The financial rating agency GCR (Global Credit Rating) assigned the Republic of Sudan a country risk score of zero, or “0.0”, due to its high and unsustainable level of debt, its economy. focused on commodities coupled with geopolitical risk and its weak external position. This is the first time that the Johannesburg-based structure has assigned a country risk score to Sudan.
The South African rating giant notes, however, that the country has begun renegotiations of its defaulted debts. Inflation in 2020 has risen to 150% and the pressure on prices has still not subsided. In a study published on May 12, the World Bank indicates that the pandemic has suddenly amplified the difficulties of daily life. “The majority of those who lost their jobs due to Covid-19 have not yet resumed work. The floods of the Nile caused huge floods in the fall and further exacerbated the economic distress of the inhabitants of the capital ”.
For GCR ratings, political power remains unstable, currently in the hands of the transitional military government. Protest actions in favor of economic reform have also erupted in the country to express the economic distress and the devaluation of the currency. A context that can ultimately destabilize the overall situation, according to the rating agency.