Sudan projects 9% economic growth in 2026 despite war and power crisis

August 6, 2026 (KHARTOUM) – Sudan’s finance ministry projected gross domestic product growth of 9% this year as inflation slows, state media reported on Thursday, presenting an optimistic forecast for an economy devastated by ongoing conflict.

The projection by Finance Minister Gibril Ibrahim stands in sharp contrast to United Nations estimates, which projected annual economic growth would not exceed 1.2% through 2043 following a 12% contraction in 2023.

Undersecretary of the Ministry of Culture and Information, Graham Abdel Qadir, said the ministry expects growth to accelerate from 1.7% last year, driven by efforts to expand the tax base without raising tax rates.

Inflation slowed to 51.28% in July, though independent economists attribute the drop to severely weakened consumer purchasing power rather than economic stabilization, amid currency devaluation and high living costs.

The finance ministry continues to operate under an emergency budget due to constrained revenues and surging military expenditure from the ongoing conflict with the paramilitary Rapid Support Forces (RSF).

The cabinet also addressed widespread power outages caused by a transformer fire at the Merowe Dam, which disrupted electricity across Khartoum, River Nile, Northern, and Red Sea states.

Energy Minister Al-Muatasim Ibrahim reported that technical teams are preparing to repair the dam following the arrival of imported spare parts, while thermal power generation is being increased to cover deficits.

Sudan’s power sector has sustained nearly $3 billion in infrastructure damage during the war, forcing many residents and businesses to shift toward costly solar energy systems.

Ministers additionally reviewed draft legislation on cybersecurity, data protection, artificial intelligence, and digital transformation, referring the bills for further study before submission to a joint session of the Sovereign Council and Cabinet acting as a temporary parliament.