NEWS

July 17-18, 2024

Your Excellency, Hon. Philip Davis, Prime Minister of the Commonwealth of The Bahamas,

Baroness Sandy Verma, Member, UK House of the Lords,

Dr. Ken Giami, Chairman and Publisher, African Leadership Magazine,

Esteemed African Leaders from the Governments and Private Sector,

Distinguished Guests, Ladies, and Gentlemen,

Good morning.

It is an honor and a privilege to stand before you today at the African Leadership Summit 2024 here in London. I am deeply humbled to be part of this important gathering and the conversation about Africa’s future. Notwithstanding prevailing challenges, Africa remains primed for a remarkable transformation that could change the global economic landscape.

Indeed, William Shakespeare is right when he said: “The golden age is before us, not behind us.” One of the key drivers of the expected transformation emanates from the continent’s fast-growing population. According to UN reports, Africa is projected to be home of 2 billion people by 2050, making it the most populous continent on earth. This demographic trend presents a unique opportunity for the continent to harness the power of its youthful population and drive economic growth through innovation, entrepreneurship, and augmented productivity.

South Sudan, like other countries, has and continues to face a series of challenges which significantly hampered its economic growth. It has been affected by multiple economic shocks, including fluctuating oil prices, disruptions, and the global economic downturn induced by the COVID-19 pandemic and its detrimental effects. These factors have led to a sharp decline in economic output, currency depreciation, and limited access to basic services for the population.

South Sudan, however, holds immense potential across many sectors. Spearheaded by the Bank of South Sudan, the banking sector has been playing a crucial role in supporting the economy and bolstering recovery. The Bank of South Sudan together with stakeholders in the country have been implementing various strategies to improve the financial sector stability and attract investment. Some of the key initiatives include:

1. Enhancing financial regulations: The financial sector is working closely with regulatory authorities to strengthen financial regulations and improve transparency in the banking sector. This is crucial for building trust among investors and ensuring the stability of the financial system.
2. Expanding financial inclusion: The Bank has expanded its branch network to extend financial services to underserved populations, including rural communities and small businesses, while commercial banks are also expanding their operations. By providing access to credit and other financial services, banks are supporting economic growth and empowering households to improve livelihoods.
3. Promoting investment: financial institutions are actively working to promote investment in key sectors of the economy, including agriculture, fishing, infrastructure, mining, and manufacturing. By providing financial support and advisory services to investors, banks are stimulating economic activity, creating employment, and boosting revenues.
4. Improving risk management: Banks are enhancing their risk management practices, thereby mitigating the impact of external shocks on their operations. By diversifying their asset portfolios and adopting best practices in risk assessment, banks can better withstand economic uncertainties and safeguard the interest of their customers.
5. Embracing technology: Banks and mobile money operators, including m-Gurush, MoMo, and NilePay, just to [mention but] a few, are increasingly leveraging technology in South Sudan to enhance service delivery and reach a wider customer base. Digital banking solutions, mobile payment platforms, and online banking services continue to improve efficiency, convenience, and security for customers.  

Distinguished guests, ladies, and gentlemen,

In striving to achieve its core mandate, the leadership of the Bank of South Sudan has anchored its policy direction on the three main pillars of running a modern central bank—ensuring greater transparency, supporting accountability, and exercising independence.  

Broadly, the Bank is implementing a prudent and data-driven monetary policy to ensure price stability, safeguard financial stability, and rebuild policy credibility. It now focuses on: 

• Strengthening the monetary policy framework and anchoring inflation expectations 
• Rebuilding gross international reserves, including the plan to add a gold portfolio
• Collaborating with the fiscal authorities to realign incentives and harmonize policies  
• Expanding branch network, fostering financial inclusion, and improving staff welfare
• Aligning with the EAC’s roadmap for establishing a monetary union. 

Relatedly, we greatly appreciate H. E. President Salva Kiir Mayardit and the Unity Government for continuing to advocate and support our policy positions to stabilize the economy and ensure shared prosperity. Several ongoing initiatives and policies are paving ways for increased investment with significant outlays geared towards various sectors, including in agriculture and ICT, with investment from local and multinational companies. Elon Musk’s Starlink, for example, has recently been granted a license to operate in South Sudan, and the recent survey confirmed South Sudan as boasting of the world’s largest land mammal migration, dubbed as the 6-million-strong Great Nile Migration. The country is also investing in and promoting tourism, harnessing its potential in solar energy, and attracting investment in the real estate and the mining sectors, with positive implications on growth and job creation.

Distinguished guests, ladies and gentlemen,

South Sudan contributes to strengthening regional and international cooperation. In this context, it continues to deepen relations with the EAC, World Bank, IMF, and other major institutions. Collectively, they have invested significantly in development initiatives, food security, infrastructure, and economic stabilization measures. 

To build track record of prudent macroeconomic policies, South Sudan has undergone a 9-month-Staff-Monitored Program, and Program Monitoring with Board Involvement, which greatly supported the foreign exchange market and economic reforms. The country is now working to secure the Extended Credit Facility program, which will allow South Sudan to implement economic program that can drive progress toward a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth.

Distinguished guests, ladies, and gentlemen,

Please allow me to reiterate that at the heart of our economic agenda is the empowerment of youth and promotion of entrepreneurship. By investing in education, skills development, and Small and Medium-sized Enterprises, we can unlock the full potential of our nation and deliver inclusive growth. Through partnerships with local and international stakeholders, we aim to create a vibrant ecosystem that nurtures innovation and creativity.

To conclude, I call upon all leaders gathered here today to join hands in shaping a brighter future for Africa and the world. Let us work together to harness the potential of our youth, embrace innovation, and build resilient economies that lift all boats. Let us also shun negative perceptions about African countries and reverse such narratives. Going forward, the Bank of South Sudan stands ready to play its part in this collective endeavour, while looking forward to forging new partnerships and welcoming you to South Sudan to explore plethora of investment opportunities.

Thank you all for listening.