South Sudan’s National Communications Authority (NCA) has approved a phased adjustment to the telecommunications tariff exchange rate, effective from midnight on Thursday. The move aims to ease financial pressure on mobile network operators and prevent possible service disruptions.
NCA Director General Rizig Dominic Samuel explained that the decision seeks to ensure the long-term sustainability of telecom services. He highlighted that the sector is facing significant strain due to the growing gap between the regulated exchange rate and the prevailing market rate.
Samuel noted that mobile network operators currently pay taxes directly to the South Sudan Revenue Authority (SSRA) and do not remit revenue to the regulator. According to NCA data, the telecom sector generates between 18 billion and 25 billion South Sudanese pounds (SSP) annually, depending on usage levels.
He pointed out that international telecom traffic is benchmarked globally at around $0.04 per minute. At the official central bank exchange rate, this equates to roughly 181 SSP. However, operators have been required to use an outdated rate of 4,526 SSP per dollar for tariff calculations, while the commercial market rate stands at approximately 27,000 SSP per dollar.
This mismatch has caused substantial foreign exchange losses for operators — estimated at more than 22,000 SSP per dollar spent on operations. Samuel added that some companies have experienced sharp declines in monthly revenues when measured in dollar terms due to rising costs of sourcing foreign currency.
“The gap has placed operators under severe financial pressure,” Samuel said. He warned that some operators were considering scaling back infrastructure, especially in remote areas where operational costs are higher.
Under the new arrangement, an additional adjustment of about 70 SSP per minute will be added to the existing baseline tariff. The NCA stated that this measure will be reviewed periodically based on macroeconomic conditions.
The regulator will continue to monitor pricing of data packages, with any proposed changes requiring technical review and approval by the authority.
Samuel acknowledged public complaints about poor network quality and connectivity. However, he stressed that meaningful improvements depend on operators’ ability to import equipment, which requires reliable access to foreign currency.
The NCA is engaging with the central bank and financial institutions to improve foreign exchange access for the telecom sector. This is seen as essential for network upgrades and expansion to higher-capacity technologies.
