Economic Vision: The Economic Impact of Hamdok Trip to USA

The only challenge that faces the interim government is the economic crisis, which affects by the instability of Sudan USA diplomatic ties; in 1997 USA imposed economic sanctions on Sudan. USA accused Sudan at that time of terrorism. In 1993 Sudan was listed as a country that sponsors terrorism, the two moves have complicated the relations, since that time Sudan and USA were talking about normalizing ties.
The recent trip to Washington by the Prime Minister PM, Abdalla Hamdok, aimed at putting the relations between the two countries on the right track. The mission behind the trip is to remove Sudan from the USA list of countries sponsoring terrorism, and get financial support from the two biggest global financial institutes, the World Bank (WB) and the International Monetary Fund (IMF).
USA promised to remove Sudan from the list of terrorist countries, and negotiate on writing off of Sudan debts, those two factors were the only key to Sudan economy, the future of the interim bases on the economic improvement, the reasons that led to the revolution on 19th of December last year still affecting the livelihood and daily life of people.
US$ 10 billion is required to restore Sudan economy, said the PM earlier, he discussed with US officials, the feasibility of funding for Sudan, so I do believe that, the interim government needs a long time to persuade USA that Sudan is free from terrorism activities. We know Sudan is a cooperative country, reports and statements were issued, assured that Sudan record is good, anyhow, no trade exchange among Sudan and other countries at both regional and international levels unless Sudan be removed from the list of terror, also no banking relations, so the movement of imports and exports still suffer from keeping Sudan on the list.
The issue of writing off of Sudan debts is important, it will allow Sudan to get loans or funds to fund development projects, the arrears of Sudan totaled to US$ 15 or 16 billion, the matter that banned Sudan from getting any loans from WB or IMF.
It is good that US has opened a new chapter, but the economic situation on the ground doesn’t allow the interim government to wait for long term solution.

Mohamed Abdalla

Economic Vision
Mohamed Abdalla
Mohamed Abdalla

Mohamed Abdalla

Economic Vision Email:

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