Sudan's debt cancelled by France, AfDB & others

In a significant move to support Sudan's economic recovery, France has announced the cancellation of a $5 billion debt owed by the country. Additionally, France has pledged a bridge loan of $1.5 billion to help Sudan pay its arrears to the International Monetary Fund. This announcement comes on the heels of other countries and organizations such as the African Development Bank also offering debt relief to Sudan. Ahmed Soliman, a Research Fellow at Chatham House, shared his insights on this development in an interview with CNBC Africa's Julius Bizimungu. Soliman expressed his optimism about these actions, describing them as an 'extremely welcome development.' He highlighted the recent conference hosted by President Macron in Paris in support of Sudan's democratization, signaling Sudan's reintegration into the international community. This move follows Sudan's removal from the US list of state sponsors of terrorism last year, presenting an opportunity for Sudan to rebrand itself and attract investment. The cancellation of Sudan's debts by France, Italy, Germany, and other nations is a crucial step towards easing the country's economic burden. Soliman emphasized the significance of this debt relief, amounting to over $50 billion, which has been plaguing Sudan for decades. By alleviating the debt pressure, Sudan can focus on domestic reforms and economic stabilization. One of the key outcomes of this debt relief is the access to international funding that Sudan will now have. With clearances of arrears to financial institutions like the World Bank and the African Development Bank, Sudan is set to receive substantial funding to support its economic recovery. This financial assistance will enable Sudan to address challenges like inflation, commodity shortages, and the impact of the COVID-19 pandemic. However, attracting investors to Sudan and rebuilding confidence in the country's economy will take time. Soliman acknowledged the structural challenges facing Sudan, including corruption, lack of investment, and weak competitiveness. To entice investors, Sudan will need to focus on modernizing sectors like agriculture, utilizing its vast arable land and abundant water resources. Despite the progress made towards political stability and economic recovery, concerns remain about Sudan's fragile political system and the pace of reforms. The transition from authoritarian rule to democracy and economic openness is a complex process that requires institutional and monetary reforms, as well as skilled workforce development. As Sudan navigates this critical juncture, maintaining momentum and trust from the international community will be key. The support from France, other nations, and international organizations is a promising step towards Sudan's economic recovery and path to sustainable development.