Sudan, China Sign Protocol to Cancel $50 Million in Interest-Free Loans
China will cancel $50 million in interest-free loans owed by Sudan Sudan is deepening ties with China as its economy struggles amid war China will provide another $29. 4 million for energy, water and agriculture projects Sudan said on Sunday, June 28, it signed a protocol with China under which Beijing. . .
China will cancel $50 million in interest-free loans owed by SudanSudan is deepening ties with China as its economy struggles amid warChina will provide another $29. 4 million for energy, water and agriculture projectsSudan said on Sunday, June 28, it signed a protocol with China under which Beijing will cancel four interest-free loans worth a combined 340 million yuan ($50 million). In an official statement, Sudanese Finance Minister Gibril Ibrahim praised Beijing's longstanding support for Sudan, saying China had continued to support the country during difficult periods, particularly as Western investment declined. "We are currently working with the People's Republic of China to develop the strategic relationship between the two countries and strengthen this cooperation," Gibril Ibrahim said. Debt relief comes as prolonged crisis persistsThe debt cancellation comes as Sudan's public finances remain under severe strain. The country faces an unsustainable debt burden. The debt restructuring process launched in 2021 under the Heavily Indebted Poor Countries (HIPC) Initiative was suspended after reaching the decision point without delivering any meaningful debt relief. According to International Monetary Fund (IMF) data, Sudan's public debt is projected at 187. 6% of GDP in 2025, down from 191. 3% in 2021. The war that broke out in April 2023 continues to weigh heavily on the national economy. According to a United Nations report published in April 2026, the conflict has set the country's development back by nearly 30 years, wiped $6. 4 billion off GDP in 2023 and pushed 7 million people into extreme poverty. The IMF forecasts economic growth of 0. 7% in 2026, following an estimated recovery of 3. 2% in 2025 after a 23. 4% contraction in 2024. China-Sudan cooperation has historically centered on the energy sector. China has become a major partner in the development of Sudan's oil industry, particularly through investments by China National Petroleum Corporation (CNPC) in oil production and refining infrastructure. Beyond the debt cancellation, the two countries also reviewed ongoing Chinese financing. Beijing remains committed to providing 200 million yuan ($29. 4 million) to support the rehabilitation of infrastructure in the energy, water and agriculture sectors, according toSudan Tribune. Charlène N’dimon