Sudan Considers Cash Subsidies For Citizens

Sudan’s transitional government has been based in Khartoum since the ousting of President Omar al-Bashir in April. (Flickr)

Sudanese Prime Minister Abdallah Hamdok told reporters on November 6 that the Sudanese government was considering cash subsidies to citizens. The subsidies would allow Sudanese citizens to afford basic goods such as food and medicine, while Hamdok’s government battles runaway inflation.

The subsidies, if ultimately enacted, would last until June 2020. Hamdok called subsidies “one of the most important and biggest challenges” to Sudan during a visit to the war-torn, western region of Darfur. Hamdok has not yet released any other details on the potential plan.

Sudan’s economy has been in a state of turmoil since December 2018 when former-President Omar al-Bashir drastically reduced government spending, including bread and fuel subsidies, to prevent an economic crisis. 

The cuts ignited widespread protests that led to Bashir’s removal from office in April 2019 after 30 years in power. Sudan’s acting government is the result of an agreement between a transitional council of military generals, who helped overthrow Bashir, and the leaders of a group of protesters known as the Forces of Freedom and Change alliance (FFC).

Under their agreement, the military and the FFC will share power for the next several years, with a military general in charge of the transitional council and a prime minister nominated by the FFC in charge of the cabinet.

The FFC chose Abdalla Hamdok as prime minister. Hamdok, who turned down an offer from Bashir to become Sudan’s finance minister in 2018, formerly worked as a highly regarded economist for the United Nations in Ethiopia and promised to “address the severe economic crisis” upon being sworn in.

In addition to planned subsidies, Hamdok is currently negotiating with the International Monetary Fund and World Bank for foreign aid. He has said that Sudan will need $8 billion over the next two years. The transitional government has been focusing its efforts on changing Sudan’s status as a state sponsor of terrorism in hopes of attracting foreign investment and aid.