A Calculated Advance into Africa’s Newest Nation
When Joshua Oigara assumed the helm of Stanbic Bank Kenya & South Sudan late in 2022, he inherited what insiders describe as “the Group’s most complex market.” A decade after independence, South Sudan remains a frontier economy where 90 percent of public revenue is tethered to crude exports, security remains brittle, and the domestic currency gyrates between official and parallel‐market rates. Yet, buoyed by Standard Bank Group’s pan-African mandate and a pick-up in peace-building momentum, Oigara has quietly doubled down on Juba. The strategic intent, he told private investors in Nairobi this spring, is to ensure that “the first credible, internationally rated bank on the ground is ours” (Investor briefing, April 2023).
A CEO Shaped by Turnaround Credentials
Oigara is no stranger to high-stakes restructurings. During his tenure at KCB Group he steered the lender through Kenya’s interest-rate cap era and integrated National Bank of Kenya. Those skills are now being redeployed in Juba, where the Stanbic franchise operates under a restrictive foreign-exchange regime and faces frequent cash-in-transit constraints. According to central bank data, fewer than ten commercial banks maintain continuous liquidity in South Sudan; two have exited since 2021 (Bank of South Sudan, Annual Report 2022). The board in Johannesburg judged that a leader versed in regional regulatory diplomacy was indispensable.
Regulatory Triangulation Across Juba, Nairobi and Johannesburg
Stanbic’s South Sudan operation is legally domiciled in Nairobi while drawing clearing support from Johannesburg. The arrangement reduces sovereign-risk exposure, yet it obliges Oigara to choreograph synchronous approvals from three central banks each time capital is injected or repatriated. Officials in Juba, wary of capital flight, now require local retention of 70 percent of exporters’ foreign currency earnings. Kenyan regulators, for their part, monitor Stanbic’s cross-border liquidity lines under the East African Community’s still-nascent supervisory college. South Africa’s Prudential Authority endorses the model but imposes Basel III capital buffers on the parent balance sheet. A senior Treasury official in Pretoria, speaking off record, described the alignment as “a textbook case of maximising regulatory arbitrage without breaching a single statute.”
Banking in a Fragile Petro-State
South Sudan pumps roughly 160,000 barrels per day, routed through Sudan’s Melut Basin pipeline. Oil revenue accrues to the government via an escrow in Uganda before trickling into the domestic budget. Stanbic’s calculus is that any elevation in production—should the cease-fire hold—will translate into larger government deposits and, by extension, syndicated lending opportunities to contractors rebuilding roads, river ports and power grids. The World Bank projects real GDP growth of 3.2 percent in 2024, contingent on oil prices averaging USD 80 per barrel (World Bank South Sudan Update, June 2023). For Oigara, these numbers justify a medium-term capital allocation of USD 40 million, partly funded through a Johannesburg-listed sustainability bond.
Currency, Compliance and Conflict Risks
The central paradox of banking in Juba is that oil receipts are dollarised while most domestic borrowers earn in the volatile South Sudanese pound. Stanbic is mitigating mismatch risk by expanding its correspondent banking lines for humanitarian agencies funded in hard currency. Compliance departments in New York and London have grown wary of the country’s exposure to sanctioned armed groups, but Oigara argues that “a fully transparent bank can become part of the de-risking solution rather than the problem” (Bloomberg interview, May 2023). He is upgrading know-your-customer protocols and introducing biometric onboarding to satisfy enhanced due diligence demanded by global clearing banks.
Betting on Oil-Backed Growth and Digital Inclusion
Stanbic’s growth narrative is not confined to hydrocarbons. Remittances from the South Sudanese diaspora reached an estimated USD 1 billion in 2022, eclipsing foreign direct investment for the first time (International Organization for Migration, December 2022). The bank plans to link its mobile-money rails in Kenya to a dollar-denominated wallet in Juba, allowing workers in Eldoret or Kampala to settle school fees in Wau with real-time currency conversion. Digital channels, executives contend, could circumvent the chronic shortage of bricks-and-mortar branches outside the capital.
Strategic Horizon Beyond 2024
Still, sceptics recall that two previous international lenders withdrew from South Sudan after the 2013 and 2016 rounds of violence. A senior economist at the Juba-based Sudd Institute notes that the upcoming elections, rescheduled for late 2024, are a looming inflection point. “If the vote is credible, oil futures, sovereign risk premiums and bank profitability will move in the same positive direction,” he observes. Until then, Stanbic’s board will operate under what Johannesburg insiders call a “seat-belt strategy”—capital stays strapped in, expansion remains incremental, and every geopolitical tremor is priced in real time. For now, Oigara’s high-wire act epitomises the calculated optimism that characterises frontier-market banking in an age where barrels and banknotes remain inseparable.