The ongoing conflict in Sudan is poised to inflict significant economic damage on neighboring countries, according to the International Monetary Fund (IMF).
Catherine Pattillo, the IMF’s Deputy Director for Africa, expressed deep concern over the humanitarian crisis and its potential spillover effects.
“The situation in Sudan is heartbreaking and devastating,” Pattillo stated. “The neighboring countries, many of which are already fragile and struggling, are facing immense challenges due to the influx of refugees, security threats, and disrupted trade.”
The IMF’s regional outlook for Sub-Saharan Africa highlights the vulnerability of countries like the Central African Republic, Chad, Eritrea, Ethiopia, and South Sudan.
These nations could bear the brunt of the Sudanese conflict.
South Sudan, in particular, has been severely impacted.
The February damage to a crucial oil pipeline, a lifeline for the country’s economy, has exacerbated its economic woes. Oil exports, constituting over 90% of South Sudan’s revenue, have been severely disrupted.
The Sudanese conflict, which erupted in April 2023 between al Burhan-controlled SAF and the Rapid Support Forces, has led to a humanitarian catastrophe.
Tens of thousands of lives have been lost, millions displaced, and food insecurity has reached alarming levels.
The IMF warns that the internal conflicts in Sudan and the Sahel region, coupled with external factors like the Middle East and Ukraine wars, are driving up food, fertilizer, and energy prices.
Additionally, growing protectionism and economic slowdowns in major economies pose further challenges for African nations.
Despite these headwinds, the IMF forecasts a modest improvement in Sub-Saharan Africa’s economic growth, projecting a 4.2% growth rate for the next year, slightly higher than the 3.6% expected for this year.