China Cancels $50 Million of Sudan's Debt Amid Expanding Economic Cooperation

Port Sudan, June 29, 2026 - Sudan and China have signed an agreement cancelling approximately $50 million in Sudanese debt, marking a new step in bilateral economic cooperation as Sudan continues to face mounting financial pressures.

The agreement, signed in Port Sudan by Finance Minister Jibril Ibrahim and China's Chargé d'Affaires Xu Jian, provides for the cancellation of four interest-free loans owed by Sudan, totaling 344.52 million Chinese yuan (approximately $50 million).

The debt relief takes effect immediately, with the Central Bank of Sudan and the China Development Bank tasked with completing the financial settlement procedures associated with the cancelled loans.

Sudanese officials described the agreement as part of the longstanding economic partnership between the two countries and welcomed China's recent decision to eliminate customs duties on imports from 50 African nations, viewing the measure as an opportunity to strengthen trade relations.

The two sides also discussed expanding technical cooperation, including Chinese support for training Sudanese civil servants and strengthening institutional capacity across multiple sectors.

Chinese officials reaffirmed Beijing's commitment to supporting Sudan's economic recovery, reducing its debt burden, and deepening bilateral cooperation.

Discussions also reviewed progress on several Chinese-funded development projects, including the West Omdurman Abattoir, as well as the implementation of a previously announced 200 million yuan Chinese grant intended to finance projects in the energy, water, and agriculture sectors.

Officials further explored ways to improve banking cooperation between the two countries and examined the possible resumption of operations by the China National Petroleum Corporation (CNPC) in Sudan.