South Sudan to close down 15 Islamic banks, BOSS governor Malok Aleng reveals

The governor of the Bank of South Sudan (BOSS) and deputy commissioner of the Central Bank of Sudan (CBS), Elijah Malok Aleng, has announced South Sudan is due to close down 15 Islamic banks from Southern Sudan, in favour of home-grown banks and East Africa.

"Southern Sudan will be served by banks from neighboring countries and indigenous ones," said the governor of the Bank of South Sudan, Elijah Malok.

Southern Sudan has been devastated by wars for much of its history, and its economy has always been dominated by Khartoum.

The coming of peace to South Sudan has created optimism, and has made the semi-autonomous region an economic hub, attracting thousands from neighbouring countries, thanks to the Wealth Sharing Protocol in the CPA, which gives South Sudan its own budget.

The Bank of Southern Sudan favours a conventional banking while northern Sudan, Central Bank of Sudan, maintains an Islamic banking system capitals, underscoring the historical divide in the two‘s approaches.

Islamic banks that operated in Renk, Malakal, Wau, Aweil, Raja, and Bentiu rejected to turn into liberal banking system as they take orders from Khartoum.

Some of the banks previously operating in southern Sudan include the Bank of Khartoum, Nileen Industrial Cooperative Bank, Tadamon Islamic Bank, Omdurman Islamic Bank, Agricultural Bank, Agricultural Commercial Bank and the Islamic Cooperative Bank.

The departure of Islamic banks from southern Sudan will present a stiff challenge to the Nile commercial Bank and Ivory Bank, the leading banks in South Sudan. Recently, licenses were awarded to some south Sudanese nationals who promised to open another indigenous bank.

The Nile Commercial Bank operates in Rumbek, Renk, Torit, Yei, Juba, Yambio and few other towns in southern Sudan. However, the citizens of southern Sudan are yet to receive capacity building to value banking purposes in their communities.