Launch of USSD Technology for Banking Services in Sudan: An Opportunity to Deepen Financial Inclusion and Expand the Digital Economy

Opinion

Dr Marwa Qabani
The announcement by Sudan’s Ministry of Digital Transformation and Communications regarding the launch of USSD technology for the banking sector, in coordination with the Central Bank of Sudan and the Telecommunications and Postal Regulatory Authority, represents an important step in the digital transformation of Sudan’s financial sector.
This move does not merely introduce a new technological channel for accessing banking services; rather, it constitutes an economic instrument capable of expanding the base of users interacting with the banking system and strengthening financial inclusion in the country.
The initiative comes at a time when the need for low-cost, easily accessible digital financial solutions is increasing, particularly amid challenges with internet infrastructure and limited smartphone penetration in certain regions.
A Simple Technology with Broad Economic Impact
USSD (Unstructured Supplementary Service Data) is a communication protocol that allows users to access interactive services by dialling short codes such as 123#, without requiring an internet connection or installing smartphone applications.
A menu of services then appears, enabling users to perform a variety of financial operations, such as money transfers, balance enquiries, and viewing transaction histories.
Despite its simplicity, this technology has played a central role in expanding financial services in many developing countries, as it leverages existing mobile network infrastructure and works on all types of phones, including basic feature phones.
In Sudan’s case, this technology takes on added significance given the gap between the widespread use of mobile phones and the relatively limited use of banking services.
A Gap Between Mobile Penetration and Banking Services
Estimates indicate that mobile phone penetration in Sudan exceeds 70% of the population, while the proportion of people using banking services remains comparatively low, at around 30%.
Meanwhile, electronic wallet services have expanded noticeably in recent years. The number of digital wallets is estimated at approximately eight million, reflecting a user base with considerable potential for growth if easier channels for accessing financial services become available.
These figures reveal a significant yet underutilised opportunity: technologies such as USSD could help bridge the gap between widespread mobile phone ownership and limited banking service use.
Sudan’s Early Experience with Mobile Payments
Sudan was not absent from the mobile payments landscape. Such services began as early as 2015, through a central mobile payments system (Gemalto system) operating within the central GMPP platform, run by the Electronic Banking Services Company (EBS)—the technical arm of the Central Bank of Sudan. The platform operates on an electronic wallet system.
During that period, electronic wallet services were launched through cooperation between banks and telecommunications companies, including:
“Goroshi” service, a partnership between Sudani Telecommunications Company and Faisal Islamic Bank of Sudan.
“Mobile Cash” service, launched through cooperation between MTN Sudan and Bank of Khartoum (or Bank Al-Neel, depending on the reference context).
These services relied primarily on USSD technology to open and activate electronic wallets, transfer funds between them, and facilitate cash withdrawals and deposits through a wide network of agents.
However, the experience faced several challenges, particularly in system integration between banks and telecommunications companies, as well as in the service’s limited geographical coverage. The new initiative aims to address these challenges through a more integrated regulatory and technical framework.
The Importance of Institutional Coordination
The launch of mobile financial services requires close coordination between regulators of both the financial and telecommunications sectors.
On the one hand, the Central Bank of Sudan plays a key role in:
Regulating digital financial services
Establishing security and compliance standards
Linking banks with shared technological systems
Protecting customer data
On the other hand, the Ministry of Digital Transformation and Communications performs a complementary role by:
Providing telecommunications network infrastructure
Coordinating with mobile network operators
Allocating short codes for services
Ensuring service stability across telecom networks
Such institutional integration is a decisive factor in the success of any digital payments ecosystem.
Expected Economic Impact
The introduction of USSD-based banking services could generate several significant economic benefits, including:
1. Expanding the Banking Customer Base
By enabling citizens in rural areas, mining regions, and agricultural zones to access financial services without the need for physical bank branches.
2. Reducing the Cost of Financial Services
Delivering services via mobile phones is far less costly than expanding traditional bank branch networks.
3. Increasing Transparency in Financial Transactions
This contributes to integrating more economic activities into the formal economy.
4. Supporting Government Transfer Programmes
These channels could be used to implement social protection programmes and cash transfers more efficiently.
Financial Inclusion as a Strategic Objective
Financial inclusion is considered a key objective of modern economic policy, given its role in enhancing financial stability and stimulating economic growth.
Experiences from many countries show that expanding digital financial services can lead to higher savings rates, more efficient payment systems, and reduced dependence on cash.
Given the widespread use of mobile phones in Sudan, USSD technology could serve as a bridge connecting millions of citizens to the formal financial system, particularly those who do not own smartphones or lack continuous internet access.
Conclusion
The launch of USSD services for the banking sector in Sudan represents a practical step towards building a more inclusive and resilient digital financial ecosystem.
If implemented effectively—alongside stronger integration between banks and telecommunications companies and an expanded agent network—it could help shift a significant portion of financial transactions from the informal cash-based economy to the formal economy.
In an economy such as Sudan’s, where infrastructure challenges intersect with an urgent need to expand financial inclusion, the most advanced technologies are not always the most effective solution. Sometimes, simpler technologies—such as USSD—are those most capable of delivering the greatest economic impact.
Dr Marwa Qabani
Strategic Planning and Digital Transformation Expert

Shortlink: https://sudanhorizon.com/?p=12099