Sudan has announced urgent trade and economic reforms aimed at stabilising a collapsing external sector, as the country continues to grapple with severe economic fallout from a conflict that erupted in April 2023.
In a statement issued on Wednesday, the Ministry of Finance said a high-level government task force had been instructed to immediately address critical disruptions in imports and exports while advancing broader structural reforms to rebuild trade capacity.
Finance Minister Gibril Ibrahim said the measures were designed to “restore functionality to disrupted trade corridors, secure essential supplies, and lay the foundation for long-term economic recovery” in an economy battered by nearly three years of war.
The reforms focus on easing bottlenecks affecting agricultural inputs, strengthening domestic manufacturing capacity, and improving livestock processing in a bid to increase export value and diversify Sudan’s shrinking revenue base. Authorities also plan tighter anti-smuggling enforcement, which officials say has worsened during the conflict, further draining state revenue.
The government is also pushing import substitution policies aimed at reducing dependence on foreign goods, protecting local industries, and ensuring continued availability of essential commodities in domestic markets.
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Sudan’s economy has been severely weakened since fighting broke out between rival military factions in April 2023, triggering widespread destruction of infrastructure, displacement of millions, and the near-collapse of formal economic activity in several regions.
According to official and international estimates, the economy has contracted by more than 42 percent over the period, making it one of the steepest wartime downturns in recent global history. The impact has been compounded by disruptions to agriculture, transport networks, and energy supply chains.
The conflict has also had a devastating effect on household incomes. Government figures indicate that roughly 60 percent of the population has lost its primary source of livelihood since the start of the war, pushing millions into poverty and increasing reliance on humanitarian assistance.
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Currency instability has further deepened the crisis. The Sudanese pound has undergone a sharp depreciation, now trading at more than 4,000 to the US dollar on parallel markets, reflecting severe foreign exchange shortages and declining investor confidence.
The World Bank has projected that Sudan’s gross domestic product (GDP) contracted sharply in both 2023 and 2024, with recovery to pre-war levels unlikely before at least 2031, assuming stability returns and reconstruction efforts gain traction.
Trade performance has also deteriorated significantly. Export volumes have fallen amid disruptions to key production sectors, while imports have been constrained by foreign currency shortages and logistical breakdowns. The result has been a widening trade deficit that continues to strain already depleted public finances.
Officials say the new reform package is intended to address both immediate supply chain failures and longer-term structural weaknesses in the economy. However, economists caution that implementation will depend heavily on security conditions and the government’s ability to restore control over key economic zones.
The Ministry of Finance said it would prioritise stabilising food and fuel supply chains in the short term, while also seeking to revive agricultural exports, particularly livestock and cash crops, which traditionally account for a large share of Sudan’s foreign earnings.
Analysts note that despite policy announcements, the scale of destruction across Sudan’s economic infrastructure presents a formidable challenge. Industrial output has been severely disrupted, banking systems remain fragmented, and many trade routes remain unsafe or non-functional due to ongoing fighting.
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The government has not provided a detailed timeline for the reforms but indicated that initial measures would be implemented “without delay” as part of an emergency economic response plan.
As the conflict continues with no comprehensive political settlement in sight, Sudan’s economic outlook remains highly uncertain, with recovery efforts dependent on both improved security conditions and sustained international support.
