risen and purchasing power has declined, while economists warn of the consequences of continued currency depreciation for prices and commercial activity.

Daily Struggles

At one shop, a Sudanese woman described part of the daily hardship, saying that a kilogram of sugar has reached 10,000 Sudanese pounds, while some citizens can no longer afford to buy even a quarter of a kilogram, amid growing needs for food, drink, and medicine.

Adam, a shop owner, described the changes in consumer behavior, explaining that goods that once attracted strong demand are now being purchased only in small quantities. Customers increasingly buy only what they need for the day, as rising prices have imposed a new reality on household budgets.

As the pound continues to depreciate, uncertainty in the markets is growing. The cost of goods is rising and the availability of some commodities is declining, while the impact of the crisis is spreading to transportation, services, and other basic necessities, reflecting the widening economic pressures caused by the war.

Urgent Measures

Economic expert Yasser Jamal Al-Din believes that addressing these pressures requires urgent measures at both the monetary and fiscal levels. He pointed to the role of the Central Bank of Sudan in monetary policy and the Ministry of Finance in fiscal policy as part of an integrated approach to addressing the crisis.

In Khartoum, local authorities have moved to establish permanent and mobile sales outlets across the seven localities, with the aim of bringing goods directly from producers to consumers at reduced prices. The outlets will offer essential food commodities, meat, and vegetables in an attempt to mitigate the impact of rising prices.

Amin Hassan, the acting Minister of Trade and Industry in Khartoum State, explained that “these outlets are intended to absorb price increases and provide citizens with their basic needs at affordable prices,” at a time when the trajectory of the currency highlights the scale of the pressures facing the market since the outbreak of the war.

A Dramatic Decline

Since the outbreak of the war, the Sudanese pound has fallen sharply against the US dollar on the parallel market, from around 570 pounds per dollar to approximately 2,550 pounds by the end of December 2023, before the dollar exchange rate surpassed the 7,000-pound mark.

The effects of the currency’s decline are not limited to markets. They extend to Sudanese dining tables, changing household food choices and making dishes once considered simple and affordable increasingly burdensome on household budgets, amid a widening gap between prices and incomes.

In a report prepared by Al Jazeera journalist Mohamed Al-Zein, these changes are reflected in accounts from citizens and shop owners about rising meat prices and the cost of fatta made with fava beans, showing how the economic crisis has reshaped everyday food choices in Sudan.

Mohamed Jaber Al-Balouta, a butcher, said that the price of a kilogram of beef had reached 44,000 pounds, while lamb had risen to 70,000 pounds. He noted that purchasing power had declined, with customers shifting from buying larger quantities to purchasing just a quarter or half a kilogram.

From Meat to Fava Bean Fatta

Citizen Al-Hussein Saif Al-Din said that meat prices had become extremely high in relation to living conditions, noting that many goods available in the market had become unaffordable. Meanwhile, Suleiman Abdel-Baqi pointed to the impact of cash shortages.

According to Abdel-Baqi, the rising cost of living and lack of liquidity have affected purchasing activity at the butcher shop, where he no longer sees customers buying large quantities of meat. He said customers now come to the shop and are forced to buy only what their financial means allow.

Fatta made with fava beans, one of Sudan’s most popular traditional dishes, is also facing rising ingredient costs. Citizen Al-Zamzami Mohamed said the cost of the meal had increased by around 40 percent, although it remains a relatively popular and affordable option for Sudanese families compared with other restaurant meals.

He explained that a group of five people could have fatta for around 3,000 to 4,000 Sudanese pounds per person. Mohamed Maher, meanwhile, said that fava beans remained one of the available options, as a single meal could be enough to feed two people.