A British court has ruled that South Sudan must repay $657 million to the African Export-Import Bank (Afreximbank) over unpaid pandemic and trade-related loans, according to Global Trade Review on Wednesday.
The U.K. High Court granted Afreximbank’s request for a summary judgment on May 8 after the South Sudanese government and its central bank failed to respond to the lawsuit or attend hearings. The Cairo-based lender had sought repayment under three loan agreements worth 63million, $250 million and $400 million, which South Sudan secured for trade infrastructure and COVID-19 relief.
Despite partial repayments, the loans defaulted by 2023. Afreximbank filed the case last year, arguing that South Sudan and its central bank—which guaranteed most of the debt—had no viable defense.
Judge Lionel Persey KC ruled that the defendants had “no real prospect of successfully defending the claims” and no justification for a trial. Court documents showed Afreximbank had repeatedly attempted to contact South Sudanese authorities, including through its London embassy, but received no substantive engagement.
South Sudan had previously discussed restructuring the debt, including a September 2023 proposal to repay via crude oil shipments. However, the government cited “unforeseen circumstances”—such as flooding, regional conflict and volatile oil prices—as reasons for not fulfilling the plan.
The ruling’s immediate impact remains unclear, as South Sudan faces escalating political turmoil. U.N. officials warn the country risks sliding back into civil war, which previously killed 400,000 people and displaced millions.
Afreximbank sought a detailed judgment to strengthen enforcement efforts in other jurisdictions, the court noted.