Sudan: the economy hard hit by the isolation of the country and the international context

Sudanese banknotes in a foreign exchange office in Khartoum in 2018. ASHRAF SHAZLY / AFP

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1 min

In Sudan, the crisis opened by the October 25 coup is still deadlocked.

The violent repression continues and the prospects for negotiations between putschists and the civil opposition are still uncertain.

Meanwhile, the Sudanese economy is hard hit by the isolation of the country and the international context pushing, this week, the military junta to take emergency measures.

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In Sudan, everything is now increasing: gasoline and diesel first, bottled gas, medical care and even business licenses.

Deprived of international support and facing a serious shortage of foreign exchange due to the collapse of exports, the military junta therefore drew up a budget counting on a 145% increase in tax revenues and 140% in consumption taxes, according to the Reuters agency.

But given the weight of the informal economy, these projections are very uncertain.

The Ministry of Economy, run by former rebel Jibril Ibrahim, might be tempted to print money to pay civil servants and state expenses, but that would only encourage further inflation.

As a matter of urgency, the Central Bank therefore decided to let the Sudanese pound float on Monday, which automatically increased the dollar's exchange rate and continued to drive up prices.

To compensate for wheat losses due to the war in Ukraine, Jibril Ibrahim also asked farmers the next day to increase their production and accept a lower price.

The number 2 of the junta,

General Hemeti

, for his part met, on Thursday, the gold merchants, a sector where he himself has personal interests, to supply the coffers of the State.

►Also read: Sudan: new mobilization against the coup strongly repressed

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  • Sudan

  • Economy

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