Sudan Starts 2021 With 500% Increase in Electricity Prices

Sudan's Prime Minister Abdalla Hamdok and German Chancellor Angela Merkel (not pictured) address the media at the Chancellery in Berlin, Germany, on February 14, 2020. REUTERS/Hannibal Hanschke/File Photo
Sudan's Prime Minister Abdalla Hamdok and German Chancellor Angela Merkel (not pictured) address the media at the Chancellery in Berlin, Germany, on February 14, 2020. REUTERS/Hannibal Hanschke/File Photo
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Sudan Starts 2021 With 500% Increase in Electricity Prices

Sudan's Prime Minister Abdalla Hamdok and German Chancellor Angela Merkel (not pictured) address the media at the Chancellery in Berlin, Germany, on February 14, 2020. REUTERS/Hannibal Hanschke/File Photo
Sudan's Prime Minister Abdalla Hamdok and German Chancellor Angela Merkel (not pictured) address the media at the Chancellery in Berlin, Germany, on February 14, 2020. REUTERS/Hannibal Hanschke/File Photo

The Sudanese people have welcomed the new year with increased prices of electricity for the residential and industrial sectors, despite the government’s pledges to maintain the subsidies for electricity in the budget of 2021.

The budget, however, is expected to negatively impact the economic and social conditions.

The increases surpassed the 500 percent for the residential sector, and the price of kilowatt rose from 80 piasters to SGD6.35. As for the industrial sector, the price for one kilowatt rose to SGD10.

On the occasion of the country's Independence Day, Sudanese Prime Minister Abdalla Hamdok pledged to find solutions to the economic crises, signaling major and strategic breakthroughs in the economic file after removing the country from the US State Sponsors of Terrorism list.

During ongoing talks regarding the budget, the parties of Sudan's ruling political coalition asserted that no increases will be imposed on the subsidized services and goods, which include fuels, electricity wheat, medicine, and cooking gas.

The transitional government in Sudan has been imposing strict economic measures, since August 2019, starting from decontrolling fuel prices which aggravated the living condition.

Economist Kamal Karrar commented on this, saying that the increase in electricity bills by such a huge amount represents an additional burden that citizens, especially those with low-income, are obliged to bear.

This will have repercussions on various industrial and productive sectors in the country, Karrar added.



Tel Aviv Shares Hit Record Highs after US Strikes Iran Nuclear Sites

A Tel Aviv Stock Exchange sign is seen at the bourse in Tel Aviv, Israel November 4, 2020. REUTERS/Amir Cohen/File Photo
A Tel Aviv Stock Exchange sign is seen at the bourse in Tel Aviv, Israel November 4, 2020. REUTERS/Amir Cohen/File Photo
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Tel Aviv Shares Hit Record Highs after US Strikes Iran Nuclear Sites

A Tel Aviv Stock Exchange sign is seen at the bourse in Tel Aviv, Israel November 4, 2020. REUTERS/Amir Cohen/File Photo
A Tel Aviv Stock Exchange sign is seen at the bourse in Tel Aviv, Israel November 4, 2020. REUTERS/Amir Cohen/File Photo

Israeli stocks hit record highs on Sunday after the US attacked Iran's nuclear sites in strikes investors believe would likely prevent Tehran from developing nuclear weapons anytime soon.

The broad Tel Aviv 125 index closed 1.8% higher, extending gains to nearly 8% the past week, while the blue-chip TA-35 gained 1.5%.

On the heels of Israeli strikes in Iran, shares rose during all five sessions last week, gaining some 6%, as Israel hit Iranian nuclear and military targets prior to Saturday's surprise US attacks, Reuters reported.

"The destruction of Iran's key nuclear facilities by the US military is, of course, a positive development ... in terms of improving the regional security environment and reducing Iran’s military and nuclear capabilities," said Mizrahi Tefahot chief markets economist Ronen Menachem. "It's a game-changer."

Israel began its punishing attacks on Iranian nuclear facilities, ballistic missile factories and military commanders on June 13, which have been met with retaliatory Iranian strikes against Israel.

US President Donald Trump said he had "obliterated" Iran's main nuclear sites in strikes overnight with massive bunker busting bombs, joining an Israeli assault in a significant new escalation of conflict in the Middle East.

Tehran vowed to defend itself, and responded with a volley of missiles at Israel that wounded scores of people and destroyed buildings in Tel Aviv on Sunday.

In addition to gains in shares, government bond prices have risen, the shekel has appreciated and Israel's risk premium has edged lower.

Bond prices increased as much as 0.2% on Sunday. The shekel does not trade on Sunday but it has rallied from 3.61 per dollar on June 11 to 3.48 on Friday and is up some 1% this month.