Banking Sector Reform: The Sudanese Government’s Bet on Economic Recovery and Reconstruction
By: Dr. Marwa Qabbani
Strategic Planning and Digital Transformation Expert
Prime Minister Professor Kamil Idris’s visit to the Central Bank of Sudan is of particular importance at this time, as it comes at a stage when Sudan is striving to overcome the profound economic repercussions of the war that began in April 2023, and to rebuild state institutions on foundations more capable of supporting stability and development.
The banking sector is among the sectors most affected by the war, after many banks suffered direct losses in infrastructure and operational activities, which impacted financing, investment, and financial services. Hence, the importance of the reform and restructuring program that the Central Bank of Sudan has begun implementing becomes clear, as it is a fundamental step towards restoring confidence in the banking system and revitalizing the national economy.
During the visit, the Prime Minister received a comprehensive briefing on the Central Bank’s efforts to implement the banking reform program. This program focuses on achieving financial stability by increasing bank capital, improving performance indicators, and completing the necessary institutional and regulatory frameworks to enhance the sector’s efficiency. These steps reveal a clear commitment to addressing the immediate effects of the war while simultaneously building a banking sector more resilient to future challenges.
Statements by the Governor of the Central Bank of Sudan, Professor Amina Mirghani Hassan Al-Tom, indicate that banking reform is not limited to financial and technical aspects but is also linked to reconstruction efforts and the revitalization of economic activity in the capital, Khartoum. The return of bank headquarters to Khartoum is a significant indicator of the recovery of state institutions and contributes to facilitating financial transactions and encouraging citizens and the private sector to resume their economic activities.
In a related context, the developmental role that the government seeks to assign to banks in the coming phase is highlighted. The directives issued to banks to contribute to reconstruction by financing public housing projects and participating in road and infrastructure maintenance reflect a trend toward utilizing the banking sector’s financial capabilities to support national recovery efforts, rather than limiting themselves to traditional roles related to lending and banking services.
For his part, the First Deputy Governor of the Central Bank of Sudan, Al-Mutasim Abdullah Ahmed, affirmed that the current phase requires revitalizing the banking sector and strengthening its role in stimulating commercial and investment activity. This proposal gains added importance given the need to provide the necessary financing for productive and service projects that form the basis of the reconstruction process.
The discussions also highlighted the issue of foreign banking relations, a vital file for the Sudanese economy. Strengthening relations with regional and international banking institutions contributes to facilitating financial transfers, supporting foreign trade, and attracting investments—all essential factors for the success of economic reform plans and achieving financial stability.
The Prime Minister’s visit to the Central Bank of Sudan reflects a growing awareness of the importance of the banking sector as a key driver of economic recovery. The success of reconstruction plans will not depend solely on securing financial resources, but also requires a robust and efficient banking system capable of mobilizing savings and directing financing towards productive and developmental sectors.
Given current indicators, it appears the government is banking on reforming the banking sector as a strategic approach to rebuilding the national economy, restoring confidence in financial institutions, and creating a suitable environment for a new phase of growth and development after years of challenges and crises.