Sudanese economist, Dr Hassan Satti, has warned that both South Sudan and Sudan face economic collapse if border disputes are continued.

“The economies of both countries are threatened with collapse due to the border dispute between these sovereign states,” Satti claimed during an interview with Radio Tamazuj.

Noting that both economies reflect the security situation at any given time, he highlighted that vast sums of money have been used for security and defence which could have otherwise been used to deliver services to citizens. Sudan, he reported, did not previously benefit from its oil revenue as this money was spent on state organs, security and defence.

The Sudanese government have lost three billion US dollars since the production of oil in South Sudan was halted early last year.

This amount, he added, would have solved some of Sudan’s internal problems. Resolution of the ongoing border issues would have also secured the future of a large numbers of cattle along the border which are currently under threat from drought due to the inability to access cross-border grazing.

The economist further went on to highlight the wealth of natural resources (oil, livestock and agriculture) along the border between the two states. The shutdown of the border trade system and oil production as a result of the hostilities is creating, what he calls, an ‘inflationary recession crisis.’

Sudan and South Sudan signed an agreement to demilitarise the disputed border regions last year although neither has begun to implement this yet. South Sudan has since announced that it will resume oil production, which accounts for at least 90% of its budget, although no clear timeframe has yet been given.