Conflict deals blow to Sudan economy

KHARTOUM/CAIRO — The conflict in Sudan has dealt a crippling blow to the heart of the country's economy in its capital Khartoum as well as disrupted internal trade routes, threatening imports and triggering a cash crunch.

Across the capital, factories, banks, shops and markets have been looted or damaged, power and water supplies have been failing, and residents have reported steep price rises and shortages of basic goods.

Even before the fighting between military factions broke out on April 15, Sudan's economy had been in deep stagnation.

Tens of thousands have now fled the violence in Khartoum and its sister cities of Bahri and Omdurman, while millions more have sheltered at home as shelling and airstrikes rattle across neighborhoods.

Sudan, already an important exporter of gum arabic, sesame, peanuts, and livestock, has the potential to be a major agricultural and livestock exporter and logistics hub.

The conflict has hampered trade flows in and out of the African nation, since banking and customs procedures are centralized in Khartoum. While the country's main port on the Red Sea is operating, at least one big shipping company, Maersk, says it has stopped taking bookings until further notice.

Imports of wheat, key to Sudan's food security, are becoming more difficult, said one Khartoum-based trader.

Disrupted supply chains

Imports of white goods such as refrigerators across the land border with Egypt, where tens of thousands of Sudanese have fled northward, have also slowed, said Federation of Egyptian Chambers of Commerce secretary-general Alaa Ezz.

In the latest developments, representatives of the Sudanese army and the paramilitary Rapid Support Forces have been in the Saudi coastal city of Jeddah for talks.

"We welcome the presence of representatives of the Sudanese Armed Forces and the RSF in the city of Jeddah, to engage in dialogue that we hope will lead to the end of the conflict and the return of security and stability to the Republic of Sudan," Saudi Arabian Foreign Minister Prince Faisal bin Farhan Al Saud said on Saturday on Twitter.

The United States and Saudi Arabia issued a joint statement welcoming the start of "pre-negotiation talks" between the two parties, urging both sides to "actively engage in the talks toward a cease-fire and end to the conflict".

On Saturday, Mohamed Hamdan Dagalo, commander of the RSF, praised the regional and international efforts to reach a cease-fire through social media and confirmed the RSF's participation in the talks in Jeddah.

On Friday, the Sudanese army said it had sent negotiators to Jeddah to discuss the humanitarian truce.

Fighting continued in Khartoum's capital. The deadly clashes have left at least 550 people dead and 4,926 others wounded, according to the Sudanese health ministry.

Agencies - Xinhua