World Bank: Sudan’s Economy Shrinking by 12%
Agencies – Sudan Events
The war that continued for 6th month now in Khartoum and the states has huge economic impact on the various economic sectors
Since the outbreak of war in mid-April, production has stopped in the capital, Khartoum, in addition to many areas in the Darfur and Kordufan regions that were also affected by the war.
About 400 facilities working in the food and pharmaceutical industries and various other fields in Khartoum were completely out of service.
Production and agricultural projects throughout the country were also affected due to lack of funding and administrative instability.
Former Finance Minister Ibrahim Al-Badawi estimated the size of the losses to the country’s infrastructure at about $60 billion amidst expectations that losses will rise significantly as the war continues.
In an interview with Reuters last month, Al-Badawi expected that the gross domestic product (GDP) would decline by about 20 percent if the war did not stop immediately.
The prices of some major food commodities have more than tripled due to the interruption of supply chains and the decline in the value of the Sudanese pound. One dollar is currently being equivalent to 840 pounds.
Abdul Rahman Abbas, former Secretary-General of the Federation of Chambers of Industry, said in a previous interview with “Sky News Arabia” that the extent of the destruction to which factories were exposed was very large. He explained: “Many businessmen lost giant factories that took decades to build and very huge amounts of money were spent on.”
Abbas points out that the current destruction to which factories are exposed will have dire consequences and will cause thousands of families to lose their sources of livelihood, as the industrial sector in Khartoum and its associated supply chains accommodate more than 100,000 jobs.
