The Co-operative Bank of South Sudan, a subsidiary of Kenya's Co-operative Bank Group, has signed a pivotal agreement with the United Nations Development Programme (UNDP) to expand financial services to rural communities in the country. The partnership is a core component of the multi-donor Rural Enterprise and Agricultural Development (READ) project, a seven-year initiative designed to transform South Sudan's agricultural economy and reduce its dependency on oil.

The project is principally financed by a USD $20 million (approximately KSh 2.6 billion) grant from the International Fund for Agricultural Development (IFAD), a specialized UN agency. The total funding exceeds $25 million (KSh 3.3 trillion) with additional contributions from the South Sudanese government ($1.4 million), the Co-operative Bank ($1.8 million), UNDP ($1.4 million), and local communities ($700,000), according to statements made at the signing ceremony in Juba on Friday, November 21, 2025.

Strategic Importance for Kenya

This initiative solidifies the Co-operative Bank of Kenya's position as a key financial player in South Sudan, a market of significant strategic interest to Nairobi. Kenyan businesses have substantial investments in South Sudan's banking, insurance, aviation, and hospitality sectors. South Sudan is also a critical export destination for Kenyan goods, making its economic stability a priority for Kenya. The Co-operative Bank of Kenya holds a 51% stake in its South Sudan subsidiary, a joint venture with the Government of South Sudan which holds the remaining 49%.

Elijah Wamalwa, Managing Director of the Co-operative Bank of South Sudan, stated that the partnership was the result of years of planning. "We want a future where a farmer in Nimule or Torit can access credit as easily as someone in Juba," Wamalwa said at the Juba ceremony. The bank's role will focus on expanding rural financial services, increasing access to credit, and developing new financial products, including agency banking and a mobile-based platform.

Project Scope and Impact

The READ project aims to reach approximately 162,000 beneficiaries, or 27,511 rural households, across seven counties: Aweil, Renk, Nzara, Yambio, Maridi, Terekeka, and Magwi. The initiative places a strong emphasis on inclusivity, with a target of 50% women and 70% youth among its beneficiaries. The project's overarching goal is to improve food security, boost incomes, and build resilience among rural households by empowering Rural Producers' Organizations (RPOs), including cooperatives and savings groups.

Caroline Mwongera, IFAD's country director, described the agreement as a "transformational step in strengthening South Sudan's rural financial systems." She highlighted that the project will utilize credit, cooperative development, and financial literacy as key tools for achieving long-term rural transformation. For many farmers in South Sudan, formal banking services remain inaccessible, often requiring hours of travel to the nearest financial institution.

A Push for Economic Diversification

Officials emphasized the project's role in South Sudan's broader economic strategy. Ligane Sene, UNDP's deputy representative and senior economist, noted that the initiative provides a timely opportunity to diversify the nation's oil-dependent economy and tackle challenges like low crop yields and weak market linkages. "When farmers work in groups, they gain the power of scale," Sene remarked. "That is how we move from food imports to food self-sufficiency." The project is also expected to accelerate South Sudan's transition to a cashless economy, supported by a new national payment framework.

The READ project will be implemented over six to seven years and is structured around three main components: the development of Rural Producers' Organisations, the provision of inclusive rural financial services, and the strengthening of policy and regulatory frameworks for sustainable rural enterprise. The Co-operative Bank of South Sudan will specifically implement the second component focused on financial services. The project officially became effective on August 1, 2023, following the signing of a financing agreement between IFAD and the Government of South Sudan.