Struggling Sudan Sees Wave of Pledges at Economic Conference
Sudan Gets Aid From West, Smiles From Arabs at Donor Conference
Sudan secured about $2 billion in aid pledges from international donors at a conference the impoverished country is hoping will kickstart an economic revival.
The Kuwait-based Arab Fund for Economic and Social Development pledged $1 billion over five years, with the funding aimed at agriculture, irrigation and infrastructure support. The European Union offered 343 million euros ($384 million), while Germany added 150 million euros and the U.S.’s aid agency promised $356 million.
The total funds, which a German delegate put at $1.8 in pledges and $400 million in World Bank grants, are sorely needed by a country striving to emerge from three decades of dictatorship following the overthrow of Omar al-Bashir last year. The economy is projected to shrink 8% in 2020 and reeling from commodity shortages and a plunging currency.
The International Monetary Fund’s managing director, Kristalina Georgieva, said Sudan is dealing with a “very heavy legacy at the most difficult of times” with a funding gap for 2020-21 of between $1.5 billion and $2 billion.
It wasn’t immediately clear if all the pledges were new, nor which would be directed to the government and which to non-governmental organizations. Some nations such as China offered bilateral and multilateral assistance while others like Poland offered debt settlements.
The challenges are stark for Sudan, which is being run by a transitional government including Prime Minister Abdalla Hamdok and is campaigning to have its U.S. listing as a state sponsor of terror lifted.
“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 was held virtually from Berlin due to the coronavirus, with the European Union, Germany and United Nations co-hosting.
Pledges included:
- World Bank: $400 million in pre-arrears clearance grants -- a mechanism that can help Sudan raise $1.75 billion in aid from international financial institutions through 2023, according to World Bank’s president David Malpass
- Sweden: 20 million euros
- Spain: 3 million euros and readiness to cancel $74m in debt as soon as “conditions are met”
- The Arab League offered no funds, but committed to providing capacity building and supporting the peace process in the country
- United Arab Emirates: Will support the World Bank-World Food Program initiative that had provided Sudan with $50 million; the UAE’s international cooperation minister reminded participants that her country and Saudi Arabia had pledged $3 billion to Sudan after Bashir’s fall
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