A Hybrid Approach to Indigenous and Formal Financial Inclusion among Nuer Agro-Pastoralist Communities in South Sudan
Chuol Gew Nhial Ngeprial¹, Steve Ouma Akoth² and Wilkins Ndege Muhingi³
1 & 2 Institute for Social Transformation, Tangaza University, Nairobi, Kenya
3Jomo Kenyatta University of Agriculture and Technology
Email: chuolngeprial@gmail.com
Abstract: Financial inclusion is often understood through formal banking, credit, insurance and digital services, potentially overlooking indigenous mechanisms through which communities mobilise resources and manage risks. This article examines the integration of indigenous financial mechanisms with complementary formal services among Nuer agro-pastoralist communities in Uror County, Jonglei State, South Sudan. A mixed-methods approach generated data from 410 household questionnaires, 30 key informant interviews and six focus group discussions, supplemented by observation and document review. Indigenous financial practices recorded a composite mean of 4.29, perceived socio-economic transformation 4.09, and integration indicators 4.17. Pearson correlation revealed a strong, positive and statistically significant association between indigenous financial inclusion and perceived socio-economic transformation (r = .789, p < .001, N = 410). However, the cross-sectional design does not establish causality. Qualitative findings highlighted livestock-based wealth management, reciprocal lending, kinship support and community savings, alongside constraints including conflict, displacement, livestock losses, gender inequality and weak institutional linkages. The article proposes the Borchar Hybrid Financial Integration Framework (BH-FIF), founded on Indigenous Institutional Primacy, Institutional Complementarity and Contextual Sustainability. The framework advances a context-sensitive approach to financial inclusion, requiring piloting and evaluation to establish its practical effectiveness.
