Hej,
Victoria from Techpoint here,
Here’s what I’ve got for you:
- South Sudan faces $74M penalty over Vivacell dispute
- Customers in chaos after Heroshe fails
- Jumia’s top investor dumps the eCommerce stake
South Sudan faces $74M penalty over Vivacell dispute
South Sudan is facing a $74.32 million penalty after an international tribunal ruled in favour of Vivacell, a Lebanese telecom operator, over a failed investment agreement. The International Chamber of Commerce (ICC) tribunal’s decision includes a principal amount of $48.45 million, interest of $20.85 million, and legal costs of $5.02 million.
Vivacell, operating under the trade name Network of the World, had secured significant concessions from the Sudanese government before South Sudan’s independence in 2011. These included tax exemptions, free land for infrastructure, and favourable licensing terms. However, post-independence, South Sudan’s government accused Vivacell of operating without a valid licence and evading taxes amounting to $66 million, leading to the suspension of its operations in 2018.
Initially, Vivacell sought $2.9 billion in damages, but the ICC tribunal significantly reduced the claim. South Sudan’s Information Minister, Michael Makuei, hailed the reduction as a victory, emphasising the government’s commitment to upholding international law and protecting national interests.
Despite the reduced penalty, the financial burden remains substantial for South Sudan’s struggling economy. The government has indicated plans to offset the compensation by accounting for losses incurred due to Vivacell’s operations under an outdated license. Civil society groups have called for greater transparency in the government’s handling of the case and its implications for foreign investment.
Vivacell’s exit from South Sudan left over 200 employees jobless and raised concerns about the country’s investment climate. The government asserts that it is taking measures to ensure South Sudan remains a safe destination for foreign investors, emphasising sectors like ICT, agriculture, and energy for economic diversification.
This case underscores the complexities of post-independence legal transitions and the importance of clear regulatory frameworks for foreign investments. As South Sudan navigates its economic challenges, the outcome of this arbitration may influence future dealings with international investors.
Customers in chaos after Heroshe fails
For months now, hundreds of Nigerians have been left in limbo — and some even in hiding — after trusting their goods and businesses to once-reliable shipping startup, Heroshe. What started as minor delays has spiralled into full-blown chaos, with many customers still waiting for packages shipped as far back as September 2024.
Take Dan*, for example, a gadget seller in Lagos. After using Heroshe to import iPhones from the US, he went from managing pre-orders to dodging police and angry customers. “People were threatening my family. I had to shut down my shop and disappear,” he told Techpoint Africa. “I lost everything; I even missed my grandfather’s funeral.”
Founded in 2019, Heroshe built a strong reputation connecting Nigerians with goods from the U.S., UK, and China. But things took a turn in 2024 when the company abruptly moved its U.S. warehouse operations from Texas to Delaware. What was supposed to improve service ended up breaking it completely.
A former employee shared that the switch was rushed, within three weeks, they shut down the long-running Texas warehouse, fired the entire Houston team, and left customers scrambling to reroute their shipments. “Everything went downhill after that,” the ex-staffer said.And that’s just scratching the surface. Want to know how it all unravelled and what’s next for the people affected? Check out Sarah’s story.
Jumia’s top investor dumps the eCommerce stake
Jumia just lost its biggest institutional backer. Baillie Gifford, which once held a hefty 18 million-share stake in the African eCommerce company, has sold everything, walking away entirely by May 2025. That’s a major pullout considering it held over 7% of Jumia as recently as late 2024.
The timing couldn’t be worse. Jumia’s share price has taken a beating, tumbling from over $26 during its 2019 IPO to around $2.50 now. Baillie Gifford likely exited with significant losses, raising fresh questions about investor confidence in Jumia’s long-term play.
And the numbers don’t inspire much hope either. In Q1 2025, Jumia’s revenue dropped 26% year-on-year to $36.3 million. The only silver lining? It halved its net loss to $16.7 million, thanks to budget cuts, scaled-back operations in markets like South Africa and Tunisia, and a leaner marketing strategy.
But Jumia’s still under pressure. Global players like Temu and Shein are making bold moves across the continent. Temu’s already offering bargain-basement prices in Nigeria, and Shein is wooing shoppers in Kenya, Ghana, and South Africa with influencer-driven campaigns.
To compete, Jumia is betting big on Chinese sellers. CEO Francis Dufay says they’re doubling down on international vendors and building a stronger product pipeline, especially from China, to match the competition’s pricing power and speed.
Still, losing Baillie Gifford stings. It may make it harder for Jumia to attract new institutional backers. And with profitability still a long-term target (2027), the road ahead looks steep and crowded.
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Have a superb Thursday!
