The Banking Executive Magazine - July Issue 2021

Sudan case, the most important step toward peace so far has been the October 2020 Juba Peace Agreement be- tween the government and a wide- ranging group of rebel movements from Darfur and beyond. These groups are now represented in both the Sovereignty Council – which acts as a collective head of state – and in the cabinet. And negotiations with the most relevant party not to have signed on to the agreement, the Abdel Aziz al-Hilu faction of the Sudan People’s Liberation Move- ment-North, have begun on on May 25,2021. Moreover, the transitional authorities have made progress in rejoining the international community through the adoption of agreements and treaties such as the Convention Concerning Forced or Compulsory Labor. They are also working diligently to design a federal system that will accommo- date the country’s specific political needs (with plans for a major confer- ence on the issue). Other important items on the agenda, such as forming a Transitional Legislative Council, are overdue, but it is hoped that they will be taken up soon. True, hurdles to a lasting peace re- main. The Sudanese state and its se- curity institutions are severely understaffed, underequipped, and overwhelmed by the task of coping with unresolved intercommunal con- flicts and criminal militias. And the economic challenges are even more daunting. But this is to be expected in a coun- try that has undergone a revolution and then a pandemic. Economic conditions in the first two years after the revolution included annual infla- tion above 300%. Under these cir- cumstances, Sudan’s financial situation has deteriorated consider- ably, such that bread and fuel queues cost household members hours at a time. Nonetheless, the government has pursued important economic re- forms, not least lifting fuel subsidies and floating the currency. It is work- ing closely with the IMF to fulfill con- ditions for debt relief. With the support of the World Bank and the World Food Programme, the govern- ment has launched a cash-transfer program to shield the most vulnera- ble segments of the population from the effects of economic restructuring. Putting Sudan on the path to sustain- able development will require more than humanitarian and development aid. The country desperately needs private investment. With domestic reforms underway to improve Sudan’s investment climate, there are real opportunities emerging in infra- structure, regional connectivity, agri- culture, food industries, and electricity. the BANKING EXECUTIVE 30 ISSUE 151 JULY 2021