Sudanese fear more austerity after oil flow stops again
by Adam Abkar Ali | in Economics | 26.06.2013
Sudanese President Omar al-Bashir’s June 8 announcement to halt the transportation of South Sudan oil through the Sudanese pipelines sent shockwaves through the country.
“So, what will happen after this decision?” Dahwi Abdurrahman
His statement effectively binned a recent South Sudan-Sudan cooperation agreement, known as ‘The Matrix’. It also destroyed emergent hopes of an improved relationship between the long-standing foes and stability between the two neighbouring countries.
Dahwi Abdurrahman, a high-school teacher, is worried about the economic outlook for his country. The three-month-old agreement gave people hope, but “now we have begun hearing that the decision will not affect Sudan, which is untrue and like throwing dust in our eyes”.
He pointed to negative impacts of the first oil transportation freeze in early 2012. Since then, commodity prices have tripled, explained Abdurrahman: “So, what will happen after this decision?”
Crude oil had only just begun to flow through the pipelines in May, with the first cargoes sold last week for shipment from Port Sudan. Experts warn that stopping transportation is costly as pipes can become blocked.
“Now, the Sudanese have to tighten their belts [...].” Abdullah Ali
His points were echoed by lawyer Abdullah Ali. “This decision has destroyed all hopes of a better economic situation and living conditions in the country. Now, the Sudanese have to tighten their belts and bear the consequences of this intense decision.”
Inflation, which is inching towards 50 percent, is hurting locals, making basics prohibitively expensive. Carpenter Mukhtar Moussa fears the worst: “The market will take every penny citizens have. We can only say, ‘May God help us’.”
However, given South Sudan and Sudan’s long history of broken promises, some had remained cautious about the recent Matrix agreement. Among the skeptics is Gumaa Elias, who is currently unemployed: “I expected that The Matrix would collapse because both parties practice tactics.”
Elias argued that the decision was over hasty, leaving the fragile state in a weakened position to deal with crises on many fronts: intensified cases of rebellion, rampant inflation and skyrocketing exchange rates.
However, other local observers insisted the decision’s consequences would not impact citizens.
“The decision to stop oil transportation will not affect the Sudanese economy.” Sadig Zrigi
“The decision to stop oil transportation will not affect the Sudanese economy,” said Sadig Zrigi, Editor in Chief of Al-Intibaha newspaper, in an interview with the Sudanese Ashorooq Channel. He argued that South Sudan oil has been suspended for more than a year and that the Sudanese economy has not been affected, despite the increased prices of goods and exchange rates.
Director of Teba Press Faisal Saleh believes that this decision will make the South Sudanese government ditch the idea of exporting oil through Sudan. He fears that “the government of South Sudan might look for other outlets to export its oil, perhaps through Kenya, Uganda, or Ethiopia”.
The views expressed in this report do not necessarily reflect the positions or opinions of the publishers of www.sudanvotes.com
- Database Search
- Unpaid Debt A comprehensive overview of the role of the Lundin Consortium in the oil war. ECOS calls upon the Swedish, Austrian and Malaysian governments to investigate whether, as a matter of international law, Lundin, OMV and Petronas 'were complicit in the commission of war crimes and crimes against humanity by others during the period 1997-2003.’ In response, the Swedish Public Prosecutor for International crimes opened a criminal investigation into ‘links between Sweden and the reported crimes’.
- In Depth For more specific information about the Lundin court case please visit the Unpaid Debt dossier.
