The Bank of South Sudan (BoSS) has announced the launch of the country’s first National Instant Payment System (NIPS) in partnership with the AfricaNenda Foundation. The launch of NIPS comes after a successful proof-of-concept phase in 2023.
South Sudan has long struggled with an underdeveloped banking sector, where over 6 million adults lack access to formal banking services. The country relies heavily on cash-based transactions and mobile money services provided by telecom operators such as MTN and Zain.
The partnership with AfricaNenda, an African-led organization focused on accelerating inclusive digital payment systems across the continent, aims at enhancing financial access and interoperability. AfricaNenda’s mission is to achieve universal financial inclusion in Africa by 2030, and its collaboration with BoSS is a key part of this vision for South Sudan.
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The introduction of NIPS is set to bridge the gap by enabling instant, secure, and cost-effective transactions across financial institutions, businesses, and government services.
Key Features of NIPS
- Instant Transactions: Real-time payments will eliminate the delays commonly associated with traditional banking methods.
- Broad Transaction Support: The system enables person-to-person (P2P), person-to-business (P2B), government-to-person (G2P), and person-to-government (P2G) transactions.
- Interoperability: NIPS integrates with Automated Clearing House (ACH), Real-Time Gross Settlement (RTGS), and Instant Fund Transfers (IFT) to ensure seamless connectivity between banks, telecoms, and payment service providers.
- Enhanced Financial Inclusion: The system is expected to bring millions of unbanked South Sudanese adults into the formal financial sector by reducing transaction costs and improving accessibility, particularly in rural areas.
Implementation and Roadmap
Following the proof-of-concept phase, BoSS and AfricaNenda have developed a detailed roadmap to guide the full implementation of NIPS. Key aspects of the plan include:
- Capacity Building: Strengthening the technical and operational capabilities of BoSS and financial institutions to oversee and manage the system efficiently.
- Stakeholder Collaboration: Working closely with banks, telecom companies, and fintech firms to ensure widespread adoption and seamless integration.
- Full Rollout by December 2025: The system is set for full implementation by the end of 2025, allowing sufficient time for onboarding financial service providers and regulatory fine-tuning.
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This project aligns with regional and international efforts to modernize payment systems in Africa. The East African Community (EAC), of which South Sudan is a member, has pursued payment integration for over a decade, with countries like Kenya, Tanzania, Uganda, and Rwanda already linking their RTGS systems via the East African Payments System. NIPS is supported by major institutions such as the African Development Bank (AfDB), the World Bank, and the Bill & Melinda Gates Foundation, which have backed similar initiatives across the continent.
The World Bank, in particular, has been active in strengthening BoSS’s institutional capacity. A 2023 project, the Strengthening South Sudan’s Financial Sector Project, funded by an $18 million International Development Association (IDA) grant, complements NIPS by enhancing BoSS’s supervisory and enforcement capabilities—key to ensuring the system’s success.