Rédaction Africa Links 24 with Africanews
Published on 2024-02-28 19:17:50
The economic situation in Sudan has taken a devastating turn, with Finance Minister Gibril Ibrahim revealing that the country’s economy shrank by a staggering 40 percent last year. This decline is primarily attributed to the ongoing armed conflicts that have engulfed various regions of Sudan. Unfortunately, the situation is expected to worsen, with predictions indicating a further 28 percent shrinkage in 2024.
Speaking at a press conference in Port Sudan, Ibrahim highlighted the severe impact of the conflicts on Sudan’s infrastructure, public facilities, private homes, and overall property. He noted that the revenue of the state has plummeted by over 80 percent, painting a grim picture of the economic hardships faced by the nation.
The industrial sector, which serves as the backbone of Sudan’s economy, has been significantly affected by the conflict. The damage to critical infrastructure such as roads and supply chains has hindered foreign trade and export activities. Bilateral trade between Sudan and neighboring countries like Libya and Chad has also suffered a steep decline. Additionally, the financial system has been hit hard, resulting in a liquidity crunch in banks and triggering systemic risks, as noted by Sudanese economist Rasheed Ibrahim.
The outbreak of civil war on April 15 last year between the Sudanese army and the Rapid Support Forces in Khartoum has further exacerbated the economic and humanitarian crisis in Sudan. The conflict has led to widespread destruction of infrastructure, disrupted health services, and forced hundreds of thousands of people to flee their homes.
According to the latest report from the UN Office for the Coordination of Humanitarian Affairs, an estimated 8.1 million individuals have been displaced within Sudan and to neighboring countries since the outbreak of the conflict. Tragically, approximately 13,900 people have lost their lives in the ongoing violence.
In response to the dire situation, the Sudanese government is contemplating the establishment of an alternative capital as Khartoum, the current capital city, bears the brunt of the damage. Efforts to revitalize the economy and rebuild critical infrastructure will be crucial in addressing the multifaceted challenges facing Sudan.
The road to recovery for Sudan will undoubtedly be long and arduous, requiring a concerted effort from both domestic stakeholders and the international community. It is imperative that immediate steps are taken to stabilize the economy, restore essential services, and provide assistance to those affected by the conflict. Only through collective action can Sudan hope to overcome its current crisis and pave the way for a brighter future.
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