Effect of War on Sudanese Economy

The Sudanese economy is suffering massive pressures, increased by the raging war that is affecting the country for 120 days, while people there are paying an exorbitant bill for that war. This conflict has remarkably reflected on the humanitarian and living conditions in the country, and in parallel with the massive damage to many institutions and infrastructure, especially in the areas of clashes.

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Sudan: Clashes Intensify in the Capital

Unofficial resources indicate that Sudan has lost more than $100 billion as a result of the war, including losses related to the looting and destruction of many institutions, in addition to the cost of displacement inside the country and refuge movements in neighboring countries.

According to the United Nations report, the conflict has left 24 million people, about half of the country's population, in need of food and other aid, while only 2.5 million have received aid due from UN agencies and other humanitarian organizations. The Sudanese population is not only affected by the fierce fighting, but also the lack of funding from these organizations.

The UN officials said that the war has left a tremendous humanitarian catastrophe, in addition to the presence of nearly 4 million people who have fled the fighting, facing scorching heat of up to 48 degrees Celsius, and threats of attacks, violence and death.

According to estimates of the International Red Cross, the war left nearly four thousand people dead, and more than six thousand others were injured. According to figures recorded by local activists and volunteer groups indicates that the civilian death may be more than double the official count

Sudanese economic analysts believe that the ongoing war in Sudan, apart from the direct and catastrophic humanitarian repercussions, will lead to slowing down economic growth and raising inflation rates. Even before the war, the Sudanese economy witnessed a sharp rise in risk levels in general.

The war in the country - which is entering its fifth month - has caused a set of devastating effects on the economy and population. These exacerbating conflict factors includes:

· The collapse of economic activities in the country.

· Damage to the strategic assets and property of the state.

· Likewise, the looting of the personal property of citizens carried out by the rebellions.

· The displacement of many citizens of the capital and other states.

· The collapse of the standard of living of families since the beginning of the war in the country.

· The rise in “extreme” poverty rates as a result of the war.

These repercussions are added to the deterioration of economic conditions with the depreciation of the Sudanese pound and the exacerbation of the electricity crisis, as well as the “almost non-existent” water in some areas. All of these are factors caused “total paralysis” in state institutions and public life in the capital Khartoum, which led to the closure of schools and universities.

One other important factor also is the migration of a number of merchants from the industrial and handicraft sectors from Khartoum to the major cities of Sudan and to Egypt and neighboring countries. One of the war's repercussion is the weakness of the mechanism for operating the infrastructure, such as the health and service sectors, which led to the disruption of the economic circulation process and the deterioration of the production market. This is accompanied by weakness and decrease in the purchasing power of a wide segment of the metropolitan community.

Because of this war, the Sudanese economy is going from bad to worse, due to the absence of a political solution, and the continuation of declared and unannounced US and European sanctions. It seems that any improvement in the Sudanese economy after the war in Khartoum is linked to the extent of external openness, regionally and internationally.

Since the beginning of the war, many Sudanese resorts to alternative sources of income after the interruption of their livelihood.