Sudan’s Prime Minister Abdalla Hamdok on Monday said the government is planning to offer cash transfers for poor people to accompany planned subsidies for food and other basic goods.
Shortages of bread, fuel, and medicine in Sudan coupled with hefty price rises led to mass protests that finally led to the toppling of longtime ruler Omar al-Bashir in April. Bashir’s previous government had increased budget deficits by subsidizing fuel, bread, and other products. The economy has remained in turmoil as politicians negotiated a three year power-sharing deal between the military and civilians.
In an interview with Reuters, Hamdok said cash transfers were one scenario discussed to offset a cut in food and other subsidies. Although he gave no details, he said the plan included subsidies for drugs, medical services, and education.
“The issue of subsidies is one of the most important and biggest challenges,” he said during a visit to the western region of Darfur.
Hamdok’s government announced a nine-month economic rescue plan in September which is aimed at curbing rampant inflation while ensuring supplies of basic goods. The plan would keep bread and petroleum subsidies in place until at least June 2020.
Hamdok also said his government was still in talks with the World Bank and International Monetary Fund about the 2020 budget year. In August, the prime minister said Sudan needed $8 billion in foreign aid over the next two years to cover its import bill and help rebuild its economy.
The transitional government is trying hard to remove Sudan from the U.S. sponsors of terrorism list to open the door for international investment. Its inclusion on the list makes it ineligible to get debt relief and financing from lenders such as the IMF.
