Khartoum Food Processing Companies, Closed

Sudan Events – Rehab Abdullah

A recent report issued by the International Food Policy Research Institute (IFPRI) revealed that the Sudanese economy has suffered significant losses due to the war between the army and the Rapid Support Militia (RSF), indicating that Sudan’s gross domestic product (GDP) has decreased by about $10 billion, or nearly a third of its value, and the industrial sector, which contributed 21.7% of GDP between 2011 and 2021, is expected to shrink by two-thirds by the end of 2023.
The report said that the agricultural food processing sector was devastated, and the violent confrontations led to the cessation of most agricultural manufacturing operations, which contribute 14% of the GDP, adding that this led to an increase in imports of manufactured food and beverages from neighboring countries. It pointed out that a brief online survey was conducted with 18 companies in the agricultural processing and manufacturing sector, of which 15 companies responded. The survey revealed major disruptions and closures of companies, as the conflict led to the closure of 13% of agricultural food processing companies in Khartoum permanently, and 53% of them temporarily, 20% of them led to a significant decrease in operations. Factories suffered direct damage, including looting and burning and impact on employment due to Lockdowns. About 46% of companies in Khartoum have given their workers unpaid leave, while other companies have reduced work schedules or laid off workers entirely. Low availability of inputs: 80% of companies surveyed reported scarcity of key production resources, mainly due to conflict-related transportation disruptions