Sudan’s honeymoon period is already over

Sudan’s capital Khartoum

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Sudan needs $5 billion in budget support to avoid economic collapse, and has enough foreign currency reserves for just a few weeks, finance minister Ibrahim Elbadawi has warned. This comes less than two months since the formation of a transitional government, following the ousting of longtime ruler Omar al-Bashir in April.

It’s a good reminder that the need to fix Sudan’s economy, which played an important role in fueling mass protests this year, remains.

In the months before Bashir’s removal inflation hit 70%, with the currency losing 85% in value. The unravelling has been coming since the country lost the bulk of its oil reserves when South Sudan seceded in 2011, exposing a lack of structural reform and economic diversification.

With the economy expected to contract by 2.6% this year, the country’s transitional leaders have no time to waste – especially after months of negotiations in which few paid any attention to the economy.

They seem to know it.

Talks have ramped up to re-engage with international donors, and the critical task of getting Khartoum removed from the U. list of state sponsors of terrorism, while fundamental reforms have been promised.

Delivering on this, in addition to a host of social and political issues that must also be addressed, won’t be easy.

Sudan’s honeymoon period is already over.

This report reflects the views of the author alone, not those of How we made it in Africa.


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