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AfricaFebruary 18 2011

South Sudan hopes its rebirth will revitalise its banks

Conflict, corruption and too many failed businesses left it with a sclerotic banking sector with little appetite for risk, but South Sudan hopes its status as a newly created nation state will encourage investors to rethink their approach to an economy that hopes to underpin its regeneration with its rich reserves of oil.
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South Sudan hopes its rebirth will revitalise its banksSouth Sudan inhabitants celebrate winning the vote for independence

The referendum on the secession of the south of Sudan earlier this year resulted in an overwhelming vote in favour of separation. More than 99% of registered voters cast their ballot between January 9 and January 15, and just under 99% of those voted in favour of the creation of a new state.

Secession will formally take place on July 9 and plans are now being developed to create a central bank and launch a new currency in South Sudan. Initially, however, the priority will be to address the more fundamental economic challenge.

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