US Special Envoy for the Horn of Africa Jeffrey Feltman is returning to Khartoum in a bid to boost Prime Minister Abdalla Hamdok's civilian government as it faces a growing crisis and calls for its dissolution.
Multiple officials told The National on Tuesday that Mr Feltman would arrive in Sudan at the end of the week, marking his second Khartoum trip in less than a month. His deputy, Payton Knopf, is already in Khartoum.
The increased US diplomatic traffic comes as support drops for Mr Hamdok's government, in large part over a tough series of economic reforms.
Hundreds of protesters on Tuesday joined a sit-in demonstration in the Sudanese capital demanding the dissolution of the country's embattled transitional government. Further protests are expected throughout the week.
Speaking to The National, a senior US official expressed concern over the fate of Sudan's civilian transitional government since the fall of Omar Al Bashir in 2019.
“The transitional government is still very fragile,” the official said.
“It's important that the international community and the United States do what we can to support, especially a country like Sudan, [which has] taken some huge steps in its democratic transition.”
A quarrel between the government and the military has highlighted the fragility of the transition to democratic rule.
The two camps engaged in a public and bitter war of words after a failed military coup last month, with each side blaming the other for the country’s many woes.
The US official stressed the need for the transition camp to unify and integrate Sudan's security factions.
Mr Hamdok has described the crisis as the most severe facing Khartoum since Al Bashir’s removal.
“The serious political crisis that we are living in right now, I would not be exaggerating to say, is the worst and most dangerous crisis that not only threatens the transition, but threatens our whole country,” he said in a televised speech on Sunday.
Experts saw the US diplomatic push as a logical step for President Joe Biden's administration to safeguard the civilian leadership.
“Mr Feltman’s repeated visits reflect both the seriousness of the political crisis facing Sudan and the administration's level of commitment to ensuring that the transition stays on track,” Cameron Hudson of the Atlantic Council’s Africa Centre told The National.
While US support has been vital, it has failed to push back against the rising influence of those trying to undermine the civilian transition, he noted.
“The US needs to start challenging the naysayers and confronting the spoilers,” Mr Hudson said.
“They should be reminded that US financial support to Sudan is contingent upon the country continuing on the path towards civilian, democratic rule.”
Alberto Fernandez, a former US charge d’affaires in Sudan, said divides between the civilian and military establishments, as well as internal divisions in the two camps, pose a serious challenge.
“Military-civilian relations have deteriorated over the past month and have done so wide open in public. It is also very dangerous that there are multiple contending factions within the military and civilian sectors,” Mr Fernandez told The National.
He commended Washington’s efforts so far in mitigating the situation, but said multiple issues remain.
“There is frustration with the pace of reform, intra-military competition, provocations by Islamists — any of which could tip the scales into a deeper crisis at any time before the 2022 [general] elections,” he said.
Mr Fernandez warned of the risk of Sudan sliding backwards, leading to the installation of “incompetent civilian governments as happened in 1964 and 1985 — both ended by military coups".
Finding an “off-ramp” for the military leadership in Khartoum would be ideal but is unrealistic given the polarisation of power brokers, he added.
For Washington, the “path forward is to try to keep things on an even keel by constant engagement, keep warning all parties — especially the military — of the risk of miscalculation and desperately try to improve both the economic situation and governance in the meantime".
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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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.
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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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Results
Stage three:
1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-43
2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s
3. Tom Dumoulin (NED) Jumbo-Visma, at 14s
4. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s
5. Joao Almeida (POR) UAE-Team Emirates, at 22s
6. Mikkel Bjerg (DEN) UAE-Team Emirates, at 24s
General Classification:
1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-13-02
2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s
3. Jasper Philipsen (BEL) Alpecin Fenix, at 12s
4. Tom Dumoulin (NED) Jumbo-Visma, at 14s
5. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s
6. Joao Almeida (POR) UAE-Team Emirates, at 22s