China forgives $50 million of Sudan’s debt to ease economic strain

June 28, 2026 (PORT SUDAN) – Sudan and China signed an agreement on Sunday to forgive a portion of Khartoum’s bilateral debt, a move aimed at boosting strategic cooperation as the African nation grapples with a severe economic collapse driven by conflict.

The finance ministry said Beijing agreed to cancel four interest-free loans totalling 344.52 million yuan, equivalent to approximately $50 million. The protocol takes effect immediately, with the Central Bank of Sudan and the China Development Bank finalized to handle the accounting settlements.

Sudanese Finance Minister Gibril Ibrahim signed the agreement alongside Zhang Tao, the acting chargé d’affaires at the Chinese embassy in Khartoum, during a ceremony in the temporary capital of Port Sudan.

The debt relief comes at a critical time for Sudan, where a prolonged civil war has devastated the economy. United Nations data shows the conflict has set the country’s development back by 30 years, wiping out $6.4 billion from its gross domestic product in 2023 alone and pushing 7 million people into extreme poverty.

Ibrahim praised Beijing for its historic economic backing, noting that China invested heavily in Sudan’s oil sector at a time when Western nations restricted investments. He emphasized Sudan’s potential to serve as a strategic gateway for wider Chinese commercial expansion into Africa.

The diplomatic envoy reiterated China’s commitment to supporting Sudanese economic recovery and easing its financial burdens. The state representatives also reviewed active Chinese grants, including a 200 million yuan commitment from Beijing dedicated to reviving Sudan’s struggling energy, water, and agricultural infrastructure.

Sudan’s total external debt stood at $66.8 billion at the end of 2023, according to data from the central bank. The principal debt accounts for $33 billion of that total, with the remainder accruing from contractual interest and late-payment penalties.