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.



Kuwait, China Sign Contract for Mubarak Al-Kabeer Port Study and Design

A general view of the city of Kuwait (Reuters)
A general view of the city of Kuwait (Reuters)
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Kuwait, China Sign Contract for Mubarak Al-Kabeer Port Study and Design

A general view of the city of Kuwait (Reuters)
A general view of the city of Kuwait (Reuters)

Kuwait's Ministry of Public Works said on Sunday it signed a contract with a subsidiary of the Chinese Ministry of Transport to conduct studies, design plans, and provide pre-implementation services for the completion of the Mubarak Al-Kabeer Port project.

The Mubarak Al-Kabeer port is a vital strategic project located on the eastern side of Boubyan Island in North Kuwait that aims to establish a secure regional corridor and a commercial hub in the region.

The Chinese side seeks to link the port to the Belt and Road Initiative.

In January, the Kuwaiti Cabinet approved the direct contracting process with the China State Construction and Communications Corporation Limited, affiliated with the Chinese Ministry of Transport, to implement, manage and operate the Mubarak Al-Kabeer Port throughout its entire phases.

Kuwaiti Minister of Public Works Noura Al-Mashaan said the project aims to establish a commercial port in Kuwait to serve as a regional transportation hub within the strategic transformation vision of New Kuwait 2035, designed to develop the northern region as an integrated economic and urban system based on a comprehensive and integrated development vision that considers all economic and urban aspects.

She added that the project will significantly contribute to diversifying and increasing the gross domestic product and restoring Kuwait to its regional commercial and financial role.

Kuwait says that around 50% of the first phase of Mubarak Al-Kabeer Port is complete. It does not specify the nature of this phase or the cost of the project.

Kuwait signed multiple MoUs with China during Sheikh Mishal Al-Ahmad Al-Sabah’s visit to Beijing while he was Crown Prince, before becoming Emir in December 2023. Among these agreements, the Mubarak Al-Kabeer Port project was the largest.

In a separate development, Kuwait’s Finance Minister Noura Al-Fassam said on Sunday the public debt law is in its final stages and will be submitted to the government for approval.

She said the law will enable the government to borrow from international markets and will use the funds for financing infrastructure developments and increase state capital expenditure to develop the economy.

Al-Fassam, who is also Minister of State for Economic Affairs and Investment, said that the Kuwaiti state budget for the 2025/2026 fiscal year is indicative of the government’s commitment towards financial “balance” that can only be achieved after implementing economic reforms.

She said the bulk of planned spending for the 2025/2026 fiscal year will be on some 90 key infrastructure and development projects, running the gamut from education and healthcare to tourism and culture.

The Minister noted that a state hiring boom could be a potential by-product of the state budget, which is expected to provide 15,853 jobs.