In an analysis by Reuters, through which the picture was conveyed on the ground in light of the ongoing conflict, major factories, banks, shops, and markets were looted, vandalized, or severely damaged, and electricity and water supplies were disrupted, and residents spoke of a sharp rise in prices and a shortage of basic commodities.
The Sudanese economy was already suffering, even before the outbreak of fighting between the two sides of the conflict on April 15, from a deep recession due to a crisis dating back to the last years of the rule of former President Omar Al-Bashir and the unrest that followed his overthrow in 2019.
Tens of thousands have so far fled the violence in Khartoum and the neighboring cities of Bahri and Omdurman, while others are sheltering in their homes as shelling and air strikes continue to hit residential neighbourhoods.
The movement of goods and people has slowed down, communication networks can no longer be relied upon, and some say they have begun to limit food and water rations.
Ismail al-Hassan, an employee of a company in Khartoum, said: “We are afraid and suffering from high prices, lack of goods and lack of salaries. This is a war on citizens.”
Sudan is already an important exporter of gum arabic, sesame, peanuts and livestock, and has the potential to be a major exporter of agricultural crops and livestock and a logistics hub.
But the economy has been hampered by decades of international sanctions and isolation, as well as endemic corruption.
Most Sudanese have been suffering from high inflation, sharp currency depreciation and deteriorating living standards for many years, and about a third of Sudan’s total population of 46 million depend on humanitarian aid.
There are no drivers
The conflict has hampered trade flows to and from the East African country due to the centralization of banking and customs procedures in Khartoum.
While the country’s main port on the Red Sea continues to operate, at least one major shipping company, Maersk, has announced that it has stopped taking bookings there until further notice.
A Khartoum-based trader said it had become more difficult for wheat imports, which are essential to Sudan’s food security, to arrive.
Alaa Ezz, Secretary-General of the General Federation of Egyptian Chambers of Commerce, said Sudan’s imports of durable goods such as refrigerators across the land border with Egypt have also slowed.
Michel Sidhom, director of the supply chain in a trading company operating in Egypt and Sudan, said that the company’s business in Sudan has “completely stopped” with the cessation of exporting fertilizers and flour (flour) from Egypt in quantities that usually amounted to about ten thousand tons per month for each.
Egypt, the second largest importer of Sudanese livestock, said it was looking to diversify its sources as a result of the unrest.
Their master says his company’s merchants in Sudan have left Khartoum, and no drivers are willing to risk taking their goods to the capital.
A shortage of goods and a rise in prices
Residents in Khartoum talk about a shortage of some consumer foodstuffs such as flour and vegetables, in addition to the high prices, as long lines extend in front of bakeries and shops in the capital.
According to a Reuters correspondent, the price of a kilogram of lamb jumped about 30 percent to 4,500 Sudanese pounds ($7.52), and the price of a kilogram of tomatoes doubled to 1,000 Sudanese pounds ($1.67).
A supermarket owner in Omdurman believes that the reason for inflation is the high fuel prices on the black market, as the price of a gallon of fuel reaches 40,000 Sudanese pounds ($67) now, up from two thousand Sudanese pounds ($3.34) before the crisis.
A butcher in Omdurman said demand is low even in places where fighting has subsided because residents have left.
The value of the Sudanese pound has fallen by about 600 percent against the dollar since 2018, prompting many to save their money in dollars.
Merchants in Khartoum are facing a cash liquidity crisis, and people are increasingly relying on the “Bankak” application, which relies on opening an electronic wallet to pay bills, but this service is often interrupted.
The black market witnessed unusual fluctuations, as expatriate relatives sought to sell dollars through transfers through the application of your bank to their families in Sudan, while residents inside the country sought to obtain dollars as safe savings.
Currency dealers offer to sell the dollar at prices of up to 700 Sudanese pounds ($1.17), while buying it at less than 300 Sudanese pounds ($0.5014), with prices varying greatly in light of the increasing difficulty of transportation and communications.
And the Central Bank of Sudan said, on Sunday, that banks outside the capital conduct withdrawal and deposit transactions, while inside the capital Khartoum, the army and the Rapid Support Forces exchanged accusations of looting banks, and the head of a bank in the capital said that he was trying to move the bank’s headquarters temporarily outside Khartoum.
Crowds were seen in the city of Atbara, northeast of Khartoum, standing in front of banks, some of which have imposed maximum withdrawal limits.
Al-Hassan spoke from Khartoum, saying, “The cash flow that I had ran out, and I did not receive my salary, and banking applications do not work.”
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