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Sudan’s Currency Collapse Deepens Poverty as Inflation Cripples Households

Sudan’s Currency Collapse Deepens Poverty as Inflation Cripples Households

PORT SUDAN – Aisha makes tea at her informal street stall in Port Sudan, the revenue barely enough to sustain her family in a nation torn by war for nearly four years. For the 27-year-old, the economic indicators dominating headlines translate directly into an impossible choice between feeding her parents and four brothers and keeping her small business afloat.

Before the conflict erupted in April 2023, Aisha earned roughly 30,000 Sudanese pounds daily—equivalent to about $50 at pre-war exchange rates—which was sufficient to cover her household expenses. Today, she charges 3,000 pounds for coffee and 1,500 pounds for tea, bringing in between 70,000 and 100,000 pounds a day. However, due to hyperinflation, that nominal increase is completely absorbed by rising operational and living costs.

The impact of the currency’s devaluation is stark on basic goods. Aisha recalled that 1,000 pounds once purchased five loaves of bread; now it buys only three. The price of sugar has nearly doubled from 4,000 to 7,000 pounds per kilogram. Daily commuting expenses have quadrupled, and staples like lentils now cost around 16,000 pounds per kilogram, while beef sits at 68,000 pounds—a luxury she cannot afford.

Aisha’s plight reflects a national crisis. The conflict between the Sudanese Armed Forces (SAF), which controls Port Sudan, and the paramilitary Rapid Support Forces (RSF), has severely damaged production and exports, creating a critical shortage of foreign currency. Consequently, the Sudanese pound has lost significant value, with the black market rate hitting 7,500 pounds to the US dollar by late September, compared to approximately 600 pounds before the war.

Slowing Inflation, Rising Prices

According to Sudan’s Central Bureau of Statistics, annual inflation decreased to over 41 percent in July from a peak of 51 percent in June. Despite this slowdown, the overall consumer price index still rose nearly 1.5 percent month-over-month, indicating that while the rate of inflation has decelerated, prices continue to climb, further eroding household purchasing power.

The United Nations Development Programme (UNDP) estimates that Sudan lost $6.4 billion in gross domestic product in 2023 alone. The war has shrunk the economy by more than 40 percent, with one-third of businesses forced to close their doors.

Expert Calls for Structural Reform

Economic analyst Mohyeldin Mohamed attributed the pound’s depreciation to the disruption of productive industries and what he described as an “economic war” involving the alleged smuggling and looting of resources such as gold and gum arabic by the RSF.

Mohamed urged a two-pronged approach combining immediate measures with long-term structural reforms. He recommended boosting domestic food production, enhancing tax revenue collection, and channeling gold revenues into official foreign currency earnings. Long-term strategies should focus on supporting agriculture and livestock, reforming the gold sector to reduce reliance on informal mining, and cutting dependence on imported flour and medicine.

The Human Toll

Maryam Ibrahim, an aid worker and former UN economics researcher, noted that the currency collapse has rendered salaries and savings inadequate for basic needs. Families are coping by reducing meals, delaying medical care, withdrawing children from schools, and taking on debt.

The humanitarian situation has deteriorated sharply. The World Bank estimates that extreme poverty rose from 48 percent in 2023 to 59 percent in 2025. Between February and May, the Integrated Food Security Phase Classification reported that nearly 19.5 million people—41 percent of the population—faced acute food crises. Among them, over five million endured extreme, life-threatening shortages, and 135,000 were on the brink of famine.

Ibrahim emphasized that while cash assistance from non-governmental organizations provides temporary relief, aid payments must be frequently adjusted to match rapidly changing prices. She argued that sustainable recovery requires linking emergency aid to long-term support for livelihoods, agriculture, and the restoration of banking and public services.

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