Khartoum — Sudan’s government and its businesses have begun introducing financial reforms and lobbying for new investment to revive the economy after Washington lifted 20-year-old trade sanctions earlier in October.
Sudan has suffered from the sanctions and the south’s secession in 2011, when it lost three-quarters of its oil output, its main foreign currency source.
Now, Khartoum businessmen say they are closing deals with US companies, and President Omar al-Bashir began a trip to Qatar, Kuwait and Saudi Arabia this week, seeking new markets for Sudanese exports and Arab investment in Sudan.
"We expect the sanctions decision to increase Sudan’s agricultural and animal exports by 25% by the end of the coming year," said Wagdy Merghany, the head of the Sudanese Exporters Union. "The lifting of the sanctions opens up new markets for Sudanese exports."
The central bank has started pushing Sudan’s banks to circulate dollars, to alleviate a foreign currency shortage. Banks can now use dollars as required reserves and for trade transactions, measures meant to rein in the informal exchange rate.
"What bothers us most is the exchange rate in the parallel market, which has a negative effect on banks, so we work to attract the deposits of Sudanese expatriates," said Fady al-Faqeih, GM of the Bank of Khartoum, one of Sudan’s largest commercial banks.
The government puts annual transfers from expatriates at $4bn-$6bn, most of which moves outside the banks.
Sudan has intensified a crackdown on black-market currency traders, including arrests, two traders said.
The Sudanese pound has weakened over the past year, hitting a record low of 22 pounds to the dollar on the black market on Tuesday. The central bank holds the official exchange rate at 6.7 pounds to the dollar.
The cheap pound contributed to inflation surging to 35.13% in September, up from 34.61% in August, according to the Central Statistics Office.
Many hope that businesses re-entering Sudan will create badly needed jobs.
"The lifting of sanctions is some of the best news in years," said unemployed management graduate Abduallah Hussein. "We expect it will lead to a fall in prices and improved healthcare and job opportunities."
Reuters
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