Conflicts in Kenya, Sudan, DRC to harm regional businesses

Zawya

14-07-2025

Ugandan financial services group Dfcu Ltd has raised the red flag over the growing wave of unrest in Kenya, the civil conflict in Sudan and the Democratic Republic of Congo saying these fights would adversely impact businesses in the region.
The company which is listed on the Uganda Securities Exchange (USE) says through its latest annual report (2024) that these conflicts are poised to affect various aspects of life and business including disrupting trade and reducing export volumes while exacerbating humanitarian crises linked to the influx of refugees and internally displaced persons.'In the regional context, ongoing conflicts in Sudan and the Democratic Republic of the Congo continued to pose significant risks, disrupting trade and reducing export volumes while exacerbating humanitarian crises linked to the influx of refugees and internally displaced persons,' says Dfcu Ltd which is majority owned (58.7 percent) by Arise B.v.'Our objective is to assist our clients in understanding the potential impacts of these events on their businesses. For example, geopolitical developments such as conflicts in Ukraine or Gaza, elections in the United States, India, and South Africa, as well as unrest in Kenya and Sudan, can affect various aspects of life and business in Uganda.'DRC is currently going through a protracted civil conflict, particularly in its eastern region that is rooted in decades of instability involving various armed groups, including the M23 rebel group, and is fueled by competition for resources, ethnic tensions, and political power struggles.
On the other hand, Kenya is facing a spate of countrywide anti-government protests led by the youth largely fueled by concerns over increased corruption in the public sector, inequality in resource distribution, poor governance, rising abductions and killings of the youth perceived to be anti-government and increased taxation that has led to high cost of living.
"The downturn in business activity in June was driven by contractions in both output and new orders, largely stemming from social unrest, weaker consumer spending, and challenging economic conditions,' they said in a report dated July 8.
And though business sentiment showed some signs of improvement in June, economists say the renewed optimism will likely be short-lived due to the renewed outbreak of protests.'This renewed optimism will likely be short-lived due to the renewed outbreak of deadly protests. Time and again, protests of this magnitude have dealt a heavy blow to business and investor confidence,' the economists say.
Sudan is also currently in the midst of a civil war that began on April 15, 2023, between the Sudanese Armed Forces and the paramilitary Rapid Support Forces.
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