Following the Liberation of Khartoum: Riyadh Ready to Partake in Reconstruction

Sudanhorizon – Nazik Shamam

Sudan is turning a new page in its economic history after the Commander-in-Chief of the Sudanese Army and Chairman of the Sovereignty Council, Lieutenant General Abdel Fattah al-Burhan, declared Khartoum free of the rebel Rapid Support Forces militia.

The announcement marks the beginning of the reconstruction of the areas destroyed by the war over the past two years in the areas controlled and destroyed by the Rapid Support Forces militia.

According to the latest estimates, the war has destroyed 20 percent of the Sudanese economy’s capital stock, estimated at approximately $600 billion, and has eroded more than half of the gross domestic product, which averages approximately $33 billion annually.

The Kingdom of Saudi Arabia has led the countries that will assist Sudan in rebuilding the war-ravaged areas through a delegation that arrived in Sudan two days ago. The delegation includes representatives from the Saudi Ministry of Foreign Affairs, the King Salman Humanitarian Aid and Relief Center, the Saudi Development Fund, and the Saudi Investment Fund, and is headed by the Kingdom’s Ambassador to Sudan, Ali bin Hassan Jaafar.

The Saudi ambassador announced that the visit comes in implementation of the directives of the Saudi leadership to conduct an assessment of Sudan’s needs for reconstruction, and then provide the necessary support to implement the required projects in coordination with the relevant Sudanese authorities.

The Saudi ambassador explained the tasks he was assigned by the senior leadership of the Kingdom of Saudi Arabia, which include conducting a survey of Sudan’s needs in terms of rehabilitation and reconstruction of infrastructure and public service projects such as electricity, water, health facilities, and other services, as part of a six-month emergency program during this period, which is witnessing the end of the rebellion, the establishment of security, and the return of normal life.

Sudanese Foreign Minister Ali Youssef explained that the Kingdom has always been the first to stand with Sudan and its people in any crisis they have experienced, and that this delegation was the first to arrive to provide support. Its visit coincided with the declaration of Khartoum as liberated and free from the hand of the rebel militia, which has perpetrated all kinds of violations and relentlessly destroyed infrastructure, public facilities, and private property.

For his part, the Minister of Finance and Economic Planning, Dr. Gibril Ibrahim discussed the government’s urgent priorities for rebuilding what was destroyed by the war.

While chairing an expanded meeting with the Saudi Arabian committee, headed by its ambassador to Sudan, he identified the most important priority sectors to begin the process of reconstruction, development, and ensuring the safe return of citizens to their homes in the states affected by the war.

The priorities were reviewed, with the participation of ministers from the relevant ministries, focusing on the electricity, health services, water, agricultural inputs, and all projects that directly impact citizens.

The Saudi ambassador to Sudan explained that the Saudi committee was formed under the direction of the Custodian of the Two Holy Mosques and his Crown Prince to identify the basic needs of Sudanese citizens over the next six months and support the government’s efforts to address the consequences of the war.

He promised to study the proposed projects and submit a report on them to the Saudi leadership in preparation for implementation.

The Kingdom stands out as one of the most important countries with economic ties to Sudan. Riyadh deposited $250 million in the Central Bank of Sudan in May 2019 to support the exchange rate of the local currency. It has provided financial assistance exceeding $250 million since the beginning of the transitional period, to mitigate any negative impact on Sudanese citizens resulting from the floating exchange rate of the pound.

In March 2021, the Kingdom pledged to invest $3 billion in a joint investment fund in Sudan.

The Saudi Fund for Development provided two loans to finance projects in the health and education sectors in Sudan for 2020, totaling 487.5 million Saudi riyals, with 243.75 million riyals for each sector. These two loans are part of the funding provided by the Fund to support the implementation of dozens of development projects in Sudan.

Economic expert Dr. Haitham Muhammad Fathi stressed the importance of holding a national conference on the reconstruction phase to determine priorities, methodology, mechanisms, and funding sources.
Fathi pointed out the importance of identifying reconstruction priorities, agreeing on the phase’s methodology and expected partners, identifying acceptable funding sources, and effectively promoting investment. In his interview with Al-Muhaqeq, he called for the enactment of a Public-Private Partnership (PPP) law to develop and build public facilities and utilities. He also called for the creation of an appropriate organizational structure characterized by efficiency and the ability to operate through a national reconstruction authority, which includes representatives of Sudanese banks and experts and specialists from the public and private sectors. He also called for the establishment of a special fund for reconstruction, identifying specific projects with rapid returns and impact, whether in providing basic needs, providing foreign currencies, or supporting the state’s general budget, especially in the mining sector. This means that there should be priorities, along with reforming laws, controlling the exchange rate, and reforming the budget.

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