Home Northern Africa Donor Meeting in Berlin to decide Sudan’s economic survival

Donor Meeting in Berlin to decide Sudan’s economic survival

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· Sudan economy has been under severe stress with inflation exceeding 100 per cent and dire shortages of bread, fuel and medicine

· The government run by Prime Minister Abdalla Hamdok, , is desperate for foreign support.

The economy of Sudan has been under severe stress with inflation exceeding 100 per cent and dire shortages of bread, fuel and medicine for some time. The problems were compounded by the coronavirus pandemic as also an impending locust’s invasion.

The government run by Prime Minister Abdalla Hamdok, under a precarious, transitional power-sharing deal with the military since the overthrow of veteran autocrat Omar al-Bashir last year, is desperate for foreign support. The government is pinning all its hopes on a conference of potential donors in Berlin this week. Representatives from Western governments, international financial institutions and rich Gulf oil producers are scheduled to participate in a one-day teleconference in Berlin on 25th June.

Without an immediate rescue package, the analysts feel that the government might face a revolt from people tired of chronic shortages or even a military takeover in a country with a history of coups.

The new financing, has been held back due to reasons such as the need to settle decades of arrears to the International Monetary Fund (IMF) and Sudan’s status as a state sponsor of terrorism. The delay has been too costly for the country which is unable to begin a transition. Political observers have warned the international community to release funds urgently to ameliorate the degradation.

The government needs an estimated $1.9 billion to cover the cash payment programme to support the poor to battle the Pandemic. The bankrupt government lacks funds for the cash Programme. Government finances have been in crisis since 2011, when South Sudan seceded taking with it most of Sudan’s oil.

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