The USSD Revolution and Financial Inclusion

Dr Mohammed Awad Mohammed Metwally
The announcement enabling Unstructured Supplementary Service Data (USSD) technology for mobile banking transfers in Sudan represents a strategic turning point in the country’s digital transformation and a smart step towards overcoming the traditional infrastructure constraints that have long restricted the banking sector. Although the move may appear, at first glance, to be merely a routine technical measure, it in fact carries a comprehensive economic philosophy aimed at integrating broad segments of society into the formal economic cycle.
The importance of this technology lies primarily in its ability to break the monopoly of smartphones and internet connectivity over financial services. It enables users to perform complex transactions—including money transfers, bill payments, and airtime purchases—through simple short codes that operate even on the weakest communication networks and the most basic mobile devices. This makes it an ideal instrument for achieving financial inclusion in a country characterised by geographical diversity and varying levels of income and technological literacy. In essence, it forms a bridge across the digital divide between urban and rural areas, and between the elite and working classes.
The systematic impact of implementing this service extends deep into the structure of the Sudanese macroeconomy. It functions like a surgical instrument in tackling the shadow economy, or informal sector, which accounts for a significant share of financial transactions in the country. By digitising everyday transactions, it becomes easier to trace financial flows and monitor fund movements. This provides economic decision-makers and the central bank with accurate, real-time data to design effective monetary policies, combat money laundering, and strengthen principles of transparency and institutional governance.
Moreover, this technology offers a powerful remedy for the recurring liquidity crises that have exhausted both citizens and the state. As society gradually shifts towards reliance on digital cash, demand for physical currency inevitably declines. This reduces pressure on bank withdrawal windows and the substantial costs associated with printing, securing, and transporting cash. Mobile phones are thus transformed into secure digital vaults and mobile wallets, eliminating the risks of carrying cash and mitigating the consequences of physical monetary inflation.
At the levels of the productive and service sectors, USSD technology opens unprecedented opportunities for grassroots economic growth. Small and medium-sized enterprises, street vendors, and craft workers can now access digital payment systems at almost zero operational cost, without the need to invest in expensive point-of-sale (POS) devices or costly internet subscriptions. This transformation will undoubtedly stimulate local e-commerce, while also facilitating government collection of fees, taxes, and customs duties. In doing so, it reduces the loopholes through which administrative corruption often occurs and enhances the efficiency of state revenue collection.
The human and social dimensions of this technology are also evident in its ability to facilitate family remittances across Sudan’s states and to support social protection programmes by delivering direct cash assistance to beneficiaries in remote villages and rural areas with speed and security. In this regard, Sudan can draw inspiration from pioneering international experiences such as M-Pesa in Kenya, which revolutionised the country’s GDP and brought millions into the formal financial services system. Similar experiences in neighbouring countries such as Ethiopia, Egypt, and Tanzania demonstrate that simple technologies often hold the key to sustainable development.
Within the context of innovation and entrepreneurship, enabling this technology benefits not only the end consumer but also creates fertile infrastructure for FinTech start-ups and entrepreneurs. It allows the development of specialised applications and services in areas such as digital microfinance, micro-insurance, and agricultural supply chain management. A farmer working in the fields, for instance, could receive payment for crops directly on a mobile phone, eliminating exploitation by intermediaries and accelerating financial cycles that support national production.
Furthermore, the future integration of this technology with remittance systems for Sudanese expatriates could provide a legitimate and secure channel for the flow of foreign currency into the banking system. This would help stabilise the exchange rate and strengthen the balance of payments with vital resources that previously leaked through informal channels.
However, sustaining this transformation and maximising its benefits depends on a robust regulatory and technical environment. In the digital economy, trust is the true currency. This makes it essential to raise public awareness and train users in safe transaction practices to avoid risks such as socially engineered fraud. Telecommunications companies must also commit to maintaining service quality and network stability under heavy demand, while close coordination with banks is required to ensure system interoperability, enabling customers to transfer funds seamlessly across different banks and networks.
At the same time, fully harnessing the potential of this technological leap requires addressing several fundamental challenges. Chief among them is restoring and strengthening public confidence in the banking system, and ensuring the security and confidentiality of financial transactions against cyberattacks and social engineering fraud.
True success will require close coordination and integration between central and commercial banks, on the one hand, and telecommunications companies, on the other, to ensure stable networks and smooth operations across platforms. This must be accompanied by a flexible regulatory and legislative framework that protects consumers and establishes pricing policies that encourage digital adoption rather than discouraging users through excessive fees.
We therefore stand today before a foundational building block for constructing a resilient and inclusive digital economy. If this step is managed with a comprehensive national vision, it will not merely serve as a means of financial transfer. Still, it will become a central engine for rebuilding Sudan’s financial system on the principles of efficiency, inclusion, and social justice.
Transaction fees and commissions must remain minimal to encourage behavioural transition from cash to digital systems, alongside a legislative framework that protects consumer rights and guarantees the privacy of financial data.
What we are witnessing today is not merely the introduction of a technical service, but rather a redefinition of the financial and social contract in Sudan. If a clear strategic vision guides this transformation, it could become the cornerstone of building a strong, transparent national economy capable of competing in the modern digital age, allowing Sudan to emerge as a model of innovation-driven, inclusive development.

Shortlink: https://sudanhorizon.com/?p=12152