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| Sudan steeled for sharp price rises as state cuts fuel and electricity subsidies | |
| (35 minutes later) | |
| People in Sudan are bracing themselves for price rises on goods and services following the government’s unexpected announcement that it will cut subsidies on fuel and electricity. | People in Sudan are bracing themselves for price rises on goods and services following the government’s unexpected announcement that it will cut subsidies on fuel and electricity. |
| On Friday, petrol and diesel prices rose by almost 30% after a late-night pronouncement by the government indicated that subsidies would be partly removed. Electricity prices in Sudan are subject to progressive increases, depending on household consumption. | On Friday, petrol and diesel prices rose by almost 30% after a late-night pronouncement by the government indicated that subsidies would be partly removed. Electricity prices in Sudan are subject to progressive increases, depending on household consumption. |
| The subsidy withdrawals are having widespread knock-on effects on the prices of other goods and services dependent on fuel and electricity for production. Public transport costs have risen commensurately with fuel prices, while traders are preparing for price hikes across the board. | The subsidy withdrawals are having widespread knock-on effects on the prices of other goods and services dependent on fuel and electricity for production. Public transport costs have risen commensurately with fuel prices, while traders are preparing for price hikes across the board. |
| “The Sudanese people are finished,” said Mohammed Osman, a taxi driver in the capital, Khartoum. “All the prices are going up. Only God knows how we will survive this.” | “The Sudanese people are finished,” said Mohammed Osman, a taxi driver in the capital, Khartoum. “All the prices are going up. Only God knows how we will survive this.” |
| The austerity measures are a bitter blow to the people of Sudan, who are already struggling to cope with double-digit inflation and the effects of US sanctions. The unpopular reforms also rekindle memories of the deadly protests of 2013, when thousands took to the streets to oppose similar price increases. | The austerity measures are a bitter blow to the people of Sudan, who are already struggling to cope with double-digit inflation and the effects of US sanctions. The unpopular reforms also rekindle memories of the deadly protests of 2013, when thousands took to the streets to oppose similar price increases. |
| Over the past few days, security forces have confiscated the entire print run of several newspapers and arrested several members of the opposition who spoke out against the measures, in what many believe are efforts to contain public protests. | Over the past few days, security forces have confiscated the entire print run of several newspapers and arrested several members of the opposition who spoke out against the measures, in what many believe are efforts to contain public protests. |
| The subsidy cuts were announced as part of a programme designed to deal with the country’s widening fiscal deficit and deepening foreign currency crisis. With the secession of South Sudan in 2011, the government lost most of its oil fields and its biggest source of government revenue and foreign exchange. Efforts to develop other industries, including gold mining, have failed to fill the void left by the lost petrodollars. | The subsidy cuts were announced as part of a programme designed to deal with the country’s widening fiscal deficit and deepening foreign currency crisis. With the secession of South Sudan in 2011, the government lost most of its oil fields and its biggest source of government revenue and foreign exchange. Efforts to develop other industries, including gold mining, have failed to fill the void left by the lost petrodollars. |
| While the gradual discontinuation of subsidies is recommended as part of a macroeconomic stabilisation package proposed by the International Monetary Fund, experts said the reforms were poorly implemented and failed to address the root causes of the crisis. | While the gradual discontinuation of subsidies is recommended as part of a macroeconomic stabilisation package proposed by the International Monetary Fund, experts said the reforms were poorly implemented and failed to address the root causes of the crisis. |
| “The removal of subsidies is an economically sound move, but it should have been done in a different way,” said Abda al-Mahdi, an economist and former state minister of finance. “If you are going to implement austerity measures that will affect the average Sudanese person, you should have started with reducing your own spending.” | “The removal of subsidies is an economically sound move, but it should have been done in a different way,” said Abda al-Mahdi, an economist and former state minister of finance. “If you are going to implement austerity measures that will affect the average Sudanese person, you should have started with reducing your own spending.” |
| Alongside the subsidy cuts, the government announced it would raise salaries of government workers by 20%, a move that many believe will widen income disparity in a country where half of the population already lives below the poverty line. | Alongside the subsidy cuts, the government announced it would raise salaries of government workers by 20%, a move that many believe will widen income disparity in a country where half of the population already lives below the poverty line. |
| Several opposition parties criticised the government for continuing to spend on its bloated security apparatus and bureaucracy, while failing to direct more funds towards much needed social services. | Several opposition parties criticised the government for continuing to spend on its bloated security apparatus and bureaucracy, while failing to direct more funds towards much needed social services. |
| “They chose only to lift the subsidies, leaving other major items untouched – for example, the majority of the budget is still directed to the war,” said Omer al-Digair, chairman of the Sudanese Congress Party. | “They chose only to lift the subsidies, leaving other major items untouched – for example, the majority of the budget is still directed to the war,” said Omer al-Digair, chairman of the Sudanese Congress Party. |
| Al-Digair, whose party forms part of the broad opposition coalition Sudan Call, also condemned the timing of the austerity measures, which he said should have been implemented in coordination with opposition parties as part of an ongoing national dialogue aimed at bringing about political and economic change. | Al-Digair, whose party forms part of the broad opposition coalition Sudan Call, also condemned the timing of the austerity measures, which he said should have been implemented in coordination with opposition parties as part of an ongoing national dialogue aimed at bringing about political and economic change. |
| Amid an ongoing crackdown by security forces on members of the opposition, Al-Digair was arrested this week. More than 20 members of the Sudanese Congress Party have now been detained, according to a source within the party. | Amid an ongoing crackdown by security forces on members of the opposition, Al-Digair was arrested this week. More than 20 members of the Sudanese Congress Party have now been detained, according to a source within the party. |
| The government has not responded to repeated requests for comment. | The government has not responded to repeated requests for comment. |
| Many fear that the subsidy cuts risk accelerating inflationary pressures and pushing the population deeper into poverty. | Many fear that the subsidy cuts risk accelerating inflationary pressures and pushing the population deeper into poverty. |
| “You have to show the people that the subsidy will come back to them in the form of free education or health, but this hasn’t been done,” said Al-Mahdi. | “You have to show the people that the subsidy will come back to them in the form of free education or health, but this hasn’t been done,” said Al-Mahdi. |
| In the absence of a comprehensive social safety net, the Sudanese will resort to their own coping strategies. | In the absence of a comprehensive social safety net, the Sudanese will resort to their own coping strategies. |
| “People will reduce consumption of essential items and completely stop buying secondary goods, like yoghurt or soft drinks,” said Salah, a shopkeeper in a residential area of Khartoum, who didn’t want to give his full name for fear of being rounded up by security forces. | “People will reduce consumption of essential items and completely stop buying secondary goods, like yoghurt or soft drinks,” said Salah, a shopkeeper in a residential area of Khartoum, who didn’t want to give his full name for fear of being rounded up by security forces. |
| “I can’t afford to miss a single day of work,” the 24-year-old explained. This is another reason why he won’t take to the street to protest against the subsidy cuts. Salah, who has no savings and must feed a family of eight, earns only about £200 a month. | “I can’t afford to miss a single day of work,” the 24-year-old explained. This is another reason why he won’t take to the street to protest against the subsidy cuts. Salah, who has no savings and must feed a family of eight, earns only about £200 a month. |
| Although small-scale demonstrations have been reported in several towns across Sudan, many Sudanese appear reluctant to risk their lives on the streets for something they feel powerless to change. | Although small-scale demonstrations have been reported in several towns across Sudan, many Sudanese appear reluctant to risk their lives on the streets for something they feel powerless to change. |