New Report: Economic System Collapses in West and Central Darfur

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A new report issued by the ACAPS Capacity Assessment Project has revealed an almost complete collapse of the economic system in the states of West and Central Darfur, driven by market fragmentation, the militarization of trade routes, cash shortages, and large-scale displacement caused by the ongoing war in Sudan since April 2023.

According to the report released on Tuesday, the two states are witnessing the most severe wave of economic deterioration in years. West Darfur is grappling with widespread violence and mass displacement, while Central Darfur suffers from prolonged paralysis in trade and agriculture due to the collapse of economic infrastructure and restricted movement and access to financial resources.

The report noted that the shifts that took place in Zalingei and Ardamata in late 2023 marked a dangerous turning point, as changes in control over economic and administrative centers exacerbated the “war economy,” disrupted trade routes, and deepened the humanitarian crisis.

The report confirms that markets in cities such as El Geneina and Zalingei have either entirely collapsed or function intermittently under extremely dangerous security conditions, amid looting, repeated attacks on traders, and the destruction of roads, bridges, and market infrastructure.

It added that the strategic location of the two states along cross-border trade routes with Chad and the Central African Republic — once an economic advantage — has turned into an area dominated by armed groups who exploit civilians through checkpoints and informal taxation. This has led to a decline in purchasing power and an increase in food insecurity.

The report revealed that residents are increasingly relying on smuggling and informal markets to access essential goods such as fuel, food, and medicine, with prices rising by up to 200% in some areas and the Sudanese pound experiencing unprecedented devaluation.

It also documented the collapse of the formal banking system and severe cash shortages, pushing people to depend on informal money transfer networks (hawala) despite their high cost, in addition to the expansion of the “war economy” driven by gold and gum arabic trading and the imposition of levies on trade routes.

The report stressed that the collapse of vital trade routes and the loss of job opportunities have exhausted people’s livelihoods, especially rural families and women-headed households, following the breakdown of traditional support systems such as seasonal herding and remittances from relatives.

The report concluded that understanding these complex economic transformations is essential for designing more effective humanitarian and development responses in Darfur’s conflict-stricken states.