Support to the Economic transition

The overall objective of this multi-component programme is to support the Government of Sudan (GoS) in its efforts to achieve sound and inclusive economic reforms during the democratic transition. Its specific objectives are i) To strengthen institutional capacities at the Ministry of Finance and Economic Planning (MOFEP), ii) To enhance capacities in Public Finance Management; iii) To improve financial sector asset quality; iv) to provide material resources such as IT equipment and infrastructure; and v) to support Sudan’s efforts towards debt relief. This action will target MOFEP and possibly similar ministries at state-level, as well as other key institutions involved in Public Finance Management (in particular the Central Bank, the Office of the Auditor General and the Bureau of Statistics). It is aligned with the transitional government of Sudan's general framework and the recommendations and commitments made at the Sudan International Partners Forum (SIPF).

A top-up of €22 million to the action was approved in July 2021,bringing the total of the action to €32. This includes:

- €10 million to provide crucial IT infrastructure/equipment to relevant national institutions, and to address other IT needs within the Ministry of Finance. This will enable: i) a faster transition from cash economy to electronic payment systems reducing corruption practices; ii) systemisation of tax collection for improved basic service delivery; iii) improve auditing of companies, and iv) data collection and protection for censuses and surveys.
- €12 million to support to the IMF arrear clearance to reach the Decision Point under the Heavily Indebted Poor Countries Initiative. The Government of Sudan has requested support to clear arrears in the context of a pathway to broader debt clearance under a Highly Indebted Poor Countries (HIPC) initiative, recognising that macro and structural reforms are inevitable to stabilise its economy.

Main objectives

The project will contribute to strengthen the conditions for the implementation of existing social protection and health actions as it will support aggregate control, prioritization, accountability and efficiency in the management of public resources and delivery of services to achieve public policy objectives. It will also enhance policy coherence concerning national macroeconomic, fiscal, SDG strategies and human rights frameworks. The action is designed and will be implemented in accordance with the principles of gender and climate change responsive budgeting.

Action Fiche