Banking Sector Reform: The Sudanese Government’s Bet on Economic Recovery and Reconstruction
Dr. Marwa Qabbani
Prime Minister Professor Kamil Idris’s visit to the Central Bank of Sudan carries particular significance at this juncture, as it comes during a period in which Sudan is seeking to overcome the profound economic repercussions of the war that has persisted since April 2023 and to rebuild state institutions on foundations better equipped to support stability and development.
The banking sector has been among the sectors most severely affected by the conflict. Numerous banks have suffered direct losses to their infrastructure and operational capabilities, negatively impacting financing, investment, and financial services. Against this backdrop, the reform and restructuring program launched by the Central Bank of Sudan emerges as a fundamental step toward 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 its banking reform program, which is centered on achieving financial stability through increasing banks’ capital bases, improving performance indicators, and completing the institutional and regulatory frameworks necessary to enhance the sector’s efficiency. These measures reflect a clear commitment to addressing the immediate consequences of the war while simultaneously building a banking sector that is better equipped to withstand future challenges.
According to statements by the Governor of the Central Bank of Sudan, Ms. Amna Mirghani Hassan Al-Tom, banking reform extends beyond financial and technical considerations and is closely linked to reconstruction efforts and the restoration of economic activity in the capital, Khartoum. The return of bank headquarters to Khartoum represents an important indicator of the recovery of state institutions and contributes to facilitating financial transactions while encouraging citizens and private-sector actors to resume their economic activities.
In a related context, attention has been drawn to the developmental role that the government intends to assign to banks during the coming phase. Directives urging banks to contribute to reconstruction through financing affordable housing projects and participating in the rehabilitation of roads and infrastructure reflect a strategy aimed at leveraging the financial capabilities of the banking sector to support national recovery efforts, rather than limiting its role to traditional lending and banking services.
For his part, the First Deputy Governor of the Central Bank of Sudan, Al-Mu’tasim Abdullah Ahmed, emphasized that the current stage requires restoring the vitality of the banking sector and strengthening its role in stimulating commercial and investment activity. This perspective gains additional importance in light of the urgent need to provide financing for productive and service-oriented projects that form the foundation of the reconstruction process.
The discussions also highlighted the issue of external banking relations, one of the most critical files for the Sudanese economy. Strengthening ties with regional and international financial institutions would facilitate financial transfers, support foreign trade, and attract investment—factors that are essential for the success of economic reform plans and the achievement of financial stability.
The Prime Minister’s visit to the Central Bank of Sudan reflects a growing recognition of the banking sector’s importance as one of the principal drivers of economic recovery. The success of reconstruction efforts will depend not only on the availability of financial resources but also on the existence of a strong and efficient banking system capable of mobilizing savings and directing financing toward productive and developmental sectors.
In light of current indicators, it appears that the government is placing its hopes on banking sector reform as a strategic gateway to rebuilding the national economy, restoring confidence in financial institutions, and creating a conducive environment for a new phase of growth and development after years of challenges and crises.
