Sudan, on the north east of the african continent, has been drenched in the murky waters of inflation and seems to be drowning in economic crisis.
My most vivid descriptions of sudan is not one of hunger, or the mixture of dark shrivelled and caramel bloated skin of its indigenes : it is the description of its numerous sandstorms and how they blow up so much sand and dust that could cake you into an archeological discovery freshly dug from the ground.
It is in this sandstorm that SUDAN have found itself , with hyper inflationary trends drawing the increase in prices by over 100 percent. There has been a shortage of foreign currency in the market , which could be directly traced to its loss of control of oil fields and reserve to the breakaway nation of south sudan .
90 percent of its oil fields were conceded to the sister nation and due to a lack of oil trade, the availability of foreign currency for import of goods reduced , leading to rising prices of the available in the market.
The country ignored calls from the IMF to float its currency but instead went ahead to devalue its currency , with the hope of investments to cushion the economic imbalance
Suffice to say, for a nation that is war and violence pronec , it was foolhardy to depend on investment when one is not sure of security. The result of that decision has been glaring.
Scarcity of goods. Demand rise . Supply cannot cope. There is inflation.
This inflation has touched every sector of the country and has already led to violent clashes and uprising with partisans using the opportunity to fight a political war .
While people blame its three quarters loss of oil reserves and foreign currency platforms, is it really a currency problem?
Sudan’s economic system is heavily import dependent and uses the dollar for international transactions with some arab and asian countries as trade allies. This is why no one is helping as these currency problems rise . They all trade in dollars.
East africa might not have a regional currency , however , the country can float its currency to align with those of its neighbors and effectively trade with them, with her citizens prepared to ditch quality for survival until the curency gains its foothold.
In the near future, the country can aim to benefit from the continental free trade agreement to leverage on mid quality goods and services from its members.
Until then , however , the sudanese government must swim and swim fast, to escape the sharks of political instability and tension!.