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Effects of the civil war on financial inclusion in South Sudan: theory and evidence

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  • James Alic Garang

Abstract

The paper surveys the existing literature and sheds light on ways through which the South Sudanese Civil War that stretched from 2013 through 2018 has stunted the growth of the infant financial sector, with implications on the business climate and financial inclusion. While the majority of South Sudanese people were financially excluded owing to the country's past legacies, the paper finds that the internal conflict has worsened many indicators of financial inclusion, including by necessitating closure of bank branches, placing a dent on the ATM geographic penetration, and constraining household access to credit. It concludes by outlining policy measures to advance financial inclusion. The suggested options include efforts to strengthen key economic institutions and improve regulatory and supervisory frameworks while promoting banking policies that support the usually excluded segments of the society, including small and medium-sized enterprises, women, youth, farmers, and poor households.

Suggested Citation

  • James Alic Garang, 2024. "Effects of the civil war on financial inclusion in South Sudan: theory and evidence," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 9(3), pages 255-271.
    • Handle: RePEc:ids:ajesde:v:9:y:2024:i:3:p:255-271
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