Sudan says China has waived $50m loan: What’s in it for Khartoum, Beijing?

China has waived loans worth $50m that it had given to Sudan, the two countries said over the weekend. The agreement comes three years into a war between Sudan’s army and the Rapid Support Forces (RSF) that has shrunk the country’s economy by roughly 40 percent, according to the United Nations. The sum is small compared with what Sudan owes overall to external governments or agencies, an amount estimated at more than $56bn before the war. But the waiver lands at a moment when Khartoum has few other international lenders extending any financial support. China’s relationship with Sudan predates the war by decades, built on oil and infrastructure interests that survived multiple changes of government in Khartoum. But the war has narrowed Sudan’s options elsewhere, as Western governments have largely held back or imposed sanctions. Here’s why this deal is significant for Sudan and China: What do we know about the deal? The signed protocol in Port Sudan cancels four interest-free loans worth 344 million yuan, about $50m, with immediate effect, according to Sudan’s official news agency, SUNA. Sudan’s Finance Minister Gibril Ibrahim welcomed the move, reportedly saying that China has continued investing in the country throughout the war while Western governments, including the United States and European Union members, have largely held back. …