NEW YORK, 09 December, 2020, (TON): UN Undersecretary-General for Political and Peacebuilding Affairs Rosemary DiCarlo on Tuesday warned that Sudan's democratic transition could still be derailed despite progress in recent months.

"Sudan is at a critical juncture. It can move forward decisively in its transition. But that process can still be derailed by the many challenges it faces," she told the Security Council in a briefing.

"It is incumbent on all of us to support Sudan in its efforts to achieve democratic governance, economic prosperity and an inclusive society for all Sudanese," she said.

Sudan has made progress in its democratic transition in the past three months with the strengthening of institutions. At the same time, political forces are increasingly fragmented and disagreements have surfaced, said DiCarlo.

The dire economic situation continues to cast a dark and long shadow over Sudan's transition. COVID-19 restrictions, including the five-month shutdown to prevent its spread, resulted in a severe decline in economic activity, and a loss of approximately 42 percent of state revenues, she noted.

Given Sudan's arrears, the country has been unable to avail of debt relief. The increased spending on emergency health programs, coupled with a decline in public revenues, has led to a budget deficit of approximately 250 million U.S. dollars per month. Rampant inflation and exchange rate fluctuations are negatively impacting the amounts of funding for program delivery. The inflation rate also increased to 229.85 percent in October, negatively affecting UN agencies' and partners' operations, she said.

Demonstrations continue to occur intermittently across the country. Some have been accompanied by loss of life and injuries, said DiCarlo.

The COVID-19 pandemic has further aggravated the humanitarian needs, also driven by severe flooding, intercommunal violence and prolonged displacement. In recent weeks, over 48,000 people have fled the Ethiopian conflict in the Tigray region and have sought refuge in Sudan. This has put an additional strain on the Sudanese authorities, she said.

It is critical that the international community continue supporting Sudan's economic recovery through funding of the basic income cash transfer program, known as the Family Support Program, intended to mitigate the social impact of the transitional government's economic reform agenda, she said.

Sudan, depriving of much needed hard currency to sustain an economy that was dealt a heavy blow when South Sudan became independent in 2011, taking with it three-quarters of Sudan’s oil output.

With no foreign trade and starved of hard currency, authorities have long struggled to contain the country’s spiralling inflation. Annual inflation rose to 212.29 percent from 166.83 percent in August, according to the country’s Central Bureau of Statistics.