South Sudan Policy Lab

South Sudan Policy Lab Contact information, map and directions, contact form, opening hours, services, ratings, photos, videos and announcements from South Sudan Policy Lab, Shirikat, Nimule Road, Juba.

South Sudan Policy Lab (SSPL) is a leading independent think tank and policy innovation hub dedicated to shaping better governance and development outcomes through research, data, design thinking, and collaborative problem-solving.

Investing in Agriculture Instead of ImportsBy Phillip Dau BulSouth Sudan Policy LabEvery day, trucks cross South Sudan's...
10/07/2026

Investing in Agriculture Instead of Imports

By Phillip Dau Bul
South Sudan Policy Lab

Every day, trucks cross South Sudan's borders carrying food that our own farmers could produce. Rice, onions, tomatoes, cooking oil, eggs, maize flour, fruits, vegetables, and even chicken are imported in large quantities. While imports are an important part of any economy, relying heavily on them for basic food items has become an expensive habit that South Sudan can no longer afford.

The country's economy faces persistent pressure from inflation, foreign currency shortages, and limited employment opportunities. Yet one of the most practical solutions lies in a sector that employs most rural households and has sustained communities for generations: agriculture.

South Sudan is endowed with vast areas of arable land, diverse ecological zones, abundant water resources, and a young population. These are valuable assets. However, they remain underutilized because of limited infrastructure, inadequate access to finance, insecurity in some areas, weak extension services, and insufficient investment in modern farming. As a result, domestic production falls short of demand, creating space for imported food to dominate local markets.

Every bag of maize or rice imported from neighboring countries represents money leaving the South Sudanese economy. When local production is low, the country spends scarce foreign exchange on food that could, in many cases, be grown at home. This contributes to pressure on the exchange rate and increases vulnerability to supply disruptions and regional price fluctuations.

Investing in agriculture offers a different path. It creates jobs across the value chain—from seed production and farming to transportation, storage, processing, and retail. A thriving agricultural sector stimulates demand for machinery, fertilizers, financial services, and logistics while generating incomes for rural households. The benefits extend well beyond the farm.

The priority should not be to eliminate imports altogether. Imports will continue to play an important role, particularly for products that cannot be produced competitively or in sufficient quantities. Instead, the goal should be to reduce unnecessary dependence on imported foods that South Sudan has the natural capacity to produce efficiently.

This requires deliberate policy choices. Public investment in rural roads would reduce transport costs and post-harvest losses. Expanding irrigation where feasible would lessen dependence on seasonal rainfall. Strengthening agricultural extension services would help farmers adopt improved production methods. Better access to affordable credit would enable producers and agribusinesses to invest in equipment, storage, and processing. Reliable market information would also help farmers make informed production decisions.

Private investors have an equally important role. Commercial farming, seed multiplication, food processing, cold storage, agricultural machinery services, and warehouse development all represent opportunities to build profitable businesses while strengthening national food systems. Financial institutions can contribute by developing agricultural lending products that reflect the realities of farming rather than treating agriculture as an excessively risky sector by default.

Young people should also see agriculture differently. Modern agriculture is no longer defined only by manual labor. It increasingly depends on technology, entrepreneurship, mechanization, digital platforms, precision farming, and value addition. For many graduates and entrepreneurs, agriculture can become a source of innovation and business growth rather than a last resort.

Government leadership will be essential. Clear land administration, predictable policies, investment incentives, research support, and stronger coordination among relevant ministries can create an environment where agriculture attracts long-term domestic and international investment. Partnerships with development agencies and the private sector can accelerate this process.

South Sudan has an opportunity to transform agriculture from a subsistence activity into a competitive economic sector. Doing so will not happen overnight, nor will it eliminate the need for food imports immediately. But every additional hectare cultivated productively, every new agro-processing facility established, and every farmer connected to reliable markets moves the country closer to greater food security and economic resilience.

The question is not whether South Sudan can continue importing food. It is whether the country can afford to overlook the economic opportunities growing in its own fields. Investing in agriculture is not simply about producing more food—it is about creating jobs, strengthening rural livelihoods, improving economic stability, and building a more self-reliant future.

SOUTH SUDAN POLICY LABPOLICY PAPERRestoring Cash Availability in South Sudan's Banking Sector: A 90-Day Emergency Liquid...
10/07/2026

SOUTH SUDAN POLICY LAB

POLICY PAPER

Restoring Cash Availability in South Sudan's Banking Sector: A 90-Day Emergency Liquidity Response Plan

Author: Phillip Dau Bul
Institution: South Sudan Policy Lab
Date: July 2026

Executive Summary

South Sudan is experiencing one of the worst banking liquidity shortages since independence. Thousands of citizens cannot access their own deposits despite commercial banks remaining operational. Businesses are unable to pay workers, traders cannot purchase goods, and public confidence in the banking system continues to deteriorate.

This paper argues that the current crisis is primarily a liquidity distribution problem rather than an immediate banking insolvency problem. While long-term reforms are necessary, South Sudan requires an emergency intervention that restores public confidence within ninety days.

The paper proposes an Emergency Liquidity Support Programme (ELSP) under the leadership of the Bank of South Sudan. Similar interventions have been used in countries including Nigeria, Egypt, Kenya, and Sudan during periods of severe cash shortages and banking stress. The objective is simple: restore the circulation of physical cash while accelerating the transition toward secure electronic payments.

The Problem

Commercial banks throughout South Sudan have imposed strict withdrawal limits. In many branches, customers spend days waiting for cash, while others leave empty-handed.

The consequences include:

- Businesses operating almost entirely in cash.
- Salaries remaining trapped inside banks.
- Increased use of black-market cash brokers.
- Loss of confidence in commercial banks.
- Reduced tax collections.
- Slower economic activity.
- Rising demand for US dollars.

The shortage does not necessarily mean that all banks are bankrupt. Instead, much of the country's physical currency is circulating outside the banking system or being hoarded by individuals and businesses, reducing available liquidity. Weak money markets and large cash holdings outside banks also complicate the central bank's ability to manage liquidity effectively.

Policy Proposal

Emergency Liquidity Support Programme (ELSP)

The Government should launch a coordinated ninety-day emergency programme involving the Bank of South Sudan, the Ministry of Finance, and all licensed commercial banks.

The programme consists of six immediate actions.

1. Central Bank Emergency Cash Window

The Bank of South Sudan should establish an emergency liquidity facility through which commercial banks can temporarily borrow physical currency.

Banks would receive short-term liquidity after presenting acceptable collateral such as Treasury Bills or other approved government securities.

This approach has been widely used by central banks around the world during liquidity shortages.

Expected impact:

- Banks obtain cash immediately.
- Withdrawal queues reduce.
- Public confidence improves.

2. Government Salary Payments Through Banks

Government salaries should continue to be deposited directly into commercial banks.

However, each bank receiving salary deposits should simultaneously receive additional physical cash from the central bank proportional to expected withdrawals.

Without matching cash injections, salary payments merely increase electronic balances while worsening customer frustration.

3. Emergency Cash Redistribution

Commercial banks should report their daily cash balances to the Bank of South Sudan.

The central bank should then redistribute available currency from banks with excess liquidity to banks experiencing shortages.

Many countries have successfully managed temporary shortages through coordinated cash redistribution rather than printing additional money.

4. Temporary Expansion of Digital Payments

For ninety days, the Government should encourage electronic transactions by:

- Waiving mobile money transfer charges below a specified threshold.
- Requiring government institutions to accept mobile payments.
- Allowing taxes and utility bills to be paid electronically.
- Expanding POS terminals in markets, fuel stations, supermarkets, hospitals, and pharmacies.

This reduces pressure on physical cash while allowing economic activity to continue.

5. Large Cash Withdrawal Reporting

Temporary reporting requirements should apply to unusually large cash withdrawals.

The purpose is not to restrict legitimate business activity but to discourage unnecessary hoarding during the emergency period.

Banks should report exceptionally large withdrawals to the central bank for monitoring purposes.

6. Public Confidence Campaign

The Bank of South Sudan should publish daily information on:

- cash delivered to banks,
- withdrawal improvements,
- branch liquidity,
- progress of the emergency programme.

Transparent communication reduces panic withdrawals and helps rebuild trust.

International Experience

Nigeria (2023)

During Nigeria's currency redesign, severe cash shortages disrupted the economy.

Authorities increased emergency cash distribution, expanded digital payments, and gradually restored liquidity.

Although implementation challenges existed, electronic payment volumes increased significantly and cash availability improved over time.

Egypt

Egypt has repeatedly managed periods of liquidity stress by injecting cash into banks while promoting electronic payments and strengthening coordination between the central bank and commercial banks.

Kenya

Kenya reduced dependence on physical cash through rapid expansion of mobile money, particularly M-Pesa.

Today many everyday transactions occur electronically, reducing pressure on bank cash supplies.

Sudan

During banking disruptions, emergency measures focused on sustaining payment systems, supporting banks with liquidity, and ensuring continued access to essential financial services despite severe economic shocks.

Expected Results Within Ninety Days

If implemented effectively, the programme is expected to achieve:

- Shorter withdrawal queues.
- Increased public confidence in banks.
- Reduced cash hoarding.
- Improved business activity.
- Higher government revenue collection.
- Lower demand for black-market cash.
- Greater use of digital payments.
- Better monetary policy effectiveness.

Risks

The programme will face several risks:

- Limited foreign exchange reserves.
- Weak coordination among commercial banks.
- Poor telecommunications infrastructure in rural areas.
- Continued economic uncertainty.
- Potential abuse by cash speculators.

These risks can be reduced through strong central bank supervision and transparent implementation.

Recommendations

The South Sudan Policy Lab recommends that the Government immediately:

1. Establish an Emergency Liquidity Support Programme.
2. Create a Central Bank emergency liquidity facility.
3. Redistribute available cash among commercial banks.
4. Accelerate digital payment adoption.
5. Increase transparency through daily liquidity reports.
6. Develop a long-term National Cash Management Strategy.

Conclusion

South Sudan's cash shortage is undermining confidence in the financial system, disrupting commerce, and slowing economic recovery. While structural reforms to public finance and the banking sector remain essential, immediate action is required to restore access to cash.

An Emergency Liquidity Support Programme offers a practical, low-cost, and internationally tested response. By combining emergency liquidity assistance, coordinated cash redistribution, transparent communication, and expanded digital payments, South Sudan can stabilize its banking sector within a relatively short period while laying the foundation for a stronger and more resilient financial system.

South Sudan Policy Lab (SSPL) is an independent policy innovation and research institute dedicated to advancing evidence...
25/06/2026

South Sudan Policy Lab (SSPL) is an independent policy innovation and research institute dedicated to advancing evidence-based governance, sustainable development, and public sector transformation in South Sudan. SSPL works at the intersection of research, data, design thinking, and stakeholder engagement to develop practical solutions to national and community challenges.

Through policy analysis, field research, strategic foresight, capacity building, and innovation labs, SSPL partners with government institutions, development agencies, civil society organizations, academia, and local communities to co-create policies and programs that deliver measurable impact.

The Lab focuses on key areas including governance and public administration, peace and security, economic development, education, health systems, climate resilience, youth empowerment, digital transformation, and institutional strengthening.

Guided by the principle of "Evidence. Innovation. Impact.", South Sudan Policy Lab is committed to transforming ideas into actionable policies that promote inclusive growth, stability, and prosperity for all South Sudanese.

Address

Shirikat, Nimule Road
Juba
0000

Telephone

+256787081058

Website

Alerts

Be the first to know and let us send you an email when South Sudan Policy Lab posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to South Sudan Policy Lab:

Shortcuts

Share