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.



Yemen’s Fragile Economy Feels the Heat of Iran-Israel Conflict

Fears mount over the impact of military escalation on the Yemeni currency, which has recently seen a rapid decline (AFP). 
Fears mount over the impact of military escalation on the Yemeni currency, which has recently seen a rapid decline (AFP). 
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Yemen’s Fragile Economy Feels the Heat of Iran-Israel Conflict

Fears mount over the impact of military escalation on the Yemeni currency, which has recently seen a rapid decline (AFP). 
Fears mount over the impact of military escalation on the Yemeni currency, which has recently seen a rapid decline (AFP). 

The ripple effects of the escalating conflict between Iran and Israel are being felt in Yemen’s fragile economy. The already-depreciated Yemeni rial has fallen further, fuel prices have surged following a government decision, and fears of wider inflation loom over one of the region’s most vulnerable economies.

Last week, the exchange rate for the US dollar crossed 2,750 Yemeni rials before slightly retreating. Economists warn the rial will likely continue to weaken amid broader regional instability. In response, Prime Minister Salem bin Braik announced an emergency 100-day plan to stabilize the economy and ensure basic state obligations, including public sector salaries.

The government also introduced new fuel pricing, raising costs by up to $1 per 20-liter container of gasoline and diesel. This marks the fourth fuel price hike this year, compounding pressure on Yemen’s already burdened consumers.

With Yemen importing over 95% of its goods, any increase in global shipping costs or insurance premiums immediately impacts domestic prices.

Economist Rashid Al-Ansi explained to Asharq Al-Awsat that the cost of food, fuel, and other essential goods is rising due to the weakened currency and regional tensions. Unlike neighboring countries, he added, Yemen lacks the fiscal space and policy flexibility to absorb such shocks.

Adding to the strain, foreign currency reserves are being depleted as locals rush to convert their savings into dollars or gold amid fears of an open war between Israel and Iran. This has raised concerns of further rial depreciation and capital flight, according to economist Fares Al-Najjar.

Al-Najjar also warned that remittance flows - Yemen’s main source of foreign currency - may decline due to global uncertainty, reducing the central bank’s ability to stabilize the market. The government is already struggling to fund basic services, including electricity in Aden and water supply in Taiz.

Experts are particularly concerned about potential disruption to maritime trade. If military tensions spill over into the Red Sea or Gulf of Aden, Yemen’s surrounding waters could be labeled “high-risk zones,” driving shipping and insurance costs up by as much as 300%. This would cripple import flows and make oil exports - Yemen’s last lifeline for foreign currency - nearly impossible.