Reuters reports the Qatari-owned company has come under pressure from the government to prove it is working independently and not as an agent of the old Sudanese government in Khartoum.
The government of South Sudan is said to have forced the company to fire some of its workers and shut off part of its infrastructure as the mutual suspicion between Khartoum and Juba continues.
Zain is already seeing its market share shrink in South Sudan amid more competition, higher costs and a struggling economy.
The company, once one of the largest mobile service providers in Africa, has already sold its assets in 15 other African countries to India’s Bharti Airtel, only maintaining operations in Sudan and South Sudan.
Though some experts say Zain may have to withdraw from the country as the political and commercial risks exceed opportunities, the company says it plans to stay.
“The fact that we maintain the largest network and are the number one provider of mobile telecommunication services in the country clearly demonstrates the depth of our commitment to investment in South Sudan,” said the company in a statement.
Only 20 per cent of South Sudan’s 10.3 million people have a mobile phone, offering opportunities to operators in the country.