Multinational - East African Community Payment and Settlement Systems Integration Project (EAC-PSSIP) - South Sudan


Project Summary

Approval Date 17 Jul 2019
Signature Date 19 Aug 2019
Planned Completion Date 30 Jun 2023
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 4,800,000
Status Implementation

Project General Description

The proposed operation is a technical and institutional support project, financed by a grant from the Regional Operations of ADF-14 not exceeding UA 2.9 million and TSF Pillar I not exceeding UA 1.9 million as grant resources to support South Sudan. The project involves support to Republic of South Sudan (RSS) to modernize payment systems to improve financial services at national level and eventual integration within the EAC partner states. It has three components: (a) Integration of Financial Market Infrastructure; (b) Harmonization of financial laws and regulations; and (c) Institutional and Capacity Building. The intervention will also support institutional capacity building by supporting the restructuring and strengthening of the Central Bank and creation of a dedicated department to provide oversight and supervision of the payment systems in the country. The project will contribute to the modernization, harmonization and regional integration of payment and settlement systems in RSS to be at the same level as other EAC Partner States, and develop common standards for instruments together with appropriate regulatory and legislative practices.

Project Objectives

The sector goal of the grant is to achieve full economic and monetary union of EAC’s six-member states: Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan. The primary objective of the Project is to improve the basic infrastructure of the financial s ector in South Sudan through provision of modernized payment systems to enhance the performance of the country’s financial systems. The second objective will be to enhance convergence and regional integration of payments and settlement systems; strengthening a harmonized legal and regulatory framework for the financial sector and capacity building in the areas of payments and settlement in South Sudan.

Beneficiaries

The direct beneficiaries of the project include the Central Bank of South Sudan (BSS), the Commercial Banks, other financial institutions and the judiciary. However, given the expected improvements to the efficiency of payments processing and funds transfers in the other five covered countries, the ultimate beneficiaries would be businesses (especially SMEs) and all users of banking services (including women who constitute the majority of the population) through their increased participation and inclusion in the formal financial sector. The citizens of South Sudan will benefit from modernized financial services and increase financial inclusion. The efficiency and reliability to be delivered, and expanded financial intermediation, will result in improving governance at country level, minimizing the use of cash, strengthening and integration of the national payment systems into the six countries designed to encourage a greater proportion of the population to migrate into the formal financial sector. The project would also create an enabling environment for the private sector. As a Regional Public Good, strengthening of the payment and settlement systems will enhance regional integration and financial governance.

Participating Organization

Funding
African Development Fund
Funding
Fragile States Facility
Implementing
EAST AFRICAN COMMUNITY (EAC)

Information

IATI identifier 46002-P-Z1-HZ0-038
Last Update 24 Sep 2022

Export

Contact Details

Name KYOKUNDA Grace
Email g.kyokunda@afdb.org

Geographic Location

Country Multinational
Coordinates Location Name
4.85165 31.5825 Juba