Deadline for Sudan to form a new government
Sudan faces a deadline today to form a government today.
Amid a worsening economic crisis, Prime Minister Abdalla Hamdok’s new cabinet will immediately be put to the test. Nearly two years since the ouster of former president Omar Al-Bashir in April 2019, Sudan’s economic impasse continues. Suffering from a cash shortage, Khartoum has faced surging inflation with the US dollar reaching 300 Sudanese pounds on the black market. This has led to severe commodity shortages causing public discontent.
The recent lifting of US sanctions that had prevented Sudan from refinancing $60 billion in external debt will gradually alleviate the currency crisis. However, profound structural reforms that address rampant monopolisation and fraud in the awarding of contracts and an overhaul of the tax code for state-owned companies are necessary. While Hamdok’s new government will seek to tackle some of these issues, their resolution will take time. Currently, elements of the Al-Bashir regime continue to control critical sectors of the economy and will likely resist policies that target their interests. Likewise, the military’s control of important state-owned companies will further complicate reform efforts. If the economic situation deteriorates further in the short-term, it could give way to mass protests and, potentially, another military takeover.
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