(Juba) — The government of South Sudan has been ordered to pay $74.32 million (approximately SSP 345.6 billion at the official exchange rate of $1 = SSP 4,650, or SSP 520.2 billion on the parallel market at $1 = SSP 7,000) following a ruling by the International Chamber of Commerce (ICC) in a long-running dispute with Vivacell, a telecoms company that once operated in the country.
The arbitration ruling, issued on 26 May 2025, follows a legal battle that began in 2018 after the government suspended Vivacell’s operations over a tax disagreement. The ICC award includes a principal sum of $48.45 million, interest totalling $20.85 million, and legal and other associated costs of $5.02 million.
South Sudan’s Minister of Information, Michael Makuei, described the award as “exorbitant” and warned that such a payout could significantly harm the country’s fragile economy.
“This claim threatens the economic stability and livelihoods of the South Sudanese people,” he said, adding that the government’s legal team is reviewing the judgment to determine the next course of action.
Originally, Vivacell had claimed $2.9 billion in damages after its operations in Juba were halted in March 2018, following a dispute involving unpaid taxes and licensing fees amounting to $66 million. At the time, more than 200 local staff were left jobless.
The ICC tribunal ultimately dismissed 12 out of 17 claims lodged by Vivacell and its parent company, which is registered in the British Virgin Islands. Though the arbitration process is confidential and does not disclose full claim details, the final award is considerably smaller than the initial demand.
Vivacell began operating in what was then Southern Sudan in 2003, after receiving a licence from the New Sudan Telecommunication Corporation (NSTC). This licence was amended in 2007 in an agreement with the Ministry of Telecommunications and Postal Services.
The revised contract granted Vivacell significant concessions, including exemptions from customs duties, free land for network infrastructure, and exclusive rights over mobile frequency use and tariffs. The company agreed to pay $7.5 million for the licence but only paid $1.5 million, according to government records.
After South Sudan gained independence in July 2011, it created a new regulator, the National Communications Authority (NCA). By 2018, the NCA required all operators to pay new standardised licensing fees. Vivacell contested this demand, citing its pre-independence agreement, and refused to comply, which led to the suspension of its operations in March of that year.
Vivacell claimed that the 2007 agreement exempted it from paying further licence fees or customs duties, while granting it exclusive infrastructure and tariff rights. The government argued the company’s failure to obtain a post-independence licence amounted to tax evasion and regulatory non-compliance.
The shutdown resulted in the company abandoning its infrastructure and staff in the country. Vivacell was majority owned (75 percent) by Fattouch Investment Group of Lebanon, with the remaining 25 percent held by Wawat Securities, a company reportedly affiliated with South Sudan’s ruling SPLM party.
Following the ICC’s ruling, the government of South Sudan reaffirmed its commitment to protecting national interests and ensuring that the country remains attractive to legitimate investors.
A government statement noted that South Sudan is working to improve its investment environment by strengthening business regulations and focusing on sectors such as information and communications technology (ICT), agriculture, transport infrastructure, petroleum, mining, and energy. These efforts aim to diversify the economy and reduce its dependence on oil.
