Sudan comes out of international isolation after 30 years

Sudan's 30 years of economic sanctions and international isolation have resulted in a debt of $60 billion. The African country was subjected for three decades to an iron dictatorship under the presidency of Omar al-Bashir, who was overthrown in 2019 as a result of a popular uprising.

Today, both civilians and the military have formed a joint transitional government that has been welcomed by the international community. This new phase, which offered a glimmer of hope to the population, has been marred by the COVID-19 pandemic that has further worsened the country's economic situation.

France has taken the first step towards addressing Sudan's debt problem, and during a conference dedicated to the African country in Paris, French President Emmanuel Macron announced that his country was in favour of completely cancelling the $5 billion owed to it by Khartoum. 

"We are in favour of fully cancelling Sudan's debt," Macron told a news conference. "We expect other participants to make a similar effort, which is the necessary effort to free Sudan from the burden of debt." The French initiative has already been joined by Germany.

Foreign Minister Heiko Maas announced that his country would cancel the debt, valued at some 438 million dollars. Both countries have also pledged to help Sudan clear its debt arrears to the International Monetary Fund (IMF). Berlin will provide up to 90 million euros and Paris will lend 1.5 billion dollars.

In order to claim debt cancellation under the Heavily Indebted Poor Countries (HIPC) Initiative, Khartoum had to meet two conditions, the French president explained: clear its arrears with multilateral institutions (IMF, World Bank, African Development Bank) and implement "economic reforms that demonstrate the seriousness and rigour of the authorities". Once these requirements were met, France proceeded to write off the country's debt.

Among the most recent reforms carried out by the country under an IMF surveillance programme are the elimination of fuel subsidies and a sharp currency devaluation.

During the meeting promoted by France, Macron received General Abdel-Fattah Burhan, head of Sudan's sovereign council, and Prime Minister Abdalla Hamdok. His counterparts from Egypt, Ethiopia and Rwanda, as well as the head of the International Monetary Fund, Kristalina Georgieva, and the president of the African Union Commission, Moussa Faki Mahamat, also attended the meeting.

Kuwait, the largest creditor with $9.8 billion, announced in a statement that it would support discussions on debt "resolution". Saudi Arabia, another major creditor, has also said it will push hard for a comprehensive debt deal. Finally, China has reduced and forgiven part of the debt and has said it will try to influence the international community to do the same, said Hua Chunying, a foreign ministry spokesperson.