South Sudan Central Bank opens Aweil branch to boost economic growth
July 2, 2024 (JUBA) – South Sudan’s Central Bank has opened a branch in the Northern Bahr el Ghazal State capital, Aweil, a move aimed at taking financial services closure to the local people as well as creating employment opportunities.
Central Bank Governor James Alic Garang, accompanied by his first deputy, Samuel Yanga Mikaya, Yar Telar Ring Deng, Mel Wal Achien, Jacob Dau, Deng Duang Deng, and several members of parliament at the reconstituted Transitional National Legislative Assembly in Juba, commissioned the launching.
The opening of branches in state is seen as part of the growth strategy that the new leadership of the Central Bank advocates to diversity the national economy by encouraging financial inclusion through saving and lending finances to the smallholder farmers and those running enterprises, most of which are at a lower level in states.
The opening of the Central Bank branch in Aweil brings the total numbers of branches across the country to eight. Other are in Nimule, Malakal, Wau, Yei, Rumbek, and Bor.
The acting governor of Northern Bahr el Ghazal, Tong Lual Ayat welcomed the opening of the bank branch, saying it would reduce distance and expenses on the one hand and provide job opportunities and services closure to the people.
“What we are seeing today has never happened in the history of Sudan. We have never had a branch of the central bank here. We used to go Wau because this is where the branch has always been and because of this, we have been transporting our money from Wau whenever we don’t have cash here. With the opening of the branch of the central bank here, transferring salaries of the employees will be simple”, he explained.
“Having a branch in Aweil will allow the bank to foster financial inclusion and economic development in Aweil and in its environs. ” Not only that, the bank will create some jobs because a security guard will not come from elsewhere but from here, plus other unclassified staff”, he explained.
Garang Mawien Deng, an elder who was present at the inauguration said several macroeconomic policy reforms, if pursued, could help rebuild resilience and speed-up the pace of poverty reduction.
“These include enhancing tax revenue mobilization to support government spending, reviving the potency of monetary policy, and recovery in the growth of credit to the private sector”, he stated.
Agriculture remains a key driver of growth in South Sudan and a major contributor to poverty reduction. The Special Focus section of the leadership of the central bank under its governor and his deputies highlights a few of the many factors underlying low agriculture sector productivity and high vulnerability to climate shocks and proposes policies that could help transform the sector to boost farmers’ income contributing to the overall poverty reduction in the country.
Mawien Deng, another official who attended the inauguration commended the opening of the branch of the central bank in the state, wondering why the extension of the branch to the state was causing mixed reactions, with some quarters lauding it and others objecting.
“I have been following the activities of the governor of the Central Bank of South Sudan and I have seen voices questioning the motives behind the extension of branches of the bank to the states. Some are protesting on social media and others lauding. Let me be clear to you and my message should go out the way I have said it. The opening of the branches in the states is one of the biggest achievements of the bank and for this reason, I commend the governor for acting. How many governors have come before him and never acted? The opening of the branches will encourage commercial banks to also come here and when there are more banks, it means more banking and financial services”, explained Deng
He explained the country has households that are exclusively engaged in agriculture and support for food production would make a significant contribution to the reduction of rural poverty since agriculture remains the largest income source for both poor and non-poor households in rural areas.
Deng explains that agriculture is a major driver of growth for economic growth and is the dominant source of employment.
Deng Aguot Deng, speaking at the village of Ajok in Aweil West County, Northern Bahr el Ghazal, where a mammoth crowd turned to receive the governor said agriculture is also responsible for most of the country’s exports. As such, the sector is central to the government’s big four development agenda, where agriculture aims to attain 100% food and nutritional security for all
“We found that productivity increases in the agriculture sector not only benefit poor households. It can potentially lift them out of poverty,”
Despite efforts encouraging the population to work towards achieving food security for all the citizens, analysts argue that real agricultural value-added has been neglected since 2006 when South Sudan was granted a self-governing system from Sudan under the terms of the 2005 comprehensive peace agreement.
Many economic development experts have conducted extensive research and recommended policy reforms that could help transform the sector and deliver food and nutritional security, including, enhanced access to agricultural financing, establishment of structured commodities trading, investing in harvesting rainwater and use irrigation as well as supporting stronger farmer organizations.
(ST)