Sudan’s economic crisis is rapidly entering a critical phase as the national currency continues to deteriorate, reaching its lowest level against foreign currencies. The resulting repercussions have sent markets into turmoil and intensified a sharp rise in the prices of consumer goods across the country, placing an increasing burden on ordinary citizens amid an economic war that has escalated since the outbreak of the conflict between the Sudanese Armed Forces and the Rapid Support Forces in mid-April 2023. Despite various measures, the government has been unable to halt or control the deterioration.
Experts and observers say that both citizens and traders are paying the heavy price of the war, which has depleted savings and stripped people of sources of income while eroding purchasing power. Many have been unable to keep pace with rapidly rising prices amid increasing levels of hunger and disease, particularly among children.
Meanwhile, regional and international pressure is mounting to bring the warring parties back to the negotiating table. However, the widening gap between the positions of the two forces has made reaching a truce or ceasefire an increasingly distant goal, deepening Sudan’s crisis and opening the door to scenarios of widespread instability that would be difficult to contain within the country’s borders.
A Series of Strikes
Mubarak Idris, a trader in Omdurman Market, said that “traders in the three capital cities of Khartoum, Bahri, and Omdurman launched an open-ended strike by closing their shops after the collapse of the Sudanese pound, which reached its lowest level against foreign currencies. This brought markets to a standstill and caused a slowdown in buying and selling, while driving up the prices of basic commodities. Traders’ difficulties were compounded by the suspension of banking applications and the difficulty of obtaining cash.”
He added: “Amid the economic crisis, demand for foreign currency has increased significantly, disrupting markets that have witnessed a series of strikes in several states. The strikes began in the cities of Shendi and Atbara in River Nile State and later spread to central Sudan as government pressures increased and fees became chaotic despite the closure of markets. This has contributed to worsening living conditions for both traders and citizens.”
Idris continued: “The economic policies pursued by the government through imposing excessive fees will not help address the country’s economic crisis. Instead, they will lead to the destruction of some sectors. Traders are forced to pay federal and state taxes, in addition to commercial rents that have reached exorbitant levels, while fuel prices continue to rise, bringing factories and agricultural production to a halt.”
The trader noted that “the protests and closures will continue until the government resolves the chaos surrounding the increases, which have exceeded the capacity of businesses to bear the financial burden and threaten the continuation of commercial activity in Khartoum.”
A Frenzied Wave of Price Increases
Meanwhile, citizen Muawiya Ibrahim, who follows economic issues and market activity, said that “the current wave of price increases can only be described as frenzied. It has left traders unable to set prices for their goods, prompting many to close their shops to avoid losses when restocking.”
He added: “It is surprising that the government pursues small-scale currency traders, jails them, and confiscates their money. But what measures will it take against the larger players who benefit from the collapse of the national currency through wider channels and contribute to this deterioration, without effective oversight of foreign-currency flows and export proceeds?”
He noted that “these speculators freely trade in food, medical supplies, gold, weapons, fuel, foreign currencies, and other commodities, exploiting the chaos of the war that continues to affect the country. It is as though the suffering of millions of citizens has become fuel for their wealth amid the continuation of the war and the absence of any clear prospect of ending it.”
He said that it was impossible to speak of economic recovery as long as the conflict continues, because the prolonged war is intensifying the economic conflict and increasing pressure on the national economy, pushing it toward comprehensive collapse. This is negatively affecting citizens’ lives and reducing their purchasing power amid rising living costs. As a result, citizens are forced to bear the burden of higher prices, increased transportation and fuel costs, declining employment opportunities, and an inability to meet their families’ basic needs.
The economic affairs observer concluded by calling for “an end to the war and the restoration of stability as the fundamental entry point for halting the deterioration, as well as creating conditions for the resumption of production and economic activity across all sectors and, consequently, improving citizens’ living conditions.”
An Economic War
Banking researcher Walid Dalil said that “the ongoing war is waging a war against citizens through their food, drinking water, education, and healthcare. It is no less dangerous than weapons; rather, it is more devastating because it strikes at the structural foundations of society and threatens to produce physically and mentally exhausted generations even after the war ends.”
Dalil stressed that “government authorities, monetary institutions, and the international community must pay attention to addressing the economic crisis, as it is no less urgent than ending the fighting and may even be a prerequisite for political stability. The current price increases are consuming the resources of ordinary citizens and destroying the livelihoods of poor families who already suffer from economic vulnerability. If the crisis continues to expand, no one will be spared.”
He noted that “the victims of the country’s economic war are falling silently as the exchange rate plunges hour after hour, while currency speculation networks operate with little legal deterrence or accountability.”
The banking researcher continued: “The exchange-rate war has transformed from an economic indicator into a daily drain on citizens’ pockets after the Central Bank of Sudan abolished regulations that had previously curbed exchange-rate fluctuations and gave banks freedom to adjust exchange rates without a ceiling. This contributed to the rapid collapse of the Sudanese pound, which surpassed 7,000 pounds to the U.S. dollar in September this year and then continued to decline, approaching 8,000 pounds by the middle of the same month, before its sharp deterioration continued to reach its lowest level.”
