From Pariah to Responsible: Sudan

Sudan Airways regularly ranks among the worst airlines in the world. The national carrier has only one working plane..The troubled airline, or rather, airplane, epitomizes some of the effects that two decades of American sanctions have had on Sudan…Most Western countries have shunned Sudan, making it hard for companies like Sudan Airways to procure parts or buy new planes from Boeing or Airbus. The airline’s general manager once described the sanctions as “hell.”The country’s economic isolation is about to end.

The Trump administration announced on October 6, 2017 that it would formally lift a host of sanctions, including a trade embargo, saying the Sudanese government had made progress on a number of issues, like cooperating on counterterrorism efforts and making modest improvements…

The United States is still keeping Sudan on its list of terrorism sponsors, which means it will not be granted debt relief, a major drag on the economy.

The Trump administration decision has provoked a backlash from some human rights groups…Amnesty International accused Sudanese government forces of using chemical weapons against civilians in Darfur in 2016, and there are ongoing skirmishes in the region. President Omar Hassan al-Bashir, who came to power 27 years ago, is sought by the International Criminal Court for crimes against humanity and war crimes committed in Darfur…

Sudan is now expected to become at least moderately more attractive to Western investors, particularly companies eager to enter a region where countries like China, Malaysia and India are already present.

State Department officials say the removal of sanctions would unfreeze government assets and benefit aviation and energy businesses.  Sudan’s economy is mired in debt — foreign creditors are owed $51 billion, or 60 percent of its gross domestic product — and it suffers from high inflation and low productivity. The economy was dealt a severe blow after the oil-rich south tore itself away.

The sanctions placed restrictions on international financial transactions, making it difficult to acquire technology and equipment. Hundreds of factories were shut down because of a lack of parts and trade barriers.Remittances from abroad will be transferred more easily, which will help lift domestic consumption and the economy.

Excerpts from In Long-Isolated Sudan, ‘Lot of Excitement’ as U.S. Sanctions End, NY Times, Oct. 7, 2017

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