Business

Shocking numbers of factory shutdowns in Sudan revealed:

Official statistics from the Sudanese Businessmen Association and Chambers of Industry revealed to Altaghyeer the closure of thousands of factories in Sudan. They show at least 6000 industrial facilities were driven out of business as a result of heavy taxes, high production inputs costs and lack of basic services e. g electricity.

Scanty power supply drove most factories out of competition in Port Sudan (east Sudan) and Nyala (Darfur) towns to decades now. Recently 47 factories were closed down in Port Sudan including traditional salt and food making factories.

Only 3 out of 30 oil factories are now active in Al Obied, the capital of North Kurdofan State (midwest) while only 50 out of 250 oil factories in the State, known for abundant production of sesame and groundnut oil seeds, are working currently.

Obstacles

Treasury Secretary of the Sudanese Industrial Chambers Union Al Fatih Jaboura said in press statements that 5940 out of 7350 factories nationwide stopped working due to increase in production costs, services and customs fees addition to shortage in foreign currency.

Member of Khartoum State’s Industrial Chamber Sidgi Fahmi told Altaghyeer those factories that are currently operating face multitudes of challenges forcing them to lay out workers every day, bringing 60% the workforce.

Fahmi complained of continuous price increase in the production inputs brought partly by the 30% increase in customs fees. Capital assets continue to dwindle as a result of inflation, he added.

He reveled that “‘some factories wanted to shut down but the owners fear paying dues of workers. These factories are working to only pay salaries, some of them making nominal profits but the majority experiencing losses”.

Acting Minister of Industry Batoul Abbas admitted that the industrial sector in the country is confronted with major problems; increase of costs of production in particular.

According to specialists the government itself is responsible for the industrial sector problems. Many obstacles that hinder the smooth operation of the sector are caused by the government policies  such as the increase in customs fees.