Economist Abraham Maliet Mamer speaks on Eye Radio's Sundown Show. Nov. 12, 2024. (Photo: Awan Moses).

Juba, Central Equatoria (Eye Radio) – A South Sudanese economist says widespread distrust in financial institutions, coupled with inadequate banking services, is driving many citizens to keep their money outside the formal banking system.

Abraham Maliet, former economic advisor to ex-Vice President Dr. James Wani Igga, has raised concerns over a recent directive issued by the Financial Intelligence Unit.

The directive, released last week, mandates that large cash holdings must be deposited into formal banking institutions.

The move has raised alarm among sections of the public and the business community, with critics arguing that such measures lack public consultation and fail to address the underlying issues of trust and poor banking services in the country.

Speaking to Eye Radio, Maliet warned that enforcing directives without first engaging and educating the public will only worsen mistrust in the banking sector.

“For us to keep money in banks, we need to educate people — what currency means, why they should use banks, and the benefits of doing so,” said Mailet. “If I have 100 million pounds in my house, I need to understand why putting it in the bank is the better option. Orders are fine, but let people be educated first.”

Mailet emphasized that successful banking systems rely on public trust, which can only be built through transparency, consistent services, and community engagement, not directives alone.

He also questioned the current role of financial oversight bodies, saying public dialogue should be led by commercial banks, with support from the Bank of South Sudan.

“It’s the commercial banks and the public that must have dialogue. The Bank of South Sudan should support from the background,” Maliet added.

Highlighting systemic shortcomings, Maliet cited cases where businesspeople have been unable to access their own deposits due to liquidity shortages in commercial banks.

“If I put $100,000 in a bank and I’m told I can’t withdraw it, then where did the money go? It means the bank has already lent it out. At the very least, half of it should remain accessible to the account holder,” he argued.

Maliet called for banking reforms that prioritize customer needs, including the introduction of more attractive financial products, lower interest rates, and stronger liquidity guarantees.

He also welcomed recent digital payment initiatives introduced by the Bank of South Sudan but stressed the importance of accompanying them with public education and inclusive consultation.

“We need to build a banking culture through understanding, not imposition. Trust comes from service, not force,” Maliet concluded.