Will the Cooperation Agreement between Sudan and S. Sudan ease poverty?
Last month’s cooperation agreement between Sudan and South Sudan has sparked a new spirit of optimism in official circles. Badreddine Mahmoud, Deputy Manager of the Bank of Sudan, said that the agreement will improve the economic reality of both countries and the living conditions of their people.
Mahmoud described the agreement as a turning point in the economy of both countries, stabilising the exchange rate and increasing the value of their national currencies.
Government officials also suggested that last month’s agreement on immediate and unconditional withdrawal of forces in conflict zones would spell an end to Sudan’s problems to its citizens. The latest agreement came on the heels of an extensive deal between the two long-standing foes last September.
I do not expect any answer to our living crisis as a result of the agreement because once the prices go up, they never drop.”
Despite the upbeat official statements, hard-strapped Sudanese citizens are doubtful that improvement is on the horizon. I do not expect any answer to our living crisis as a result of the agreement because once the prices go up, they never drop,” said Abdelmoneim Badreddine, an employee at a contracting company.
Grocer Abdujjalil Moussa agreed: We suffer a chronic crisis that cannot be improved simply by signing an agreement. Living conditions have been deteriorating since before secession and now we have lost South Sudan\'s oil which has further aggravated the problem,” he said.
Earlier this month, South Sudan restarted oil production after agreeing with Sudan to resume cross-border flows last month, ending an interruption that lasted more than a year following a spat over transit fees. However, citizens were not convinced that restarting oil production would improve their economic outlook.
The oil was controlled by the government and its revenues used to be distributed among senior government officials and MPs. I personally do not expect an improvement to the situation and the crisis will continue,” Moussa added.
Zubaydah Saleh, a social insurance authority employee, was slightly more optimistic. The agreement is good since it provides stability for both countries and ensures security,” she said.
However, from an economics perspective she believed that ongoing conflicts in Darfur, the Nuba Mountains and Blue Nile would continue to hamper the nation’s development. I expect oil transit fees will be allocated to supporting the military operations in these areas while economic conditions will continue unabated,” she said.
The agreement will bring stability and defuse tension between Sudan and South Sudan.”
The agreement will bring stability and defuse tension between Sudan and South Sudan,” said soldier Abdoun Khaled, adding: But oil transit fees are not enough to solve the crisis.”
Adam Zein Jibril, a young man who was an expatriate in the Arab Gulf and came back to Sudan one year ago, described the situation as unbearable. \"Since signing the agreement, the authorities have been saying that Sudan will earn US$ two billion per year from this agreement, the living conditions will improve and the dollar has already lost 30 percent of its value against the Sudanese pound. However, Sudanese citizens are not convinced with such statements since they are aware of the absence of authority’s control over manipulation of prices,” he said.
Before the secession, the price of a kilo of beef was 12 pounds compared to 14 pounds a kilo of mutton. Now, these prices are 30 and 60 pounds respectively,” he said. I do not believe that any Sudanese would expect the living crisis to be resolved as a result of this or any other agreement.”
