Egyptian investors resort to int’l arbitration over businesses harmed in Tigray’s conflict

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Mon, 08 Feb 2021 - 07:31 GMT

Forces fighting in Tigray in Ethiopia - REUTERS

Forces fighting in Tigray in Ethiopia - REUTERS

CAIRO – 8 February 2021: Negotiations between Egyptian investors and the Ethiopian government are heading to a dead end, with regard to the existing Egyptian investments in Tigray region, where an armed conflict has been ongoing since November 2020.

 

The Ethiopian side has set conditions that their Egyptian counterpart should come to Ethiopia to negotiate this dispute, but the Egyptian side rejected due to the lack of guarantees.  

 

The arrangements have not witnessed any guarantees that an agreement can be reached and satisfy both parties. That’s why Alaa el-Saqty, vice president of Investors Union and head of the Egyptian Industrial Zone in Tigray region, refused the condition of traveling to Addis Ababa for negotiations.

 

“The Ethiopian side has not put any clear frame for negotiations, and there is no hope in any negotiations efforts amid the absence of a framework,” El-Saqty said.

 

He continued saying that he will file a lawsuit before international arbitration to ensure the rights of Egyptian investors, affected by the suspension of work in the conflict region of Tigray.  

 

El-Saqty received a request from the Ethiopian Ambassador in Cairo to held negotiations to discuss the demands of the Egyptian investors, after two of them demanded compensation, after their businesses were harmed by Ethiopian army attacks and interruption of communication in the region.

 

He further noted that there is a global media attention to follow up on the stalled Egyptian investments in Ethiopia, adding that what happened to the foreign investments in Ethiopia is considered a black point in the history of the Ethiopian economy, although a positive outlook of the Ethiopian economy prevailed over the past years.

 

El-Saqty explained that all foreign investors in Ethiopia are concerned towards their investments at the meantime due to the banking procedures recently adopted, including setting a maximum limit for cash withdrawals from Ethiopian banks.

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