(JUBA) – South Sudan’s economic authorities are increasing efforts to strengthen the country’s financial sector through new banking reforms, reserve building measures and closer cooperation with regional financial institutions.
The latest discussions involved the Bank of South Sudan, the Ministry of Mining, KCB Group and members of the government’s Economic Cluster as officials pushed forward plans aimed at stabilising the economy and improving confidence in the South Sudanese Pound.
On June 4, Governor of the Bank of South Sudan, Hon. Johnny Ohisa Damian, met National Minister of Mining, Hon. Losuba Wongo, to discuss cooperation on the development of national gold reserves.
Officials said the proposed strategy is aimed at supporting local market stability, strengthening the South Sudan Pound and reducing economic vulnerability through greater reserve accumulation and self reliance.
Gold reserves are widely viewed by central banks as an important financial safeguard because they help support currency stability, improve investor confidence and strengthen foreign reserve holdings.
The discussions come as South Sudan continues to face pressure from currency volatility, inflation and reduced oil revenue flows linked to disruptions affecting crude exports.
In a separate meeting held the same day, Governor Ohisa also met KCB Group Chief Executive Officer Paul Russo to discuss partnership opportunities in support of South Sudan’s banking sector.
Governor Ohisa praised KCB for its continued role in expanding banking services in South Sudan and said cooperation between the central bank and commercial lenders remains important for improving financial inclusion and supporting economic growth.
Mr Russo said KCB remained committed to working with the Bank of South Sudan and other stakeholders to strengthen the banking industry and widen access to financial services across the country.
KCB is among the regional banking groups operating in South Sudan and has continued to expand corporate and retail banking services despite challenging market conditions.
Earlier, on June 3, the government’s Economic Cluster chaired by Vice President Dr James Wani Igga endorsed the country’s Financial Sector Strategy following a presentation by the Bank of South Sudan under the South Sudan Strengthening Financial Sector Project supported by the World Bank.
The presentation by Governor Ohisa and his technical team outlined findings from financial sector diagnostic studies, strategic priorities and proposed reforms for the banking industry.
Deputy Minister of Agriculture and Food Security Lily Albino Akol said the strategy seeks to address recapitalisation measures, improve liquidity management, support repayment of credit facilities and strengthen reserve accumulation in support of economic stability.
The endorsed strategy is expected to be presented before the Council of Ministers for further review and consideration.