Egypt faced with potential $1.4 bn loss in trade exchange

The ongoing conflict in Sudan is posing a threat to the economic situation in Egypt, which is already grappling with an economic crisis. The conflict has the potential to impact the trade exchange between the two countries, which reached $1.4 billion in 2022, according to Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS). The trade exchange has been steadily growing in recent years, driven by Egyptian exports and Sudanese imports. However, the conflict is creating security risks and obstacles to the movement of goods and personnel, which could impact the timely execution and cost of joint investment projects between the two countries. 

Despite these challenges, Egypt and Sudan remain committed to strengthening economic ties and have plans to increase their electric interconnection line capacity and build a railway to facilitate the movement of goods.

The increase in trade in 2022 is driven by Egyptian exports, which amounted to $929.2 million, and Sudanese imports, which totaled $504.4 million.

Sudan is an important market for Egyptian exports, and figures released by Egypt’s Ministry of Industry show that it is the second-largest market for Egyptian exports after Libya in the first quarter of 2023, with $226 million worth of exports.

Read more: Egypt’s economy is expected to expand by 4.2% in FY 2022-23

Despite the challenges posed by the conflict, joint investments between Egypt and Sudan are also expected to continue. Egypt has nearly 229 projects being implemented in Sudan, with up to $10.8 billion in investments, while 315 Sudanese companies operate in the Egyptian market, with some $97 million in investments.

To further strengthen ties, Egypt and Sudan have plans to increase their electric interconnection line capacity to 300 MW and build a 570-kilometer railway to facilitate the movement of goods between the two countries.

The growth in trade exchange between Egypt and Sudan underscores the importance of economic ties between the two countries. As Egypt continues to emerge as a regional energy power, there are opportunities for the country to leverage its expertise and resources to support Sudan’s development and growth.

Click here for more news on logistics.