Sudan's Economic Collapse: When Currency Fails, Families Pay the Price

From Coffee Stands to Crisis

I've spent years watching how economic upheavals ripple through societies, but few stories are as stark as what's unfolding in Sudan. The country has been in the grip of conflict since 2023, and now it's also drowning in economic collapse — a combination that's pushing millions toward desperation.

Take Aisha, for example. She runs a small coffee and tea stand in Port Sudan, one of the few places where livelihoods still exist in a war-torn landscape. Her story mirrors the experiences of countless families: earning more, yet struggling to make ends meet.

"Before the war, a cup of coffee cost 1,000 Sudanese pounds ($1.70 at pre-war rates). I could earn about 30,000 pounds a day ($50) and that was enough to cover my family's needs."

— Aisha, Port Sudan

Today, her earnings have nearly tripled — she now makes between 70,000 and 100,000 pounds a day. But the cost of goods has surged even faster. A cup of coffee now costs 3,000 pounds; tea, 1,500. Bread that once cost 1,000 pounds can't buy five pieces anymore — only three. The price of sugar has doubled, and transportation costs have quadrupled.

This isn't just about economics — it's about survival. For families already stretched thin by war, every dollar earned must now be meticulously managed. When salaries no longer cover even the basics, desperation sets in.

The Devaluation of a Nation

The Sudanese pound has undergone a dramatic devaluation over the past few years. Before the conflict, one U.S. dollar was worth around 600 Sudanese pounds. Now, on the black market, it's closer to 7,500. That means a simple loaf of bread that cost less than a dollar is now worth more than $9.

What caused this? The conflict has disrupted production and trade. The country's export sectors — including agriculture and mining — have been decimated. Meanwhile, the paramilitary Rapid Support Forces (RSF) are accused of looting resources like gold and gum arabic, selling them abroad to fund operations. This isn't just a war; it's an economic war.

As I've seen in other collapsing economies, currency collapse doesn't just hurt investors or traders — it erodes purchasing power for everyone. In this case, it's the everyday Sudanese who are paying the price.

Inflation Slows But Still Rises

The Central Bureau of Statistics reported that annual inflation fell from 51% in June to just over 41% by July. That might sound like good news — a slowing rate of inflation suggests prices are rising less quickly than before. But that doesn't mean the average family is better off.

Consumer prices rose nearly 1.5% between June and July, still meaning that goods are getting more expensive, just not as fast as they were. It's like a slow-motion train crash — the wheels are still spinning, but you're already on the tracks.

The United Nations Development Programme estimates that Sudan lost $6.4 billion in GDP in 2023 alone. One-third of businesses have closed. The entire economy is shrinking — and families like Aisha's are caught in the crossfire.

Structural Solutions, Not Just Band-Aids

So what can be done? Economic analyst Mohyeldin Mohamed, who has studied Sudan's financial crisis extensively, suggests a two-pronged approach: short-term emergency measures and long-term structural reforms.

In the short term, he recommends increasing domestic food production and strengthening sectors that generate income. He also calls for clearer policies on gold exports to turn them into official foreign currency.

For the longer term, Sudan must focus on agriculture and livestock — areas where it has natural advantages. The goal is to reduce reliance on imports and instead export more goods like gum arabic or regulated mining operations.

It's a tough road ahead, but the alternative is even worse — more families falling into poverty, children missing school, and entire communities on the brink of collapse.

The Human Cost of Economic Failure

The human toll is staggering. According to the World Bank, extreme poverty in Sudan rose from 48% in 2023 to 59% by 2025. Nearly 20 million people are facing acute food shortages.

Maryam Ibrahim, a Sudanese economist and aid worker, says the main problem isn't just high prices — it's the loss of purchasing power. Salaries and savings no longer stretch to meet even basic needs.

"The main impact of the currency's decline is the loss of purchasing power. Salaries and savings are no longer enough to cover household needs."

— Maryam Ibrahim, Economist & Aid Worker

Families are cutting back on meals, delaying medical care, pulling children from school, and borrowing or bartering goods just to survive. Cash assistance from NGOs helps in the short term, but it's not enough — aid must be adjusted regularly to match inflation.

More than anything, Ibrahim believes that humanitarian support must be tied to long-term economic recovery. That means supporting local markets, restoring public services, and rebuilding infrastructure. It's not just about survival — it's about restoring hope.

The Bigger Picture

Sudan's crisis is more than a national issue — it's a regional one. The conflict has disrupted trade routes across the Red Sea, affecting neighboring countries like Egypt and Saudi Arabia. But at its core, this is a story of economic failure with deeply human consequences.

We often focus on war's brutality in headlines, but it's crucial to remember that behind every headline are families like Aisha's — trying to survive one day at a time while watching the currency they rely on slowly erode into nothing.

The question isn't just about fixing the economy. It's about fixing people — ensuring that basic needs like food, medicine, and education don't become luxuries in a war-torn land.