Nick Kwolek
Founder
Commodities
Nick Kwolek
Founder
Sudan is weeks away from a hunger crisis as food stocks deplete because of the continuing conflict that has stopped the flow of cash in and out of the country as well as of key commodities, a group has warned.According to a research by Kulea, a Kenyan commodities platform that leverages technology to provide the tools and the visibility to confidently trade into, out of, and with Africa, Sudan is running completely hand-to-mouth on all major food products.The warning came as violent clashes between the Sudanese Armed Forces and the paramilitary Rapid Support Forces continued on Thursday in the capital Khartoum.The United Nations Food and Agriculture Organization said in its report that the current crisis has worsened the already dire food insecurity in Sudan, with more people possibly plunged into famine.About 2.5 million people had been displaced inside and outside of Sudan since the conflict broke out on April 15, the UN said on Wednesday.
Released on Thursday, the Kulea report said international and regional traders cannot get paid and repatriate funds, making the flow of sugar, rice, and grains impossible.Normally, traders pay for goods at Port Sudan in Sudanese pounds. The cash is then carried physically by car to Khartoum to be converted and sent out as foreign currency.However, during the conflict, cash convoys are not operating, due to the fear that it may be impossible to claim back the funds if a stray missile hit.Additionally, traders in the major cities of Khartoum and Omdurman are avoiding storing any stock out of fear that it would be looted and the fact that the limited warehousing at Port Sudan is full. Traders are currently working to reestablish the banking sector in Port Sudan so that payments can once again start to flow and consequently food and goods.Xinhua contributed to this story.