Egyptian Companies Negotiate with Sudanese Government to Pay their Financial Dues in Installments

Sudan Events – Rehab Abdullah

The head of the Aluminum Producers Association, Talaat Al-Shaer, has revealed that more than 20 companies in the sector have export dues from Sudanese importers and have not been able to obtain them for 7 months.
In his interview with the Egyptian newspaper Al Borsa, he admitted that the Sudanese side did not refuse to pay, but the challenges imposed by the ongoing war led to its failure and that it does not currently have financial liquidity to pay Egyptian companies.
Al-Shaer pointed out that Sudan is the main port of entry for aluminum exports to all border countries, so the sector’s exports are witnessing a state of stagnation due to the continuation of events and fears of worsening conditions. He continued that Egyptian factories export their products to Sudan on credit, because the importer works to distribute the products in the markets and then pays. Its value and this method have been applied by companies in dealing for years. He pointed out that the Sudanese market is one of the best export markets in front of the factories and workshops of the city of Mit Ghamr, as it accommodates about 75% of the factories’ production due to the ease of transporting goods with the support of geographical proximity and low shipping costs.
The Egyptian newspaper Al Borsa said that companies working in the field of building materials, contracting, and exporting goods have contacted the Sudanese government about obtaining their dues from importers. The sources added that the companies have not been able to obtain their dues since the outbreak of the conflict in Khartoum last year, and the current negotiations may oblige the companies to pay the amounts in installments within a maximum period of one year.
Egypt and Sudan are linked to many trade agreements, including the Trade and Payment Agreement in 1965. A trade protocol was concluded between the two countries in 1992, in addition to the 2001 COMESA Agreement to exempt trade between the two countries from customs duties with the exception of 58 commodity groups, according to data from the Ministry of Trade and Industry.