China intends to exempt Sudan from repaying debts worth 345 million yuan (45 million US dollars), representing interest-free loans provided by Beijing earlier to finance various projects in Sudan, according to a statement from Sudan’s Ministry of Finance and Planning.
This came during a meeting held yesterday, Wednesday, between the Planning Undersecretary of Sudan’s Ministry of Finance and Planning and the Chargé d’Affaires of the Chinese Embassy in Sudan. The meeting also discussed the status of implementing a previously provided grant from China amounting to 200 million yuan (28.58 million US dollars) to support infrastructure projects in Sudan, specifically in the water, agriculture, and electricity sectors.
For his part, the Chargé d’Affaires confirmed the Chinese government’s readiness to provide a grant through United Nations organizations to support the implementation of solar energy projects for drinking water stations in the targeted states: Khartoum, Gezira, Sennar, and Blue Nile.
Sudan’s Debts
According to a World Bank report, Sudan’s public debt compared to the size of its domestic economy reached 147% in 2024, and is expected to decline to 142% in 2025, 124% in 2026, and 106% in 2027.
The international institution stated that after October 2021, Sudan was making progress towards debt relief and regaining access to international financing under the Heavily Indebted Poor Countries (HIPC) Initiative (launched by the IMF and World Bank in 1996). However, this progress halted due to political unrest and the country’s descent into war between the army and the Rapid Support Forces.
Currently, the Sudanese government is unable to issue new public debt bonds, making cash financing the only available option to fund the deficit. Public debt is expected to remain high, with expenditures rising to 9.9% of GDP, despite an expected increase in revenues to 6.2% of GDP in 2026, due to ongoing financial challenges and the absence of debt relief under the HIPC Initiative.
Sudan
Sudan, located in Northeast Africa, is home to ancient civilizations, most notably the Kingdom of Kush, which ruled from the city of Meroë and even conquered Egypt to establish the 25th Dynasty. Its modern history was marked by a long civil war and the secession of South Sudan in 2011, leading to its current status as a country with rich archaeological heritage and complex contemporary challenges.
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous UNESCO World Heritage sites, such as the Great Wall and the Forbidden City, which reflect its long imperial past and profound cultural development. In the modern era, it has transformed into a major global power with significant economic and geopolitical influence.
Beijing
Beijing is the capital of China, with a history spanning over 3,000 years. It served as the imperial capital for several dynasties, most notably the Ming and Qing, and is home to UNESCO World Heritage Sites like the Forbidden City and the Great Wall. Today, it is a major global city and the political, cultural, and educational center of the country.
Khartoum
Khartoum is the capital and second-largest city of Sudan, located at the confluence of the Blue and White Nile rivers. Founded in 1821 as an Egyptian military outpost, it later became the seat of the Anglo-Egyptian Sudan administration and has been the center of the country’s political life since independence in 1956.
Gezira
Gezira is a large island in the Nile River at the heart of Cairo, Egypt, historically an agricultural estate for Egypt’s ruling class. It is now a prominent district known for upscale neighborhoods, cultural landmarks like the Cairo Tower, and the Gezira Sporting Club, which was established during the British colonial period in the late 19th century.
Sennar
Sennar is a historic city in Sudan, best known as the capital of the Funj Sultanate, which ruled much of the region from the 16th to the 19th centuries. It was a major Islamic and commercial center, strategically located on the Blue Nile, and its ruins reflect its past importance as a hub for trade and scholarship.
Blue Nile
The Blue Nile is a major river originating at Lake Tana in Ethiopia, forming one of the two main tributaries of the Nile River. Historically, its source was long sought by explorers, and its seasonal floods, carrying fertile silt from the Ethiopian Highlands, were essential to the agriculture of ancient Egyptian civilization downstream.
World Bank
The World Bank is an international financial institution founded in 1944 at the Bretton Woods Conference to help rebuild nations after World War II. Its mission has since expanded to providing loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects and reducing poverty globally.
United Nations
The United Nations is an international organization founded in 1945 after World War II to promote peace, security, and cooperation among nations. It replaced the League of Nations and is headquartered in New York City, with its charter establishing key bodies like the General Assembly and Security Council.
Heavily Indebted Poor Countries (HIPC) Initiative
The Heavily Indebted Poor Countries (HIPC) Initiative is a program launched in 1996 by the International Monetary Fund and the World Bank to provide debt relief to the world’s poorest and most heavily indebted nations. Its goal is to reduce unsustainable debt burdens to manageable levels, thereby freeing up resources for poverty reduction and economic development.
IMF
The International Monetary Fund (IMF) is an international financial institution established in 1944 at the Bretton Woods Conference to foster global monetary cooperation and financial stability. Its primary roles are to provide policy advice, financial assistance to countries in economic difficulty, and promote international trade and sustainable economic growth.
