Thursday, April 18, 2024

If the war escalates, what will happen to Sudan’s gold exports?


Published in:
Last Updated:

Fighting in Sudan has entered its tenth day amid fears the war could escalate, citing the country’s deteriorating economic situation and its impact on its exports, particularly gold, which accounts for 50 percent of it.

The Khartoum airport outage disrupted 5% of total Sudanese exports and imports, costing the Sudanese treasury $15 billion worth of gold exports, equivalent to 50% of exports valued at $2 billion. Sudanese economist Dr. Muhammad al-Nair.

Gold exports will be affected

In a statement to Al-Sharq Al-Awsat newspaper, Al-Nair believes that gold exports will be affected, “because its exports occur through air transport, which appeared to be suspended, but there may be other exports that take place through the port of Port Sudan. So far, the war has not faced any problems.” Taking place in the geographical area, it is the Khartoum area, in the center and south of the capital, the locations of the Presidential Palace, the General Command of the Army, and the Khartoum International Airport.

Although Al-Nair does not expect a significant impact on exports and imports in general, “Until the circle of war expands, includes other influential sites and extends its duration, at which point the Sudanese economy will suffer greatly.”

He pointed out that the biggest impact of the war is on the Sudanese citizen, “in addition to the disruption of internal supply chains such as electricity, energy, food and health services within Sudan’s capital, Khartoum, in addition to disability. The Sudanese employee and laborer has to start his shift and work since the outbreak of war.”

See also  Houthis: Will not release detained ship until Gaza cease-fire ends

Export stopped

For his part, economist Sumaya Saeed affirmed, “Gold was expected to be one of the most important alternative resources after the secession of South Sudan from Mother Sudan, leaving 75% of its oil resources, but the government failed. It benefits from the export of gold, because more than 89% is outside official channels. are being exported,” he said.

“He believes that the transactions of mining companies with the Russian company (Wagner) (Rapid Support) in the Sudan gold sector continue to be a matter of controversy.

He pointed out that traditional exports such as sweets, meat, livestock and cotton “have seen a significant decline in the last three years as their value does not exceed $3 billion per year, partially offset by gold exports”.

Khartoum International Airport (AB)

3.6 billion dollars

He also expected that the present extremely complicated situation would lead to a complete stoppage of exports, while he expected more goods and precious metals to be smuggled, while he expected more economic collapse, flight of investors, and increase in suffering.

Sudan’s gold exports last year were valued at $1.6 billion, accounting for 44% of the country’s total exports of $3.6 billion, according to the Director General of the Sudan Ministry of Minerals. Resources Company Limited, Mubarak Abdel Rahman Ardol.

Last January, Artol said, “Gold benefits the national economy twice… once with a huge income by collecting the government’s production share directly to the finance ministry, and when the rest is exported, it comes with export income. Paid in advance by the exporters.”

See also  A significant expansion between the "foreign brethren"

Read more

Rolf Colon
Rolf Colon
"Creator. Award-winning problem solver. Music evangelist. Incurable introvert."

Share post:


More like this

Unlocking the Power of Booking Engines in the Hospitality Industry

In an era dominated by technology, the hospitality industry...

Boost Your Sales with Perfect Banner Printing Services in Dubai

In the fast-paced world of business, effective advertising is...

Defend Against DDoS Attacks with Qrator Labs’ Anti-DDoS Solutions

Protecting your online assets from DDoS (Distributed Denial of...

UAE Powering Gaming Boom in the Middle East

The gaming industry in the Middle East is experiencing...