The catalyst to reducing poverty and elevating the economy in South Sudan – PaanLuel Wël Media Ltd – South Sudan

By Ajith Ajith Pioth, Juba, South Sudan

Saturday, 19 July 2025 (PW) — Financial Inclusion is the availability and equality of opportunities to access financial services. It refers to processes by which individuals and businesses have access to, and are empowered to use affordable, responsible financial services that meet their specific needs. These needs basically include payments, savings, credits, and insurance. The economy, as a system of production, distribution, and consumption, relies heavily on these financial services to accelerate and keep the system running.

In a publication titled “Understanding Poverty”, last updated on January 27, 2025, the World Bank Group emphasized the vital role of financial inclusion in poverty reduction and in promotion of an equal prosperity, declaring financial inclusion as the key enabler of the two. “Financial inclusion is a key enabler to reducing poverty and boosting prosperity”. (WB)

Financial inclusion as the key and engine to driving and elevating the global economy can’t be emphasized enough. Its impacts and contributions are readily visible across most countries globally. According to the United Nations, micro, small and medium enterprises (MSMEs) account for 90% of businesses, more than 70% of employment and 50% of GDP worldwide, with the potential to transform economies and bring about an equitable economic growth.

In the United States alone, as for the data collected and shared by the US Small Business Administration, small businesses represent 99.9 percent of all firms, employ close to half of all the private-sector workers, have generated 64.9 percent of net new jobs in nearly two decades, from 2000 to 2018, and also represent approximately 44 percent of US gross domestic product (GDP).

And it is also almost the same in countries like South Africa and Nigeria, where the MSMES constitute a huge chunk of the economy. In South Africa, for instance, the majority of MSMEs operate mostly within the services sector, with 30% in wholesale and retail trade, 23% in community and social services, and only 14% in financial services, and they have contributed to economic growth and social development.(Vol. 13. No 7. IRJBSS)

Meanwhile in Nigeria, the report published by EfInA, a2f.ng, indicates that the country’s financial inclusion rate reached 74% in 2023, meaning more than three-quarter of the Nigerian adult population have access to and use financial services, either formally or informally. The remaining 26%, however, haven’t yet caught up with the trends, and therefore are considered financially excluded. But there is a move to extend the inclusion even further this year.

The extension of financial services such as payments, savings, credits, and insurance to various groups in a given economy acts as an engine of socioeconomic progress, regardless of the sectors in which they concentrate. They all work to stimulate an encompassing economic growth while eradicating poverty by providing affordable and accessible digital services, such as mobile money transfers and microloans.

It is the financial services that finance and support the MSMEs enterprises, which constitute a significant portion of the global economy, to start, expand, innovate, and create more jobs and businesses with enough resilience against the possible risks and market shocks, thus providing incentive, sense of security and confidence to more than 80% of the global enterprises.

The availability and guaranteed equality of opportunities to access affordable, responsible financial services is significantly important for economic growth and development. It boosts the overall economic activity, raises the productivity level, and lays the foundation for an inclusive society with equal opportunities for sustainable economic growth, making the provision and accessibility of financial services the key driver for that matter.

The increased emphasis on financial literacy and financial inclusion (FL&FI) by developmental bodies, confirmed by the growing need faced by economies around the world, has made it a subject of sustained and rising interest in academia (M. M. Kim et al., Citation2018; Lusardi & Mitchell, Citation2011; Milian et al., Citation2019). It is recognized as an important policy tool to achieve Universal Financial Access (UFA) and the Sustainable Development Goals (SDG) by different developmental bodies (OECD, Citation2013; Robert et al., Citation2005).

Closing the financial access gap, therefore, is important not only for circumventing the liquidity crisis that is quite frequent in the cash-based, non-digital economies like South Sudan, for example, and keeping the banking system operationally uninterrupted while at the same time performing at its optimal best but also for fostering an inclusive financial ecosystem that supports sustainable growth and development, and poverty reduction.

When you look at the countries around the world with lower financial literacy and inclusion, they usually experience what generally looks like an economic downturn. They experience reduced economic growth, increased inequality given the selective access to financial services, missed opportunities as a result of inaccessibility, exacerbated poverty, lower innovation, lower investment, heightened struggle for necessities, increased vulnerability, financial stress, high crimes, and etc.

The need to make financial services easily available and affordable for everyone, is paramount as it encourages a collective, speedy, balanced economic growth and development. At the microeconomic level, for example, it allows individuals and firms to accumulate wealth, invest in their future, and effectively manage risks without fear.

On April 22, 2024, the Global Findex tracked financial inclusion rates in Sub-Saharan Africa to highlight the ten years of progress and how account ownership and usage has grown as well as changed. The team focused on three aspects: the state of financial inclusion, the impact of mobile money on financial inclusion, and financial wellbeing in Sub-Saharan Africa.

While the finding shows account ownership has more than doubled in the region since 2011, with 49 percent of adults owing an account as of 2022, and digital money account ownership growth doubling in 9 out of the 36 surveyed economies, a concerning gender equity gap and a great deal of variations are noticed among the countries, mirroring a window to a critical area of policy and implementation gap.

The account ownership gender gap is twice the developing economy average, at 12 percentage points. Kenya and South Sudan, for example, record a varying rate of growth. While Kenya boasts 80 percent account ownership growth, South Sudan prides herself on an incredible leap to 6 percent, with unbelievably little gender disparity. There is no big difference between the number of men and women with bank and mobile money accounts.

This is quite impressive for a young country that has been embroiled in deadly internal conflicts for years and which have for long undermined the potential to adopt and use tools of the modern economy, especially digital and modern financial products and services, and also given that the campaign just started last year, mid Step, 2024, with the former governor of Bank of South Sudan, Honorable Dr. James Alic Garang, issuing a circular on the digitalization of the banking system and the need for every employee and worker to open an account.

“…Financial institutions will do everything to ensure that all those who do not have bank accounts create bank accounts and those who have bank accounts are able to use them so that they achieve their objectives.  Let us work together, let us collaborate so we can achieve your bottom-line goal as an institution. And also, for us to achieve our bottom line goal as the government which is providing services to our people..”, he stressed (Eye Radio, 17 Sept, 2024).

There is a high chance of the financial inclusion rate leaping even higher before the year ends. Within the first two weeks of his appointment, the current governor of the Bank of South Sudan, Honorable Dr. Addis Ababa Othow, called for a general meeting with the bank staff, emphasizing institutional reforms and once again on the need for digitalization of the banking system.

While asking the staff to maintain the institution’s core values of integrity, professionalism, excellence, teamwork, transparency, and accountability, he vowed to promote digitalization and modernize the banking system. The initiative involves integrating mobile money platforms with commercial banks, developing affordable salary withdrawal tariffs for civil servants, and enhancing financial transparency and public trust in the banking system.

The campaign is part of a broader effort to modernize the country’s financial system and boost financial inclusion. “It must happen”, he emphasized, “the world over there is no where people carry a bulky amount of cash in their hands. We must transition to digital banking and it should start this year. People must open accounts with banks and mobile money operators” (BoSS Conference Hall; 27 June, 2025).

But, as a country, how can we speed up the process and where should we begin? As it is noticed above, the Findex findings reveal a considerable gap in the area of financial literacy and inclusion in South Sudan. This afternoon, 18 July, 2025, while putting the final touches on this piece, the Bank of South Sudan made clearly the most vital decision ever by declaring officially mobile money as a valid and legal form of payment in line with the institution’s strategic plan, which stipulates the commitment to make the adult population’s usage of mobile money services to reach 30% by 2027. Now that mobile money payment is recognized as valid and legal, it will attract lots of people to join, expanding the digital banking base.

But, to be fitter and more effective for purpose, here are a few more policy recommendations I would add. First is the regular public awareness campaign and financial education. For the next couple of months until it is generally trusted, the BoSS and other concerned institutions will need to focus on improving the account privacy and security policy of mobile money operators while actively encouraging the public to use them. Many people, for lack of experience and proper education, usually avoid digital banking because they don’t want to risk their money. Creating financial literacy programs can empower individuals with the knowledge and skills to manage their finances effectively, make informed decisions, and utilize financial services responsibly.

Secondly, the senior policy makers both at the state and national level, and especially those in the ministries and institutions that fall under Economic Cluster should consider policies that favor drivers of financial inclusion at their respective policy areas, prioritizing the goal of financial literacy and inclusion in their various capacities. The government has the capacity to create an environment that encourages the development and offering of financial products tailored to the needs of underserved, remote populations, like microfinance and digital financial services.

Third is the investment in network infrastructure as providing affordable connectivity and developing innovative financial products and services can bridge the digital divide now seen and promote financial inclusion. Public financial institutions, BoSS, MOFEP, SSNRA, and etc, ought to closely partner and cooperate with the private sector in establishing standard, reliable networks. This will reduce financial exclusion that the majority are experiencing right now. Digital technologies, like mobile banking and online platforms, can significantly expand access to financial services.

The final recommendation is making opening bank accounts attractive to increase the access to financial services. Commercial banks can be supported to vigorously deploy a variety of strategies that include recognizing their target demographic, refining the process for digital account opening, using integrated marketing across various channels, providing attractive incentives and improving customer experiences. These can drive deposit growth, boost customer satisfaction, and strengthen banks’ competitive position in the market while also making it even easier and more attractive to open a bank account, which is important for financial inclusion.

The author, Ajith Ajith Pioth, is a South Sudanese citizen, writer, thinker, with interest in Banking and Economic matters. The views expressed therein are my own; they don’t represent any institution or party, and they are not politically motivated either. They are purely the opinions of the writer.

If you want to submit an opinion article, commentary, or news analysis, please email it to the editor: info@paanluelwel.com or paanluel2011@gmail.com. PaanLuel Wël Media (PW) website does reserve the right to edit or reject material before publication. Please include your full name, a short biography, email address, city, and the country you are writing from.

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PaanLuel Wël – Founder and Editor-in-Chief of PaanLuel Wël Media

PaanLuel Wël is the founder and editor-in-chief of PaanLuel Wël Media Ltd, a prominent news and commentary platform dedicated to covering the news, history, culture, literature, and socio-political affairs of South Sudan and the world. Established in July 2011, the website was born out of PaanLuel Wël’s vision to create a space for free expression and constructive dialogue during a pivotal moment in South Sudan’s history.

Through PaanLuel Wël Media, he has cultivated a vibrant intellectual forum that features a diverse range of voices, from poets, authors, and academics to activists, commentators, and community columnists. The platform is rooted in the belief that an informed and engaged citizenry is essential to the project of nation-building and social transformation.

PaanLuel Wël is a passionate advocate for the power of media to educate, empower, and connect people across political, ethnic, and generational divides. He is committed to fostering a culture of dialogue, tolerance, and inclusivity and is deeply invested in mentoring the next generation of South Sudanese writers and journalists.

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