Minister; Sudan to cut fuel subsidies in March

Sudan hopes to cut fuel subsidies over the course of 18 months, starting as early as March, and replace them with direct cash payments to the poor, the country's finance minister said in an interview.

The comments by Ibrahim Elbadawi came after his government stepped back from discussing subsidies late last year and dropped proposals related to subsidy removal in the 2020 budget.

Elbadawi told The Associated Press that the plan is to gradually lift fuel subsidies, which take up 36% of the nation's budget, as early as March, after an economic conference with civil society groups, and continue into next year.

The former World Bank economist said gasoline subsidies would be removed first, before tackling diesel mid-year.

A decision on subsidies will be the most fateful to be taken by the country's new leadership as it navigates a treacherous transition to civilian rule.

Two-thirds of Sudan's more than 40 million people live in poverty, and slashing the fuel subsidies could lead to de-stabilizing protests reminiscent of the large-scale demonstrations that ended the 30-year-rule of strongman Omar al-Bashir in April.

At the same time, sweeping economic reforms are required to re-integrate Sudan into the international economy and win support from international lenders.

For decades, the country has been an international pariah, after it was placed on the United State's list of states which sponsor terror more than two decades ago.

This largely excluded it from the global economy and prevented it from receiving loans from international institutions like the International Monetary Fund.