Impact of negotiation outcomes on Sudan's economy

Sudan is in the midst of a challenging period as warring generals continue their negotiations, with hopes of reaching a lasting resolution. Abdellatif Ibrahim, Managing Director of the International Center for Business Development in Sudan, shed light on the current situation in a recent interview with CNBC Africa. The negotiations, which have been guided by the US and Saudi Arabia, have seen several rounds in the recent months but have yet to yield sustainable outcomes. This latest round, mediated by the American government and led by American State Minister Mr. Blinken, presents a glimmer of hope for progress. However, Ibrahim notes that the main challenge lies in the fact that neither party is willing to accept defeat, prolonging the conflict and hindering the potential for successful agreements. As the economy continues to suffer from the ongoing instability, the impact on businesses and financial institutions in Sudan has been severe. Banks are virtually paralyzed, foreign trade disrupted, and local businesses devastated. The private sector has faced looting and destruction, leaving the economy in tatters. The absence of functioning government units and widespread disorder further exacerbate the situation. The capital city, Khartoum, has borne the brunt of the crisis, with infrastructure damage and widespread looting. In contrast, other regions in the country have fared relatively better, but are still affected by the turmoil in the capital. The ceasefire being discussed offers a glimmer of hope for these regions to recover, though the road to normalcy remains long and arduous. Sudan's poverty rate, already alarming at 36 percent according to 2022 statistics, is expected to rise further due to the economic damage inflicted by the conflict. The lack of salaries being paid, disrupted agricultural sector, and impending agricultural season without adequate preparations all contribute to the economic hardship faced by the populace. The people of Sudan are calling for an end to the conflict and for the warring generals to prioritize the well-being of the nation instead of pursuing personal gains. As the country grapples with rising poverty rates and widespread devastation, the outcome of the ongoing negotiations becomes increasingly critical for the future of Sudan's economy and its people.