Sudan’s Finance Minister, Gibril Ibrahim, revealed on Monday that the country’s economy contracted by 40 percent last year due to widespread armed conflicts, with a further 28 percent contraction predicted for 2024.
Speaking at a press conference in Port Sudan, Ibrahim described the current state of Sudan’s economy as the most severe in its history, attributing the downturn to extensive damage caused by conflicts to infrastructure, public facilities, and private property nationwide.
He noted a significant decline of over 80 percent in state revenue, prompting the government to explore the possibility of establishing an alternative capital due to the severe damage inflicted on Khartoum, the current capital city.
“As the backbone of Sudan’s economy, the industrial sector has been severely damaged by the conflict. Infrastructure like roads and supply chains have been damaged which impeded foreign trade and export. Bilateral trade between Sudan and neighboring countries such as Libya and Chad has slumped dramatically. But the financial system was worst hit which caused a liquidity crunch in banks and triggered systemic risks,” said Rasheed Ibrahim, a Sudanese economist.
A civil war broke out on April 15 last year in Khartoum between two military factions: the Sudanese army and the Rapid Support Forces. This conflict wreaked havoc on Sudan’s economy, infrastructure, and healthcare system, displacing hundreds of thousands of people.
According to the latest update from the UN Office for the Coordination of Humanitarian Affairs, approximately 8.1 million individuals have been displaced since the outbreak began. Of these, around 6.3 million remain within Sudan, while another 1.8 million have sought refuge in neighboring countries.
UN figures indicate that approximately 13,900 individuals have lost their lives as a result of the conflict.