Oliver K. Kirui, Khalid Siddig, Hala Abushama and Alemayehu Seyoum Taffesse
The economic, social, and humanitarian impacts of the ensuing conflict in Sudan are of monumental proportions – ranging from tragic loss of lives, internal and cross-border displacement, unprecedented human suffering, and massive damage to infrastructure. This study provides evidence on the immediate implications on the agri-food processing and manufacturing sector based on evidence from a survey of 15 agri-food enterprises. The conflict has not only forced most of the firms out of operation, but it has also severely damaged their physical infrastructure and equipment. Two-thirds of the firms are either closed temporarily or permanently. Whereas many firms have been directly affected, the employment effects are also dire. While few companies held onto or supported their employees by considering them paid leaves, two-thirds of the firms laid off their employees or put them on unpaid leave. Returning to normal or meaningful operations would imply significant investments in rebuilding the plants, repairing, or procuring new equipment. To facilitate a comeback, priority should be given to providing firms with financial support and employees with social safety nets. Notably, many firms stopped operations due to the disruption of financial services. Thus, this crisis presents an opportunity for innovations in financial service provision such as digital financial services.
