A new dawn for Sudan? US removes Khartoum from terror sponsor list

The recent decision by the United States to formally revoke Sudan's status as a state sponsor of terrorism has ignited hope and excitement among the Sudanese people, as it marks a new dawn for the country's economic development and international relations. Anwar El-Haj, a researcher and political analyst, highlighted the significant implications of this decision during a recent interview on CNBC Africa. El-Haj emphasized that the removal of Sudan from the terror sponsor list will unlock a wide range of economic opportunities for the country. One of the key benefits is the removal of financial transaction restrictions with international institutions, paving the way for foreign banks and investors to enter the Sudanese market and contribute to its economic growth. Additionally, the decision will enable the central bank of Sudan to reestablish correspondence with other international banks, facilitating the inflow of high-tech financial systems and promoting financial stability. The delisting also positions Sudan to apply for debt forgiveness and other benefits from high-end debted countries, offering a much-needed financial reprieve for the country, which has accumulated a significant debt burden over the past three decades. Moreover, the US has pledged a bridging funding of $1 billion to support Sudan in repaying its overdue debts, demonstrating a commitment to bolstering Sudan's economic recovery. Sudan's finance minister, Heba Ali, has expressed the government's determination to leverage these newfound opportunities and enhance cooperation with international partners. The country has already secured funding agreements totaling $70 million from the US, $20 million in food aid, and $170 million from the World Bank, in addition to the $1 billion bridging loan. These financial resources will be instrumental in supporting Sudan's budgetary priorities and driving economic growth. The 2021 financial budget unveiled by Sudan focuses on reducing expenditure, increasing revenues, and addressing structural challenges to enhance fiscal sustainability. Key areas of focus include reducing government spending, curbing inflation, boosting revenue generation through gold production and exports, and aligning the budget with the country's peace agreement and sustainable development goals. The budget reflects a collaborative effort involving diverse stakeholders and marks a pivotal step towards rebuilding Sudan's economy post the delisting from the terrorist sponsor list. In the face of the ongoing global economic challenges posed by the COVID-19 pandemic, Sudan's budget allocates significant resources to healthcare, with a particular emphasis on combating the virus and supporting hospitals. The allocation of 100 billion Sudanese pounds, equivalent to 10% of the country's GDP, underscores the government's commitment to safeguarding public health and mitigating the impact of the pandemic on the economy. Looking ahead, the formation of a new government in Sudan holds the promise of fostering political stability and governance effectiveness. While the process of appointing the new government has faced some political disagreements and negotiations, there is optimism that the government will comprise competent individuals dedicated to driving progress and serving the interests of the Sudanese people. The inclusive approach of allowing political parties to nominate ministers and council members is expected to enhance accountability and transparency in the government's decision-making processes. As Sudan embarks on a new chapter of growth and transformation, the removal from the US terrorist sponsor list serves as a catalyst for economic revitalization and increased international support, heralding a brighter future for the country and its people.