The ongoing civil war in Sudan is being financed by the trade of gum arabic, a key ingredient in many consumer goods such as chocolate, soda and chewing gum.
What Happened: Muhamed Jaber, a trader, makes weekly trips to the Sudanese city of El Obeid, transporting gum arabic. He claims to pay around $330 to the Rapid Support Forces (RSF), a paramilitary group accused by the U.S. government of ethnic cleansing and crimes against humanity. The RSF has controlled access to El Obeid, a major agricultural hub, since June, reported The Wall Street Journal on Thursday.
Gum arabic, a tasteless and odorless dried sap, is used as a stabilizer, thickening agent, or emulsifier in many foods, drinks, cosmetics, and medicines. Approximately 80% of the world’s gum arabic is harvested from Sudan’s acacia trees.
The sap has become a significant source of funding for both sides in the war, according to Sudanese traders. The RSF collects money through its control of most major agricultural routes, while the Sudanese military levies taxes and tariffs on the gum arabic trade.
Despite the concerns, few companies have taken steps to ensure they are avoiding Sudanese gum arabic. Osama Idris, general manager at Morouj Commodities UK, a raw-gum importer and processor, stated that none of his customers have expressed concerns about sourcing gum arabic from Sudan.
French company Nexira, which claims a 40% share of the global gum arabic market, paused its operations in Sudan for three months last year but has since resumed. The company has asked its partners in Sudan to avoid routes where free movement can’t be guaranteed due to potential racketeering activity.
The U.S. Treasury Department declined to comment on whether it has considered gum arabic’s role in funding the war in Sudan. In 2022, Sudan exported gum arabic valued at around $183 million, making it one of the country’s top 10 exports overall.
Why It Matters: The ongoing conflict in Sudan has drawn international attention due to its humanitarian impact. In May 2024, humanitarian organizations appealed to Elon Musk and Starlink to ensure continued aid delivery in the region. This plea underscores the dire situation on the ground, where access to basic necessities is severely restricted.
Additionally, the involvement of external actors has complicated the conflict. In April 2023, reports emerged that the Wagner Group, a Russian mercenary organization linked to Vladimir Putin, was supplying missiles and ammunition to the RSF. This external support has intensified the fighting, making it harder for peace efforts to succeed.
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Photo via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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