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

An economist has criticized the Bank of South Sudan’s recent move to legalize mobile money services, calling it premature and counterproductive amid the country’s fragile economic environment.

Abraham Maliet says mobile platforms such as MOMO and other digital payment services have long been operational, facilitating both local and cross-border transactions—including remittances to neighboring Uganda and Kenya.

His remarks follow the Central Bank’s announcement last week recognizing mobile money as a valid form of payment, in line with its 2023–2027 strategic plan, which aims to increase mobile money usage to 30% of the adult population by 2027.

Speaking to Eye Radio on Monday, Maliet questioned the rationale behind the decision, stating it sends the wrong signal to the public and could trigger unnecessary panic.

Maliet warned that introducing mobile money as an official system without proper groundwork could risk excluding small-scale traders and rural businesses that still lack access to reliable digital infrastructure.

He also expressed concern that the timing of the announcement may erode public trust and be interpreted as an admission of a national cash crisis.

According to Maliet, the informal sector—making up nearly 90% of South Sudan’s economy—could be destabilized by the shift, especially when trust in financial institutions remains low and mobile money agents in some areas struggle to provide basic cash-out services.

He further noted the absence of legal protections around digital transactions, such as data privacy and cybersecurity legislation, which could leave users exposed to fraud and abuse.

Maliet is now calling on the Central Bank to suspend the directive and instead prioritize the development of a supportive legal framework, public education, and improved digital infrastructure to ensure a more inclusive and secure rollout of mobile financial services.