NCP report expresses fears of instability due to economic decline in Sudan

Capital flight, corruption and rapid increase of food prices can threaten the stability of Sudan. To improve the situation, the decision to cut fuel-subsidies should be partly reversed. That states an official internal report of the ruling National Congress Party (NCP) that was published today by El Jareeda newspaper.

In September the government quelled demonstrations against the removal of fuel subsidies killing over 200 people. After devaluation of the Sudanese pound with 60 per cent last week, the economy is in further decline.

Sudan has lost 45 per cent of its income and the trade balance is the worst in 15 years, according to the internal report of the NCP. El Jareeda newspaper quotes the internal document mentioning that the social and economic deterioration accelerates due to ‘capital flight abroad and fast reduction of investments in Sudan’.

The current economic policies cause a ‘very complex economic situation’ with political and social effects threatening the social fabric and political stability’ of the country. It mentions “the rapid increase of prices, emergency situations due to scarcity of goods and services and the growing black market”.

To restore trust in the economy and the institutions the internal report suggests to ‘strengthen the laws and mechanisms of justice to fight corruption, nepotism and bribery’. It gave a stern warning ‘against investing Sudanese money abroad’, while the same companies and individuals refuse to invest inside Sudan.

File photo: Vehicles queue for petrol in Nyala