Khartoum

EXPLAINER

China and Sudan signed off on a waiver of $50m as Sudan’s military-led government seeks support amid Western sanctions.

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. Gibril himself was added to the US Treasury sanctions list in September 2025 for his alleged “involvement in Sudan’s brutal civil war and … connections to Iran”.

China’s charge d’affaires in Sudan, Xu Jian, reportedly said at the signing ceremony that China was ready to help rebuild what was destroyed during the war in Sudan.

What’s in it for Sudan?

Sudan’s external debt of more than $56bn before the war is expected to have ballooned since.

The $50m debt relief amounts to not even 1 percent of the total external pre-war debt. In fact, Sudan was close to a far bigger debt write-off in 2021. It was on track with the IMF and the World Bank Heavily Indebted Poor Countries initiative to have more than $50bn of its debt forgiven within three years. The 2021 military coup in October derailed that debt relief plan, and the process was formally suspended a year later.

Still, China’s waiver arrives at a moment of acute need for the country. The war is now in its third year. More than 1.5 million people have been killed, according to the UN, and the war has displaced about 14 million people – about a quarter of the Sudanese population. The World Health Organization says less than 14 percent of health facilities are still functioning. Jobs have vanished in many parts of the country, and the rising cost of living has made it difficult for households to survive.

The Sudanese pound has collapsed since the start of the war. It went from roughly 600 to the dollar before the war to more than 5000 to the dollar by June 2026.

What’s in it for China?

In many ways, Beijing’s decision to waive the $50m loan is in keeping with a broader approach it has taken in recent years, one that has helped cement China as Africa’s largest trading partner for 17 consecutive years.

China has provided interest-free loan forgiveness as a diplomatic gesture to multiple countries, and these decisions are recurrent announcements at Beijing’s frequent leader-level summits with African nations. This is especially true for smaller loans. Research from the Johns Hopkins China Africa Research Initiative found that China forgave at least $3.4bn of these kinds of debts across the African continent between 2000 and 2019.

By contrast, larger loans are usually commercial loans through state banks that come with interest, and waiving those is harder.

At a time when the West is largely trying to isolate Sudan’s leadership, a small loan waiver gives China outsized influence in a country that sits at the intersection of the Middle East and sub-Saharan Africa.

What have China-Sudan ties been like historically?

Oil has long served as a catalyst for their relationship. From the mid-1990s on, China’s National Petroleum Corporation (CNPC) poured billions of dollars into Sudanese oil fields and the pipelines carrying that crude oil to Port Sudan. This was a time when many Western companies were pushed out due to sanctions.

The relationship changed when the southern part of the country voted in favour of independence in 2011. The world’s newest country, South Sudan, left the north and took most of the country’s oil fields with it.

Chinese investment largely dried up afterwards, but Sudan still has more than $5bn of outstanding debt to China. The war has aggravated Sudan’s economic challenges. The CNPC requested a formal exit from Sudan in December 2025.

Al Jazeera journalist Al-Tahir al-Mardi has been reunited with his family in Khartoum after three years of separation and forced displacement caused by Sudan’s war.

Sudan has recalled its ambassador to Addis Ababa, accusing Ethiopia of being behind attacks on Khartoum’s airport. International Crisis Group’s Alan Boswell says the escalation risks making the countries’ internal challenges worse.

The attack, the second in a week, follows months of relative calm in the city after government forces regained control last year.

A drone strike carried out by the paramilitary Rapid Support Forces (RSF) has killed five civilians in Khartoum, according to an NGO.

The attack, which Emergency Lawyers, an independent legal group supporting victims of human rights violations in Sudan, reported on Saturday, is the second to take place in the capital within a week. It follows months of relative calm in the city after government forces regained control last year.

The NGO said it holds the RSF fully responsible for the strike, accusing the group of breaching international humanitarian law.

Emergency Lawyers said the incident forms part of an ongoing pattern of attacks on civilians. Nearly 700 civilians were killed in drone strikes in the first three months of this year, according to UN figures.

‘Completely free’

On Tuesday, a drone struck a hospital in the Jebel Awliya area, around 40 kilometres (25 miles) south of central Khartoum, a security source and eyewitnesses told the AFP news agency. It was the first such attack in the area in months.

The Sudanese army, which now enjoys a solid grip in the north and east, launched a rapid counteroffensive last year that pushed the paramilitary forces out of the capital.

Following intense fighting around the capital last year, Sudan’s military government declared the Khartoum region “completely free” of RSF.

Since then, the RSF has largely concentrated on expanding its control in its stronghold in the western Darfur region and pushing into neighbouring areas, capturing valuable oil-producing assets.

Violence has also spread to southeastern Blue Nile state near the border with Ethiopia, raising fears of a more prolonged and fragmented conflict.

The RSF carried out a series of drone strikes on Khartoum last year, largely targeting military sites, power stations and water infrastructure.

In recent months, however, the capital has seen relative calm. More than 1.8 million displaced residents have returned, and the airport has resumed domestic flights. That said, much of the city remains without electricity or basic services.

The conflict between the Sudanese government and the RSF – a former ally – began in April 2023. Since then, around 14 million people have been displaced and two-thirds of the population are in urgent need of humanitarian support, according to the United Nations.