South Sudan Achieves Landmark Victory in Vivacell Arbitration, Claims Reduced from $2.9 Billion to $48 Million
By Denilson Deneki
The Government of South Sudan has secured a significant legal victory in an international arbitration case against Vivacell, also known as Network of the World (NoW), and its investor. The case, which initially sought an astonishing USD 2.9 billion in damages, concluded with a tribunal ruling that the country owes only USD 48.45 million, plus interest and legal costs — a dramatic reduction in potential liability for the young nation.
The arbitration was conducted under the auspices of the International Chamber of Commerce (ICC). It arose from Vivacell’s exit from South Sudan’s telecom market in 2018 amid disputes over regulatory compliance and licensing fees imposed by the National Communication Authority (NCA).
Government Praises the Outcome
South Sudan’s Minister of Information, Communication Technology and Postal Services, who also serves as the government spokesperson, described the ruling as a “testament to our commitment to upholding law and order in our business practices and to defending the nation against baseless claims.”
Background of the Dispute
Vivacell launched operations in South Sudan in 2003 after securing a telecommunications license from the then New Sudan Telecommunication Corporation (NSTC). The license was amended in 2007 under the Government of Southern Sudan, providing benefits such as tax breaks, duty exemptions, free land, and favorable frequency terms. However, Vivacell reportedly paid only USD 1.5 million of the USD 7.5 million required for the license.
Following South Sudan’s independence in 2011, the government established the National Communication Authority (NCA) to regulate the telecom sector. In 2018, the NCA sought to enforce standard licensing fees, which Vivacell refused to pay. Consequently, the NCA suspended Vivacell’s license, prompting the company to withdraw from the market, abandon infrastructure, and lay off over 200 local employees.
Vivacell and its parent company responded by initiating international arbitration, alleging damages and claiming USD 2.9 billion in compensation.
Legal Battle and Tribunal’s Ruling
South Sudan assembled a team of experienced international legal experts in telecommunications and economics to defend its interests. Their strategy focused on challenging the validity of Vivacell’s claims and safeguarding national sovereignty.
In November 2022, the tribunal issued a Partial Award that significantly curtailed Vivacell’s claims. A subsequent hearing in April 2024 helped determine the final value of the dispute.
On May 26, 2025, the tribunal announced that South Sudan is liable for only USD 48,452,035, plus interest and legal costs — a substantial victory for the government, which had maintained that Vivacell’s claims were “completely without merit.”
Future Steps and National Implications
The South Sudanese government is currently reviewing the tribunal’s full decision and considering its next steps. The Minister reaffirmed the government’s dedication to protecting public resources and ensuring that foreign investors respect South Sudan’s laws.
“This decision not only affirms our legal position but also sets a precedent for fair and lawful engagement in our markets,” he stated.
The outcome is seen as a milestone in South Sudan’s efforts to foster a transparent, rules-based investment environment. It also sends a strong message of the country’s resolve to defend its sovereignty through legal and diplomatic channels.
