Banks are the lifeblood of a healthy economy. They act as essential mediators, channeling capital from investors to businesses and individuals to fuel growth. Beyond just storing money, banks provide a range of vital services: they facilitate efficient transactions, offer credit for large acquisitions, and manage risk to maintain financial stability. In essence, they support savings, investment, and the overall circulation of money.

However, the current economic situation in South Sudan is dire. The country is grappling with a severe cash shortage, making it nearly impossible for businesses and individuals to withdraw their own money. This scarcity of the South Sudanese Pound (SSP), the nation’s legal tender, is crippling the economy. It’s confusing to many why a country would lack its own currency in its banks, yet rely on it for all market transactions. This raises critical questions: Where has the country’s currency gone, and why is South Sudan increasingly dependent on hard currency?

Impact of Withdrawal Limits and Central Bank Policies

All banks in South Sudan seem to be operating under a single, restrictive policy, citing the Central Bank’s failure to release sufficient cash. Daily withdrawal limits are now severely capped at SSP 50,000 to SSP 100,000. These restrictions are deterring potential investors who are now hesitant to deposit their money, fearing they won’t be able to access it when needed.

Adding to the frustration is the widespread belief that access to cash is not equitable. There are reports that some individuals with special connections are able to withdraw massive sums, sometimes as much as SSP 30 million, while ordinary citizens are harassed and oppressed by bank staff. This lack of fair and equal service undermines the integrity of the entire financial system. Banks seem to have forgotten that their existence depends on the trust and money of their clients. This biased system creates an unequal playing field, allowing some businesses to prosper while forcing others to fail. In other nations, local currency is the primary driver of business, but in South Sudan, the reliance on foreign, hard currency has become a symptom of a failing system.

This is not a new problem for South Sudan. In 2013-2016, several banks collapsed after they could no longer allow investors to withdraw their savings. This same issue is now threatening to repeat itself, pushing more financial institutions to the brink of collapse.

I urge the government to immediately address this cash shortage. It is crucial to restore liquidity to the market so businesses can operate, contribute to economic development, and prevent further financial ruin.

God protect South Sudan.

Be the spectator!