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African Development Bank provides US $1 million to support Sudan’s preparation for debt relief
The African Development Bank’s Director General for the East African Region, Gabriel Negatu, and Sudan’s State Minister of Finance and Economic Planning, Magdi Yassin, presided over the signing ceremony of a US $1-million grant agreement to facilitate Sudan’s access to debt relief and to reintegrate it into the global economy.
The two-year grant will enable Sudan to update its Arrears Clearance and Debt Relief Strategy and build momentum to accelerate the outreach process on debt relief. It will also complement the Bank’s technical assistance to revitalize Sudan’s economy in the post-sanctions era. This is expected to unlock concessional financing, create more fiscal space and attract foreign direct investments with to end the country’s international economic isolation.
The State Minister of Finance and Economic Planning expressed delight at presiding over this ceremony alluding to the immense assistance the Bank, as a trusted partner, has been providing to Sudan. He noted that debt weighs heavily on economic recovery prospects and precludes the possibility of accessing concessional resources. He expressed hope that this project will assist Sudan in its outreach process for debt relief to unlock concessional resources and put its economy on a sustainable growth path.
Negatu remarked that Sudan deserves Bank assistance given the fiscal challenge posed by the secession of South Sudan and its staggering external debt. He assured the State Minister that the Bank would continue to provide assistance to Sudan especially regarding the debt that has undermined its development efforts.
The Bank’s policy dialogue on debt relief is strongly aligned with its current strategic focus on the High 5s especially Feed Africa, Industrialize Africa and Improve the quality of life for Africans. The intervention is also consistent with Sudan’s Economic Reform Program 2015-2019, which lays a good foundation for Bank support, especially with the proven complementarity between the Sustainable Development Goals and the High 5s.