Sudanese refugees who have fled the war cross the South Sudanese border near Renk on February 14. AFP
Sudanese refugees who have fled the war cross the South Sudanese border near Renk on February 14. AFP
Sudanese refugees who have fled the war cross the South Sudanese border near Renk on February 14. AFP
Sudanese refugees who have fled the war cross the South Sudanese border near Renk on February 14. AFP

UK nearly doubles aid package for war-torn Sudan to $112m


Soraya Ebrahimi
  • English
  • Arabic

The UK government has pledged to double its support to Sudan to £89 million ($112 million) to help the nation cope with a deepening humanitarian crisis sparked by a year-long war.

The aid package was announced as Africa minister Andrew Mitchell visited the Sudan-Chad border, a crossing point for Sudanese refugees fleeing the violence.

Sudan was plunged into chaos last April when clashes erupted in the capital, Khartoum, between rival forces – the country’s military, led by Gen Abdel Fattah Burhan, and the Rapid Support Forces paramilitary faction, commanded by Gen Mohamed Dagalo.

The conflict has left 25 million people – more than half of Sudan’s population – in need.

The African nation is at risk of famine this year, the UN has warned.

Sudan tops the International Rescue Committee’s emergency watchlist, which looks at countries most likely to experience a deteriorating humanitarian crisis, because of the escalating conflict, mass displacement, an economic crisis and a near collapse of healthcare services.

The extra UK aid will include funding to Unicef, which will provide emergency and food supplies to people particularly in hard-to-access areas, including for 500,000 children under five, according to the Foreign, Commonwealth and Development Office.

An extra £4.95 million will provide 100,000 women and girls with a range of services for health and to deal with child marriage and gender-based violence.

It is part of an £89 million UK aid package for Sudan in 2024-25 – up from nearly £50 million in the current financial year.

Displaced people in Sudan - in pictures

“The conflict in Sudan is costing devastating lives," Mr Mitchell said. "Millions are displaced and facing catastrophic hunger conditions.

"There is growing evidence of atrocities against civilians. The package announced today will help save lives.

"We have not forgotten the war in Sudan – nor must the world. The urgent priority is to end the violence.”

BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

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Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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