Sudan’s economy has been in free fall since the coup d’état of October 24, 2021, which notably led to the freezing of international support, and economists are sounding the alarm.
Sudanese economist Hassan Bashir has described the situation in Sudan as “critical”. He stated that the poverty rate has risen to 65% of the population, a figure that is twice what it was before the coup. Additionally, a recent United Nations report mentioned that 1.5 million more Sudanese people than last year will require food assistance in 2023. This represents the largest increase in need since 2011 in the country.
According to the economist, Sudan is stuck in a negative cycle. The country is experiencing a halt in international aid, a decrease in investments, a shortage of foreign currencies, and a 50% devaluation of the Sudanese pound in comparison to the dollar. Besides, inflation has hit a record high, surpassing 300% in 2022. All of these issues have arisen amidst a backdrop of increased taxation by the government to replenish its financial reserves. Hafiz Ismail, another economist, stated that Sudan’s middle class has disappeared, leaving only a few wealthy individuals and a predominantly impoverished population.
The March 31 deadline is a source of worry in this scenario. If Sudan fails to set a transitional civilian government by that time, it will risk being excluded from the Heavily Indebted Poor Countries initiative, which has granted substantial debt relief to the country.