Public Management

New coup in Sudan risks further sinking its economy

New coup in Sudan risks further sinking its economy
Tuesday, 26 October 2021 15:20

In recent months, Sudan has succeeded in securing financing guarantees with the international community. The country was only able to do so thanks to the democratic process it was following until a new coup happened. With this new picture, Khartoum could lose its supports.

Yesterday, a new coup happened in Sudan. The second in three years. Abdel Fattah al-Burhan (pictured), the coup leader, dissolved the government a few hours after PM Hamdok and many other officials were arrested. The former Chairman of the Sovereign Council also announced a state of emergency, then deployed the army in Khartoum.

While it may appear to be a setback to the progress made so far in the democratic process, the coup in Sudan is a rather negative signal for the country's financial partners. The country has in recent months emerged from a long absence in the international financial system, after Omar el-Bashir was ousted. The transitional government, led by both military and civilians, enjoyed a kind of good image on the international scene, especially with France, which defended Sudan to creditors. Following tough negotiations, which included the promise of compensation to American families who were victims of terrorism, and the establishment of diplomatic relations with the state of Israel, Sudan was finally withdrawn from the U.S. terror list

The African country also obtained financing from France and the U.S., in particular, to settle debt with the World Bank, the IMF, and the ADB. The objective, in the long run, is to relieve Sudan from its debt burden and allow it to finance its economic reform and development projects. The country suffered a recession for three successive years (-2.7% in 2018, -2.2% in 2019, and -3.6% in 2020, according to the IMF).         

Given that Abdalla Hamdok was the main contact person with international partners, his arrest risks disrupting the ongoing process. Despite the military's commitment to form a "government of competent people" and to continue "the transition to a civilian state," the international community expressed concerns. French President Emmanuel Macron has called for "the immediate release and respect for the integrity of the Prime Minister and civilian leaders," while the U.S. says “any changes to the transitional government by force puts at risk U.S. assistance.”

Official sources revealed that the military fired live ammunition at protesters in Khartoum. No casualties have been reported so far. But many observers fear that the situation will exacerbate the inflationary and social crisis that has already led to protests in recent months against the government of Abdalla Hamdok.

For 2021, the IMF was expecting a slight recovery in growth to 0.9%, but the forecast could change. 

Moutiou Adjibi Nourou

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
WAEMU states collectively raised nearly 7,000 billion CFA francs in the first half of 2025, a record amount driven by increased financing needs, the...
• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0.6% in May, bolstered by a decline in food costs. •...
• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its main policy rate to 3.25% following a sharp drop in...
• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 million to $1 billion in annual market...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
03

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
04

• Kenyan President William Ruto signs strategic partnership with UK Prime Minister Keir Starmer to b...

William Ruto in London: New Agreement Aims to Double Kenya-UK Trade by 2030
05

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.