Dear Supporter,

In late February, Sudan eliminated its defective exchange rate system, taking an important step toward improving its economic standing. Since the 2019 overthrow of President Omar al-Bashir, and after decades of suffering due to corruption, war, dictatorship and genocide, Sudan’s new civilian-led transitional government has been implementing economic and social reforms. Today, Sudan remains a country over $60 billion in debt and with one of the highest rates of inflation in the world, but this most recent action builds on momentum generated by initial reforms.

In our latest briefing, Suliman Baldo examines the potential windfalls to Sudan’s economy from the exchange rate realignment, but warns that it must be paired with further economic and governance reforms. Having multiple exchange rates had allowed regime insiders to manipulate the difference to enrich themselves and channel illicit funds out of the country. This move takes a lucrative scheme away from those trying to loot Sudan's coffers. However, corrupt systems and networks still exist in Sudan today, leaving the transitional government in control of just 18% of the nation's public funds.

Economic grievances had been at the top of the list for the protestors who toppled Sudan’s former regime, and while the exchange rate reform is a welcome move, much more remains to be done. The briefing warns that in order for Sudan's transition to a civilian-led government to be successful in the long run, the country's economy needs to be stabilized and the government must deliver on promised reforms for its people. To achieve those goals, the government must fight the pervasive economic corruption that prevents it from delivering development outcomes and find creative ways to increase revenues. A full list of recommendations is available in the briefing.

Only with continued reform and support will Sudan have a chance at economic stability and sustainability, providing new hope and opportunities for the people of Sudan.

Sincerely,

John Prendergast
Co-Founder of The Sentry

P.S. On Wednesday, The Sentry’s Brad Brooks-Rubin testified in front of the House Tom Lantos Human Rights Committee for a hearing on the Global Magnitsky Human Rights Accountability Act. You can watch a recording of the hearing here.