On March 19, 2025, in Port Sudan, officials from the Ministry of Finance announced that Sudan has halted various developmental initiatives supported by Arab and global funding institutions such as the World Bank and the African Development Bank. This decision comes amid significant unpaid debts and an unresolved state of warfare within the country.
The initiatives, which formed parts of peace agreements, were progressing in Khartoum as well as multiple other regions such as West Kordofan, West Darfur, Northern Sudan, Gedaref, Kassala, and the Red Sea state.
"Many initiatives backed by loans from Arab funds or the IsDB were put on hold following the cessation of financing in 2020 due to outstanding debts," stated Mohammed Bashar, who serves as the undersecretary for planning at the Ministry of Finance, in an issued declaration. Sudan Tribune .
He mentioned that some lenders, such as the Arab Fund for Economic and Social Development, the Kuwait Fund, and the IsDB, asked for the termination of projects that had been ongoing for more than ten years—substantially longer than their usual duration of two to three years.
Bashar stated that Sudan consented to the closures to prevent accumulating additional interest on pending balances and due to uncertainties regarding resolving debts and restarting financial inflows during the ongoing conflict.
People in eastern Sudan have reported that road construction initiatives, which were part of a peace accord and almost finished, have now been halted.
At the end of 2023, Sudan's external debt stood at $66.8 billion, as reported by the central bank. This total includes $33 billion in principal, along with outstanding arrears and accrued interest.
The overall external debt amounts to 253.36% of the gross domestic product (GDP), and stands at 1,841.06% of exports. Internationally, a nation's capacity to manage its external debt is typically seen as sustainable if this figure does not go beyond 30% of GDP and 100% of exports.
Bashar stated that the government had halted initiatives financed by grants from the World Bank and IDA (International Development Association) at the organizations' behest.
Nevertheless, the finance ministry has obtained fresh grants aimed at improving health, education, and food security. These funds will be disbursed via third-party entities, presumably U.N. agencies, instead of being channeled directly through governmental organizations, as mentioned additionally.
On October 20, the World Bank sanctioned $435 million in fresh grants aimed at initiatives related to health, water supply, education, and agricultural output, with these programs set to be carried out through various United Nations organizations.
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