Sudan's economic woes deepen

Sudan's journey towards economic stability and prosperity has hit a roadblock as political tensions continue to escalate following a recent coup. Since Abdalla Hamdok was appointed Prime Minister in 2019 under a power-sharing deal, Sudan has made significant strides in economic reforms, such as the lifting of fuel subsidies and a managed float of its currency. The International Monetary Fund (IMF) and World Bank praised these efforts and approved debt relief for Sudan, reducing the country's debt from approximately $56 billion to $28 billion. However, the recent political instability in the country has raised concerns among international donors, leading to a halt in economic assistance after the military takeover. Haluld, a Political Analyst and Managing Partner at Inside Strategy, Partners in Khartoum, shed light on the current situation in Sudan. According to Haluld, the political climate in Sudan remains highly volatile, with the failure of recent negotiations to bring about the expected economic and political benefits. The Prime Minister's decision to align with the military has alienated key support groups, including political parties, unions, and pro-democracy movements, leading to a loss of confidence in his leadership. The economic situation in Sudan has also worsened, with the Finance Minister now seeking international aid after previously asserting the country's self-sufficiency. Economic reforms implemented over the past year have had a severe impact on the population, with the suspension of international support exacerbating the situation. The IMF and World Bank's debt relief plan for Sudan may be in jeopardy due to the political turmoil and lack of international confidence in the military-led government. International financial institutions are cautious about supporting Sudan under the current regime, which controls a significant portion of the country's economy. The protesters in Sudan are calling on world powers to refrain from resuming development aid to the government, fearing that it would legitimize the recent coup and undermine the country's transition to democracy. As Sudan stands at a crossroads, the path forward remains uncertain. Prime Minister Hamdok's position has been weakened by the coup and subsequent alliances, leaving the country in a state of political flux. The resistance committees and pro-democracy movements hold the key to genuine transformational change in Sudan. Their proposed political roadmap and calls for international assistance restraint will shape the country's future trajectory. Ultimately, Sudan's journey towards economic recovery hinges on restoring political stability, rebuilding trust with international partners, and empowering its citizens to lead the path to democratic transition.