(SomaliNet) The Southern Sudan government has refused to allow Islamic banking system to operate in the south. The Government says it will breach the Comprehensive Peace Agreement. (GOSS) Council of Ministers in response from pressure of Islamic banks operating in Southern Sudan, for the Bank of Southern Sudan (BOSS) firmly refused to allow them to operate a mixed conventional/Islamic banking system in the Southern Sudan. In a statement on Wednesday April 18, Samson Kwaje, Minister of Information, made clear that such a move would be in clear contravention of the terms of the CPA. The CPA stipulates that the Southern Sudan will establish a conventional banking system, whilst the North will operate according to Islamic banking Principles. “You cannot do both”, he said.
As a result of this decision, the S. Sudanese minister said, a number of Islamic banks had indicated that they would withdraw from the Southern Sudan.