SUDAN INSIGHT ALERT: Reuters - Gulf pledges offer scant reprieve for Sudan's economy

7/5/19: Reuters – Gulf pledges offer scant reprieve for Sudan’s economy, by Patrick Werr

 Patrick Werr’s feature piece finds that pledges of assistance from the Gulf are expected to provide only short-term relief for Sudan’s economy, with banks short of foreign exchange and farmers searching for summer growing season supplies.

Werr attributes Sudan’s banking crisis to its designation as a state sponsor of terrorism by the US, leaving Sudan unable to tap the IMF or World Bank for support, and Sudanese banks struggling to build trust among foreign banks.

 Werr notes that the US said it will not remove Sudan from the terrorism list while the military holds power.

 The article notes that Sudan’s spending on military and paramilitary forces is very high, with Sudanese economist Ibrahim Elbadawi estimating that security and subsidies combined eat up more than 75% of Sudan’s budget.

 Elbadawi said access to a World Bank programme for demobilising militias, would need US support and more financial backing from the Gulf.