Peace returned; Africa rejoiced.

President Nimeiri appointed Abel Alier to be President of the High Executive Council for the Southern Region, and Vice- President of Sudan. Alier, a lawyer, had held several portfolios in the Nimeiri cabinet. President Nimeiri also appointed Joseph Lagu, the ex-leader of Anyanya, to be Commander of Sudanese army of the Southern Region with the rank of Lt-General. Indeed it was Lagu who signed the peace agreement with the Nimeiri government.
 
Next, President Nimeiri embarked on overhauling his previous socialistic economic policies. Most of the nationalised businesses were de-nationalised. New laws came into force aimed at attracting private investors. The economy took the shape of a pro-Western mixture of state and private enterprise. Nimeiri's veer to the West cost him estrangement from Col. Gaddafi, his former friend. The two leaders have since dwelt on exchanging barrages of bitter words.
 
On the other hand, President Nimeiri had allied Sudan closely with Egypt. In 1982, Egypt and Sudan signed an economic, social and political charter aimed at eventually federating the two countries. Among others, the agreement included the removal of tariff restrictions, the establishment of a mutual investment fund, and freedom of movement between the two countries.

National Movements and New States in Africa