Sudan and China signed an agreement on Sunday, June 28, 2026, to cancel a portion of Khartoum’s bilateral debt in a move aimed at strengthening strategic cooperation as Sudan continues to grapple with a severe economic collapse driven by prolonged conflict.
The agreement, announced by Sudan’s Finance ministry, covers the cancellation of four interest-free loans totaling 344.52 million yuan (approximately $50 million). The protocol takes effect immediately, with the Central Bank of Sudan and the China Development Bank tasked with managing the accounting adjustments.
The signing ceremony took place in Port Sudan, the country’s temporary capital, where Finance Minister Gibril Ibrahim signed alongside Zhang Tao, acting chargé d’affaires at the Chinese embassy in Khartoum.
The debt relief comes at a critical moment for Sudan, where ongoing civil war has severely damaged the economy. According to United Nations data, the conflict has reversed decades of development progress, wiping out $6.4 billion in GDP in 2023 alone and pushing around seven million people into extreme poverty.
Sudan’s total external debt stood at $66.8 billion at the end of 2023, with the agreement representing a small but symbolically significant easing of its financial burden. Chinese officials reaffirmed continued support for Sudan’s recovery, including a 200-million-yuan commitment toward infrastructure rehabilitation in energy, water, and agriculture sectors.
Sudanese officials acknowledged China’s longstanding investment role, particularly in the oil sector, and highlighted aspirations for broader economic engagement across Africa.
