World
Donor Conference Shows Sudan’s Quest for Economic Recovery
By Kester Kenn Klomegah
During several years of Omar al-Bashir administration, Sudan’s economy was largely shattered due to political tyranny, deep-seated corruption and poor policies.
According to the Corruptions Perception Index, Sudan is one of the most corrupt nations in the world. Sudan has a population of 43 million (2018 estimates), nearly 80% live far below the poverty line despite its boast of natural resources including huge oil deposits.
While historically agriculture remains the main source of income and employment hiring of over 80 percent of Sudanese, it makes up a third of the economic sector. But most farms remain rain-fed and susceptible to drought.
Instability, adverse weather and agricultural prices consistently ensure that majority (farmers) among the population will remain impoverished for years.
Last year, the world watched in admiration as hundreds of thousands of Sudanese men and women took to the streets to demand a change in one of the world’s most brutal dictatorships.
As months of protests led to the fall of al-Bashir’s regime in April 2019 and the rise of the first civilian government in over 30 years. As a result, the Sudanese people showed the world that peaceful change was possible.
With the new administration that came after al-Bashir, Sudan still faces formidable economic problems, and its growth still a rise from a very low level of per capita output. In practical terms, it is desperate for foreign support and one surest way was to get to a donor’s conference held in Berlin, Germany.
According to experts, Sudan’s economic outlook has not been encouraging: the country’s vast resources were systematically plundered by the old regime. The current global crisis puts the achievements of Sudan’s peaceful revolution in jeopardy. The donor conference was to provide a lifeline to the ongoing transition, alongside Sudan’s own efforts. It is worth to say that increased international political and financial assistance remain paramount.
That was why, on June 25, the United Nations, the European Union, Germany and Sudan convened an international conference, via video conference.
The aim was the following: the Sudanese Government commits itself to carry the 2019 revolution forward. In return, almost 50 countries and international organizations are offering Sudan a partnership to support the country throughout the political transition up to the elections in 2022.
The goal was to also raise enough funds to kick-start social protection programs by the World Bank and the Sudanese Government that could help Sudanese families in need. The partners supported the International Monetary Fund to open up Sudan’s road towards debt relief.
Some 50 countries and international organizations pledged more than $1.8 billion, while the World Bank Group offered a grant of $400 million.
“This conference opened a new chapter in the cooperation between Sudan and the international community to rebuild the country,” German Foreign Minister Heiko Maas said at the video conference co-organized by Germany with Sudan, the European Union and the United Nations.
Berlin promised to make investments in in areas such as water, food security and education. Germany has urged the Sudanese government to invest in human rights. Germany said that it would contribute €150 million ($168 million) in aid to the sub-Saharan nation of Sudan.
The decision comes as part of a one-day donor teleconference hosted by Berlin and attended by several western governments, the UN Secretary-General, international financial institutions and wealthy Gulf oil producers.
German Federal Development Minister Gerd Müller praised the “enormous efforts” of the civilian transitional government “for peace, democracy and reforms.” This positive development had encouraged Germany to resume a development cooperation with Sudan, Müller added.
Germany intends to spend €118 million to support Sudan in areas such as water, food security and education, while a further €32 million allocated to humanitarian aid and stabilization.
“The most important thing now is to strengthen the economy, especially agriculture, and to support the poorest people in the country. For the country has potential: it could become Africa’s breadbasket,” Müller said, noting that Sudan’s agricultural land mass is as large as that of France.
The German Government expects the Sudanese transitional government to continue on a path of reform. Müller urged the government to ensure religious freedom and to work to grant full equality for women.
Germany’s contribution was part of a total of €1.325 billion pledged by Western and Arab countries. The EU said it will contribute €312 million, the United States €318 million, and France €100 million for various projects, among them cash transfers to families living in poverty, with the help of the World Bank, officials said at the online event. The United Kingdom pledged €166 million and the United Arab Emirates €268 million.
“The people of Sudan have shown extraordinary courage & determination in their quest for change & peace,” UN Chief Antonio Guterres said in a tweet. “But unless the international community mobilizes support quickly, Sudan’s democratic transition could be short-lived, with profound consequences in the country & beyond,” he added, underscoring the financial help the new government needs to stay afloat.
Sudan’s Prime Minister Abdalla Hamdok called the conference “unprecedented” and said it laid a “solid foundation for us moving forward” at least in the subsequent years.
Sudan’s new transitional government has sought to repair the country’s international standing, but it still faces daunting economic challenges more than a year after Bashir’s ouster. The International Monetary Fund says Sudan’s economy “contracted by 2.5 percent in 2019 and is projected to shrink by eight percent in 2020” because of the pandemic. Other challenges include galloping inflation, massive public debt and acute foreign currency shortages.
In addition to saving the economy, the conference direct help, also envisaged to enhance Sudan’s efforts to tackle COVID-19. The pledges included $356 million from the United States, which voiced optimism for a resolution directed at Sudan be delisted as a state sponsor of terrorism. Washington first blacklisted Sudan in 1993.
“This conference marks the start of a process, which will be followed by subsequent engagement by the international community to take stock of the progress made by Sudan in implementing reforms and to allow its partners to adapt their support accordingly,” the conference’s concluding statement said.
The participating countries agreed to hold the next Partnership Conference in early 2021, in close cooperation with the Government of the Sudan and the Friends of Sudan group. In addition, the Government of the Sudan and delegations decided to establish a follow-up mechanism (Compact) lead by the Transitional Government of the Sudan as an inclusive process in the Sudan.
In reality, the world will be watching to see noticeable changes in Sudan. On 30 June 1989, when Omar al-Bashir took power, Sudan had the same GDP as South Korea. For a period of 30 years, the country seems to remain at same level or even worse before independence.
Now Prime Minister Abdalla Hamdok has to show the dynamics of an exemplary leadership, accountability and transparency. These has to reflect on the future development of Sudan and for the Sudanese.
The truth is that how very complex and multifaceted this may be requires the art-of-state management and pursuit of good policies that can address huge economic reconstruction and sustainable development issues.
After this donor conference, Sudan has to move speedily away from the phase of stagflation, a term experts used describing the economy.
In the Horn of Africa, Sudan has also had a troubled relationship with its neighbours. South and South Sudan have signed an agreement sharing the oil deposits, but both still have conflicts. Bordered in the north by Egypt and southeast by Ethiopia, the country has to adopt a more refined attitude to its neighbouring states in the East African Community (EAC).
World
How Russia’s Multifaceted Relations Changing Egypt
By Kestér Kenn Klomegâh
The Arab Republic of Egypt, a country spanning the northeast corner of Africa and the southwest corner of Asia, has a highly strategic location and attracts multifaceted interests of foreign players. For decades, Russia has established diplomatic relations with Egypt and has consistently sustained diverse ties with this country. It is no secret that Russia’s lust for the region is primarily due to the strategic importance of the Mediterranean Sea for investment and economic cooperation with the Maghreb region.
Determined to strengthen, particularly, economic cooperation, Russian President Vladimir Putin has maintained regular contacts with his colleague, President of Egypt, Abdel Fattah el-Sisi, mostly discussing both bilateral cooperation and broader regional developments. The current world’s geopolitical development, for instance, the United States-Israeli war on Iran in the Middle East, constitutes one theme both leaders frequently review, attempting to find long-term solutions.
On April 2, Putin met with the Minister of Foreign Affairs, Emigration, and Egyptian Expatriates of the Arab Republic of Egypt, Badr Abdelatty, in the Kremlin – the seat of Russia’s presidency. In attendance during the official talks on the Russian side were Foreign Minister Sergei Lavrov and Presidential Aide Yury Ushakov, while Egypt was represented by Ambassador Extraordinary and Plenipotentiary to the Russian Federation Hamdy Shaaban. Ultimately, there is no need to overstate the importance of this meeting.
Russia’s footprints are expanding in Egypt, highlighting the growing industrial investment and the strengthening of bilateral manufacturing ties by undertaking projects to ensure energy security. At the same time, maintaining regular dialogue remains very important for both leaders.
Putin, speaking with the three-member delegation in the Kremlin, underlined the fact that there are many promising initiatives underway, many of which are already being implemented. He has previously spoken in detail about the construction of a nuclear power plant and the construction of an industrial zone, and over ten major Russian companies have expressed interest in participating in this project.
Nuclear Plants in El-Dabaa, Egypt
The construction of nuclear plants in the city of El-Dabaa, about 320 kilometres northwest of Cairo, the capital of Egypt. It is the first nuclear power plant in Egypt, and will have four VVER-1200 reactors, making Egypt the only country in the region to have a Generation III+ reactor. On November 19, 2015, Egypt and Russia signed an initial agreement, under which Russia agreed to build and finance Egypt’s first nuclear power plant. These are now being carried out, not as a charity project, but with a loan of $28 billion. According to reports, Russia will finance 85% as a state loan of $25 billion, and Egypt will provide the remaining 15% in the form of instalments. The Russian loan has a repayment period of 22 years, with an annual interest rate of 3%.
At the meeting, Putin also raised the construction of an industrial zone in Egypt. There are many appealing and related opportunities in this, regarding having an industrial zone to be located on the banks of the Suez Canal. The industrial zone is also entering a new phase, as Russian auto-manufacturing enterprises are advancing distinctive plans to expand local vehicle production, reinforcing the country’s role as a regional manufacturing hub. The move reflects broader economic linkages between Russia and Africa, particularly in industrial development and supply chain integration.
Conveying Greetings and Reviewing the Middle East Situation
Naturally, the situation in the region remains a shared concern, according to Putin, and further hope that the ongoing conflict will be promptly resolved. “As you know, President Trump also addressed this issue yesterday. Let me reiterate that we are prepared to make every effort to help stabilise the situation and, as they say in such cases, return it to normal,” he stressed during the meeting. In this context, it is particularly important to know Egypt’s assessment as a key country in the Middle East.
Putin reminded the delegation of another Russia-Africa summit, which is planned for October 2026. With high hopes that Egypt will be represented by a strong, high-level delegation. Should the Egyptian President’s schedule allow, he would, of course, ahead of the summit, be very pleased to welcome him to Moscow. Jointly chaired by Vladimir Putin and Abdel Fattah el-Sisi, the first Russia-Africa summit, an important acute phase of the developments with Africa, under the motto of ‘For Peace, Security and Development’, was held for the first time in October 2019, in Sochi, a city located on the Black Sea coast. The idea to hold a Russia-Africa forum was initiated by President Putin at the BRICS (Brazil, Russia, India, China and South Africa) summit in Johannesburg in July 2018.
The head of the Egyptian Foreign Ministry, as traditionally expected, conveyed greetings from President El-Sisi to the Russian president and handed over a written message. President el-Sisi places great value on all aspects of the bilateral cooperation, and is extremely grateful for constructive collaboration on the El Dabaa Nuclear Power Plant, which represents a key milestone in the partnership. Despite the challenges, it is evident that the project is moving forward and will be completed by 2028.
In summary, as Egypt and Russia are reliable and time-tested partners, Putin plans to promote strategic projects, particularly in trade, economics, energy, and food security. With over 107 million inhabitants, Egypt is the most populous country in the Arab world, the third-most populous country in Africa, and the 15th-most populous in the world.
World
US-Israeli War on Iran: Africa’s Reactions Through the Prism of the Global South
By Kestér Kenn Klomegâh
In an interview, Senator Mushahid Hussain, President of Pakistan-Africa Institute for Development and Research (PAIDR), explicitly offers a few important insights into the US-Israeli war on Iran and its implications for BRICS+ and Africa. Here are the interview excerpts:
What’s your interpretation of the US-Israel war on Iran, in the context of developments in the Middle East region?
The US-Israel illegal and unwarranted war on Iran was spearheaded by [Benjamin] Netanyahu (Prime Minister of Israel) and actively supported by [Donald] Trump (President of USA) as a Joint Operation with three fundamental goals: a) decimate the Islamic Revolutionary Regime; b) reshape the Middle East as part of Zionism’s ‘Greater Israel’ Project; c) preclude any possibility of establishing a Palestinian State with Jerusalem as its capital.
What is your assessment of Iran’s joining BRICS+ in 2025, China’s and Russia’s roles as members of this association, in this US-Israel war with Iran?
China and Russia have played, by and large, a low-key diplomatic role in supporting Iran but without any active political initiatives. BRICS is divided from within, as India is keen to curry favour with the USA and avoids close association with BRICS since the time that Trump attacked BRICS last year. But China & Russia are clear political beneficiaries of the war as American prestige is at an all-time low, having got entangled in an unwinnable war, resulting in weakening of the US ‘sole superpower’ image.
As an Asian expert, how would you characterise Africa’s reactions? And do you think that reactions were objectively authentic, basing perspectives broadly on Arab and Middle East contributions to Africa’s development?
Africa’s reactions to the war are primarily through the prism of the Global South, viewing Iran as resisting American-Israeli hegemonic designs, as, for example, manifested in two examples: South Africa’s rejection of American pressures to wean South Africa away from its support for Iran. Plus, Somalia joined Pakistan and China in supporting the Russian resolution in the UN Security Council seeking an immediate ceasefire and negotiations to halt the War, despite strident Western/US opposition to the Russian resolution.
World
Middle East War: World Trade Facing Worst Disruptions Since World War II
By Adedapo Adesanya
The Director-General (DG) of the World Trade Organisation (WTO), Mrs Ngozi Okonjo-Iweala, has said the global trading system is experiencing the worst disruptions in the past 80 years.
The trade body chief warned about the consequences as the WTO ministerial conference opened Thursday in Cameroon.
“The world order and the multilateral system we know has irrevocably changed,” she said, adding: “We cannot deny the scale of the problems confronting the world today.”
The organisation’s 166 members appear deeply divided as trade ministers gather in the Cameroonian capital for the WTO’s top conference, amid global economic turmoil linked to the Middle East war.
Over four days in Yaounde, WTO members will try to revitalise an institution weakened by geopolitical tensions, stalled negotiations, and rising protectionism — against the backdrop of the war in the Middle East, which poses a serious threat to international trade.
“The scale of the problems confronting the world today, even before the conflict in the Gulf, destabilised trade in energy, fertiliser and food,” Mrs Okonjo-Iweala said.
“National governments and international institutions alike have been struggling to navigate rising geopolitical tensions, intensifying climate pressures, and rapid technological change.
“Accompanying these shifts has been an increasingly loud questioning of multilateralism,” she added.
Mrs Okonjo-Iweala said these disruptions were just one symptom of broader upheavals shaking the international order created after World War II to prevent a repeat of the disasters of the first half of the 20th century.
“It feels appropriate that at the moment when the world is in turmoil with conflict in the Middle East, Sudan, Ukraine, and elsewhere, at this time of great disruption and uncertainty, we have gathered in Africa to discuss the road ahead for the global trading system,” she said.
“Africa is the continent of the future.”
WTO ministerial conferences are typically held every two years. The current edition in Yaounde is the second to be held in Africa, after Nairobi (Kenya) in 2015.
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