South Sudan’s telecommunications regulator and central bank are engaging mobile network operators over foreign currency shortages and cash transaction challenges that are affecting the sector’s operations and investment in critical network infrastructure.
The shortage of foreign currency has dominated discussions between the National Communication Authority (NCA), the Bank of South Sudan (BoSS) and telecoms industry leaders, as authorities seek to align the sector on tax compliance, financial transparency and industry priorities.
Gieth Kon Mathiang, NCA director-general, said the meeting addressed operators’ concerns about cash transactions and encouraged them to comply with temporary measures introduced while the government works to reduce reliance on cash.
“We also discussed operators’ requests for access to foreign currency so they can upgrade networks and invest in modern telecoms infrastructure across the country,” he said after Sunday's meeting in Juba.
Adis Ababa Othow, BoSS governor, assured operators that the government was working to resolve cash transaction challenges and facilitate a smooth transition to digital financial services.
Othow said operators welcomed the open dialogue and joint regulatory support, reaffirming their commitment to compliance and continued collaboration.
South Sudan is grappling with a severe liquidity crisis that has affected the commercial banking sector, leaving ordinary citizens struggling to access physical cash.
The crisis has increased reliance on mobile money platforms as consumers and businesses seek alternatives to the strained banking system. However, cash shortages and high inflation have also disrupted telecom operators’ business models and complicated their operations.
The GSMA has highlighted the high capital costs associated with operating telecoms infrastructure in South Sudan.
Operators must import network equipment, technical expertise and large quantities of fuel to power telecommunications towers, adding to their operating costs and investment requirements.
Access to foreign currency is therefore critical for operators seeking to maintain network infrastructure, expand coverage and improve service quality.
Meanwhile, as the cash crisis persists and the economy contracts, consumer spending has increasingly shifted towards basic necessities, putting further pressure on business revenues.
Mathiang emphasised the importance of a multi-stakeholder approach to resolving the challenges facing the sector.
“Strong regulatory alignment and strategic collaboration remain the bedrock of South Sudan’s economic resilience,” he said.
Telecom operators serving the South Sudanese market include Digital, MTN and Zain. The country's economy continues to face significant challenges following years of civil conflict since it gained independence in 2011.
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