Financial inclusion and financial literacy for solving social inequality in an economic and social being in South Sudan
Daniel Athior'o Atem Manyuon
By Daniel Athior’o Atem, Juba, South Sudan
Tuesday, 10 June 2025 (PW) — Financial inclusion is a developmental concept that seeks to mean that all persons/individuals have basic access to formal and informal financial services. Once this happens in a community or economy, the improvement of the welfare of the needy people and their incomes becomes a reality. At the level of financial institutions, inclusion increases the number of accounts – owners as well as access to credit. This in turn increases money for consumption, savings, education and health expenditures.
One of the tremendous factors leading to financial inclusion is financial literacy, which translates to knowledge about when, where and how to make possible decisions on budgeting, savings, and investment schemes that would generate more income as compared to the present state. Possibly, it is that ability, skills, knowledge and action by an individual towards making informed decisions about money and money directives.
Effort to financial literacy endeavor to harmonize inequality towards financial inclusion. Once financial literacy is attained, it improves access to finance by all members through provision of micro-credit as a social policy to reduce poverty at the grassroots levels. It also increases adoption of liberalization of credit policy with the main focus at individual households, and knowledge of financial innovations through technology such as digital finance and cryptocurrencies to all.
Financial literacy contributes towards financial inclusion through establishment of social enterprise at individual level or institution which translates effort to gender equality, anti-discrimination and sustaining environment. In brief, the process attracts a shifting paradigm to use of gas and renewed energy rather than firewood’s that is common. Despite this relationship, there is limited policy approaches towards financial inclusion and financial literacy.
First, financial literacy has been premised on a doctrine to provide every household with access to information and sufficient knowledge of a suite of modern financial services including savings, credit, insurance and payments to make good financial decisions. Thus, South Sudan must seek a financial literacy policy that would enable the education of all groups in the nation about recognizing and uptake of formal and informal financial services. Attaining financial literacy is achieved by realizing knowledge moves from individuals and small businesses into financial services in place.
Financial inclusion and financial literacy bring high knowledge to use budgets, savings, managing debts, investing and management of credit. These are always achieved through four financial literacy regulations: budgeting, expenditure tracking, debt management, and retirement planning. Financially literate individuals are mathematically and emotionally enlightened to be able to use money. This is key for the economic and climatic situation in South Sudan.
Financial literacy can improve digital and ICT knowledge, skills, and competencies towards financial products and services. In case such knowledge is received and used among the people of South Sudan, there can be no doubt to realize financial literacy and financial inclusions. While this sounds like a direct development in the financial sectors, it equally reflects the development of ICT and the local government sector since all including rural areas will be able to undergo digital.
Financial literacy enhances communication and interpersonal skills to improve financial services among members. It will ease the work of financial professionals and stakeholders who will share financial challenges as they seek solutions. This form of communication is similar to awareness of financial matters that can even improve new literacy approaches in the future within the context of South Sudan. This will set nationals on the pathway of economic innovation, invention and discovery which all focus on sustainable development. Intercommunication is a process that enables members to work together and share knowledge. It brings financial professionals to work and share knowledge with clients to achieve financial inclusion goals. Supporters of this approach must achieve trust, build sustaining relations and facilitate teamwork as well.
Financial literacy and inclusion will also stimulate financial problem-solving, which has been the main challenge to attain inclusion. Once this happens in a society like South Sudan, solid problem–solving skills will arise and this will encourage numerous stakeholders especially the youth to find more and better employment opportunities in similar developed sectors of the economy.
Once financial literacy is attained among the people of South Sudan, the acquisition of relevant analytical skills to identify financial trends will be developed, and opportunities for further financial skills and services enhanced. The people will be enlightened to determine if it’s palatable to make financial decisions or investments on certain issues. Financial literacy comes a long way with project management whose tools are planning and budgeting. The people will be able to make decisive decisions and allocate resources according to their needs. In other words, the economy of South Sudan will have people with improved skills to overall or forecast financial performance by delivering projects on time, within budget, and with good quality outcomes.
Similarly, financial inclusion is important to ease access to appropriate financial instruments, which will be constructed within South Sudan’s financial sector. It uplifts financial conditions and improves the general standard of living of the people who have similar knowledge to be used towards financial and economic development.
Financial inclusion improves the efficiency of the financial intermediation process, as well as deepening the financial system, holistically starting from the urban to rural or grassroots level. This would enable all people to enjoy excessively the advantages of improved technologies already in the economy.
Inclusion reduces income disparity by motivating the excluded individuals, households and groups to join in and invest in physical assets and self-education. This form of knowledge becomes a landmark in the effect of personal and individual development. In the long run, it creates a strong impact on economic development, invariably aiding poverty reduction and growth.
Generally, access to financial and non-financial banking services are crucial ingredient in realizing the potential of micro, and small enterprises in creating jobs, restraining poverty, and spurring economic growth. Financial inclusion is an unmasked prerequisite for economic growth and development as a result of its ability to enhance capital creation, finance sector saving, bolster requisite intermediation, and by implication, investment.
The author, Daniel Athior’o Atem, was the World Bank Blog4Dev2019 Winner for South Sudan||A member of the World Bank Youth Transforming Africa||Mandela Scholar. He can be reach via; atemathior@gmail.com
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