New Sudan cabinet will entrench economic stagnation

Subject

Sudan's new cabinet.

Significance

The prime minister has appointed a new unity government, in accordance with a disputed 'national dialogue' framework completed last year. For the past five years, Sudan has been facing the combined economic pressures of budget cuts, reduced foreign investment, a weakening currency and rising inflation. The former government pushed through some subsidy cuts, despite public protests over the ensuing economic hardship. In January, Washington announced a lifting of economic sanctions on Sudan, raising Khartoum's hopes that it will become easier to attract foreign investment.

Impacts

• Gulf institutions will provide new financing for energy and infrastructure projects.
• Mining and agriculture opportunities in the north and centre of the country could also attract some new investment.
• However, major Western companies will remain wary of doing business in Sudan.