Sudan Humanitarian Update (1 - 31 January 2025)

HIGHLIGHTS

  • Liquidity crisis in Sudan delays cash and in-kind food distributions for more than 4 million people for over one month due to a lack of sufficient banknotes.
  • More than 1.5 million people affected by a water supply crisis in Khartoum State.
  • Explosive hazards pose a major risk to civilians and humanitarians and prevent safe access to essential services.

Limited cash availability affects aid for more than 4 million people

Sudan is experiencing limited cash availability after the Central Bank of Sudan introduced new banknotes in December 2024.

The move aimed at curbing the circulation of counterfeit and looted currency is disrupting humanitarian operations, especially cash and voucher-based activities (CVA).

The World Food Programme (WFP) reported on 30 January that widespread cash shortages had delayed its cash and in-kind food distributions for more than 4 million people for over one month due to a lack of sufficient banknotes to pay porters to load trucks.

In addition, other aid agencies providing cash and voucher assistance across Sudan estimated that the implementation of $11.5 million worth of assistance for about 500,000 people in government-controlled areas had been delayed by the liquidity crisis, according to the Cash Working Group.

Supply of new banknotes limited

The distribution of physical cash for humanitarian purposes is constrained as the supply of new banknotes is strictly limited. Authorized banks can distribute up to 200,000 Sudanese pounds (about $80) per customer, subject to availability, WFP said in a December 2024 report.

Meanwhile, many vulnerable people who need assistance don’t have bank accounts and hence have no access to digital transfer or payment tools, making it difficult to implement CVA through formal banking channels.

Dual pricing, with higher prices for goods and services paid for electronically and lower for cash payments, is also affecting people who rely on CVA, as the value of assistance varies depending on the payment method. Exorbitant fees by some financial service providers have further reduced the amounts beneficiaries received.