While the capital Khartoum and other cities have been witnessing severe crowding for many years in markets, public transport stands, cafes and restaurants, the situation has changed completely in light of the economic pressures that have increased dramatically over the past few months.
And at a time when the Sudanese markets rely on imports to secure 60 percent of their needs, the customs dollar rose during the recent period by 739 percent to 564 pounds, after it was calculated at 55 pounds. Port fees also rose by more than 300 percent.
Port floor fees have almost quadrupled, in addition to an increase in container shipping fees by about 500 percent. Electricity prices also rose 116 times in less than a year, and taxes and customs fees jumped by rates ranging from 300 to 500 percent.
The large increases in taxes, customs and local fees caused huge increases in the prices of goods and services, and undermined the capacity of the industrial sector, which is reported to have lost 80 percent of its production capacity during the recent period.
According to independent estimates, government fees and taxes account for 70 percent of the prices of basic commodities when they reach the final consumer.
No sector has been spared from the current recession; From groceries, stores selling vegetables, fruits, meat, electrical and electronic appliances, building materials, luxury restaurants, entertainment venues, and the passenger transport sector, the significant decline in purchasing power has become the master of the situation.
‘scary’ retreat
Al-Nour Muhammad, a grocery owner in Al-Amarat neighborhood – one of Khartoum’s elite neighborhoods – describes the decline in daily purchases as “frightening.”
He tells Sky News Arabia that he and others are now focusing only on very necessary goods, in light of the reluctance of most of the population to buy luxury or high-quality goods.
He explains, “This neighborhood is inhabited by a large group of affluent people, senior employees, and merchants who, in the past, used to demand the finest types of food commodities regardless of their cost, but most of them are no longer able to buy because of the sharp rise in commodity prices and directing exchange towards more important needs.”
Muhammad refers to the great difficulties faced by the owners of groceries in light of the decline in purchasing power and the high costs of electricity and government fees.
The current crisis also affected the health services sector, which is rarely affected by recessions. Muhammad al-Obaid, who owns a dental clinic in central Khartoum, told Sky News Arabia that the number of visitors decreased by about 50 percent due to the significant increase in the cost of rents, electricity, government taxes, and inputs for dental treatments and orthodontics, which reduced the ability to face the high costs of treatment. “.
Al-Obaid notes that many patients face great difficulties in obtaining adequate insurance coverage.
The recession appears more severe in the electrical appliances, building materials and luxury goods markets, whose sales have declined by more than 70 percent over the past ten months. Traders attribute this to directing most of the population’s spending towards essential needs.
The transportation sector was affected
Like other sectors, the transportation sector has also been affected by the current recession. Adel Ali, who owns a bus to transport passengers to and from one of the areas located in the north of Khartoum, confirms that “he is forced to line his bus for long hours to get enough passengers.”
He adds to our website: “Until recently, the bus was filled with passengers as soon as it entered the parking lot, but although people still go to workplaces, schools, or service sites, filling the bus has taken many hours during the recent period.”
Ali explains, “In light of the current crisis, some people prefer to reach their destination on foot or contribute to the cost of petrol with the nearest colleague at the workplace or study, which has greatly reduced the need for public transportation.”
Due to the decline in purchasing power and the current state of recession, many producers, traders and service providers were forced to exit the market during the recent period. Journalist Haider Al-Makashfi points out that the escalating taxes and fees greatly affected the consumer’s purchasing power or his ability to obtain services or treatment.
Al-Mekashfi told Sky News Arabia that the prices of goods and services have become beyond everyone’s ability and made it difficult for the merchant to charge them to the consumer in a country where more than 60 percent of the population lives below the poverty line.
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