Aidan Lewis, Nafisa Eltahir, Khalid Abdelaziz

KHARTOUM (Reuters – Sudan’s economy is heading for collapse after a coup attempt in October. Exports have plummeted more than 85% since January, according to central bank data. The black market has seen the currency slide.

A military-led government, cut off from foreign aid in the billions, is increasing prices and taxes for everything, from health care to cooking gas. However, these increases are causing anger among struggling citizens.

Although Sudan’s decades-old economic crisis was a legacy from war, isolation, sanctions and years of conflict, there were signs that it would abate before the coup. However, this new humanitarian threat is posed by rising hunger and renewed violence.

Protests continue for several months, and military leaders are yet to name a premier minister. According to Amin Shibeika (a Khartoum banker), the political impasse is paralysing.

“Noone is planning for the future, everything’s suspended. “There’s no transparency. There isn’t any light at the end.

After the 2019 revolution, Omar al-Bashir was overthrown by civilian leader Omar al-Bashir. The power-sharing agreement between military and civilians ended with the Oct. 25 coup. This agreement was intended to facilitate democratic elections. It had witnessed a civilian government carry out painful economic reforms as well as secure international assistance and debt relief. It is currently frozen.

As part of the new efforts by the leadership in securing scarce international support for their cause, Mohamed Hamdan Dagalo was the deputy leader of Sudan’s ruling council, commander of the paramilitary Rapid Support Forces and joined Jibril Ibrahim as finance minister.

Although the delegation had a meeting with Sergei Lavrov (Foreign Minister), no deals were made. Russia, on the other hand, is facing severe Western sanctions for the invasion of Ukraine.

NO REFUNDS IN SIGHT

According to a senior Sudanese official, the government does not see any foreign bailouts on the horizon. Ibrahim stated that Sudan will rely solely on its resources this year for the budget.

Reuters has obtained a draft of the budget. It aims to increase tax revenue by 145% and increase revenues from commodities and services by 140%.

Trader say that one of the most effective tax measures is an increase in annual business license fees by four to fivefold. The banker Shibeika said that businesses have become so used to paying no taxes, it would be difficult to increase them.

According to a central Khartoum business owner, “Business is basically dead in the past few months.” This is the worst it has been since I began trading twenty years ago.

With a deficit of 363 trillion Sudanese pounds (820 million), revenues and spending will rise more than a quarter.

Although the budget has been ratified by the government, a top finance minister official stated that it wasn’t realistic and would not be implemented on the ground.

Analysts claim it wouldn’t be possible to pay salaries without inflationary printing, something Ibrahim has denied last week.

A request for comment was not received by the finance ministry.

“WE DON’T HAVE THE MONEY.”

Anti-military protestors had blocked Port Sudan’s trade routes with Egypt for several weeks before the coup. They also barricaded those same trade routes from Egypt, preventing exports of cotton, peanuts and sesame seed. This has prevented them from bringing in much-needed dollars.

According to Reuters central bank data, Sudan’s January exports were $43.5 million. That is a significant drop from December’s $293million, though this is a high-level agricultural export season.

After the Sudan’s currency was devalued a year earlier, the rate of exchange had stabilized at around 450 pounds to the US dollar. The black market is back and Wednesday’s pound exchange rate was 530 to the dollar, as opposed to the official rate of 443.50.

Results from the Dollar Auction show that central banks have been selling smaller quantities of dollars, indicating depleted reserves. While inflation is now at a slightly lower level, the global rate of 260% was in January.

After subsidy reforms worldwide, petrol prices and electricity are on the rise. So is the price of government-issued paperwork.

Ali Shakir from one of the nation’s most important public hospitals, explained that overnight, patient admissions in state health facilities increased by 250 to 4200 pounds, which was then suspended.

He claimed that although he had asked for an increased budget, he was “surprised” that the citizens wanted him to take it out of their pockets.

The ruling council in Sudan said in a statement they would review prices and the government wouldn’t consider healthcare to be a revenue source.

However, rising prices could fuel resentment about the economic hardships which triggered Bashir’s uprising. This includes the ever-diminished supply of subsidized bread.

Amna, Khartoum’s resident of the period since the coup said “Life has turned into really, really awful.” A piece of bread the bakery sells is as big as a marble. The price? 30 Sudanese dollars ($0.07). “We don’t have enough money to buy it.”