Africa-Press – South-Sudan. JUBA, South Sudan (Eye Radio) – The Government of South Sudan and Afreximbank have settled a $657 million loan dispute, effectively suspending a court case filed by the bank earlier this year, a senior official has confirmed.
The agreement was reached on Friday, May 30, during a high-level meeting chaired by Vice President and Chairperson of the Economic Cluster, Dr. Benjamin Bol Mel. The meeting was attended by senior government officials and a delegation from Afreximbank.
The First Undersecretary at the Ministry of Finance, Arop Nuai, announced the development following high-level talks in Juba between South Sudanese officials and a visiting delegation from Afreximbank.
The bank, headquartered in Cairo, Egypt, had filed a lawsuit in May over the government’s failure to repay the loan. However, Nuai said the matter will no longer proceed in court, citing a renewed spirit of partnership and mutual understanding.
“We had a very good meeting,” Nuai said during an appearance on state broadcaster SSBC. “The bank has agreed not to continue with the court case, and we discussed opportunities for future investment, especially in the livestock and mining sectors.”
Afreximbank’s Chief Risk Officer, Elias Kagumya, acknowledged the economic difficulties facing South Sudan, including severe flooding that damaged oil infrastructure and the ongoing conflict in neighbouring Sudan, which has disrupted oil exports.
“We understand the force majeure events affecting South Sudan’s oil exports,” Kagumya said. “The government has demonstrated clarity on its economic priorities and the necessary steps to service our facility and improve revenue generation.”
Kagumya also expressed confidence in South Sudan’s renewed economic direction, crediting President Salva Kiir for the leadership appointments and the formation of a committee that has provided strategic guidance in resolving the financial impasse.
“We’re comfortable that the government has a path forward, not just in settling the arrears owed to Afreximbank, but also in strengthening its capacity to raise revenues and meet budgetary needs,” Kagumya added. “This understanding has allowed us to delay any court action and continue our partnership.”
The agreement marks a significant step in rebuilding financial confidence as South Sudan continues to navigate economic recovery amidst regional instability.
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