Home | News    Monday 4 June 2012

Businessmen union warns of “catastrophe” ahead of Sudan’s economy

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June 3, 2012 (KHARTOUM) – The Union of Sudanese Businessmen (USB) has urged the authorities to seek out alternative austerity measures as opposed to their “catastrophic” intention of lifting fuel subsidies, warning that the move will put the government at risk.

Last week the ruling National Congress Party (NCP) approved plans to suspend state subsidization of fuel products despite objections raised by the party’s parliamentarians who later conditioned their consent on a set of demands including the sacking of Finance Minister Ali Mahmoud, citing his responsibility for wrong economic policies.

The plan to lift fuel subsidies was recommended by the party’s economy officials in an attempt to save the country’s economy which has been deteriorating since it lost 75 percent of its oil revenues with South Sudan’s secession in July last year.

In a meeting held Sunday with Al-Zubair Ahmad Al-Hassan, the head of the financial and economic affairs committee at the Sudanese parliament, USB representatives described the decision to lift fuel subsidies as “catastrophic” and warned that it would put the government “in the eye of the storm.”

USB representatives also blamed the government’s economic and financial policies for plunging the country into the current economic crisis.

Amin Al-Nifidi, a prominent USB member, said that the impending measure of lifting fuel subsidies was decided without careful studies and involvement of others.

A member of the USB’s agriculture sector, Sayid Ahmad Abbas, said that government policies had inconvenienced many farmers. He also called on the authorities to reduce perquisites of official post-holders.

For his part, Al-Zubair pointed out that the economy was “in travail” and demanded that the state applies austerity measures “on itself first.” He went on to warn that any frivolous spending would result in more inflation.

Annual inflation in Sudan is close to 30 per cent and the local currency has been depreciating despite multiple interventions and devaluation by the country’s central bank.

Meanwhile, an MP named Ali Abarsi has faulted the decision to lift fuel subsidies on the grounds that it would hurt the government before anyone else.

“Whatever the government’s justifications for lifting fuel subsidies, it will be the most affected since it is the biggest consumer of fuel” he told reporters on Sunday.

Abarsi, who represents the NCP, also predicted that the price of dollars would jump to the equivalent of 12 Sudanese pounds in the black market as a result of lifting fuel subsidies. He further warned that such outcome would in turn lead to increases in the price of imported commodities.

The Sudanese pounds currently trades at twice the value of the official rate in the black market. This is mainly due to shortages in the government’s reserves of foreign currency as a result of losing oil revenues.

The central bank recently made a controversial decision to allow Forex bureaus to use their own rates in currency transactions in an attempt to crackdown on the black market.

(ST)

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  • 4 June 2012 10:33, by Northern Sudanese

    yea, the government needs to find another plan.

    repondre message

    • 4 June 2012 10:48, by Lang

      The government should follow through with plans, this is the best decision they can make.

      repondre message

    • 4 June 2012 10:56, by Anti Dinka’s

      You call south Sudanese insect, you will never ever see peace again mark my word

      Lying is the culture of khartoum, to make them look good
      if there’s any place on the planet earth that wants
      to completely erased/destroy Khartoum human and animals to Zero ground Is Juba south Sudan

      repondre message

      • 4 June 2012 11:19, by Corrector

        you talk alot for someone who’s sucking my dick, bitch

        repondre message

      • 4 June 2012 12:21, by peace seeker

        No one said that South Sudanese are inscets.Our president said that the SPLM is an insect,Please be honest when you quote.

        repondre message

    • 4 June 2012 11:15, by SEE ME

      "The first phase in Sabir’s plan is to reduce the size of the cabinet, the second is to force the ministries of electricity, defense and the National Intelligence and Security Services (NISS) to have their accounts audited by the ministry of finance as opposed to the “evasion” of financial accountability practiced by these bodies."

      I do agree...I do agree...

      repondre message

      • 4 June 2012 11:17, by SEE ME

        "The third phase in Sabir’s plan is to lift fuel subsidies."

        I DO NOT AGREE...I DO NOT AGREE...I DO NOT AGREE...

        repondre message

        • 4 June 2012 11:27, by SEE ME

          There is no “catastrophe” of economy in SUDAN.

          GOS must stop the import of the unessential products that are only used by the peoples of KHARTOUM and few big cities.

          ALL will be all right

          GOS must concentrate in securing the BASIC HUMAN NEEDS FOR ALL.

          But replanning is highly required.

          PIN-POINT process is needed in every step.

          repondre message

          • 4 June 2012 13:35, by Aaban

            Ahaha you was brought up by lairs and feed with lairs from your mother and there is no day that you will accepted your looming to doom, coward ja’alinain are master mind of lairs and cover up, good on you, but the bad things is that you are not in the country otherwise you would have know exactly what is happening in Sudan,

            repondre message

    • 4 June 2012 13:33, by realperson

      To N.Sudanese:

      What kind of planning are u talking about? Lifting fuel subsidies will downfall ur terrorist govt.According to BU, 1$ USD will rise up to 12 S.pound HAAAAAAAAAAAAA NCP is die unless u kneel down before SS to rescue ur economy with $2.4 billion USD.dON’t cry , it is ur own making.

      repondre message

    • 4 June 2012 14:24, by Loko El Pollo

      SUDAN ECONOMY WILL TAKE YEARS TO FILL THE VOIDS LEFT BY SOUTHERN SUDANESE WHOM THEY KICK OUT OF THEIR COUNTRY OUT ANGER.THE CONSUMERS WHO PROP UP THEIR BUSINESSES WERE SOUTHERNERS.NOW THE COLAPSE IS EMMINENCE AND THE MITIGATING DEVICES ARE BLAMES OF JUBA,AMERICA AND FINANCE MINISTER.GROW UP AND SUCK IT UP,LIFE WILL NOT ALWAYS BE SMOOTH FOR THE KHARTUOMERS ONLY.LAYOFFS AND HOMELESSNESS PLUS DESIEL

      repondre message

      • 4 June 2012 14:26, by Loko El Pollo

        TO BE SERVE AS LUNCH IS COMMING TO THE RICH NEIGHBORHOODS.

        repondre message

    • 4 June 2012 16:37, by South South

      Norhern Sudanese,

      You have a message from Israel. Please read it below:

      4 June 03:36, by Isme
      Greeting from Israel to mr Northern sudanese, My advice to you mr northern dig your grave and don’t forget to tell your friends please, Beacuse getting rid of Israel is like jumping into burning fire. Second to that we people of Irael we’re not abussive like arab to spit in people face, yes we don

      repondre message

    • 4 June 2012 18:19, by zulu

      North Sudanese.
      What plans? The government is delinquent and insolvent. How long will it take for your country to escape this endemic cycle? Just think if you can there is no major export including meat or sugar. Let alone the alage gold mines? Your government is not trustworthy. The obvious plan is work out with opposition and all marginalized people, lest the Jaalenes rock the boat to salvation

      repondre message

    • 4 June 2012 18:23, by South South

      Northern Sudan,

      Message from Israel for you. Read it below:

      4 June 03:36, by Isme
      Greeting from Israel to mr Northern sudanese, My advice to you mr northern dig your grave and don’t forget to tell your friends please, Beacuse getting rid of Israel is like jumping into burning fire. Second to that we people of Irael we’re not abussive like arab to spit in people face, yes we don’t need fool

      repondre message

  • 4 June 2012 10:38, by Northern Sudanese

    removing fuel subsidies would create major protests across the country.........

    we have seen this in Nigeria before..........

    lets stay away from this plan.........

    repondre message

    • 4 June 2012 11:18, by Corrector

      I don’t think their is anyway around it. The subsidies are making sudan hemoriage dollars that we don’t have, and in general, selling bellow cost is very bad business. And just to make a note, we as northern sudanese are not in the business of taking care of the government, whether NCP or otherwise, its our job to take care of sudan. If the removal of the subsidies will accelerate the ousting..

      repondre message

      • 4 June 2012 11:19, by Corrector

        of the NCP, then so be it, we; The Sudan have bigger issues to deal with than the NCP, omar al bashir and ahmed haroon.

        repondre message

    • 4 June 2012 18:19, by South South

      Norhern Sudanese,

      You have a message from Israel. Please read it below:

      4 June 03:36, by Isme
      Greeting from Israel to mr Northern sudanese, My advice to you mr northern dig your grave and don’t forget to tell your friends please, Beacuse getting rid of Israel is like jumping into burning fire. Second to that we people of Irael we’re not abussive like arab to spit in people face, yes we don

      repondre message

    • 4 June 2012 18:25, by South South

      Northern Sudanese,
      Message from Israel for you:

      4 June 03:36, by Isme
      Greeting from Israel to mr Northern sudanese, My advice to you mr northern dig your grave and don’t forget to tell your friends please, Beacuse getting rid of Israel is like jumping into burning fire. Second to that we people of Irael we’re not abussive like arab to spit in people face, yes we don’t need fool muslims of no

      repondre message

  • 4 June 2012 10:43, by LOJUBA

    SEE ME, JALABA, and NCP, it is earlier fact brothers, may worry is the patient people of Sudan, we in south don’t want you to suffer, but it is only NCP hiding beside the people of sudan, soon all sudan will enjoy the freedom of SPLA/SPLM & all SOSA Parties. now it is clear why British didn’t want to separate south from North, Now Hunger, FRUSTRATION & ETC IN KHARTOUM, SOON FALL OF KHARTOUM.

    repondre message

    • 4 June 2012 11:13, by Northern Sudanese

      LOJUBA

      we in north are only suffering economicly, you in south are suffering by hunger.

      our inflation is only 27% while yours is 80% already.
      4.7 milion in hunger
      98% of economy lost
      unable to afford food

      and you speak about khartoum?

      repondre message

      • 4 June 2012 11:23, by LOJUBA

        North Sudan

        I f you don’t have money , means you Hungry fact bro, no way out bro, you have to surrender to us, we will feed you be cause we have Money on hand , we just locked it aside to make sure is save for our nation, fact jalaba too, you might experience more still bro, in the history of NCP they never experience such difficulties, just a simple lesson on Economics

        repondre message

      • 4 June 2012 15:00, by Sudan virus

        Hahahahahahahahahaha!!!! The 80% inflation in South Sudan is the reverse of the Sudan’s 27%!
        Let us pray:

        Oh God in Jesus name i pray you keep me honest and transparency in my words!
        Oh God i witnessed the true is revealing it self out of the mouths of the devils!
        Oh God don’t forgive the devils these time in Jesus name i pray amen.

        repondre message

  • 4 June 2012 10:57, by Majongdit

    Dear All,
    "The Sudanese pounds currently trades at twice the value of the official rate in the black market. This is mainly due to shortages in the government’s reserves of foreign currency as a result of losing oil revenues."

    THE BEST THING FOR SUDAN AND S.SUDAN IS TO IMMEDIATELY AGREE ON THE REASONABLE OIL TRANSIT FEES AND TWO ECONOMIES WILL SOON BE STABLE. JUST THAT!

    repondre message

    • 4 June 2012 11:11, by LOJUBA

      AMAJONGDIT,

      BRO, we sorry, our Economy is stabilizing, we don’t think of khartoum any more, lets see you will RIP. We have Oil on hand how about you NCP???? We can send our oil through east africa soon or later

      repondre message

      • 4 June 2012 12:04, by Majongdit

        Northern Sudanese,

        The inflation rate of South Sudan is not as high as reported. Mr David Chan is someone I know well. He can manipulate almost anything. South Sudanese are not hungry. I have been to Khartoum and I saw worse suffering than what we have S Sudan. In the South, most people have fertile land all for free.And then livestock is abundant. Life’s really worth living here.It’s raining E

        repondre message

  • 4 June 2012 11:12, by hellonearth

    we all know what will happen, Sudan will suffer.

    repondre message

  • 4 June 2012 12:27, by peace seeker

    Sudan is capable of overcoming its economical difficulties.

    repondre message

    • 4 June 2012 12:52, by SEE ME

      peace seeker

      "Sudan is capable of overcoming its economical difficulties."

      100% I agree with you.

      It is the responsiblity of GOS and NCP to handle it very professionally.

      UNnecessary expenses must be stopped and many higher job positions must be reduced.

      And SUDAN is in the safe side for another 2 decades.

      repondre message

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