Sudan Conflict Deals New Blow to Stagnant Economy

Sudanese residents shop in a bazaar in Khartoum, Sudan, May 4, 2019. REUTERS/Umit Bektas/File Photo
Sudanese residents shop in a bazaar in Khartoum, Sudan, May 4, 2019. REUTERS/Umit Bektas/File Photo
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Sudan Conflict Deals New Blow to Stagnant Economy

Sudanese residents shop in a bazaar in Khartoum, Sudan, May 4, 2019. REUTERS/Umit Bektas/File Photo
Sudanese residents shop in a bazaar in Khartoum, Sudan, May 4, 2019. REUTERS/Umit Bektas/File Photo

The conflict shaking Sudan has dealt a crippling blow to the heart of the country's economy in the capital Khartoum, as well as disrupting internal trade routes, threatening imports and triggering a cash crunch.

Across swathes of the capital factories, banks, shops and markets have been looted or damaged, power and water supplies have been failing, and residents have reported steep price rises and shortages of basic goods.

Even before the fighting between military factions broke out on April 15 Sudan's economy had been in deep stagnation following a crisis stretching back to the last years of Omar al-Bashir's rule and turmoil after his overthrow in 2019, Reuters said.

Tens of thousands have now fled the violence in Khartoum and its sister cities of Bahri and Omdurman, while millions more have sheltered at home as shelling and air strikes rattle across neighborhoods.

Transport of goods and people has slowed as troops and sometimes gangs roam the streets. Telecom networks have become unreliable and some say they have begun rationing food and water.

"We are afraid, and we are suffering from high prices, shortages, and lack of salaries. This is a war on the citizen," said Ismail Elhassan, an employee at one Khartoum business.

Sudan, already an important exporter of gum arabic, sesame, peanuts, and livestock, has the potential to be a major agricultural and livestock exporter and logistics hub.

But the economy has been held back by decades of sanctions and international isolation, as well as deep corruption. Most Sudanese have struggled with years of rampant inflation, sharp currency devaluations and sliding living standards. About a third of the 46 million population depends on humanitarian aid.

NO DRIVERS

The conflict has hampered trade flows in and out of the East African nation, since banking and customs procedures are centralized in Khartoum. While the country's main port on the Red Sea is operating, at least one big shipping company, Maersk, says it has stopped taking bookings until further notice.

Imports of wheat, key to Sudan's food security, are becoming more difficult, said one Khartoum-based trader. Imports of white goods such as refrigerators across the land border with Egypt, where tens of thousands of Sudanese have fled northwards, have also slowed, said Federation of Egyptian Chambers of Commerce secretary-general Alaa Ezz.

Michel Sidhom, a supply chain manager at a trading company operating in Egypt and Sudan, said its business in Sudan had "completely stopped" as exports of Egyptian fertilizers and flour, typically about 10,000 tons per month each, were halted.

Egypt, Sudan's second biggest destination for livestock, a key export, said it is looking to diversify its sources as a result of the unrest.

Sidhom says his company's traders in Sudan have left Khartoum, and no drivers are willing to risk transporting their goods to the capital city.

"They shut down and left Khartoum until further notice. Whoever stays in Khartoum stays in a battlefield," he said.

SCARCITY, HIGH PRICES

Shortages of items such as flour and vegetables have been reported in Khartoum along with price hikes. Long queues form in front of bakeries and supermarkets in the capital.

The price of one kilogram of lamb has jumped nearly 30% to 4,500 pounds ($7.52), according to a Reuters reporter, while the price of a kilogram of tomatoes doubled to 1,000 pounds ($1.67).

A supermarket owner in Omdurman blamed the inflation on soaring black market fuel prices. A gallon of scarce fuel can now cost as much as 40,000 pounds ($67), up from 2,000 pounds ($3.34).

Even in places where fighting has abated demand is low, said one Omdurman butcher. "Everyone's left," he said.

Sudan's pound has lost about 600% against the dollar since 2018, prompting many to save money in dollars.

Traders in Khartoum face a cash crunch, and people are increasingly dependent on an electronic wallet app known as Bankak, which often suffers outages, to pay bills.

The black market has become distorted, as relatives abroad seek to sell dollars for Bankak transfers, while those in the country seek dollars for safe keeping.

Currency traders offer dollars at rates as high as 700 pounds ($1.17), while buying at as little as 300 pounds ($0.5014), with prices varying widely as transport and communication becomes more difficult.

Sudan's central bank on Sunday said banks outside the capital were carrying out withdrawal and deposit transactions. Within Khartoum, the army and RSF have accused each other of looting banks. The head of one Khartoum bank said he was trying to temporarily move the bank's headquarters outside the capital.

Another executive said that in years of economic reforms, coups, and protests, "this is the biggest challenge to face the banking system, and threatens an almost complete shutdown," he said.

In the city of Atbara, north-east of Khartoum, crowds of people were seen outside of banks, some of which had imposed withdrawal limits.

"My cash has run out because I haven't received my salary and the banking apps don't work," said Elhassan, speaking from Khartoum.



Gold Eases as Strong US Data, Easing Geopolitical Tensions Sap Momentum

FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo
FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo
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Gold Eases as Strong US Data, Easing Geopolitical Tensions Sap Momentum

FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo
FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo

Gold prices ticked lower on Friday, extending losses from the previous session, as stronger-than-expected US economic data and easing geopolitical tensions in Iran hampered bullion's bullish momentum.

Spot gold eased 0.3% to $4,603.02 per ounce by 0918 GMT. However, the metal is poised for a weekly gain of about 2% after scaling a record peak of $4,642.72 on Wednesday. US gold futures for February delivery edged 0.4% lower to $4,606.70.

"There was ‌a lot of ‌momentum in the (gold) market, which seems to ‌have ⁠faded slightly ‌at the moment....the economic news flow out of the US has been causing some headwinds rather than tailwinds as of late, which is reflected in a somewhat stronger US dollar," said Julius Baer analyst Carsten Menke.

The US dollar hovered near a six-week high on the back of positive economic data on Thursday showing initial jobless claims dropped 9,000 ⁠to a seasonally adjusted 198,000 last week, below economists' forecast of 215,000.

A firmer ‌dollar makes greenback-priced bullion more expensive for overseas ‍buyers. On the geopolitical front, people ‍inside Iran, reached by Reuters on Wednesday and Thursday, said ‍protests appeared to have abated since Monday.

Safe-haven gold tends to do well during times of geopolitical and economic uncertainty. Meanwhile, gold demand in India stayed muted this week as prices hit record highs again, taking the shine off retail buying, while bullion traded at a premium in China as demand remained steady ahead of the Lunar ⁠New Year.

Spot silver shed 1.1% to $91.33 per ounce, although it was headed for a weekly gain of over 14% after hitting an all-time high of $93.57 in the previous session. "The silver market seemed very determined to reach the $100 per ounce threshold before moving lower again....speculative traders are keeping an eye on that level even though it would not be sustainable in the medium to longer-term," Menke added.

Spot platinum dropped 2.7% to $2,345.78 per ounce, and was set to gain more than 3.1% for the week so far. Palladium lost 2.6% to $1,755.04 per ‌ounce, after hitting a more than one-week low earlier, and was headed for a weekly loss of 3.3%.


IMF's Growth Forecasts to Show Resilience to Global Trade Shocks, Georgieva Says

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during an interview with Reuters, amid Russia's attack on Ukraine, in Kyiv, Ukraine January 15, 2026. REUTERS/Valentyn Ogirenko
International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during an interview with Reuters, amid Russia's attack on Ukraine, in Kyiv, Ukraine January 15, 2026. REUTERS/Valentyn Ogirenko
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IMF's Growth Forecasts to Show Resilience to Global Trade Shocks, Georgieva Says

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during an interview with Reuters, amid Russia's attack on Ukraine, in Kyiv, Ukraine January 15, 2026. REUTERS/Valentyn Ogirenko
International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during an interview with Reuters, amid Russia's attack on Ukraine, in Kyiv, Ukraine January 15, 2026. REUTERS/Valentyn Ogirenko

The International Monetary Fund's latest economic forecasts due next week will show the global economy's continued resilience to trade shocks and "fairly strong" growth, IMF Managing Director Kristalina Georgieva told Reuters on Thursday.

In an interview during a visit to Kyiv to discuss the IMF's loan to Ukraine, Georgieva suggested the IMF could again revise its forecasts slightly upward as the World Bank did this week.

In October, the IMF edged its 2025 global GDP growth forecast higher to 3.2% from 3.0% in July as the drag from US tariffs was less than initially ‌feared. It kept ‌its 2026 global growth outlook unchanged at 3.1%.

Asked what ‌the ⁠January forecasts ‌would show after the upgrade in October, Georgieva said: "More of the same - that the world economy is remarkably resilient, that trade shock has not derailed global growth, that risks are more tilted to the downside, even if performance now is fairly strong."

The IMF is expected to release its World Economic Outlook update on January 19.

Georgieva said risks were focused on geopolitical tensions and rapid technological shifts. Things could turn out well, ⁠she said, but the global economy could also face significant financial distress if the huge resources flowing into ‌artificial intelligence did not result in promised productivity gains.

"We ‍are in a more unpredictable ‍world, and yet, quite a number of businesses and policymakers operate as if ‍the world hasn't changed."

Georgieva said she worried that many countries had failed to build up sufficient reserves to deal with any new shock that could occur. The IMF currently has 50 lending programs, a high number by historic standards, but was bracing for more countries to seek funds, she said.

The IMF chief said US economic performance had been "quite impressive" despite a raft of tariffs imposed by President Donald ⁠Trump last year on nearly every country in the world.

She said overall tariff levels were lower than initially threatened, and the US accounted for only about 13% to 14% of global trade. Most other countries had also refrained - at least so far - from imposing retaliatory measures, which had helped limit the impact of the wave of US tariffs.

She said inflation and macroeconomic conditions could still worsen, though, if the trade picture darkened.

Geopolitical factors were also clouding the outlook and now played a more significant role than in years past, said Georgieva, who took office in October 2019, just months before the COVID-19 pandemic hit in early 2020.

"Regrettably, since I took ‌this job (in 2019), there has been one shock after another after another," she said.


Mauritania to Saudi Investors: We Are Your Atlantic Gateway to Securing Minerals of the Future

Mauritania’s Minister of Mines and Industry, Thiam Tijani (Asharq Al-Awsat) 
Mauritania’s Minister of Mines and Industry, Thiam Tijani (Asharq Al-Awsat) 
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Mauritania to Saudi Investors: We Are Your Atlantic Gateway to Securing Minerals of the Future

Mauritania’s Minister of Mines and Industry, Thiam Tijani (Asharq Al-Awsat) 
Mauritania’s Minister of Mines and Industry, Thiam Tijani (Asharq Al-Awsat) 

Mauritania is positioning its mining weight and strategic Atlantic Ocean location as an “African mining gateway” for Saudi investments, extending a clear invitation to move immediately into partnerships that go beyond traditional extraction and open new horizons in downstream and value-added industries.

This message was conveyed by Mauritania’s Minister of Mines and Industry, Thiam Tijani, in an interview with Asharq Al-Awsat on the sidelines of the International Mining Conference held in Riyadh.

He stressed that the message was not merely an economic call, but a reaffirmation that Saudi investment in Mauritania is an “investment in the future” and a “unique development partnership in which the Saudi investor is not viewed as a stranger, but as a genuine partner welcomed through the open doors of Nouakchott to translate historical ties into major projects that benefit both brotherly countries.”

Today, Mauritania’s mining sector represents the backbone of the national economy, contributing more than 24 percent of GDP. The sector is undergoing a profound transformation aimed at moving it from a purely extractive activity into a comprehensive development sector.

While Mauritania has historically relied on iron ore and gold, recent discoveries and the country’s push toward green hydrogen are placing it on the threshold of an unprecedented industrial transformation on the African continent.

The minister said Mauritania is redrawing its mining map to make it broader and richer, setting ambitious targets for the next five years. Nouakchott aims to raise iron ore production to more than 20 million tons annually and increase gold output to over 1.5 million ounces per year.

He emphasized that the next phase will prioritize not only production volumes, but also the sector’s ability to generate local added value that supports sustainable economic growth.

Saudi Arabia... The Strategic Partner and the Awaited Expertise

Addressing bilateral relations, Tijani described Saudi Arabia as a “strategic partner,” noting that these ties are grounded in the forward-looking vision of the two countries’ leaderships. He praised the historic role of the Saudi Fund for Development, as well as investments by Saudi companies such as SABIC.

He expressed Mauritania’s aspiration for broader participation by major industrial players, including Maaden, stressing that the country is aligning its laws and regulations to be attractive to Saudi investors, whom he described as “partners in development, not strangers to the home,” particularly in downstream industries where the Kingdom has long-standing expertise.

Leadership in Hydrogen and the Production of “Green Steel”

On the energy front, Tijani revealed Mauritania’s ambition to become Africa’s “capital of green hydrogen,” capitalizing on its abundant wind and solar resources. The strategic plan, he said, is to use clean energy to process iron ore locally into “green steel,” a project he believes has the potential to “change the rules of the game globally.”

He extended an open invitation to leading Saudi companies in renewable energy and heavy industries to take part in this transformation, ensuring that Mauritanian mining products become among the most in demand in global markets in the future.

Fuel of Technology... Lithium and Rare Minerals

Turning to the minerals of the future, Tijani said recent geological surveys have revealed promising potential for lithium, cobalt, nickel, and chromium. Describing these minerals as the “fuel of the technological revolution” and electric vehicles, he noted that Mauritania has designated new concession areas and prepared technical files to present to Saudi partners.

He stressed that Saudi Arabia has a valuable opportunity to secure its supply chains for these strategic materials through direct investment in Mauritanian mines.

To ensure smooth investment flows, Tijani announced a major leap in facilitating procedures through the digitization of the mining land registry and making it available online, ensuring full transparency and allowing investors in Riyadh to access maps and data remotely. He added that a dedicated one-stop shop has been established to reduce bureaucracy and accelerate the processing of applications.

He concluded with a message of reassurance to leaders in Saudi Arabia’s mining sector, emphasizing that “Mauritania is the safest and most viable destination, thanks to its political and security stability and a legal framework that protects rights,” inviting them to invest in “the future” through Mauritania’s Atlantic gateway.