South Sudan Takes Bold Step with First Instant Payment System

After years of anticipation, South Sudan has officially launched its first National Instant Payment System (NIPS), marking a crucial milestone in the country’s financial sector. The system, developed in collaboration with the AfricaNenda Foundation, aims to streamline transactions, lower costs, and expand financial access for millions of citizens.

With over six million adults lacking formal banking services, the introduction of NIPS is expected to revolutionise how money moves across the country. Mobile operators MTN and Zain have long dominated South Sudan’s payment landscape due to the absence of a domestic or regional instant payment network. This new system is set to change that by integrating with existing financial structures such as the Automated Clearing House (ACH), Real-Time Gross Settlement (RTGS), and instant fund transfers (IFT).

Aligning with Regional Financial Reforms

The launch of NIPS also places South Sudan in step with broader regional financial modernisation efforts. The East African Community (EAC) has been pushing for a unified instant payment system, following a 2024 master plan. While countries like Kenya, Uganda, Tanzania, and Rwanda have already connected their RTGS systems through the East African Payments System, South Sudan is now making significant strides to catch up. Burundi and the Democratic Republic of the Congo remain the only EAC members without an instant payment platform.

Backed by major financial institutions such as the African Development Bank (AfDB), the World Bank, and the Gates Foundation, this initiative is more than just a technological upgrade. It represents a strategic move towards economic stability in a country still recovering from years of conflict.

A Path Toward Economic Growth

Since gaining independence in 2011, South Sudan has faced persistent economic challenges, with cash transactions dominating everyday financial activities. The implementation of NIPS is expected to help businesses operate more efficiently, improve government revenue collection, and reduce dependence on physical cash. However, its long-term success will depend on proper execution, public trust, and continued support to ensure it serves all South Sudanese effectively.