New era for Sudan as US agrees to terror delisting
US President Donald Trump announced on October 19 that Sudan will be removed from a list of state sponsors of terrorism, allowing the country to rejoin the global financial system after nearly three decades as a pariah state, reports Shoshana Kedem.
The decision came after Sudan’s government agreed to pay $335m to the victims of the 1998 bombings of the US embassies in Kenya and Tanzania, which were carried out by al-Qaeda, an organisation sheltered by former Sudanese dictator Omar al-Bashir.
“Once deposited, I will lift Sudan from the State Sponsors of Terrorism list. At long last, JUSTICE for the American people and BIG step for Sudan!” President Trump tweeted.
As a result of the deal, the US will no longer oppose Sudan’s entry into the World Bank’s Highly Indebted Poor Countries Initiative, opening the way for Sudan to receive debt relief from the IMF and access loans from international lenders.
The White House is likely to announce measures including budgeting a $300m share of the debt relief and a big increase in its humanitarian assistance to Sudan, says Cameron Hudson, senior fellow at the Atlantic Council’s Africa Cente in a blogpost on its website.
Other actions will probably include lifting restrictions on travel to the US by Sudanese citizens, holding a trade and investment conference for Sudan and sending a high-level trade delegation to the country.
Sudan’s economy is in free fall, with inflation exceeding 200% and the Sudanese pound wallowing at 262 against the dollar (down from 82 in September 2019), so the deal came just in time, says Hudson.
“Bread and fuel lines across the capital, Khartoum, are longer today than when President Bashir was in office, and talk among the people stuck in those lines invariably is turning to disgruntlement over the government’s handling of the crisis.”
The breakthrough will buy the government time to shore up its finances so it can deliver on the promise of “a lasting democracy dividend to Sudan’s long-suffering population,” Hudson says.
“By making arrears clearance a real possibility, removing Sudan from this list should build support for difficult and painful reforms. Beyond debt relief, these reforms are necessary if Sudan is to arrest its economic decline and get to stability, growth, and job creation.”
On 20 October, Sudan’s central bank governor confirmed that the $335m agreed in the deal had been transferred to an escrow account, and as African Business went to press the White House announced that President Trump had informed Congress of his intention to remove Sudan from the list of state sponsors of terrorism.
Meanwhile, Reuters reported that Israeli and Sudanese leaders had agreed in a phone call with President Trump to the normalisation of relations between the two countries, with the signing of a peace agreement expected within weeks.
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