Economy another victim of war in impoverished Sudan

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A man steers his donkey-drawn carriage, the preferred mode of transport for people and goods, as fuel prices rise due to internal fighting, in Gedaref state in eastern Sudan on Feb. 20, 2024. (AFP)
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A man walks past sacks of grains at a market in Gedaref, eastern Sudan, on Feb. 22, 2024. (AFP)
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A woman winnows grains at a market in Gedaref, eastern Sudan, on Feb. 22, 2024. (AFP)
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Updated 25 February 2024
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Economy another victim of war in impoverished Sudan

  • With most banks out of service, the only exchange rate that matters to ordinary Sudanese is on the black market, where the dollar currently goes for around 1,200 Sudanese pounds

PORT SUDAN, Sudan: Before the Sudanese army and paramilitary fighters turned their guns on each other last year, Ahmed used to sell one of Sudan’s main exports: gum arabic, a vital ingredient for global industry.
Now he’s out of business, and his story encapsulates the broader economic collapse of Sudan during 10 months of war.
Since combat between two rival generals began on April 15, Ahmed has been at the fighters’ mercy.
“When the war began, I had a stock of gum arabic in a warehouse south of Khartoum that was intended for export,” Ahmed told AFP, asking to use only his first name for fear of retaliation.
“To get it out I had to pay huge sums to the Rapid Support Forces,” the paramilitaries commanded by Mohamed Hamdan Dagalo who are at war with the Sudanese Armed Forces led by Abdel Fattah Al-Burhan.
“I had to pay multiple times in areas under their control, before my cargo got to areas controlled by the government,” Ahmed said.
But the government — loyal to the army — “then demanded I pay taxes” on the product, an emulsifying agent used in everything from soft drinks to chewing gum.
When the trucks finally made it to Port Sudan for export on the Red Sea, “authorities again asked for new taxes, and I had to pay storage fees six times more than before the war,” Ahmed said.
His gum arabic — like many other Sudanese products — never made it onto a ship. According to Sudan’s port authorities, international trade fell 23 percent last year.
The finance ministry, which didn’t set a national budget for 2023 or 2024 and has foregone quarterly reports, recently raised the exchange rate for imports and exports from 650 Sudanese pounds to 950.
But that is still far below the currency’s real value.
With most banks out of service, the only exchange rate that matters to ordinary Sudanese is on the black market, where the dollar currently goes for around 1,200 Sudanese pounds.
“It’s a sign of the destruction of the Sudanese economy,” former Sudanese Chamber of Commerce head Al-Sadiq Jalal told AFP.
To make matters worse, a communications blackout since early February has hampered online transactions — which Sudanese relied on to survive.
The war has led industries to cease production. Others were destroyed. Businesses and food stocks have been looted.
The World Bank in September said “widespread destruction of Sudan’s economic foundations has set the country’s development back by several decades.”
The International Monetary Fund has predicted that even after the fighting ends, “years of reconstruction” await the northeast African country.
Sudan suffered under a crippled economy for decades and was already one of the world’s poorest countries before the war.
Under the Islamist-backed regime of strongman Omar Al-Bashir, international sanctions throttled development, corruption was rampant, and South Sudan split in 2011 with most of the country’s oil production.
Bashir’s ouster by the military in 2019 following mass protests led to a fragile transition to civilian rule accompanied by signs of economic renewal and international acceptance.
A 2021 coup by Burhan and Dagalo, before they turned on each other, began a new economic collapse when the World Bank and the United States suspended vital international aid.
More than six million of Sudan’s 48 million people have been internally displaced by the war, and more than half the population needs humanitarian aid to survive, according to the United Nations.
Thousands of people have been killed, including between 10,000 and 15,000 in a single city in the western Darfur region, according to UN experts.
Now the indirect death toll is also rising.
Aid agencies have long warned of impending famine, and the UN’s World Food Programme is “already receiving reports of people dying of starvation,” the agency’s Sudan director Eddie Rowe said in early February.
The Sudanese state “is completely absent from the scene” in all sectors, economist Haitham Fathy told AFP.
Chief among those is agriculture, which could have helped stave off hunger.
Before the war, agriculture generated 35-40 percent of Sudan’s gross domestic product, according to the World Bank, and employed 70-80 percent of the workforce in rural areas, the International Fund for Agricultural Development said.
But the war has left more than 60 percent of the nation’s agricultural land out of commission, according to Sudanese research organization Fikra for Studies and Development.
In the wheat-growing state of Al-Jazira, where RSF fighters took over swathes of farmland south of Khartoum, farmers have been unable to tend their crops. They saw their livelihoods wither away.
From the wheat fields to Ahmed’s gum arabic warehouse, the story is the same.
His savings spent, his stock gone and his future bleak, Ahmed — like much of Sudan’s business class — has closed up shop.


Blinken says Israel needs a clear and concrete plan for Gaza’s future

Updated 5 sec ago
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Blinken says Israel needs a clear and concrete plan for Gaza’s future

“We do not support and will not support an Israeli occupation. We also of course, do not support Hamas governance in Gaza...” Blinken said
Israel says it intends to keep overall security control and has baulked at proposals for the Palestinian Authority to take charge

KYIV: Israel needs a clear and concrete plan for the future of Gaza where it faces the potential for a power vacuum that could become filled by chaos, US Secretary of State Antony Blinken said on Wednesday.
Washington and its ally Israel say Hamas cannot continue to run Gaza after militants from the group ignited the conflict with attacks on southern Israel that killed 1,200 people on Oct. 7.
“We do not support and will not support an Israeli occupation. We also of course, do not support Hamas governance in Gaza... We’ve seen where that’s led all too many times for the people of Gaza and for Israel. And we also can’t have anarchy and a vacuum that’s likely to be filled by chaos,” Blinken said during a press conference in Kyiv.
The US top diplomat has held numerous talks with Israel’s Arab neighbors on a post-conflict plan for Gaza since Israel vowed to root out Hamas from the Palestinian enclave more than seven months ago.
But Israel says it intends to keep overall security control and has baulked at proposals for the Palestinian Authority, which governs with partial authority in the Israeli-occupied West Bank, to take charge.
“It’s imperative that Israel also do this work and focus on what the future can and must be,” Blinken said. “There needs to be a clear and concrete plan, and we look to Israel to come forward with its ideas.”

Turkiye tells US that Israel’s attack on Rafah unacceptable, Turkish source says

Updated 7 min 7 sec ago
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Turkiye tells US that Israel’s attack on Rafah unacceptable, Turkish source says

  • Fidan also told Blinken that it was important to achieve a ceasefire in Gaza as soon as possible

ANKARA: Turkish Foreign Minister Hakan Fidan told his US counterpart Antony Blinken in a call on Wednesday that Israel’s attack on the Gazan city of Rafah is unacceptable, a Turkish diplomatic source said.
Fidan also told Blinken that it was important to achieve a ceasefire in Gaza as soon as possible, while emphasising that obstacles to the access of humanitarian aid into the enclave must be removed, the source said.


Ireland to recognize Palestinian statehood ‘this month’: FM Martin

Updated 3 min 52 sec ago
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Ireland to recognize Palestinian statehood ‘this month’: FM Martin

  • FM Micheal Martin: ‘We will be recognizing the state of Palestine before the end of the month’
  • Martin: ‘The specific date is still fluid because we’re still in discussions with some countries in respect of a joint recognition of a Palestinian state’

DUBLIN: Ireland is certain to recognize Palestinian statehood by the end of May, the country’s Foreign Minister Micheal Martin said on Wednesday, without specifying a date.
“We will be recognizing the state of Palestine before the end of the month,” Martin, who is also Ireland’s deputy prime minister, told the Newstalk radio station.
In March the leaders of Spain, Ireland, Slovenia and Malta said in a joint statement that they stand ready to recognize Palestinian statehood.
Ireland has long said it has no objection in principle to officially recognizing the Palestinian state if it could help the peace process in the Middle East.
But Israel’s war against Hamas militants in Gaza has given the issue new impetus.
Last week, EU foreign policy chief Josep Borrell said Spain, Ireland and Slovenia planned to symbolically recognize a Palestinian state on May 21, with others potentially following suit.
But Martin on Wednesday shied away from pinpointing a date.
“The specific date is still fluid because we’re still in discussions with some countries in respect of a joint recognition of a Palestinian state,” he said.
“It will become clear in the next few days as to the specific date but it certainly will be before the end of this month.
“I will look forward to consultations today with some foreign ministers in respect of the final specific detail of this.”
Last month during a visit to Dublin by Spanish premier Pedro Sanchez, Irish prime minister Simon Harris said the countries would coordinate the move together.
“When we move forward, we would like to do so with as many others as possible to lend weight to the decision and to send the strongest message,” said Harris.
Harris’s office said Wednesday that he updated King Abdullah II of Jordan by telephone on Ireland’s plan for statehood recognition.
Harris “outlined Ireland and Spain’s ongoing efforts on Palestinian recognition and ongoing discussions with other like-minded countries,” a statement read.
“The King and the Taoiseach (prime minister) agreed that both Ireland and Jordan should stay in touch in the coming days,” it added.
The conflict in Gaza followed Hamas’s unprecedented October 7 attack against Israel, which resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of official Israeli figures.
Militants also seized about 250 hostages, 128 of whom Israel estimates remain in Gaza, including 36 the military says are dead.
Israel’s retaliatory offensive has killed more than 35,000 people in Gaza, mostly women and children, according to the Hamas-run territory’s health ministry.


Hezbollah says struck Israel after field commander’s killing

Updated 32 min 20 sec ago
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Hezbollah says struck Israel after field commander’s killing

  • Hezbollah fighters on Wednesday attacked “the Meron base with dozens of Katyusha rockets, heavy rockets and artillery shells“
  • The attacks were “part of the response to the assassination carried out by the Israeli enemy in the south” the previous day, it said

BEIRUT: Lebanon’s Iran-backed Hezbollah group said it launched dozens of rockets at north Israel military positions Wednesday in retaliation for the killing of a member Israel said was a field commander.
Israel and Hamas ally Hezbollah have exchanged near-daily fire following the Palestinian group’s October 7 attack on southern Israel that sparked the war in Gaza.
Hezbollah fighters on Wednesday attacked “the Meron base with dozens of Katyusha rockets, heavy rockets and artillery shells” as well as targeting a barrack with “heavy rockets,” the group said.
The attacks were “part of the response to the assassination carried out by the Israeli enemy in the south” the previous day, it said.
Israel’s army said sirens sounded in Meron on Wednesday without providing further details.
On Tuesday evening, Hezbollah said Israeli fire had killed its member Hussein Makki, who was identified as a field commander by a source close to the group.
The Israeli army later confirmed it had launched the strike that killed Makki.
It described him as “a senior field commander” in Hezbollah responsible for planning and executing “numerous terrorist attacks against Israeli civilians and territory.”
“He previously served as the commander of Hezbollah’s forces in the coastal region,” the army added.
Lebanon’s official National News Agency had reported two people killed in an “enemy drone strike that targeted a car on the Tyre-Al-Hush main road.”
But another source close to Hezbollah later told AFP that while Makki was killed, the other person was injured.
At least 412 people have been killed in Lebanon in more than seven months of cross-border violence, mostly militants but also including 79 civilians, according to an AFP tally.
Israel says 14 soldiers and 10 civilians have been killed on its side of the border.
Tens of thousands of people have been displaced in areas on both sides of the border.


Jordan foils militant attempt to smuggle arms

Updated 35 min 42 sec ago
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Jordan foils militant attempt to smuggle arms

  • Investigations are ongoing on the smuggling attempt

AMMAN: Jordan foiled an attempt by foreign-backed militants to smuggle arms into its territory, a security official told state news agency PETRA on Wednesday.

Security services seized the arms and detained the smugglers, who were Jordanians, in March.

“Investigations and operations are ongoing,” read the PETRA statement.

Jordan had recently blocked several attempts to smuggle arms including mines, explosives, Kalashnikov rifles, and Katyusha rockets.