Sudan Economy Won’t See Major Improvement Soon

The Sudanese economic expert, Sidqi Kabalo, predicted that the deteriorating economic situation in the country will see no major improvement following the formation of the government of national concord.

On May 11, First Vice President and Prime Minister Bakri Hassan Saleh announced the GNC including 31 ministers and 44 secretaries of state. The new government, which represents a large coalition led by the ruling National Congress Party of President Omer al-Bashir, was part of the recommendations of the national dialogue process, AllAfrica reported.

Large segments of Sudanese society complain about the deteriorating living standards and high prices of major consumer goods while the government is unable to intervene to lower prices or stop the economic decline.

Kabalo told Sudan Tribune Saturday the improvement of the economic situation has nothing to do with the creation of the new government, referring to the newly appointed economic ministers.

“It has to do with the commercial capitalism which is highly linked to the foreign markets, especially in Asia and the (Persian) Gulf Arab states,” he said.

He pointed that inflation continued to rise since November 2016, saying the holy month of Ramadan, the Eid-el-Fitr holiday and the new school year will put further inflationary pressure on the economy.

“All these pressures will push inflation to its highest level even in the normal circumstances,” he added.

Prices of goods and services have soared in Sudan since South Sudan seceded in 2011, taking with it three-quarters of the country’s oil output, the main source of foreign currency used to support the Sudanese pound.

The Sudanese pound has lost 100% of its value since South Sudan’s secession, pushing inflation rates to record levels given that country imports most of its food.

Last April, Sudan’s inflation rose for the twelfth month and reached 34.81% due to continued increase in food and energy prices.

Meanwhile, the deputy governor of the Central Bank of Sudan Badr al-Din Qurashi Thursday acknowledged that Khartoum didn’t benefit from Washington’s decision to ease the economic sanctions saying investors look forward to seeing a full lift of sanctions in July.

He pointed out that they expected Sudan’s economy to rebound soon after Washington’s decision to ease the trade and economic sanctions last January, saying the government started to take the necessary measures to prepare the economy for the post-sanctions era.

Sudan was placed on the US terrorism list in 1993 over allegations it was harboring Islamist militants working against regional and international targets.