(JUBA) – The Bank of South Sudan is preparing to launch the South Sudan Interbank Payment and Settlement System (SSIPSS), a project described by the central bank as a landmark step in modernising the country’s financial infrastructure. The official launch date is expected to be announced by senior management of the institution.
The SSIPSS project is designed to provide a secure, fast and reliable mechanism for financial transactions between banks and other key players in the financial sector. The Central Bank of South Sudan hopes to improve efficiency and strengthen public confidence in the formal banking system by creating a common platform for interbank payments.
According to Akum David Sabahker, Director of the National Payment System, the initiative carries significant benefits for government agencies, traders, bankers and the wider public. He explained that the platform is expected to reduce transaction delays, increase transparency and build trust across the financial sector.
The project also aims to align South Sudan’s banking operations with regional and international best practices, making it easier for the financial system to integrate with cross border markets in East Africa. Reliable payment systems are regarded as a cornerstone of economic development, particularly in emerging economies where informal cash transactions still dominate daily trade.
In South Sudan, the introduction of SSIPSS is expected to reduce reliance on cash based transactions and increase the role of banks in facilitating commerce.
The value of reliable financial systems is measured not only in efficiency gains but also in the confidence it provides to investors and businesses operating in a challenging economic environment. For example, a small trader receiving SSP 460,000 for goods would now be assured of a transaction worth exactly 100 US dollars at official rates, with secure settlement between banks guaranteed under the new system.
The timing of the project is important as South Sudan continues to manage currency volatility, inflationary pressures and a large gap between official and parallel market exchange rates.
Beyond efficiency, the system is expected to contribute to financial inclusion. According to the World Bank, fewer than 10 percent of South Sudanese adults currently have access to formal banking services. Most households still rely on cash transactions for savings and payments. The lack of widespread banking access, coupled with the high costs of cross-border remittances, has left many outside the reach of formal finance.
Mobile money has begun to play a role in bridging this gap, especially in urban centres where telecom operators are experimenting with digital payment services. However, without a strong backbone of interbank settlement, the reach of mobile money remains limited. The SSIPSS is therefore seen as a crucial step in providing a national framework that will allow banks and telecom based financial services to operate more seamlessly together.
For government institutions, the system is expected to improve revenue collection and reduce leakages by allowing payments to be made and recorded electronically. For traders, especially those operating across borders with Uganda, Kenya and Ethiopia, a secure interbank platform could lower transaction costs and reduce the risks associated with carrying large amounts of cash.
International partners have also expressed interest in supporting South Sudan’s payment modernisation efforts, viewing them as essential for trade, investment and humanitarian cash transfers. Development agencies often rely on the central bank’s systems to channel funds into the country, and a more transparent payment infrastructure is expected to boost donor confidence.