Port Sudan — Sudan's Ministry of Finance has signed an agreement with China to cancel part of the country's debt, with Beijing agreeing to write off four interest-free loans owed by Sudan worth a total of 344.52m Chinese yuan (CNY), equivalent to about $50m. The agreement was signed in Port Sudan by Sudan's finance minister, Dr Jibril Ibrahim, on behalf of the Sudanese government, and by Xu Jian, China's chargé d'affaires in Sudan, on behalf of the Chinese government.
Under the agreement, the protocol takes effect immediately upon signature. The Central Bank of Sudan and the China Development Bank will carry out the procedures required to settle the accounts relating to the cancelled loans.
Officials praise economic cooperation
Jibril praised what he described as the long-standing and distinguished economic relationship between Sudan and China.
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He also welcomed China's recent decision to remove customs duties on goods imported from 50 African countries, describing it as an important initiative.
The minister said China had also expressed its readiness to provide training for Sudan's mid-level civil servants and to support capacity-building across a range of sectors.
China reiterates support for Sudan's economy
Xu Jian said China remained committed to supporting the development of Sudan's national economy, helping to ease the country's debt burden and strengthening economic cooperation between the two countries.
The meeting also reviewed progress on Chinese grant-funded projects in Sudan, including the West Omdurman abattoir project.
Officials also discussed a 200m yuan grant announced by the Chinese president to support projects in the energy, water and agricultural sectors.
The two sides also examined ways of overcoming obstacles affecting banking cooperation and stressed the importance of resuming the operations of the China National Petroleum Corporation (CNPC) in Sudan.
US sanctions
Highlighting the sharp contrast between Sudan's relations with Cina vs the USA, the signing comes just days after the USA announced a new raft of sanctions on Sudan, billed as "taking further action against those responsible for perpetuating violence, obstructing peace efforts, and fuelling the war in Sudan." The new sanctions, announced by the US Department of the Treasury's Office of Foreign Assets Control (OFAC) on Friday, include the provisions of a bill approved by the US Senate Foreign Relations Committee last week, directing US representatives at international financial institutions (such as the World Bank and the International Monetary Fund) to oppose providing loans or debt relief to the Sudanese government, except in cases of emergency humanitarian projects.
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The Prevention of External Aggression and Escalation of Conflict in Sudan Act of 2026 (or Peace in Sudan Act) also prohibits foreign aid for non-humanitarian purposes and forbids any financial support for developing the capacities of Sudanese government institutions or providing security and military assistance to the country.
