After three years of planning, the Bank of South Sudan (BoSS) has finally introduced its National Instant Payment System (NIPS) through a partnership with the AfricaNenda Foundation, an organization dedicated to promoting instant payments. This launch is a significant advancement for South Sudan’s financial sector, aiming to enhance payment efficiency and accessibility.
The NIPS platform will facilitate immediate transactions, reducing delays, cutting costs, and promoting financial inclusion for more than 6 million adults in South Sudan who have limited access to traditional banking services. Currently, MTN and Zain are the dominant payment providers in the country due to the absence of a local or regional instant payment system.
NIPS is designed to integrate with existing systems such as the Automated Clearing House (ACH), Real-Time Gross Settlement (RTGS), and instant fund transfers (IFT), addressing the challenges faced by the financial sector. According to central bank governor Johnny Ohisa Damian, this initiative marks a significant milestone towards enhancing financial and socio-economic inclusion within South Sudan.
This move aligns with the broader regional trend towards financial modernization, following the East African Community’s (EAC) strategy for instant retail payments outlined in a master plan for 2024. Notably, Burundi and the Democratic Republic of the Congo are the only EAC countries without an instant payment platform.
Supported by organizations like the AfDB, World Bank, and Gates Foundation, EAC member states have been working towards payment integration for over ten years. Countries like Kenya, Tanzania, Uganda, and Rwanda have already connected their RTGS systems through the East African Payments System.
For South Sudan, this launch is particularly crucial given the nation’s history of economic instability, underdeveloped financial infrastructure, and reliance on cash transactions. The introduction of NIPS signifies a fundamental shift towards economic stability and growth in a country still recovering from prolonged conflicts.
By modernizing its financial infrastructure, the government aims to better assist businesses and enhance revenue collection. However, the success of this new system will depend on its effective implementation, public trust, and continued support to ensure it meets the diverse needs of the South Sudanese population.