Sudan: Plundered Wealth and Mounting Debt Amid Economic Liberalization, Corruption, and War

Al Taghyeer

14-04-2025

Sudan: Plundered Wealth and Mounting Debt Amid Economic Liberalization, Corruption, and War
By Omer Sidahmed
Introduction:
The news that Ethiopia—a country with limited resources—had established the largest sovereign wealth fund in Africa, valued at $45 billion, compelled me to reflect on Sudan, a nation rich in natural resources but drained by corruption and authoritarian regimes for decades. Sudan's tragedy, however, extends beyond the systematic plundering of its resources. It also encompasses a devastating war ignited by the same corrupt system in an effort to preserve its grip on power.
Islamists ruled Sudan under the banner of the National Salvation regime for thirty years, during which they plundered the country mercilessly. The state was transformed into a machine for personal wealth accumulation through the exploitation of international loans and Sudan's abundant natural resources. When popular opposition grew, they established the Rapid Support Forces (RSF) as a tool to safeguard their regime. However, the RSF soon evolved into an independent power center, competing with the army for control and wealth. When the Sudanese revolution emerged with calls for civilian transition, remnants of the military and Islamist establishment ignited a war between the army and the RSF—seeking to block democratic change, even at the cost of national destruction.
A War Sparked by Islamists to Block Democratic Transition—Accelerating Collapse:
The Sudanese revolution that toppled Omar al-Bashir's regime in 2019 marked a pivotal moment in the country's history. It opened the door to hopes of a civilian-led government and genuine democracy. But the forces that had benefited from the Salvation regime—led by the military elite and the Islamist alliance—were unwilling to relinquish their power. As Sudan began moving towards democratic transformation, these forces conspired to halt it by any means necessary.
The war is a direct result of this power struggle. Military leaders and their affiliated militias clung to their economic interests and refused to hand over power to an elected civilian government. When it became clear that democratic transition might threaten their privileges, they ignited a conflict under the guise of a confrontation between the army and the RSF—even though the RSF itself was a creation of the Bashir regime to protect its authority.
Thus, the dream of civilian rule was shattered, and Sudanese hopes for building a modern state descended into a brutal war that destroyed lives, infrastructure, and livelihoods, pushing the country to the brink of total collapse.
Mounting Debt and Systematic Looting:
Sudan has always been rich in resources, but the Islamists who ruled under the Salvation regime turned it into one of the most corrupt, impoverished, and indebted nations on earth. External debt soared from $5 billion in the 1980s to over $66 billion today—with no visible improvement in citizens' lives. Most of the borrowed funds ended up in the pockets of officials and warlords, while infrastructure decayed and the economy collapsed.
A Shocking Regional Comparison:
While Sudan's economic indicators continue to decline, neighboring countries like Ethiopia and Kenya are experiencing significant growth. As Ethiopia announces a sovereign wealth fund worth $45 billion, Sudan faces resource scarcity and a GDP that dropped to under $30 billion in 2020—compared to over $100 billion in Kenya and approximately $360 billion in Egypt.
Economic Liberalization and the Plundering of Sudan's Wealth:
Since the late 1980s, Sudan has adopted economic liberalization policies in line with IMF recommendations. However, instead of fostering development, these policies led to the privatization of public institutions, removal of subsidies, and the rise of a parasitic elite connected to the ruling class.
Phases of Economic Liberalization in Sudan:
1990s: Sale of state-owned enterprises, inflation, rising poverty.
1999–2011: Oil boom squandered without investment in long-term development.
2011–2019: Loss of oil revenues post-secession, growing livelihood crisis.
2019–2024: Currency devaluation, subsidy removal, outbreak of war.
The Result: Economic disintegration, surging poverty, and widespread distrust in state institutions.
War's Devastating Impact on Sudan's Economy: Total Collapse and Reconstruction as a Priority
Since the outbreak of war in April 2023 between the army and the RSF, Sudan's economy has entered a phase of complete collapse. The crisis has moved beyond currency depreciation and inflation—it now poses an existential threat to the state itself. The war has destroyed what remained of infrastructure, halted agricultural and industrial production, displaced millions, and rendered major cities like Khartoum economically non-functional.
Key Economic Consequences of the War:
Infrastructure destruction: Power plants, roads, ports, and critical facilities have been devastated.
Human capital drain: Skilled professionals are emigrating, thousands have died, and millions have been displaced.
Investment paralysis: No local or foreign investor is willing to inject funds into a chaotic, lawless economy.
GDP contraction: Sudan lost more than half of its economic activity within the first year of war.
Hyperinflation and currency collapse: The Sudanese pound has lost over 90% of its value; prices have surged by 500%.
The Cost of Reconstruction: An Unquantifiable Burden Amid Ongoing Conflict:
It is currently impossible to accurately estimate the cost of rebuilding Sudan, as the war is ongoing and daily destruction escalates. However, it is certain that the required funds will be astronomical—potentially hundreds of billions of dollars.
Reconstruction will go beyond physical rebuilding and involve reestablishing the very foundations of the state:
A new infrastructure network
An effective public service system
Functional civilian institutions
A viable production sector
Solutions for mass displacement and the collapse of healthcare and education systems
The Only Way Out: End the War Immediately
There can be no development without peace. No economy can function amid war. Social justice is impossible as long as militias control power.
Ending the war is not a political option—it is an existential necessity.
If the fighting continues, Sudan will become a failed state, a hostage to foreign agendas, with no margin left to survive the destructive path it is on.
Conclusion: Where is Sudan Headed?
After two years of war and four decades of corruption, Sudan stands on the edge of total collapse. There will be no improvement unless the system that destroyed the economy is dismantled, and a unified national project is launched to save what remains.
Sudan doesn't need miracles—it needs genuine political will to stop the war and rebuild the state on foundations of justice, citizenship, and competence. This is possible, but only if the corrupt order is uprooted and the economy is restructured to serve the people—not the elites.
Sources:
April 2025