Arop
Juba – Al-Naeim Mubarak Kuol
South Sudan’s Minister of Information and official government spokesperson, Hon. Michael Makuei, announced today that the International Arbitration Tribunal has issued its final ruling in the legal dispute between the Government of South Sudan and the telecommunications company “Vivacell / Network of the World (NoW).” The tribunal reduced the compensation claim against the government to $48.4 million, down from the $2.9 billion initially demanded by the company.
Speaking at a press conference held at the Ministry’s headquarters in Juba, Makuei described the ruling as a major legal victory for the state. He praised the national legal team for their dedicated defense of the country’s interests, highlighting that the team worked without compensation and covered their own travel expenses. In contrast, a British law firm that supported part of the defense was paid professional fees.
Makuei added that the government will review the case details in the coming period and emphasized that Vivacell must compensate the government for the damages it caused and settle its outstanding obligations to the state.
The minister pointed out that Vivacell received extensive privileges when entering the South Sudanese market, including ten-year tax and customs exemptions and free land allocations. However, the company failed to fulfill its obligations and later refused to pay the regulatory fees and taxes imposed on all telecommunications operators, which ultimately led to the revocation of its license in 2018.
Makuei further revealed that among Vivacell’s shareholders were high-profile entities, including individuals affiliated with the Sudan People’s Liberation Movement (SPLM). He noted that the company abruptly abandoned its equipment and exited the country without prior negotiation, resulting in the loss of over 200 local jobs.
Background of the Dispute
The dispute dates back to 2003, when NoW was granted a license to operate in South Sudan under the name “Vivacell,” through an agreement with the New Sudan Telecom Corporation. The license was amended in 2007, granting the company a package of exceptional benefits in exchange for a fee of $7.5 million—of which only $1.5 million was paid.
Following South Sudan’s independence in 2011, the government established the National Communications Authority (NCA), which in 2018 called on Vivacell to regularize its status and pay the required fees like other operators. The company refused, and its license was subsequently suspended. Vivacell left the country without entering negotiations and later filed for international arbitration, demanding $2.9 billion in compensation.
In November 2022, the tribunal issued a partial ruling reducing the claims. A second hearing was held in April 2024 to determine the final compensation amount, which was delivered on May 26, 2025.
Commitment to Rule of Law
The government stated that the ruling reflects South Sudan’s commitment to the rule of law and its determination to protect national interests within the framework of transparency and international justice. Officials described the decision as a legal precedent that will boost investor confidence and help build a disciplined and balanced investment environment.
The government affirmed that it will assess the ruling in detail before determining its next steps, while reiterating its commitment to defending the country’s rights on all legal fronts.
Admin
