CAIRO, Egypt (AP) — President Donald Trump on Monday said Sudan will be removed from the US list of state sponsors of terrorism if it follows through on its pledge to pay US$335 million to American terror victims and their families.

The move would open the door for the African country to get international loans and aid needed to revive its battered economy and rescue the country’s transition to democracy. The announcement, just two weeks ahead of the US presidential election, also comes as the Trump administration works to get other Arab countries, such as Sudan, to join the United Arab Emirates and Bahrain’s recent recognition of Israel.

Delisting Sudan from the state sponsors blacklist is a key incentive for the Sudanese government to normalise relations with Israel. Trump’s announcement came after Treasury Secretary Stephen Mnuchin travelled to Bahrain to cement the Gulf state’s recognition of the Jewish state.

Trump tweeted: “GREAT news! New government of Sudan, which is making great progress, agreed to pay US$335 MILLION to US terror victims and families. Once deposited, I will lift Sudan from the State Sponsors of Terrorism list. At long last, JUSTICE for the American people and BIG step for Sudan!”

Sudan has agreed to pay compensation for victims of the 1998 bombings of the US embassies in Kenya and Tanzania, attacks conducted by Osama bin Laden’s al-Qaida network while bin Laden was living in Sudan.

Gen Abdel-Farrah Burhan, head of Sudan’s ruling sovereign council, welcomed Trump’s announcement as a “constructive step.” He said in a tweet the removal would come “in recognition of the historic change that has taken place in Sudan.”

Sudan is on a fragile path to democracy after a popular uprising last year led the military to overthrow autocratic leader Omar al-Bashir in April 2019. A military-civilian government now rules the country, with elections possible in late 2022.

Prime Minister Abdalla Hamdok also welcomed the announcement.

“We are about to get rid of the heaviest legacy of Sudan’s previous, defunct regime,” Hamdok tweeted.

Once the compensation money has been deposited, Trump is to sign an order removing Sudan from the terrorism list, on which it has languished under heavy American sanctions for 27 years.

Congress is then expected to act to restore Sudan’s sovereign immunity, which would effectively stop future compensation claims from being filed against it in US courts. Meanwhile, Sudan is to begin the process of normalising relations with Israel, possibly with Israeli Prime Minister Benjamin Netanyahu joining a congratulatory phone call between Trump and Hamdok.

Sudanese officials have been negotiating the terms of removing the country from the list for more than a year, but the US effort to repair relations with Sudan dates to the end of President Barack Obama’s administration, which initiated the process in January 2017.

The “state sponsors of terrorism” designation is one of the US government’s most effective sanctions tools and bars virtually all non-humanitarian US transactions with countries on it. It was created in 1979 to punish nations that fund or otherwise support terrorist acts. With Sudan’s removal, only Iran, North Korea and Syria will remain on the list.

The designation of Sudan as a state sponsor of terrorism dates back to the 1990s, when Sudan briefly hosted bin Laden and other wanted militants. Sudan was also believed to have served as a pipeline for Iran to supply weapons to Palestinian militants in the Gaza Strip.