Kassala Goldsmiths Association: Strike Over Street Vendor Crisis

• Gold traders in Kassala have launched an indefinite strike, closing their shops in protest against unregulated street vendors.
• The strike was triggered by a recent incident near the market involving clashes and assaults, injuring one passer-by.
• The goldsmiths' association cites widespread fraud, theft, and unfair competition from untraceable itinerant sellers.
• Established businesses face financial burdens from taxes and fees, while informal traders operate without official invoices, distorting prices.
• The association demands urgent intervention from authorities to regulate the market and protect consumers and legitimate traders.

This situation highlights significant regulatory gaps in Sudan's gold market, posing risks of consumer fraud, unfair competition for established businesses, and potential for illicit trade.

Gold traders in Kassala have initiated an indefinite strike, closing their shops since Monday in protest against the persistent issue of itinerant gold sellers. Abboud Ahmed Issa, who heads the Kassala goldsmiths' association, confirmed that the cessation of business will continue until local authorities intervene to establish a permanent resolution to what he describes as a Kassala gold traders strike street vendor crisis. This widespread Kassala goldsmiths association protest was directly triggered by a recent incident on Monday near the market, which escalated into physical altercations and assaults, resulting in injuries to a passer-by. Traders assert that this is not an isolated event, but rather the latest in a series of confrontations stemming from the unregulated activities of street vendors.

The core of the dispute lies in the perceived improper practices of these mobile vendors, which the association claims are detrimental to both consumers and the broader reputation of the gold trade. Instances of fraud and theft are frequently reported, with customers often approaching the goldsmiths' association for recourse after transactions with untraceable itinerant sellers. Unlike established shops, which are accountable and can be compelled to resolve complaints, tracking down a street vendor after a sale proves exceedingly difficult. This has fostered an unregulated parallel market where practices such as manipulating the weight or quantity of gold pieces, and offering inflated prices to attract sellers, are reportedly common. This Sudan gold market informal trade not only harms individual consumers but also distorts market prices.

The goldsmiths' association has repeatedly urged various authorities, including the police, prosecutors, and security agencies, to address these concerns. Their objective is not to circumvent official channels but to compel these bodies to fulfill their regulatory duties and prevent market violations. Established shop owners bear significant operational costs, including taxes, zakat, mineral and local-authority fees, stamp duties, and security expenses for their premises. The proliferation of unregulated street vendors, who often trade without official invoices, creates an unfair competitive landscape and undermines the formal sector. This situation highlights significant regulatory gaps in Sudan's gold market, posing risks of consumer fraud, unfair competition for established businesses, and potential for illicit trade. The association is specifically calling for comprehensive Kassala street vendor regulation and enhanced gold trade consumer protection Sudan measures to safeguard both buyers and legitimate businesses.

The problem of itinerant gold sellers has been escalating since the Covid-19 pandemic, intensifying in recent years to become a major source of frustration for formal traders and damaging the overall reputation of Kassala's gold market. Abboud Ahmed Issa expressed hope that government and security authorities would promptly respond to the traders' demands and work towards an urgent resolution. The association has affirmed its readiness to collaborate with any arrangements introduced by the relevant authorities aimed at regulating the market and protecting both customers and traders. The market regulation dispute Sudan will persist, however, as Issa has made it clear that the strike will continue until a definitive solution is implemented, ensuring practices that harm customers or create market tensions are brought to an end.

This situation highlights significant regulatory gaps in Sudan's gold market, posing risks of consumer fraud, unfair competition for established businesses, and potential for illicit trade. Lawyers should advise clients on compliance with existing market regulations and monitor for new enforcement actions or legislative efforts to formalize the informal gold trade.

Source: Original reporting via Radio Dabanga