Crunch Time for Sudan’s Ravaged Economy at Foreign Donor Meeting
Crunch Time for Sudan’s Ravaged Economy at Foreign Donor Meeting
A donor conference for Sudan got underway Thursday, with authorities pinning their hopes on Gulf and Western nations supporting an economy ravaged by ousted dictator Omar al-Bashir’s three-decade rule.
Sudan expects significant sums to support its 2020 budget and stabilize inflation that’s now running over 100%, Finance Minister Ibrahim El-Badawi said Wednesday. The North African country this week agreed on the parameters of a potential non-financial program with the International Monetary Fund that would restructure spending and tackle its debts.
The challenges are stark for Sudan, which is being run by a transitional government and campaigning to have its U.S. listing as a state sponsor of terror lifted. The economy is projected to shrink 8% this year, there are shortages of basic commodities and the currency has plummeted, piling pressure on Prime Minister Abdalla Hamdok to provide relief.
“Mounting economic turbulence is rocking Sudan’s delicate political transition,” the International Crisis Group said this week, urging donors not to “abandon the country at this critical moment.”
“Any further slide in the country’s economic fortunes will hurt the Hamdok administration’s standing with the public, possibly triggering street protests that could imperil stability,” the Brussels-based consultancy said in a briefing.
The conference is being held virtually from Berlin due to the coronavirus, with the European Union, Germany and United Nations co-hosting.
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