Bread is among the everyday items that have become difficult to afford in Sudan, where prices continue to rise sharply. AFP
Bread is among the everyday items that have become difficult to afford in Sudan, where prices continue to rise sharply. AFP
Bread is among the everyday items that have become difficult to afford in Sudan, where prices continue to rise sharply. AFP
Bread is among the everyday items that have become difficult to afford in Sudan, where prices continue to rise sharply. AFP

Sudan's economy 'in state of shock' after aid cut and surge in prices


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Sudanese schoolteacher Babiker Mohamed barely covers his family's needs with his meagre income, but since last year's military coup he no longer knows if he can even keep afloat.

Like many in Sudan, Mr Babiker has been grappling with shortages in basic goods, as well as new taxes and steeply rising prices on fuel, electricity and food since a military coup led by army chief Abdel Fattah Al Burhan in October.

"I used to buy 20 loaves of bread at 100 Sudanese pounds before the coup," Mr Babiker, who provides for a family of six, told AFP.

"Bread alone now costs me about 27,000 pounds a month, which is like 90 per cent of my salary" of about 30,000 pounds ($50), he said.

"I don't know if I can afford to send my children to school any more."

Mr Babiker joined teachers who went on strike this week against the worsening living conditions.

Sudan's latest coup upended a transition painstakingly negotiated between civilian and military leaders after president Omar Al Bashir, whose rule was marked by crippling US sanctions and international isolation, was ousted in 2019.

It also triggered international condemnation and punitive measures, with the United States, World Bank and International Monetary Fund suspending badly needed aid to the impoverished country.

Sudanese exports have declined sharply, foreign currency shortages have been reported and efforts by local banks to re-establish ties with international counterparts in the US and the West have come to a screeching halt.

Return to isolation

"It's like the embargo was back since October 25," said economist Sumaya Sayed.

Protesters last week staged several rallies against the decline in living conditions.

Sudanese citizens have for decades endured severe economic hardship due to government mismanagement, internal conflict and the secession in 2011 of the oil-rich south.

Bashir himself was ousted in April 2019 after months of street protests initially triggered by the tripling of bread prices.

Essameddine Okasha, spokesman for the association of bakery owners in Khartoum, said bread prices have now surged "beyond people's reach".

He attributed the rise to increasing operational costs.

Sudan is also especially vulnerable to the effects of global supply shortages after Russia's invasion of Ukraine.

Protesters in northern Sudan have in recent weeks blocked a crucial trade route between Egypt and Sudan after a sharp increase in electricity tariffs.

In January, Sudanese authorities raised electricity prices across sectors, with households hit by an increase of about 500 per cent.

Fuel prices surge

Sudan had already embarked on plans to scrap fuel subsidies under the transition which was derailed by the coup.

Fuel prices have undergone several sharp increases over the past year.

On Saturday, petrol at the pump cost 672 pounds ($1.50) per litre, up from some 320 pounds before the coup.

Many local business owners have been forced to suspend operations.

"I have laid off some 300 employees, mostly women who were the breadwinners of their families," said a food factory owner in North Khartoum, speaking on condition of anonymity.

"I couldn't keep up with electricity and production input price hikes."

Economist Mohamed Al Nayer says Sudan is in "a state of shock".

"The absence of international aid and loans in the 2022 budget is having a negative effect," he said, pointing out that the fiscal plans rely heavily on tax rises.

"Taxes now constitute 58 per cent of the budget, sharply increasing prices and pushing the country into recession."

Sudan has been reeling from triple-digit inflation, which stood at 258 per cent in February.

"It will not be possible for the government to bring down inflation ... instead it will likely jump to 500 per cent," forecast Mr Al Nayer.

Sudan has yet to name a prime minister since the January resignation of UN economist-turned-premier Abdalla Hamdok.

This month, Sudan formed a council to address the economic challenges, led by the deputy head of its Sovereign Council, Mohamed Hamdan Daglo, known as Hemeti.

On March 9, Mr Daglo blamed a "mafia" of dealers responsible for currency and gold speculation on the local market.

Sudan's central bank announced this month it would allow the currency to float as part of measures to stem the black market.

"It was the right decision but at the wrong time," Ms Sayed said.

She said the move would drive up inflation and further weaken the local currency.

In mid-February, the Sudanese pound hovered at 450 to the dollar but now the greenback buys about 600.

"Central bank policies ... have so far failed," Ms Sayed said, in a situation that "requires proper reserves of funds and gold".

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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Day 5, Abu Dhabi Test: At a glance

Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.

Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.

The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.

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Dimuth Karunaratne (Captain), Angelo Mathews, Avishka Fernando, Lahiru Thirimanne, Kusal Mendis (wk), Kusal Perera (wk), Dhananjaya de Silva, Thisara Perera, Isuru Udana, Jeffrey Vandersay, Jeevan Mendis, Milinda Siriwardana, Lasith Malinga, Suranga Lakmal, Nuwan Pradeep

Russia's Muslim Heartlands

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Chelsea 2 Burnley 3
Chelsea
 Morata (69'), Luiz (88')
Burnley Vokes (24', 43'), Ward (39')
Red cards Cahill, Fabregas (Chelsea)

Updated: March 20, 2022, 9:58 AM`