Toward Southern Self-Governance Under STC Leadership

Aden for strategic studies - 10 days ago

South Eye | Report - Exclusive

South of Yemen stands at a critical juncture. With growing instability in the north, deep public distrust in national institutions, and the failure of the Presidential Leadership Council (PLC) to deliver reform or protect southern interests, it is imperative for the South, under the Southern Transitional Council (STC), to establish a full and functioning self-governance model. This model must be institutionally independent, regionally supported, and recognized by international partners as the only legitimate governance authority in the southern regions (State).

The Central Bank: A Barrier to Economic Sovereignty

The Central Bank of Yemen (CBY), despite its relocation to Aden capital in 2016, has remained structurally tied to networks that benefit northern political elites, including factions affiliated with the Muslim Brotherhood and, indirectly, the Houthis. Repeated monetary mismanagement, unaccountable transfers, and manipulation of the local currency have directly harmed southern economic stability. The STC and southern authorities should:

Establish a Southern Monetary Authority (SMA) that takes control of:

Local banking regulations

Southern commercial bank licensing

Port and customs revenue management

Oversight of fuel imports and fiscal policy

Request technical advisory support from Gulf central banks and international monetary institutions.

This financial independence is essential for building trust with investors and the public and ensuring that southern resources are not diverted to perpetuate northern factions structures.


Rejecting the Unified Yemen Framework in Peace Talks

The assumption that peace in Yemen must be negotiated within a "unified Yemen" framework is no longer acceptable to the southern people. Since 1994—and most clearly the invasion of Houtis-Saleh in 2015—the concept of unity has been weaponized to suppress, occupy the South politically, economically, and militarily.

The Southern people will not accept any future fragile negotiations  on a unified Yemeni state. As , the STC should call for:

A parallel international track focused on southern sovereignty, endorsed by allies in Gulf Cooperation Council (GCC), the UN, and key stakeholders like the US and EU.

Recognition of the STC as the already official representative of the South in all multilateral forums and diplomatic initiatives.

A transition toward a Southern-led state-building process, beginning with institutional self-governance and culminating in internationally recognized independence.

The alternative—forcing the South to remain within a failed unified structure—risks perpetuating conflict, undermining stabilization, and alienating a population that is already administering itself in practice.

What is Expected from Regional allies and International Partners
Regional Allies:

Support the creation of southern financial and administrative institutions.

Form a Southern Stabilization and Development Compact, offering Gulf investment, humanitarian support, and training under southern control.

Assist in building southern border management, police, and counter-smuggling capabilities.

United States and EU:

Recognize the reality on the ground: The South is governed by southern forces, not Sanaa-based authorities.

Treat the STC as a legitimate sovereign actor, capable of entering security and economic agreements.

Redirect diplomatic frameworks toward post-unification solutions, starting with support for Southern governance infrastructure, anti-corruption efforts, and economic independence.

UN & International Financial Institutions:

Acknowledge the de facto separation between north and south.

Launch independent southern development frameworks, independent from Sanaa or PLC coordination.


Declaration of Self-Governance: A Prerequisite, Not a Goal

The STC should prepare to formally announce and operationalize a Southern Self-Governance Plan, as a stabilization, reform, and transitional governance model until full international recognition is achieved. The declaration should emphasize:

The failure of the unified republic and its institutions.

The Southern people's right to manage their own affairs.

Commitment to human rights, transparent institutions, and peaceful engagement with regional allies and the international community.

An open invitation for diplomatic missions, UN offices, and NGOs to work directly with southern authorities.

The South will no longer tolerate the subjugation of its economy, governance, and future to a northern-centric, corrupt, and failed central system. The Southern Transitional Council should prepare  to lead a new phase of southern governance that ensures regional stability, economic growth, and international cooperation. But this effort requires clarity and courage from regional allies and international partners, especially the UAE, United States, to recognize and support the new reality. The time to support Southern self-governance is now—not just for the sake of southern people, but for the broader peace and stability of the region.