Economy Another Victim of War in Impoverished Sudan

Destruction in Gaza caused by Israeli airstrikes (AP)
Destruction in Gaza caused by Israeli airstrikes (AP)
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Economy Another Victim of War in Impoverished Sudan

Destruction in Gaza caused by Israeli airstrikes (AP)
Destruction in Gaza caused by Israeli airstrikes (AP)

Before the Sudanese army and paramilitary fighters turned their guns on each other last year, Ahmed used to sell one of Sudan's main exports: gum arabic, a vital ingredient for global industry.

Now he's out of business, and his story encapsulates the broader economic collapse of Sudan during 10 months of war.

Since combat between two rival generals began on April 15, Ahmed has been at the fighters' mercy.

"When the war began, I had a stock of gum arabic in a warehouse south of Khartoum that was intended for export," Ahmed told AFP, asking to use only his first name for fear of retaliation.

"To get it out I had to pay huge sums to the Rapid Support Forces," the paramilitaries commanded by Mohamed Hamdan Daglo who are at war with the Sudanese Armed Forces led by Abdel Fattah al-Burhan.

"I had to pay multiple times in areas under their control, before my cargo got to areas controlled by the government," Ahmed said.

But the government -- loyal to the army -- "then demanded I pay taxes" on the product, an emulsifying agent used in everything from soft drinks to chewing gum.

When the trucks finally made it to Port Sudan for export on the Red Sea, "authorities again asked for new taxes, and I had to pay storage fees six times more than before the war", Ahmed said.

His gum arabic -- like many other Sudanese products -- never made it onto a ship. According to Sudan's port authorities, international trade fell 23 percent last year.

The finance ministry, which didn't set a national budget for 2023 or 2024 and has foregone quarterly reports, recently raised the exchange rate for imports and exports from 650 Sudanese pounds to 950.

But that is still far below the currency's real value.

With most banks out of service, the only exchange rate that matters to ordinary Sudanese is on the black market, where the dollar currently goes for around 1,200 Sudanese pounds.

"It's a sign of the destruction of the Sudanese economy," former Sudanese Chamber of Commerce head al-Sadiq Jalal told AFP.

To make matters worse, a communications blackout since early February has hampered online transactions -- which Sudanese relied on to survive.

The war has led industries to cease production. Others were destroyed. Businesses and food stocks have been looted.

The World Bank in September said "widespread destruction of Sudan's economic foundations has set the country's development back by several decades".

The International Monetary Fund has predicted that even after the fighting ends, "years of reconstruction" await the northeast African country.

Sudan suffered under a crippled economy for decades and was already one of the world's poorest countries before the war.

Under the regime of strongman Omar al-Bashir, international sanctions throttled development, corruption was rampant, and South Sudan split in 2011 with most of the country's oil production.

Bashir's ouster by the military in 2019 following mass protests led to a fragile transition to civilian rule accompanied by signs of economic renewal and international acceptance.

A 2021 coup by Burhan and Daglo, before they turned on each other, began a new economic collapse when the World Bank and the United States suspended vital international aid.

More than six million of Sudan's 48 million people have been internally displaced by the war, and more than half the population needs humanitarian aid to survive, according to the United Nations.

Thousands of people have been killed, including between 10,000 and 15,000 in a single city in the western Darfur region, according to UN experts.

Now the indirect death toll is also rising.

Aid agencies have long warned of impending famine, and the UN's World Food Program is "already receiving reports of people dying of starvation", the agency's Sudan director Eddie Rowe said in early February.

The Sudanese state "is completely absent from the scene" in all sectors, economist Haitham Fathy told AFP.

Chief among those is agriculture, which could have helped stave off hunger.

Before the war, agriculture generated 35-40 percent of Sudan's gross domestic product, according to the World Bank, and employed 70-80 percent of the workforce in rural areas, the International Fund for Agricultural Development said.

But the war has left more than 60 percent of the nation's agricultural land out of commission, according to Sudanese research organization Fikra for Studies and Development.

In the wheat-growing state of al-Jazira, where RSF fighters took over swathes of farmland south of Khartoum, farmers have been unable to tend their crops. They saw their livelihoods wither away.

From the wheat fields to Ahmed's gum arabic warehouse, the story is the same.

His savings spent, his stock gone and his future bleak, Ahmed -- like much of Sudan's business class -- has closed up shop.



What Are Egypt’s Goals for its Military Presence in Somalia?

The recent Egyptian-Somali summit in Cairo, where Egyptian President Abdel Fattah al-Sisi and Somali President Hassan Sheikh Mohamud have signed a joint defense agreement (Egyptian Presidency)
The recent Egyptian-Somali summit in Cairo, where Egyptian President Abdel Fattah al-Sisi and Somali President Hassan Sheikh Mohamud have signed a joint defense agreement (Egyptian Presidency)
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What Are Egypt’s Goals for its Military Presence in Somalia?

The recent Egyptian-Somali summit in Cairo, where Egyptian President Abdel Fattah al-Sisi and Somali President Hassan Sheikh Mohamud have signed a joint defense agreement (Egyptian Presidency)
The recent Egyptian-Somali summit in Cairo, where Egyptian President Abdel Fattah al-Sisi and Somali President Hassan Sheikh Mohamud have signed a joint defense agreement (Egyptian Presidency)

A Somali official’s comment about Egyptian military equipment and delegations arriving in Mogadishu has sparked questions about Egypt’s goals in Somalia, especially with rising tensions with Ethiopia.

Experts told Asharq Al-Awsat that this move likely aims to strengthen ties by “turning agreements into action.”

They believe Egypt’s military presence will focus on training Somali forces and joining peacekeeping missions to help Somalia fight terrorism and maintain its borders.

Opinions are divided. Some see Egypt’s involvement as routine, while others worry it might escalate tensions with Ethiopia, which is already at odds with both Egypt and Somalia.

According to New Somalia, two Egyptian military planes arrived in Mogadishu on Tuesday, carrying equipment and officers as part of a broader strategy in the Horn of Africa. Somalia is seeking to boost its military through international partnerships.

This happens as Egypt prepares to join the African Union’s new mission in Somalia (AUSSOM), set to replace the current mission by January 2025.

While Cairo has not commented, Somalia’s Ambassador to Egypt, Ali Abdi Awari, welcomed the Egyptian military presence, noting that Egypt will be the first to support the Somali army after the current African Union forces withdraw.

The ambassador called this a “key step” in carrying out the agreements made during the recent Egyptian-Somali summit in Cairo, where both countries signed a joint defense deal.

Egyptian President Abdel Fattah al-Sisi, during a press conference on Aug. 14, announced that Egypt would participate in the renewed peacekeeping mission in Somalia, depending on Somalia’s invitation to do so.

Strategic expert Maj. Gen. Samir Farag says Egypt’s military presence in Somalia has three main goals: Toelp the Somali army improve its skills against al-Shabaab using Egyptian expertise, to support Somalia’s territorial integrity by strengthening its military, and to assist Mogadishu in securing the Suez Canal from the Bab al-Mandeb Strait.

Farag does not believe Egypt’s presence is meant to counterbalance other countries in the region, pointing out that Egypt does not have military bases there.

He expects this move to avoid major tensions, especially since Somalia, an Arab country, has requested Egypt’s peacekeeping support as part of their strategic partnership.