Sudan's Coup-hit Economy in Free Fall as Prices Bite

People watch as protesters in northern Sudan block a key trade route between Egypt and their country following a dramatic increase of electricity tariffs - AFP
People watch as protesters in northern Sudan block a key trade route between Egypt and their country following a dramatic increase of electricity tariffs - AFP
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Sudan's Coup-hit Economy in Free Fall as Prices Bite

People watch as protesters in northern Sudan block a key trade route between Egypt and their country following a dramatic increase of electricity tariffs - AFP
People watch as protesters in northern Sudan block a key trade route between Egypt and their country following a dramatic increase of electricity tariffs - AFP

Sudanese schoolteacher Babiker Mohamed barely covers his family's needs with his meagre income, but since last year's military coup he no longer knows if he can even keep afloat.

Like many in Sudan, Mohamed has been grappling with shortages in basic goods, as well as new taxes and steep price hikes on fuel, electricity and food since an October military coup led by army chief Abdel Fattah al-Burhan, AFP said.

"I used to buy 20 loaves of bread at 100 Sudanese pounds before the coup," Mohamed, who provides for a family of six, told AFP.

"Bread alone now costs me around 27,000 pounds a month which is like 90 percent of my salary" of about 30,000 pounds (or $50), he said.

"I don't know if I can afford to send my children to school anymore."

Mohamed joined teachers who went on strike this week against the worsening living conditions.

Sudan's latest coup upended a transition painstakingly negotiated between civilian and military leaders following the 2019 ouster of president Omar al-Bashir, whose rule was marked by crippling US sanctions and international isolation.

It also triggered international condemnation and punitive measures, with the United States, World Bank and International Monetary Fund suspending badly needed aid to the impoverished country.

Sudanese exports have sharply declined, foreign currency shortages have been reported, and efforts by local banks to re-establish ties with international counterparts in the US and the West came to a screeching halt.

"It's like the embargo was back since October 25," said economist Sumaya Sayed.

- 'Beyond people's reach' -
Protesters staged several rallies this week against the decline in living conditions.

Sudanese citizens have for decades endured severe economic hardship due to government mismanagement, internal conflicts and the 2011 secession of the oil-rich south.

Bashir himself was ousted in April 2019 following months of street protests initially triggered by the tripling of bread prices.

Essameddine Okasha, spokesman for the association of bakery owners in Khartoum, said bread prices have surged "beyond people's reach".

He attributed the hikes to increasing operational costs.

Sudan is also especially vulnerable to the impact of global supply shortages in the wake of Russia's invasion of Ukraine.

Protesters in northern Sudan have in recent weeks blocked a key trade route between Egypt and Sudan following a sharp increase in electricity tariffs.

In January, Sudanese authorities sharply raised electricity prices across sectors, with households seeing an increase of about 500 percent.

Sudan had already embarked on plans to scrap fuel subsidies under the transition which was derailed by the coup.

Fuel prices have undergone several hikes over the past year.

On Saturday, petrol at the pump cost 672 pounds ($1.50) per liter, up from some 320 pounds before the coup.

- Workers laid off -
Many local business owners have been forced to suspend operations.

"I have laid off some 300 employees, mostly women who were the breadwinners of their families," said a food factory owner in North Khartoum, speaking on condition of anonymity.

"I couldn't keep up with electricity and production input price hikes."

Economist Mohamed al-Nayer says Sudan is in a "state of shock".

"The absence of international aid and loans in the 2022 budget is having a negative effect," he said, pointing out that the fiscal plans rely heavily on tax rises.

"Taxes now constitute 58 percent of the budget, sharply increasing prices and pushing the country into recession."

Sudan has been reeling from triple-digit inflation, which stood at 258 percent in February.

"It will not be possible for the government to bring down inflation... instead it will likely jump to 500 percent," forecast Nayer.

- 'Right decision, wrong time' - Sudan has yet to name a prime minister since the January resignation of UN economist-turned-premier Abdalla Hamdok.

This month, Sudan formed a council to address key economic challenges, led by the deputy head of its Sovereign Council, Mohamed Hamdan Daglo, known as Hemeti.

On March 9, Daglo blamed a "mafia" of currency dealers responsible for currency and gold speculation on the local market.

Sudan's central bank announced this month it will allow the currency to float as part of measures to stem the black market.

"It was the right decision but at the wrong time," according to Sayed.

She said the move would only drive up inflation and further weaken the local currency.

In mid-February, the Sudanese pound hovered at 450 pounds to the dollar but now the greenback buys about 600 pounds.

"Central bank policies... have so far failed," Sayed said. The situation "requires proper reserves of funds and gold".



Indian Refiners Avoid Russian Oil in Push for US Trade Deal

An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
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Indian Refiners Avoid Russian Oil in Push for US Trade Deal

An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo

Indian refiners are avoiding Russian oil purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, a move that could help New Delhi seal a trade pact with Washington, according to Reuters.

The US and India moved closer to a trade pact on Friday, announcing a framework for a deal they hope to conclude by March that would lower tariffs and deepen economic cooperation.

Indian Oil, Bharat Petroleum and Reliance Industries are not accepting offers from traders for Russian oil loading in March and April, said a trader who approached the refiners.

These refiners, however, had already scheduled some deliveries of Russian oil in March, refining sources said. Most other refiners have stopped buying Russian crude.

A foreign ministry spokesperson said: “Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy” to ensure energy security for the world's most-populous nation.

Although a US-India statement on the trade framework did not mention Russian oil, President Donald Trump rescinded his 25% tariffs on Indian goods, imposed over Russian oil purchases, because, he said, New Delhi had “committed to stop directly or indirectly” importing Russian oil.

New Delhi has not announced plans to halt Russian oil imports.

India became the top buyer of discounted Russian seaborne crude after Russia invaded Ukraine in 2022, spurring a backlash from Western nations that had targeted Russia's energy sector with sanctions aimed at curtailing Moscow's revenue and making it harder to fund the war.

One regular Indian buyer is Russia-backed private refiner Nayara, which relies solely on Russian oil for its 400,000-barrel-per-day refinery. Sources said Nayara may be allowed to keep buying Russian oil because other crude sellers pulled back after the European Union sanctioned the refiner in July.

Nayara also does not plan to import Russian crude in April due to a month-long refinery maintenance shutdown, a source familiar with its operations said.

Nayara did not respond to an email seeking comment.

Indian refiners may change their plan and place orders for Russian oil only if advised by the government, sources said.

Trump's order said US officials would monitor and recommend reinstating the tariffs if India resumed oil procurement from Russia.

Sources said last month that India was preparing to cut Russian oil imports below 1 million bpd by March, with volumes eventually falling to 500,000–600,000 bpd, compared with an average 1.7 million bpd last year. India's Russian oil imports topped 2 million bpd in mid-2025.

The intake of Russian oil by India, the world's third-biggest oil consumer and importer, declined to its lowest level in two years in December, data from trade and industry sources show.

 


IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.