Sudan's Economy in Shambles: A Closer Look at the Crisis

SudanWed Jan 14 2026
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Sudan is in a tough spot. The war has wrecked the economy, and the finance minister, Gibril Ibrahim, is trying to figure out how to fix it. He said the country has lost all its main sources of money. The fighting started nearly three years ago between the army and a rival group called the Rapid Support Forces (RSF). The war has destroyed a lot of things. Big companies and industries were mostly in the central part of the country, which is now in chaos. This area used to bring in about 80% of the government's money. Now, it's all gone. The government is thinking about making deals to rebuild infrastructure, especially around the Red Sea ports. The prime minister recently moved back to Khartoum, but many government offices, including the finance ministry, are still not fully operational there. Ibrahim, who used to be a rebel leader, is now working with the army. He's dressed in a combat uniform, showing how serious the situation is. Sudan has a lot of natural resources like oil, gold, and good farmland. But right now, it's facing the world's worst humanitarian crisis. Over half the population needs help just to survive. Gold production is going up, but a lot of it is being smuggled out of the country. In 2025, Sudan produced 70 tonnes of gold, but only 20 tonnes were officially exported. Most of it ended up in the United Arab Emirates.
Agriculture is also suffering. Exports of gum arabic, sesame, and peanuts have dropped by 43%. These crops are mostly grown in areas now controlled by the RSF. The livestock industry, mainly in Darfur, has lost 55% of its exports. The war has shifted to the oil-rich Kordofan region, and the country's oil revenues have dropped by more than 50%. The main oil refinery near Khartoum is badly damaged. Rebuilding the areas taken back by the army is going to cost a lot. The government estimates it needs $200 billion. They are looking for private investors to help with infrastructure projects. The Red Sea coast is a hotspot for foreign interest, with countries like Saudi Arabia and Qatar wanting to build ports there. The war is expensive. The government spent 40% of last year's budget on the military, up from 36% the year before. Sudan's public debt is huge, reaching 253% of GDP in 2023 before slightly decreasing to 221% in 2025. Inflation is still very high, at 151% in 2025, down from a peak of 358% in 2021. The currency has also collapsed, with the black market rate now at 3500 Sudanese pounds to the dollar, compared to 570 before the war. Ibrahim has been in the government since 2021. He kept his position after a military coup later that year. He is one of several Sudanese officials sanctioned by the U. S. government.
https://localnews.ai/article/sudans-economy-in-shambles-a-closer-look-at-the-crisis-949daaad

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