Ethiopia has secured victories in two major international arbitration cases, successfully defending claims exceeding USD 850 million and strengthening its position in international dispute resolution.

The cases involved a Turkish construction company and a Netherlands-based firm, both of which sought substantial compensation from the Ethiopian government over alleged violations of investment protection rights.

The first case was brought by Akgun Insaat Makina Sanayii ve Dis Ticaret Ltd. Sti., which had obtained a license to develop an industrial zone and later filed a claim exceeding USD 500 million. The dispute arose after Ethiopian authorities found that the proposed project site was located near the Legedadi and Dire dams, two critical sources of potable water for Addis Ababa.

Authorities determined that the company had failed to provide a satisfactory Environmental Impact Assessment as required by law. A request was then made to relocate the project to safer alternative sites away from the dams in order to protect the city’s water supply. The tribunal dismissed the claim, affirming Ethiopia’s right to act in protection of public health and the environment.

The second case involved African Asset Finance Company Holding B.V., also known as Ethio Lease, which sought more than USD 350 million over regulatory enforcement measures it claimed had breached investment protections. Following proceedings in The Hague, the tribunal unanimously dismissed the claim and ordered partial reimbursement of Ethiopia’s legal costs.

The outcomes shield Ethiopia from significant financial liabilities and highlight the country’s growing capacity to manage complex international disputes. They also support ongoing efforts to position Ethiopia as a regional hub for arbitration and legal services.

Source: Ethiopian News Agency