Sudan Faces Import Paralysis

The Sudanese Importers Chamber has stopped importing and paying taxes to the state. (Photo: Reuters)
The Sudanese Importers Chamber has stopped importing and paying taxes to the state. (Photo: Reuters)
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Sudan Faces Import Paralysis

The Sudanese Importers Chamber has stopped importing and paying taxes to the state. (Photo: Reuters)
The Sudanese Importers Chamber has stopped importing and paying taxes to the state. (Photo: Reuters)

The Sudanese Importers Chamber announced the suspension of imports and the non-payment of any customs or tax duties to the state, for a period of three days starting Sunday, in protest against the increase in the customs rate.

The decision constitutes a major shock to the government, which relies mainly on import and export customs revenues to run the state’s affairs in light of the stifling economic crisis in the country.

In a statement on Thursday, the Chamber said that the increase in the exchange rate of foreign currencies would augment customs duties by 30.8 percent, which will have dire effects on the living conditions in the country.

The Sudanese Importers Chamber called on all its employees to stop all imports, and to refrain from paying customs and tax fees and any other government fees for three days, until reaching an agreement with the concerned authorities.

In turn, the Sudanese Ministry of Finance denied in a statement, the adoption of any decision to increase the customs fees. The ministry’s official spokesman, Ahmed Al-Sharif Mohamed Abdel-Rahman, said that the price of the dollar varies according to the policy adopted by the country’s central bank.

A decision was announced in June, eliminating the customs exchange rate used to calculate import duties.

The move comes within a reform plan monitored by the International Monetary Fund to give debt relief and attract new financing.

Economic Expert Al-Fateh Mahjoub Othman told Asharq Al-Awsat that the decision to raise the price of the customs dollar to equal the exchange rate of the Sudanese pound in all government transactions removes one of the biggest hurdles to the Sudanese economy.

He added that the decision would help the government improve its public finances, and increase its spending ability in the first and second quarters without resorting to borrowing from the Bank of Sudan.



Saudi Arabia and Italy Boast Trade Volume of Around $10.9 Billion

Saudi and Italian officials meet during Meloni's visit to the Kingdom on Sunday. (SPA)
Saudi and Italian officials meet during Meloni's visit to the Kingdom on Sunday. (SPA)
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Saudi Arabia and Italy Boast Trade Volume of Around $10.9 Billion

Saudi and Italian officials meet during Meloni's visit to the Kingdom on Sunday. (SPA)
Saudi and Italian officials meet during Meloni's visit to the Kingdom on Sunday. (SPA)

Economic affairs were the key focus of Italian Prime Minister Giorgia Meloni’s visit to Saudi Arabia, which began on Saturday and continues until Monday. During her first official trip to the Kingdom, Meloni aims to strengthen bilateral relations and boost trade ties before heading to Bahrain.

As members of the G20, Saudi Arabia and Italy share mutual economic interests. The establishment of the Saudi-Italian Joint Committee has played a pivotal role in advancing economic, trade, and investment relations between the two countries. It has also created effective governance frameworks to foster collaboration and elevate their relationship to the level of a strategic partnership.

Strategic partnerships

Saudi Arabia is Italy’s second-largest trading partner in the region. In 2023, the trade volume between the two countries reached around $10.8 billion. Saudi imports from Italy were valued at $5.875 billion, while exports to Italy amounted to $4.921 billion, including $737 million in non-oil exports. Globally, Italy ranks as the 10th largest exporter to the Kingdom.

Both nations are working to strengthen economic and investment ties by regularly convening the Saudi-Italian Joint Business Council, increasing official and trade delegation visits, encouraging joint ventures, and organizing trade and investment events.

Currently, more than 150 Italian companies operate in Saudi Arabia, with Italy’s foreign direct investment (FDI) stock in the Kingdom exceeding $4.6 billion.

Renewable energy cooperation

Saudi Arabia and Italy are collaborating in the renewable energy sector as the Kingdom focuses on its transition to carbon neutrality. Italy, with its extensive experience in renewable energy technologies, is seeking to establish a long-term partnership with the Kingdom, a potential future leader in green hydrogen production.

In September 2023, the Saudi-Italian Investment Forum, hosted in Milan by Saudi Arabia’s Ministry of Investment in partnership with Italy’s Ministry of Enterprises and Made in Italy, resulted in the signing of 21 agreements and memorandums of understanding. They covered sectors such as traditional and clean energy, healthcare, real estate, waste management, and more.

According to the Italian government, Italy views Saudi Arabia as a key partner, especially regarding investment opportunities tied to the Kingdom’s Vision 2030. The transformative reform plan aims to diversify the Saudi economy, shifting its reliance from oil to a service-based model. It emphasizes tourism, startups, and small- and medium-sized enterprises (SMEs) in high-value-added sectors.

Saudi Arabia ranks sixth globally in terms of the number of visas issued by Italy, underscoring Italy’s position as a leading destination for Saudi tourists.

Italy is also among the top 20 countries investing in Saudi Arabia, with over 150 Italian companies holding foreign investment licenses in the Kingdom. The Saudi-Italian Investment Forum in 2023 further solidified economic ties, with the signing of 21 agreements spanning a wide range of sectors.