Sudan mired in an unprecedented economic crisis

 

Sudan mired in an unprecedented economic crisis

Rich in oil, gold and arable land, Sudan is today going through the most serious humanitarian crisis in the world.

More than half the population now depends on humanitarian aid to survive. Mass destruction, exploding military spending and collapsing oil and gold revenues have plunged Sudan's economy into an unprecedented economic and financial crisis, according to Finance Minister Gibril Ibrahim: the Sudanese economy is going through a deep crisis. The outbreak of war deprived the country of most of its resources, since 80% of revenues were generated in the capital, where industries, large businesses and economic activity were concentrated.

Since the start of the conflict, Sudan has lost most of its public revenue. In 2024, the country produced 64 tonnes of gold, but this resource only brought in $1.57 billion for the already bloodless state. A large part of the revenue escapes public coffers, diverted by smuggling networks. If gold production continues to increase, the authorities are struggling to profit.

Concerning gold production, it reaches around 70 tonnes in 2025. However, only part was exported through official channels, to the tune of around 20 tonnes. The fate of the rest remains uncertain: it could have been exported informally or kept within the country, explains Gibril Ibrahim.

The agricultural sector is also hard hit. Exports fell by 43%, with many gum arabic, sesame and peanut producing regions now under paramilitary control, including West Darfur and South Kordofan. Livestock farming, a pillar of the Sudanese economy and mainly established in Darfur, has lost 55% of its exports.

This week, the Prime Minister announced the government's official return to Khartoum, resumed last year. However, several ministries, including that of Finance, have not yet completely resettled in the capital. Against a backdrop of the struggle for control of the territory, oil revenues fell by more than 50%. The Al-Jaili refinery, the most productive in the country and located near Khartoum, was seriously damaged by the fighting.

Despite this situation, the authorities devoted 40% of the national budget to the war effort last year, compared to 36% in 2024, according to Gibril Ibrahim, without specifying the amount. A budgetary choice with serious consequences, while the reconstruction needs are immense: in December 2024, the government estimated the cost necessary to rebuild the areas taken over by the army at $200 billion.

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