New Sudan cabinet will entrench economic stagnation
Sudan's new cabinet.
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.
- 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.