Sales of the five business centers owned by Sudanese businessman Hashim Abu-Fadel have dropped by as much as 40 percent on the impact of the political unrest in Sudan, and he and others fear that continued political uncertainty will lead to the collapse of his country's economy.
Sudan has witnessed major tensions since April 6, the date of the start of a sit-in in front of the headquarters of the General Command of the armed forces demanding the overthrow of former President Omar al-Bashir. The Sudanese army overthrew Bashir on April 11 and the junta has since handed over power to the government. But the protesters' protest continued to demand the handover to civilians before it was forcibly removed on June 3, causing dozens of deaths.
After intensive mediation from the African Union and Ethiopia, military leaders and initial protest signed a power-sharing deal on Sunday, but unrest since last December has had a negative impact on the country's economy.
"Overall sales fell from 20 to 25 percent, and by 40 percent in specific sectors of my business," he told Agence France-Presse in his office in Khartoum.
Abu Dhabi has five commercial centers in the capital, with investments of up to $ 1 million. Most of its activities are based on imports. He has finally purchased less expensive goods or stopped investment in non-core goods.
"The volume of imports has generally declined. A large number of traders stopped the import ».
He points out that in the absence of a government «declares its economic policy, I as an investor I can not make a decision in the current ambiguity». Businessman Mohammed Hussein Mudawi, who owns companies in the agricultural and industrial sectors, agrees with the distribution of paper and plastic. "Due to weak turnout and depreciation of the pound, the import rate has been reduced by between 20 and 30 percent," he said, adding that the movement was "almost frozen."
The Sudanese pound has lost about 70 percent of its value since the end of 2018 on the black market. Inflation reached 47.78% in June, after reaching 73% in December, according to the Central Bureau of Statistics.
"I can not buy because there is no liquidity," says Hanadi Mohammed, a mother of seven while shopping at the Abu Fadhil center in north Khartoum. I do not know how long can we live like this? "As household items pile up on the shelves despite big discounts.
Despite the resurgence of life in Khartoum, and the reopening of shops, the decline in demand and the weakness of the movement of selling and buying in the markets.
"Prices have tripled since the end of 2018. We only go to shops that advertise discounts, but our purchasing power is very weak," says Imad Babkir, a family boss, as he drives an empty shopping cart in front of him.
Protests erupted mainly in Sudan to protest the three-fold increase in bread prices, before they quickly turned into a protest movement against Bashir.
"The trade movement has been essentially operating since last January," says senior economist Khaled Tijani. "There are sectors that still work like electricity, fuel and food, but if the current situation continues, even these things will not exist."
Power has been cut off frequently and for long hours since the beginning of this year.
"The economy is in a state of uncertainty because of the absence of an authority that cares about the economy," Tijani said.
Fears of economic collapse
The army and protest leaders will continue to negotiate a document on the constitutional framework that includes several controversial issues, which means that political uncertainty will continue in the short term.
US sanctions imposed on Khartoum 30 years ago have largely weakened the economy.
"Despite the revolution and the pressures, the economic situation is no worse than it was (before the fall of Bashir), but if the state of anticipation continues, the economy will collapse," he said.
For his part, he expressed his fear of "the collapse of the pound and double inflation if the current stalemate continues."
The size of the current foreign exchange reserves in Sudan is not known. Sudan's economy, which is dependent on imports and has suffered a deficit in the trade balance for years, is draining the reserves. Foreign debt has accumulated to more than $ 55 billion.
In April, Saudi Arabia and the United Arab Emirates announced a three-billion-dollar aid package for Khartoum, including $ 500 million, as a deposit at the central bank to strengthen its financial position, with the remainder spent in food, medicine and oil products.
Agricultural sector Agriculture is a key sector of the Sudanese economy and a major source of income for the majority of its population of about 40 million. The current crisis has cast a shadow over agriculture, as it is impossible to import agricultural materials from fertilizers and pesticides.
Finally, Saudi Arabia and the UAE sent more than 50,000 tons of agricultural nutrients and the needs of farmers to save the agricultural season in Sudan, according to the Saudi Press Agency.
Power has been cut off frequently and for long hours since the beginning of this year.