Economy Another Victim of War in Impoverished Sudan

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

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.



Leisure ‘Forgotten’: Gaza War Drives Children to Work

Palestinian children break up stones collected from homes destroyed by previous Israeli air strikes, to sell them to make gravestones, in Khan Younis, southern Gaza Strip, 21 August 2024. (EPA)
Palestinian children break up stones collected from homes destroyed by previous Israeli air strikes, to sell them to make gravestones, in Khan Younis, southern Gaza Strip, 21 August 2024. (EPA)
TT

Leisure ‘Forgotten’: Gaza War Drives Children to Work

Palestinian children break up stones collected from homes destroyed by previous Israeli air strikes, to sell them to make gravestones, in Khan Younis, southern Gaza Strip, 21 August 2024. (EPA)
Palestinian children break up stones collected from homes destroyed by previous Israeli air strikes, to sell them to make gravestones, in Khan Younis, southern Gaza Strip, 21 August 2024. (EPA)

Some crush rocks into gravel, others sell cups of coffee: Palestinian children in Gaza are working to support their families across the war-torn territory, where the World Bank says nearly everyone is now poor.

Every morning at 7:00 am, Ahmad ventures out into the ruins of Khan Younis in southern Gaza, picking through the rubble produced by steady Israeli bombardment.

"We gather debris from destroyed houses, then crush the stones and sell a bucket of gravel for one shekel (around 0.25 euros)," the 12-year-old said, his face tanned by the sun, his hands scratched and cut and his clothes covered in dust.

His customers, he said, are grieving families who use the gravel to erect fragile steles above the graves of their loved ones, many of them buried hastily.

"At the end of the day, we have earned two or three shekels each, which is not even enough for a packet of biscuits," he said.

"There are so many things we dream of but can no longer afford."

The war in Gaza began with Hamas's unprecedented October 7 attack on southern Israel which resulted in the deaths of 1,199 people, most of them civilians, according to an AFP tally based on Israeli official figures.

Israel's retaliatory military campaign has killed at least 40,476 people in Gaza, according to the Hamas-run territory's health ministry, which does not break down civilian and militant deaths.

The UN rights office says most of the dead are women and children.

"Nearly every Gazan is currently poor," the World Bank said in a report released in May.

- 'Barefoot through the rubble' -

Child labor is not a new phenomenon in Gaza, where the United Nations says two-thirds of the population lived in poverty and 45 percent of the workforce was unemployed before the war.

Roughly half of Gaza's population is under 18, and while Palestinian law officially prohibits people under 15 from working, children could regularly be found working in the agriculture and construction sectors before October 7.

The widespread wartime destruction as well as the constant displacement of Gazans trying to stay ahead of Israeli strikes and evacuation orders has made that kind of steady work hard to find.

Khamis, 16, and his younger brother, Sami, 13, instead spend their days walking through potholed streets and displacement camps trying to sell cartons of juice.

"From walking barefoot through the rubble, my brother got an infected leg from a piece of shrapnel," Khamis told AFP.

"He had a fever, spots all over, and we have no medicine to treat him."

Aid workers have repeatedly sounded the alarm about a health system that was struggling before the war and is now unable to cope with an influx of wounded and victims of growing child malnutrition.

- Money gone 'in a minute' -

The paltry sums Khamis and Sami manage to earn do little to defray the costs of survival.

The family spent 300 shekels (around 73 euros) on a donkey-drawn cart when they first fled their home, and later spent 400 shekels on a tent.

At this point the family has relocated nearly 10 times and struggles to afford "a kilo of tomatoes for 25 shekels", Khamis said.

Moatassem, for his part, said he sometimes manages to earn "30 shekels in a day" by selling coffee and dried fruit that he sets out on cardboard on the roadside.

"I spend hours in the sun to collect this money, and we spend it in a minute," the 13-year-old said.

"And some days I only earn 10 shekels while I shout all day to attract customers," he added.

That's a drop in the ocean for daily expenses in a territory where prices for goods like cooking gas and gasoline are soaring.

In these conditions, "we only think about our basic needs, we have forgotten what leisure is, spending for pleasure," Moatassem said.

"I would like to go home and get back to my old life."