The UK High Court has ruled in favor of the African Export-Import Bank (Afreximbank) in a legal battle against the Republic of South Sudan, ordering the East African nation to repay US\$657 million in outstanding debts.
The judgment, issued on May 8, enforces repayment of three loan agreements totaling US\$713 million, which were issued to support trade infrastructure and respond to the economic impacts of the Covid-19 pandemic. Despite some initial payments, South Sudan defaulted on the loans by 2023.
Afreximbank brought the case before the UK court last year, also naming South Sudan’s central bank — a guarantor of the loans — as a co-defendant. During a January hearing, Afreximbank described the dispute as a straightforward debt claim, stating there was “no conceivable defence.” The court agreed, with Judge Lionel Persey KC granting a summary judgment, citing the defendants’ failure to respond or appear.
According to court documents, South Sudan had previously engaged in restructuring talks with Afreximbank and proposed settling the debt through crude oil shipments. However, the proposal was never fulfilled. A letter from South Sudan’s government in January 2024 blamed the breakdown on flooding, regional conflict, and volatile oil prices, while requesting revised repayment terms.
It remains unclear how the UK ruling will be enforced, particularly amid growing instability in South Sudan. The country faces renewed violence that threatens to unravel its fragile 2018 peace deal, with the United Nations warning of a potential return to full-scale civil war.