In this photo taken Tuesday, Sept. 10, 2019, a man walks past several mobile money kiosks in the capital Juba, South Sudan. Photo credit: AP Photo/Sam Mednick

The Bank of South Sudan has officially recognised mobile money as a legal form of payment for all goods and services, with the same legitimacy as cash and bank transfers.

In a statement issued yesterday, the central bank said the move is part of its strategic plan 2023 – 2027 to increase the use of electronic money by 30 percent of the population.

It added that mobile money transitions will now carry the same legal validity as the cash or bank transfers as stated in the Electronic Money Regulation, 2017.

The financial regulator also directed businesses to accept the electronic payments without conditions, warning that refusal to accept mobile money payments would result in fines and legal actions.

“Mobile money transactions shall carry the same legal validity as cash or bank transfers. Furthermore, the Electronic Money Regulation, 2017, legalizes mobile money as a payment method,” the statement read in part.

“Refusal to accept it, even when offered, is a punishable offense, breaching legal tender regulations and potentially leading to fines, legal proceedings, or other legal sanctions,” it added.

The financial regulator also said law enforcement agencies have instructed to monitor and take action against any business that will fail to comply with the directive.

South Sudan launched its first Mobile money services in 2019, allowing users to send and receive money using mobile phones.

M-Gurush and Nilepay were the first to roll out mobile money services with partnership Zain South Sudan, one of the three telecom operators in the country.

In recent years, MTN and Digital, the other two telecom operators, have also launched also mobile money services under the names MoMo and Digicash, respectively.