Egyptian companies involved in building materials, construction, and goods export are in talks with the Sudanese government to recover their dues from Sudanese importers, according to sources quoted by Al-Borsa newspaper.
The sources indicated that these companies have been unable to collect their dues since the conflict erupted in Khartoum last year. The ongoing negotiations might result in companies receiving payments in installments over a maximum period of one year.
Talat Al-Shaer, head of the Aluminum Producers Association, stated that more than 20 companies in the sector have outstanding export dues from Sudanese importers, which they have been unable to collect for the past seven months.
He told Al-Borsa that the Sudanese side has not refused to pay but the ongoing war has created financial difficulties, leaving them without the liquidity to pay the Egyptian companies at present.
Al-Shaer noted that Sudan is the main gateway for aluminum exports to all neighboring countries, and thus, the sector’s exports are experiencing a slowdown due to the ongoing events and fears of worsening conditions.
He explained that Egyptian factories export their products to Sudan on credit. The importers distribute the products in the markets and then pay for them, a method that companies have been using for years.
Al-Shaer highlighted that the Sudanese market is one of the best export markets for factories and workshops in the city of Mit Ghamr, absorbing about 75% of the factories’ production due to the ease of transporting goods supported by geographical proximity and low shipping costs.
Egypt and Sudan are connected by several trade agreements, including the 1965 Trade and Payment Agreement and a 1992 trade protocol, in addition to the COMESA Agreement of 2001, which exempts trade between the two countries from customs duties except for 58 commodity groups, according to data from the Ministry of Trade and Industry.
