Sudan’s economic crisis is deepening as traders in Omdurman shut their businesses in protest against new taxes and import restrictions, adding another layer of hardship to a country already devastated by more than three years of war.

Hundreds of traders at the famous Libya Market in Omdurman have staged an open-ended strike, protesting decisions issued by authorities based in Port Sudan that they say are making it increasingly difficult to import and sell essential goods.

Libya Market is one of Omdurman’s major commercial centres, with its wholesale trade supplying goods to other parts of the country. Traders warn that a prolonged shutdown could disrupt supplies, push prices higher and further weaken an economy already battered by conflict.

The new measures include restrictions on the importation of essential goods as well as increased taxes and levies. At the same time, traders say sales in Omdurman markets have fallen by up to 70%, while the cost of commodities continues to rise and consumers struggle with declining purchasing power.

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Vendors sell vegetables and fruits at a market in Khartoum, Sudan on January 8, 2022. /XINHUA

The traders have vowed to maintain the strike until the restrictions are lifted. They have also accused unnamed parties of benefiting from goods entering the country through illegal channels while businesses using recognised routes face mounting restrictions.

“The taxes and levies imposed on us have become an additional burden at a time when the pound is depreciating and the cost of purchasing and transporting goods and operating shops is rising,” traders said.

Trader Al-Atta Fatah said the problem went beyond rising prices.

“The issue is not limited to rising commodity prices alone. It is confusion accompanied by widespread chaos in sales and pricing, a lack of liquidity, and repeated disruptions to banking applications,” he said.

According to Fatah, the same commodity can sometimes have several prices in a single day because of the underlying instability affecting Sudan’s economy.

The disruption has also spread beyond Omdurman. Radio Dabanga reported on September 17 that around three-quarters of shops in Ed Dueim, White Nile State, had closed, alongside a large number of wholesale stores in Omdurman.

Rapid price increases have made it difficult for traders to determine selling prices or calculate how much it will cost to replenish their stocks.

Shop owners in Omdurman, Gedaref and White Nile have reported a sharp decline in buying and selling activity, while a Reuters tour found empty shelves in some shops.

The crisis has been worsened by the collapse of the Sudanese pound. Sudanese media reported that the currency had fallen to around 7,500 pounds per US dollar on the parallel market, compared with approximately 4,100 in May.

Economic analyst Azhari Abdel Majid attributed the price increases to “the general economic crisis, the imbalance in the external balance, and speculation in the currency market”.

He said the resulting demand for foreign currency had contributed to “a historic collapse in the value of the local currency and worsening inflation”, with the war further damaging productive sectors and supply chains.

Economic and social expert Babiker Mohamed Ismail also pointed to corruption and weak institutions.

“One of the main causes of Sudan’s deteriorating economic situation is the spread of corruption, accompanied by the weakness of the institutions entrusted with combating corruption,” he said.

The economic turmoil comes as Sudan continues to face one of the world’s largest humanitarian crises.

The war between the Sudanese Armed Forces and the Rapid Support Forces, which began in April 2023, has displaced millions and devastated infrastructure, trade routes and essential services.

International pressure to end the conflict has continued. United States (US) Secretary of State Marco Rubio has called for humanitarian corridors and said progress would remain difficult unless external actors influencing the warring sides use their leverage to help end the fighting.

Turkey, Saudi Arabia and Egypt have all emerged as important regional players in the conflict, with their relationships with Sudan’s army drawing scrutiny.

Investigations have also reported Turkish military support to Sudan, including a deal involving Bayraktar TB2 drones, munitions and technical assistance. The Washington Post estimated the reported deal at about $120 million.

Saudi Arabia has maintained a diplomatic role while also developing closer ties with Sudan’s army. Reuters reported that Riyadh had mediated a $1.5 billion Pakistani arms deal for the Sudanese army before later seeking its cancellation.

Egypt, meanwhile, has said its policy is aimed at protecting Sudan’s unity and state institutions, although critics argue that its involvement has complicated the conflict.

As fighting continues, Sudan’s economic crisis is increasingly being felt in the country’s markets, where shortages, currency depreciation, higher taxes and falling consumer demand are converging to make everyday life even more difficult for millions of civilians.

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Plumes of smoke rise during clashes between the paramilitary Rapid Support Forces and the army in Khartoum, Sudan, September 26, 2024. /CITIZEN DIGITAL.REUTERS