Three years after its initial proposal, the Bank of South Sudan (BoSS) officially launched its National Instant Payment System (NIPS) in partnership with the AfricaNenda Foundation, an organization dedicated to promoting instant payments. This development is a pivotal moment for South Sudan’s financial landscape, aimed at enhancing payment efficiency and addressing access gaps.
Key Features of NIPS
NIPS will facilitate instant transactions, significantly reducing delays and costs while improving financial inclusion for over 6 million adult citizens who currently have limited access to formal banking services. In South Sudan, mobile operators MTN and Zain have largely dominated the payments sector because of the absence of a domestic or regional instant payment system.
The new payment system integrates with existing frameworks, such as the Automated Clearing House (ACH), Real-Time Gross Settlement (RTGS), and Instant Fund Transfers (IFT). Central bank governor Johnny Ohisa Damian highlighted this integration as a critical step toward improving the financial ecosystem during the launch event.
“The start of the NIPS journey marks a monumental step forward for financial and socio-economic inclusion in South Sudan,” Damian stated.
Regional Context and Alignment
NIPS aligns with broader regional efforts aimed at financial modernization, particularly reflecting the East African Community’s (EAC) initiative for instant retail payments, guided by a master plan set for 2024. Notably, Burundi and the Democratic Republic of the Congo are the only EAC countries without an instant payment platform.
With backing from the African Development Bank (AfDB), World Bank, and Gates Foundation, EAC nations have been working on payment integration for over a decade. Countries like Kenya, Tanzania, Uganda, and Rwanda have successfully linked their RTGS systems through the East African Payments System.
Implications for South Sudan
The launch of NIPS is especially significant for South Sudan, which gained independence in 2011 and has faced ongoing economic challenges, including instability, underdeveloped financial systems, and a reliance on cash transactions. This initiative is not merely about implementing technology; it is about laying the groundwork for economic stability and growth in a nation still recovering from years of conflict.
Modernizing the financial infrastructure will empower the government to better support businesses and enhance revenue collection. However, the success of NIPS will hinge on effective implementation, building public trust, and ensuring ongoing support to meet the diverse needs of all South Sudanese citizens.
