Development of the Banking Sector in South Sudan

Abstract

In a March speech to the National Legislative Assembly, the Minister of Finance and Economic Planning for the Republic of South Sudan, Kosti Manibe Ngai, declared that “…The Ministry of Finance will be signing contracts with two commercial banks in the coming months so that revenues can be paid directly into the banking system, not to government officials.” The statement appearing as item 16 of 32 points in his speech failed to convey the severity of the banking situation in South Sudan where the financial sector is small and underdeveloped and the only recourse available to the government to manage its finances is the use of officials to hold and disburse funds. According to a 2011 report issued by the Congressional Research Service, an estimated 1% of the population actually has bank accounts. While oil dominates the economic discussion between Sudan and South Sudan, equally critical to the South is the development of a banking infrastructure.