The rise of Sudan's rival state and its parallel economy

Countries & Cities · Published 12 October 2026 Swipe more like this →

In short: In April 2025, a new political entity emerged in Sudan, challenging the internationally recognised government. Led by the Rapid Support Forces, the Government of Peace and Unity has established its own administration, currency, and even a central bank, creating a fractured landscape of competing sovereignties.

The Government of Peace and Unity (GPU) was officially established on 15 April 2025 by Mohamed Hamdan Dagalo, known as Hemedti. This quasi-state emerged from a series of negotiations in Nairobi, Kenya, following the outbreak of civil war between the Sudanese Armed Forces and the Rapid Support Forces in April 2023. The GPU's structure is defined by a transitional constitutional framework adopted on 4 March 2025, which divides the country into eight administrative regions, including the Khartoum, Darfur, and Kordofan regions.

The administration operates with a complex power-sharing arrangement. The Presidential Council consists of 15 members, including eight regional governors. As of 28 March 2025, Hemedti was nominated as the chairman of this council. The executive branch also includes a Transitional Cabinet, led by Prime Minister Mohammed Hassan al-Ta'ishi, who was named to the role on 26 July 2025. Law-making duties are divided into a 177-person Council of Deputies and a 24-member Council of Regions.

This political split has triggered a profound economic divergence. In areas controlled by the GPU, such as parts of Darfur, a parallel monetary system has emerged. The GPU prohibited the use of new 500 and 1,000-pound notes in May 2026, despite their November 2024 introduction by Sudan's authorities. To restore financial services, the group launched El Mustaqbal Bank in Nyala in January 2026. The economic disparity is stark: in Khartoum, the US dollar traded for over 9,000 Sudanese pounds, whereas in Nyala, it was roughly 4,600 pounds. However, severe cash shortages have forced traders to use the Sudanese government's Bankak app, incurring commission fees as high as 50% in West Darfur.

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