Diplomatic Briefing: Sudan's economic woes continue as prospects of removal from the terrorist list seem unlikely

Sudan's economic woes continue as removal from the terrorist list seems unlikely

Overview

The US views Sudan as a stability partner, but legal constraints are slowing down the process of removing Sudan from the US terror list. Meanwhile, South Sudan’s civil war is hurting oil production, which is to delay compensation payments to Sudan. Saudi Arabia joins calls for Sudan’s removal from the US terror sponsor list, while Egypt is reportedly seeking Sudanese support in its Nile water dispute with Ethiopia.

No immediate prospect of removal from the terrorism list.

US Assistant Secretary of State Tibor Nagy says that he sees “total change” in Sudan, with the US viewing Sudan as a partner in promoting regional stability. However, Nagy also admitted that removing Sudan from the US terror sponsor list will take time amid “legal constraints tied up in [the] process.” (4 October, Radio Dabanga).

The US refusal to delist Sudan from the terror list has had economic consequences, with Sudan’s pound exchange rate hitting a new low. Black market traders told Sudan Tribune (7 October) that the value of the Sudanese pound has fallen due to the government’s inability to provide foreign currencies for important purposes, despite rising demand.

Traders had lowered currency rates due to their confidence that Prime Minister Hamdok’s visits to the New York and Paris would yield concrete economic progress, but this has not been forthcoming.

South Sudan oil

To make matters worse for Sudan, South Sudan said it is renegotiating an oil deal with Khartoum, as it will be unable to meet a December deadline to finish paying the $3 billion agreed as compensation for South Sudan’s 2011 secession. With South Sudan having $600 million to pay, its petrol minister Awou Daniel Chuang has attributed crippled oil production and deferred payments to the South Sudan. (7 October, AFP).

Saudi supports Sudanese economy

However, a promising sign for Sudan is that Saudi Arabia is working on removing Sudan from the US list of state sponsors of terrorism (6 October, Reuters). After a visit to King Salman by the head of Sudan’s transitional sovereign council Abdelfattah al-Burhan, Saudi Arabia has also said that it is working on initiating investments in Sudan and improving existing projects. Sudan is supporting Saudi Arabia in international forums and providing an investment environment that will enable Saudi expansion of its agriculture sector.

Sudan mediating in Ethiopia-Egypt dispute

According to an anonymous diplomat familiar with Egyptian-Sudanese relations, Egypt is attempting to secure Sudanese support in its Nile Water dispute due to Egyptian suspicions that Prime Minister Hamdok is influenced by Ethiopia. (6 October, Al-Monitor).