This archive report was first published on 14 October 2019.
The World Bank has effectively shut the door on Sudan's access to global financial aid, citing the country's failure to clear $16 billion in debt arrears owed to creditors.
According to World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan, Kari Turk, Sudan's government needs to pay arrears to financial institutions and sovereign creditors before the country can be considered for lending or debt relief.
Ms. Turk made the remarks during a stakeholder dialogue held in Khartoum on October 12, 2019.
With Sudan's prime minister, Abdalla Hamdok, calling for the country's removal from the US state sponsors of terrorism list, the World Bank's condition has virtually eliminated any leg room for Sudan to access more than humanitarian aid.
Dr. Hamdok has also requested debt relief to enable the country to access commercial loans from the Paris Club and other countries, including China, which has invested heavily in Africa.
The International Monetary Fund (IMF) has expressed its willingness to support Sudan's poverty and economic reforms once the country commits to paying its arrears.
"Reform is required at all levels. A commitment not to engage in other debts and the sustainability of the economy are a necessary component of debt relief," Ms. Turk said.
Sudan's sovereign debt is estimated at between $50 billion and $60 billion.
A conference organized by Chatham House in Khartoum sought solutions to Sudan's economic crisis, which arose from the implementation of reforms recommended by Bretton Woods institutions under the deposed President Omar al-Bashir.
Removal of subsidies on basic items, cost-sharing in social services, and public sector wage reforms drove the protests that culminated in Bashir's departure in April.
The new government, led by Dr. Hamdok, has pledged to improve living conditions, reform the civil service, and build the economy's productive capacity.
It is estimated that Sudan needs $10 billion for economic recovery, including $2 billion to shield the Sudanese pound from international currency fluctuations.
Chatham House Africa Research Ahmed Suleiman emphasized the importance of lasting peace for economic recovery and democratic transition.
Atta Al-Bathani, a Professor of Political Science at the University of Khartoum, highlighted the need for comprehensive historical settlement rather than elite power-sharing arrangements for lasting peace.
