Sudan’s Economic Crisis Worsens as Bartering Becomes the Norm

In war-torn Sudan, the banking system has collapsed, forcing people to rely on bartering to access essential goods and services. The conflict, which began in April 2023, has left tens of thousands dead, 12 million displaced, and the economy in shambles. In some areas, clothing and household appliances are being used as currency to exchange for food, fuel, and other necessities.

In the town of Dilling, South Kordofan state, which has been under siege by the paramilitary Rapid Support Forces (RSF), residents have resorted to exchanging goods for survival. “I haven’t held a banknote in more than nine months,” said civil servant Ali. He recalled exchanging a hoe and a chair for three bags of sorghum, a staple cereal in many parts of Africa.

The war has disrupted the country’s financial infrastructure, with banks closed or looted, and safes emptied. The value of the Sudanese pound has plummeted, with one euro now worth 3,500 pounds on the black market, compared to 450 pounds before the war. The lack of access to cash has led to a reliance on digital transactions, particularly through the Bankak app, which allows users to receive salaries, aid, and funds from relatives abroad.

However, digital transactions are not accessible to everyone, particularly in rural areas where many people do not have bank accounts, passports, or phones. In areas under RSF control, law and order have broken down, and reports of looting and extortion are rampant. The use of satellite internet systems, such as Elon Musk’s Starlink, has become widespread, but the military has banned their use and sale in some areas.

The economic crisis has also led to the proliferation of fraud and exploitation. Merchants are extending credit to customers, with debts recorded in notebooks, while others are taking advantage of the situation to charge exorbitant commissions for cash transfers. The introduction of new banknotes in areas controlled by the pro-army authorities has further fragmented the monetary system, effectively dividing the country into different economic zones.

As the conflict continues, the humanitarian situation in Sudan remains dire. The United Nations has warned of the world’s largest hunger and displacement crises, with millions of people in need of aid. The economic crisis has had a devastating impact on the population, with many forced to rely on bartering and other forms of informal exchange to survive. The international community must take action to address the crisis and support the people of Sudan in their time of need.