Governor Ohisa seeks gold investment to diversify economy in third Central Bank stint

JUBA – Governor Johnny Ohisa Damian has pledged to pursue investment in South Sudan’s gold sector as part of a broader strategy to diversify the national economy, as he begins his third tenure at the helm of the Bank of South Sudan.

Ohisa took the oath of office at the State House on Monday, returning to a position he previously held in two earlier appointments over the past decade. His reappointment comes as the country faces a severe liquidity crisis, declining oil revenues, and mounting pressure to restore confidence in the financial system.

In his acceptance remarks, Ohisa said reducing South Sudan’s dependence on oil would be central to his agenda, highlighting investment in a national gold purchase project as a potential avenue to boost revenues.

“Governor Johnny Ohisa Damian highlighted the necessity of diversifying the economy by focusing on investments in the gold purchase project to improve national revenues and reduce dependency on oil,” he said as quoted by the Presidential Press Unit (PPU).

The statement noted that, speaking during the swearing-in ceremony, President Salva Kiir directed the Bank, the Ministry of Finance, and the government’s macro-economic team to coordinate closely in a strategic push to stabilise the struggling economy.

The President reportedly outlined three national priorities requiring urgent financial mobilisation: peace and security, economic recovery, and preparations for general elections.

“The President tasked the Central Bank Governor to take the lead in resolving the existing challenges by addressing the liquidity crisis, reforming the banking sector, and restoring public confidence in the financial system through sound and disciplined monetary policies,” the statement read.

The Bank of South Sudan plays a central role in shaping monetary policy, supervising commercial banks, and maintaining financial stability — responsibilities now at the heart of renewed efforts to revive the economy.

But there is a problem

While Ohisa’s pledge to pursue gold investment signals a shift toward economic diversification, South Sudan currently does not have a formal industrial gold mining sector, and previous government efforts to purchase gold as a reserve asset to back the economy have failed to materialise.

In recent years, official plans to establish state-led gold buying and export schemes stalled amid limited geological surveys, weak regulatory frameworks, insecurity, and lack of investor confidence. Much of the gold trade in the country remains informal or cross-border, with minimal contribution to public revenues.

It remains unclear how the new Central Bank leadership intends to overcome these structural challenges, including the absence of large-scale production, inadequate mining legislation enforcement, and limited institutional capacity to regulate or monetise the sector.

Cash shortage deepens public frustration

South Sudan continues to experience an acute shortage of physical South Sudanese Pounds (SSP) in commercial banks and everyday circulation. Many banks lack sufficient banknotes to meet customer demand, forcing clients to queue for hours only to withdraw limited amounts — often capped at about SSP 100,000 (approximately USD 14) — even when they hold larger account balances.

The shortage has fuelled public anger and raised concerns over irregular currency circulation outside formal banking channels.

Recently, prominent businessman Ayii Duang Ayii warned that Juba’s worsening cash crisis may be driven by illicit financial practices, describing the situation as “money laundering in disguise.”

He alleged that some officials are exchanging USD 100 for as much as SSP 1.4 million on the black market, likening the practice to the locally known “cancer cheque” scheme — a predatory lending system once banned by the government due to exorbitant interest rates.

Ayii also questioned how newly printed banknotes were appearing in informal markets while commercial banks claim they have not received fresh currency supplies.

“These notes carry the signatures of the former finance minister and the former central bank governor,” he said. “If banks have no money, how did it reach the streets?”

He urged the Economic Security Bureau to investigate individuals allegedly fuelling the liquidity crisis.

Ayii further criticised the policy of paying civil servants through bank accounts, saying many workers receive salary alerts but remain unable to withdraw their wages.

“People receive alerts that their pay has arrived, but they cannot access it,” he said.