Share
Is Sudan ready to chat a new political, economic path?
The international community is once again inviting Sudan to the international scene following commitments by different countries to clear the country’s debts. But is Sudan ready to chat a new political and economic path? Hajooj Kuka, Analyst and Activist spoke to CNBC Africa for more.
Fri, 21 May 2021 10:19:56 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The lingering influence of the army poses a challenge to Sudan's economic reform efforts, despite the optimism surrounding debt cancellation and potential investments.
- Allocation of a substantial portion of income to the military hinders economic development by diverting resources away from education, technology, and infrastructure.
- Sudan's economic challenges, including high inflation, shortages, and lack of production capacity, necessitate a strategic shift towards internal development and skill enhancement.
Sudan, a nation with a tumultuous history, is at a critical crossroad as the international community extends invitations for the country to rejoin the global stage. The recent commitments by various countries to clear Sudan's debts have sparked hope for a new beginning, both politically and economically. However, challenges loom large as Sudan navigates through this crucial period of transition. In a recent interview with CNBC Africa, Analyst and Activist, Hajooj Kuka, shed light on the complexities and contradictions that Sudan faces as it charts a new course.
At the heart of Sudan's dilemma lies the lingering presence of the army in the political landscape. Despite the optimistic outlook on debt cancellation and potential investments, the army's continued influence raises concerns among citizens and activists. The army, historically entrenched in power and control, has been a source of conflict and instability within Sudan. The recent protests and tragic incidents involving the army further highlight the deep-rooted complexities that Sudan must address. The delayed handover of power from the military to civilians adds to the skepticism surrounding Sudan's readiness for true economic reform.
One of the primary concerns raised by Kuka is the allocation of resources, particularly the staggering 70% of income directed towards the army. This allocation poses a significant hurdle to meaningful economic development, as funds that could otherwise be invested in education, technology, and infrastructure are channeled towards military expenditures. The lack of a clear vision and strong institutions internally further complicates Sudan's path towards economic recovery. While external support and debt cancellation offer a glimmer of hope, the internal challenges remain substantial.
The economic landscape in Sudan reflects the profound challenges that the nation faces. With inflation soaring over 300% and shortages of essential commodities and foreign currency reserves, the urgency for economic transformation is evident. Kuka emphasizes the critical need for a paradigm shift towards internal production and skill development. Sudan's overreliance on imports and the inadequacy of its exports underscore the pressing need for revitalizing the economy. However, the real test lies in whether Sudan can break free from its historical reliance on the army and embrace a more diversified and sustainable economic model.
As Sudan contemplates its economic future, there are ambitious plans to rehabilitate key sectors such as shipping and aviation. Investments in reviving national carriers like Sudan Airways signal a desire for growth and modernization. Yet, the looming question of whether Sudan will resort to further borrowing post-debt cancellation raises concerns. While borrowing for developmental purposes may be necessary, the potential risks of indebting the nation without the requisite internal capacity and skilled labor warrant caution.
In conclusion, Sudan stands at a pivotal juncture with a unique opportunity to carve out a new trajectory for its economy. The challenges of internal governance, military influence, and economic restructuring are formidable but not insurmountable. As Sudan grapples with the complexities of its past and present, the road to economic recovery will require concerted efforts, vision, and resilience. The global spotlight on Sudan's journey towards revitalization underscores the significance of this transformative moment in the nation's history.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.