Home | News    Wednesday 30 May 2012

Sudanese economy is facing daunting challenges - IMF

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May 29, 2012 (WASHINGTON) – Sudan’s fragile economy is facing "daunting" challenges , the International Monetary Fund (IMF) said in its first assessment of the economic health of the east African country, nearly one year after the secession of South Sudan.

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IMF headquarters in Washington, D.C (AP)

Sudan lost 75% of its oil reserves after the southern part of the country became an independent nation last July denying the north billions of dollars in revenues. Prior to the country’s breakup. Sudan produced close to 500,000 barrels but now its output is limited to 115 barrels per day.

"The challenges confronting Sudan are daunting and require appropriate reforms to stabilize the economy. More work is needed to improve prospects for inclusive growth and job creation," the IMF said in a statement released by an assessment team that was in Khartoum from 13 to 25 May.

The mission chief Edward Gemayel said that the growth slowed down to 2.7 percent, while the inflation reached 19 percent. He added that the fiscal deficit was at 4 percent of Sudan’s gross domestic product grew.

He further pointed out that the economic situation in Sudan did not show any improvement, according to the preliminary information for this year 2012.

Sudan and South Sudan failed to agree on a fee for oil transportation and Juba stopped its production after accusing Khartoum of stealing its oil.

Also after a ten-day occupation of Heglig by the South Sudanese army last April, the oil producing area lost nearly the half of its production, diminishing Sudan’s oil revenue.

Besides that an international conference designed to draw foreign investments and financial support to Sudanese economy after the South Sudan independence was called off earlier this year under the pressure of the US administration.

Washington intended to press Sudan to accept international humanitarian access to the conflict’s zones controlled by the rebel Sudan people’s Liberation %Movement – North (SPLM-N) which fights Sudanese army in Nuba Mountains, South Kordofan.

The IMF mission said it recommends a two-pronged reform strategy.

The first is a short-term emergency measures aiming to stabilize the Sudanese economy. This includes to take a number of fiscal consolidation measures like removal of fuel subsidies that Sudanese MPs reject to endorse.

The international body further underlined the need, in the medium-term, for "a comprehensive structural reform program to recalibrate the economy in line with the country’s economic and financial potential."

During its two weeks stay in Khartoum , the IFM tam met with finance minister Ali Mahmood Abdel Rasool, oil minister Awad Al-Jaz, minister of mining Kamal Abdelatif, and the deputy governor of Sudan’s central bank Badr Eddin Mahmood Abbas.

They also met with some MPs and representatives of the private sector, civil society organizations, the diplomatic community and development partners.

Sudan and South Sudan started Tuesday a new round of talks for the first time since the fight over Heglig.

The African Union brokered negotiations over security, border demarcation, Abyei and oil take place as the UN Security Council threatened to impose new economic sanctions on the two neighbours if they fail to conclude it within three months.

(ST)

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  • 30 May 2012 10:15, by Ayom Ayom

    The regime in Khartoum close border trade with South sudan, they refuse to sales all commodities to Sudan and there is no any country that can made trade with Sudan.
    They refuse to accept oil transit fees on south sudan oil through port sudan.
    They keep purchasing more military hardware for the little available resources
    They open many fronts to fight in darfur, blue nile & kordon, south sudan?

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    • 30 May 2012 10:46, by john k

      there is nowhere closer for khartoum to revive that duanding economy with bashire’s twisted view on foreign policy, a president who keep lying and cheat North Sudanese, 2 weeks ago they anounced to have increased the oil production at panthau, today coming different report from IMF, the only thing to bring it closer at hand is to open up all the boreders, but we not interested either to trade wi

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  • 30 May 2012 11:03, by Pif Paf

    Stoppage of oil has had an effect on the economy no doubt but Sudan has a diverse economy and can manage these challenges. As Oil from south stopped, gold & Agriculuture increased, plus oil production in sudan will reach 180,000 bpd soon. The 3 year plan set by the GOS is progressing well & the sudanese people understand these challenges and are willing to work through it.

    Allaho akbar ya baladi

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    • 30 May 2012 12:30, by Darkangel

      Greece economy is facing daunting challenges
      Spain economy is facing daunting challenges
      Italy economy is facing daunting challenges
      Ireland economy is facing daunting challenges
      US economy is facing daunting challenges - 15 Trillion debt

      South Sudan has NO economy - Projected to collapse completley in the next few months.

      Sudan will survive - dont worry.

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      • 30 May 2012 12:33, by Darkangel

        South Sudanese idiots like Pagan want you to believe that South Sudan survived in the last 30 Years without oil. It was Sudan (South included) that survived and it was the North that held it, despite you SPLM rebels waging war and targeting the same oil facilities you now inherited.

        When Sudan had no oil and 20 years of sanctions and still made it this far .. the IMF can keep its advice.

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        • 30 May 2012 12:37, by Darkangel

          The difference between South and North is the North has an economy and a backbone not dependent on oil only. South Sudan has NOTHING - let me repeat that NOTHING but oil that you have to export via the North.

          Someone remind me a few months ago - Pagan and Machar were screaming you will build a pipeline in a few months - WE ARE STILL WAITING. All of you were so happy, NOW HOW DO YOU FEEL ???

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          • 30 May 2012 14:17, by P.K.M

            Darkangel, South Sudan is not going to transit oil through Sudan again in a million years! That should be made clear to you to stop wishing. Remember the Big Three Lamu’s project Ethiopia, South Sudan and Kenya is on the way, it’s just going to take a while.
            Your Sudan economy is good right? Good for you, so why are you making noise? Aren’t you supposed to be happy?

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      • 30 May 2012 13:18, by Thorbanat

        Darkangle you are dark terrorist and Sudani ana you are al shaabab Islamist shut up. Sudan economy to collapse by June 2015

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    • 30 May 2012 13:31, by South South

      Pif Paf,

      Stop crying about our oil in South Sudan like a baby.

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  • 30 May 2012 12:33, by sudani ana

    Thank you ST
    "The mission chief Edward Gemayel said that the growth slowed down to 2.7 percent, while the inflation reached 19 percent. He added that the fiscal deficit was at 4 percent of Sudan’s gross domestic product grew".
    I would say this is a very positive report. Daunting difficulties yes. The whole of Europe is facing finanacial problems. Growth at 2.7 percent is excellent. In UK ...cont

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    • 30 May 2012 12:35, by sudani ana

      In Uk growth was .5 percent and then gone into negative i.e recession. This proves that Sudan is not in recession which is very good news. Well done NCP.

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      • 30 May 2012 13:16, by Thorbanat

        I wonder what punk like Darkagle and Sudani ana. You are bunch of illiterate and full of smocking shisha. You don’t know the basic principle of economic why can’t you leaves profession to comments on the Sudan economy which is on its way for burial by June 2015. You are terrorists shut up.

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  • 30 May 2012 16:10, by Majongdit

    There is nothing harder than fighting a culture. It is an Arab culture to accept the truth. I was in Khartoum in 2006 and working with them proved everything to me beyond any doubt. It is useless to argue with such people...arguing with such nature of people and their loyal South Sudanese may makes no sense at all.Sudan’s economy is facing stiff challenges. If anyone doesn’t accept it, then fine.

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  • 30 May 2012 16:27, by Majongdit

    Arabs hardly accept any truth. They are liars and terrible pretenders. So, I urge my fellow South Sudanese not to indulge in exchange of words with them.Remember, when a donkey kicks you and you kick a donkey, then you are both donkeys. Leave them...Life will teach them!

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  • 30 May 2012 17:30, by Northern Sudanese

    Sudan is facing many economic challenges.........however, at least it is still gonna improve........South Kordofan is the most vital state in Sudan in Oil.........Darfur still isn’t yet touched.......Red Sea oil+gold.......we need hard work to improve our economy, we were expecting this anyway........2012/2013 will be harsh years for our economy but at least we know it will improve.......

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