World Bank funds $18 million project to strengthen South Sudan's central bank

Ousamane Dion, Country Director, East & South Africa Region speaking at an event held in South Sudan.

Source: Official Twitter account for the Ministry of Agric and Food Security- South Sudan

South Sudan is set to benefit from a first-time project aimed at fortifying the Bank of South Sudan (BoSS), the nation's central bank.

Backed by an $18 million grant from the International Development Association (IDA), the "Strengthening South Sudan's Financial Sector Project" has been designed to enhance BoSS's institutional capabilities.

The project, which will span five years and be administered by BoSS, is deemed vital in light of the prevailing weaknesses and vulnerabilities in South Sudan's banking sector.

In a press statement issued by the World Bank on October 16, Ousmane Dione, Country Director for Eritrea, Ethiopia, South Sudan, and Sudan, stated that "by addressing the emerging weaknesses in the financial sector, these concerted efforts will fortify and stabilize the sector, charting a strategic course for its future and ushering in the necessary reforms."

The project attempts to support the central bank by improving its institutional delivery capability, fortifying its technical and operational capabilities, and cultivating an accountable culture.

Dr. James Alic Garang, Governor of the Bank of South Sudan, while highlighting the essential role that the financial sector plays in driving private sector growth and BoSS's responsibility said, "BoSS leadership recognises the catalytic role the financial sector plays in spurring private sector growth and hence its critical responsibility to address and manage financial stability risks. The project will enhance BoSS’s capacity to perform this important role through strengthened enforcement and supervisory functions.”

The project is in alignment with the World Bank's Country Engagement Note (CEN) for South Sudan (FY2021-2023).

Edward Sakyi