Chinese companies are poised to return to Sudan as soon as security is restored, according to a recent statement by Zheng Xiang, charge d’affaires at the Chinese embassy in Sudan. Since fighting erupted in April 2022, more than 1,300 Chinese citizens have been evacuated, and numerous multibillion-dollar Chinese oil and gas projects have either been stalled or destroyed. With a keen interest to support Sudan’s reconstruction efforts, Zheng emphasized the importance of resuming operations to help revive the nation’s economy. Recent discussions between Chinese and Sudanese officials signify a readiness to address economic challenges, including Sudan’s significant debt to China, which has become an impediment to progress amid the ongoing civil conflict.
The historical backdrop of Chinese investment in Sudan dates back to the 1990s, when agreements were made to develop the country’s oilfields through the China National Petroleum Corporation (CNPC). At one time, Sudan provided a considerable portion of China’s imported oil. However, production plummeted following South Sudan’s independence in 2011, which saw a loss of key oil regions. Addressing this long-standing relationship, Zheng noted the discussions between Sudan’s de facto leader Abdel-Fattah Al-Burhan and Chinese President Xi Jinping during the Forum on China-Africa Cooperation (FOCAC) summit in September have set the stage for advancing bilateral cooperation in oil and gas operations, including the proposed construction of a new oil refinery.
Zheng’s statements also echoed the sentiments expressed during a November visit by a high-ranking Sudanese delegation to China, which aimed to discuss debt relief and explore new avenues for economic cooperation. As Chinese companies consider their next steps, Zheng articulated confidence that existing debt issues would not hinder ongoing economic collaboration between the nations. Historical data reveals that between 2000 and 2018, Chinese lenders issued 66 loans to Sudan totaling $6.3 billion. However, these repayments have faltered due to the civil unrest that escalated last year, resulting in approximately 24,000 fatalities as various factions vie for control.
In addition to reviving oil and gas projects, discussions are underway regarding other vital infrastructure projects, particularly in the petroleum sector that suffered damage due to the civil war. Sudan’s energy and oil minister recently underscored the necessity to partner with Chinese companies to rehabilitate essential infrastructure, including the reconstruction of the Khartoum refinery, which had ceased operations due to the destruction incurred over the past two years. Previously, the refinery had a capacity of 100,000 barrels per day, showcasing the potential for Sudan’s oil output revival if collaboration can resume.
Moreover, the development of a large slaughterhouse in Khartoum has been a point of significant interest. This project was initially slated for funding by China in 2020, but was postponed due to circumstances such as the COVID-19 pandemic and the civil conflicts. However, Zheng assured that progress is being made in discussions related to this construction, indicating an eagerness to overcome previous delays. Furthermore, overarching infrastructure plans, like the Al-Geneina-Adri railway project, are also in the spotlight, aimed at enhancing trade routes that connect Port Sudan to various regions within the African continent.
As these discussions progress, Zheng confirmed that Chinese and Sudanese authorities are evaluating multiple proposals to determine strategic priorities for the railway project. This endeavor is seen as a crucial connective pathway that could improve trade efficiency across northern and western Africa. By emphasizing cooperative consultation to finalize implementation stages, both countries demonstrate a commitment to collaborative growth and stability in the aftermath of the persistent conflict in Sudan. The potential revival of these initiatives highlights the overarching importance of security and economic revitalization as critical factors for building sustainable relations between China and Sudan.