Sudan Central Bank Unveils 5-Year Banking Sector Reform Strategy

By Suleiman Siri for Radio Dabanga The Central Bank of Sudan has announced a new five-year strategic plan covering 2026 to 2030, aimed at conducting a comprehensive review to reform and strengthen the capacity of the banking sector and financial institutions, and improve their performance. The plan is part of the central bank’s efforts to strengthen financial stability, improve the efficiency of the banking system, and keep pace with economic changes. The plan, prepared in December and published on the bank’s official website, seeks to address the challenges facing the banking sector, while developing banking systems, and strengthening governance and oversight. The aim is to support the national economy and improve banking services. However, the plan faces a range of challenges and obstacles, chief among them the central bank’s inability to control the money supply, with about 98% of it held outside the banking system. It is also unable to control the exchange rate of the Sudanese pound, while the banking system itself faces management problems, declining capital as a result of the war that has continued since 15 April 2023, and the loss of branches in areas controlled by the Rapid Support Forces (RSF). The strategy is not limited to restructuring. It also seeks to accelerate digital transformation within the Central Bank of Sudan and the banking system, with the aim of improving operational efficiency and creating a more conducive environment for innovation in banking services and operations, according to Sudanese news website Al Mashhad . An executive overhaul Banking and financial expert Omar Sid Ahmed says the Central Bank of Sudan’s five-year plan for 2026–2030 is a necessary step towards organising monetary and banking activity during the war and recovery period. However, he says it needs an executive overhaul to make it more flexible and realistic, and to link its objectives to available resources and changing security and economic conditions. He says it provides an important framework for restoring confidence in the banking system and organising the central bank’s work during this period. He explains that the plan covers key areas including monetary and financial stability, governance, domestic and international relations, financial inclusion, digital transformation, and financial institution reform. Sid Ahmed says the broad areas are consistent with the needs of the Sudanese economy, particularly amid the war, declining economic activity, and damage to banking infrastructure. However, he says the main problem is that the plan could become a broad policy document unless it is linked to specific implementation programmes, clear budgets, and measurable performance indicators. He points out that wartime conditions are not suitable for adopting a rigid plan that assumes stability in basic infrastructure, security, and the economy. What is needed, he says, is a flexible, scenario-based plan that is reviewed regularly in response to developments in the war, the economy, and foreign relations. On the plan’s strengths, Sid Ahmed says they include a five-year vision that provides a clear reference point for the central bank’s work, and the inclusion of monetary stability as a core priority. He stresses the need to include governance and institutional excellence as essential conditions for improving performance and restoring confidence. He emphasises the importance of reforming financial institutions, strengthening capital adequacy, risk management, and compliance, while recognising the importance of developing payment systems and digital transformation. He also calls for financial inclusion to be included among the plan’s objectives to help serve affected groups and displaced people. He says the plan should focus on improving coordination between the central bank, the Ministry of Finance, banks, and external partners. He also sees potential for using the plan as a tool to coordinate monetary, fiscal, and banking policies in ord