Sudan’s trade deficit balloons to $4.8 billion as war ravages economy
May 18, 2024 (PORT SUDAN) – Sudan’s trade deficit reached $4.8 billion in the first quarter of 2024, Minister of Trade and Supply Fathallah Abdallah Youssif announced Saturday. This is the first official trade data released since the outbreak of the war, which has significantly increased the country’s reliance on imports.
Exports totalled $3.8 billion in the first quarter, while imports reached $8.6 billion. The minister noted that the trade deficit had been growing in recent years, rising from $6.7 billion in 2022 to $7 billion in 2023.
The war has devastated Sudan’s industrial sector, with 85% of factories destroyed. This has forced the government to import essential goods like sugar, tea, milk, and flour to meet domestic demand. The minister acknowledged that the influx of unregulated goods has prompted the ministry to implement stricter import and export controls.
The war’s economic impact has been severe, with the destruction of industries, markets, and livelihoods pushing millions into poverty. The Minister of Trade pledged to support exporters and importers, highlighting their crucial role in generating revenue. He revealed that over $700 million in export earnings and five million heads of livestock had not been remitted to the Central Bank of Sudan.
Authorities have uncovered a network involved in forging trade documents, including those of both Sudanese and foreign nationals. Legal action has been taken against them.
The minister also addressed the issue of Sudanese gold traders preferring to sell their gold in the UAE, citing easier financing options. He emphasized that the government does not restrict where gold is sold, despite strained relations with the UAE over allegations of supporting the Rapid Support Forces.
In response to the conflict, Sudanese authorities have instructed banks to open accounts in other Arab countries, including Qatar. The minister also disclosed that the Ministry of Trade and Supply had lost all of its documents, including those related to Sudan’s accession to the World Trade Organization.