The Bank of South Sudan has mandated that the public and businesses accept mobile money as an authorized method of payment.
The bank stated on Friday that this initiative is part of its strategic plan for 2023-2027, aimed at boosting adult mobile money usage by 30 percent by 2027 and extending digital financial services to rural areas.
“Furthermore, the Electronic Money Regulation 2017 legalizes mobile money as a payment method. Refusal to accept it, even when offered, is a punishable offense, breaching legal tender regulations and potentially leading to fines, legal proceedings or other sanctions,” read the statement issued by the Bank’s Director of Communications and PR.
The statement also cautioned businesses against asserting the absence of mobile money services when they are available, noting that law enforcement will oversee adherence and impose penalties on offenders.
The telecommunications industry has been significantly impacted by inadequate infrastructure throughout the country and the high poverty levels among rural communities.
As of 2021, merely 0.8% of the population in South Sudan utilized mobile wallets, reflecting a low level of mobile wallet adoption throughout the country.
South Sudan’s economy is facing challenges, marked by high inflation and a decline in the value of the South Sudan Pounds against the US Dollar.
The African Development Bank Group's Country Focus Report for 2025 revealed that the nation's real GDP shrank by 27.6% in the 2023/24 period, following a growth of 2.5% in 2022/2023, largely due to the adverse economic conditions resulting from the conflict in Sudan which damaged oil drainage pipelines.
By October 2024, the money supply had increased by an estimated 200.7%, down from 71.3% in October 2023, a consequence of the depreciation of the local currency, while inflation surged to 65.6% in 2023/24 from 22% in 2022/23.
Real GDP is anticipated to grow by 4.0% in 2024/25 and by 12.1% in 2025/26 with the resumption of oil production, although this projection is contingent upon the political situation in Sudan.
