26/10/2025
Legal Analysis and Policy Brief on the Prospects of Privatizing or Partially Privatizing the Bank of South Sudan (BoSS) to Advance Reform, Accountability, Economic Growth, and Monetary Stability
Date: 26 October 2025
More than a decade following its attainment of independence, the Republic of South Sudan continues to grapple with acute macroeconomic instability, characterized by persistent inflation, currency depreciation, and systemic corruption. Central to these challenges is the institutional fragility of the Bank of South Sudan (BoSS), the nation’s principal monetary authority established under the Bank of South Sudan Act, 2011.
Originally mandated to safeguard monetary stability and regulate the financial sector, BoSS has, in practice, become emblematic of opacity, inefficiency, and political interference.
This policy brief seeks to examine the legal and institutional feasibility of pursuing full or partial privatization of BoSS as a strategic reform mechanism to enhance transparency, restore public confidence, and promote sustainable economic development.
Since its inception, BoSS has faced credible allegations of undue political influence, irregular financial operations, and mismanagement of foreign exchange reserves. The absence of operational independence has enabled executive encroachment on monetary policy, often subordinating long-term economic stability to short-term political expediency.
The consequences have been severe, hyperinflation, erosion of the South Sudanese Pound (SSP), and a widespread shift by citizens and businesses toward dollarization and informal financial systems. These developments underscore the urgent need for structural reform of the central banking framework.
Privatization, whether full or partial, refers to the transfer of ownership, management, or operational control from the public sector to private entities. In the context of central banking, this may entail the introduction of private equity participation, the establishment of an independent board of governors, and the insulation of monetary policy from political interference. The following legal and policy justifications support such a course of action.
Incorporating private stakeholders, subject to fiduciary duties and regulatory oversight, would necessitate adherence to international financial reporting standards, independent audits, and robust internal controls. This would mitigate opportunities for embezzlement, misappropriation, and non-disclosure of public funds.
Comparative Jurisprudence, Nigeria’s banking sector reforms in the early 2000s, including partial privatization of state-owned banks, significantly improved transparency and investor confidence.
A restructured BoSS with private-sector participation could attract qualified financial professionals, adopt modern banking technologies, and streamline bureaucratic processes.
A Comparative Jurisprudence on Kenya Commercial Bank (KCB), following partial privatization, emerged as a regional leader in operational efficiency and financial innovation.
Privatization may facilitate the establishment of an autonomous board of governors, appointed through a merit-based, non-partisan process, thereby ensuring that monetary policy is guided by economic imperatives rather than political considerations.
A credible and independent central bank enhances sovereign creditworthiness, attracts foreign direct investment, and contributes to exchange rate stability.
Comparative Jurisprudence, Ghana, and Uganda experienced improved currency performance and increased capital inflows following central bank reforms.
A modernized BoSS, in partnership with private actors, could expand access to financial services, particularly in underserved rural areas, through mobile banking, microfinance, and SME credit facilities.
Despite the potential benefits, privatization carries inherent risks that must be mitigated through legislative and regulatory safeguards.
Absent stringent anti-corruption measures, privatization may merely transfer control from political elites to economic oligarchs, perpetuating systemic inequities.
Excessive privatization may compromise the state’s ability to exercise monetary sovereignty, particularly if foreign investors acquire significant influence over central bank operations.
Effective privatization requires a robust legal framework, independent regulatory bodies, and competent financial institutions, capacities that remain underdeveloped in South Sudan.
Privatization may be misconstrued by the public as the alienation of national assets. Transparent communication and inclusive stakeholder engagement are therefore essential.
Policy Recommendations and Legal Roadmap
Should the Government of South Sudan choose to pursue privatization or partial privatization of BoSS, the following phased legal and institutional reforms are recommended,
1. Legislative Reform
- Amend the Bank of South Sudan Act to enshrine operational independence and limit executive interference.
- Enact anti-corruption and conflict-of-interest statutes applicable to BoSS leadership.
- Mandate public disclosure of financial statements, audit reports, and policy decisions.
2. Structured Partial Privatization
- Initiate a divestiture of 30 - 40% equity to reputable international financial institutions (e.g., African Development Bank, International Finance Corporation) and vetted private investors.
- Retain a controlling 51% government stake to preserve monetary sovereignty.
- Facilitate future public offerings to enable citizen participation and domestic ownership.
3. Establishment of an Independent Oversight Board
- Constitute a multi-stakeholder board comprising representatives from the National Legislative Assembly, the private sector, civil society, and international financial experts.
- Vest the board with authority over executive appointments, strategic audits, and policy formulation.
4. Capacity Building and Technical Assistance
- Engage with the International Monetary Fund (IMF), World Bank, and regional development banks to provide technical support, training, and institutional strengthening.
5. Public Engagement and Transparency
- Launch a nationwide civic education campaign to demystify the objectives and modalities of privatization.
- Institutionalize regular publication of BoSS performance metrics and policy updates.
These precedents affirm that, when implemented with integrity and legal rigor, privatization can transform central banks into engines of economic resilience and public trust.
Privatizing or partially privatizing the Bank of South Sudan is not a relinquishment of sovereignty; it is a constitutional and economic imperative. It reflects a commitment to good governance, fiscal responsibility, and the rule of law.
With deliberate planning, legal safeguards, and inclusive implementation, BoSS can be reconstituted as a credible, independent, and efficient institution, one that serves the public interest, fosters macroeconomic stability, and catalyzes national development.
The choice before South Sudan’s policymakers is clear, entrench the status quo of institutional dysfunction or embrace reform as a pathway to a more accountable and prosperous future.
Daniel Wuor Thon
HR Lawyer and Legal Analyst
