South Sudan urges banks to expand into rural areas
August 29, 2010 (JUBA) – The regional government of southern Sudan on Sunday asked banks to extend services and economic activities to rural and border areas at a cost affordable to the average southern Sudanese citizen.
Salvatore Garang Mabiodit, an undersecretary at the regional ministry of finance and economic planning, told Sudan Tribune from Juba: “I would like to see that our financial institutions and partners consider opening branches in border points like Kaya, Narus and in other areas in the region where is there is demand for banking services”.
He also said financial institutions should avoid the imposition of excessive bank fees and charges for clients. Banks in the region should be committed to provide a convenient, accessible, reliable and rapid payment platform, the official said.
Mabiodit appealed to all financial institutions to maintain a good governance and regulatory compliance improve the regions reputation in order to attract direct foreign investments.
“Government remains focused on placing emphasis on growth of economic sectors such as roads, agriculture and manufacturing while addressing the challenges in health and education”, said Mabiodit.
He commended financial markets and establishments for resilience during financial crisis and that their cooperation with the government reflects the confidence in the banking and financial services sector in the fiscal sustainability and policy responses.
The official stressed that government’s overall on macroeconomic goal is to improve growth rates and increase poverty reduction. He urged the banking fraternity to consider more innovative but affordable financial service products for women and youths who are in greater needs of financial support for small-scale development.
“I strongly believe that it is by supporting women and youth entrepreneurs that south Sudan will attain deeper poverty reduction and wealth creation. I call upon financial institutions to fervently support the ‘small-scale ideas and initiatives’ of women and youths to ensure the region becomes a middle-income nation to stay on her-own feet,” he said.
Mabiodit, who is the second most important official at the finance ministry commented that money transfers is important for southern Sudanese whose children are living abroad for purpose of education and other reasons but it should provide a platform for convenient, accessible, reliable and rapid payment solutions for investors coming to the people of the south.
“These services should not be misused. They must be used responsibly and to the purpose”, he said, adding that such services are an earnest effort by banks to facilitate progressive capture and migration of regional transactions from the informal to the formal sector.
Elijah Malok Aleng, deputy governor of the Central Bank of Sudan and a governor of the regional Bank of South Sudan, in a separate interview told Sudan Tribune by phone from Juba that banks will continue giving necessary supports to the government and the people of south Sudan through their services.
He said financial establishments operating in Juba have what he described as good working relationships.
(ST)