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December 31, 2020
Alaa Al-Saqati, head of the Egypt Industrial Zone in Ethiopia, recently revealed Egypt’s decision to appoint an international law firm to handle a case before international courts against the Ethiopian government to protect Egypt’s investments there.
In a statement to the Egyptian daily Youm7 on December 22, Saqati said that this step came after a meeting he held with representatives of the Ethiopian Embassy in Cairo on December 16. The meeting did not result in any positive progress in resolving Egypt’s investment crisis. in the Tigray region of Ethiopia, where an armed conflict has raged for weeks.
Officials at the Ethiopian embassy did not provide a specific, binding date that would allow the resumption of work in Egyptian factories in the Tigray region without any risk to employment, Saqati said, adding that factories in the region have been closed. for more than four months.
“During the meeting, Ethiopian Embassy officials spoke about the benefits and advantages that the investment law offers investors in Ethiopia, while existing investments face a state of ambiguity in light of the current situation and the outcome of the ongoing armed conflict ”. Saqati told the Egyptian daily.
The Ethiopian News Agency reported on December 19 that a virtual meeting of the Egyptian-Ethiopian Business Council was held, organized by the Ethiopian Embassy in Cairo, in the presence of Ethiopian officials and businessmen from both countries. During the meeting, Marcus Tekeli, Ethiopia’s ambassador in Cairo, confirmed his intention to “face the challenges faced by entrepreneurs.” Meanwhile, Ethiopian government officials addressed “the main concerns, questions and challenges raised by Egyptian businessmen.” In a statement, the ambassador highlighted his belief in “the need to strengthen trade and investment cooperation between the two countries.”
In addition, during the meeting, Aschalew Tadesse, Director of Foreign Direct Investment Promotion of the Ethiopian Investment Commission, presented the new Ethiopian Investment Law and the business opportunities and tools that the two countries can exploit.
The armed confrontation between the Ethiopian federal forces and the Tigrayan forces has caused regional concern in recent months. The Tigray People’s Liberation Front (TPLF) blames the government for the upsurge in hostile actions in the region seeking independence from Ethiopia. The escalation was preceded by various events, namely the local elections in the region that were held in September in defiance of the federal government. The Tigray regional government criticized Ethiopian Prime Minister Abiy Ahmed for not holding new elections and remaining in office. Ahmed had cited the coronavirus pandemic for his actions.
Escalating events in the Tigray region of northern Ethiopia have dealt a blow to Egyptian investments there, especially after the evacuation of many Egyptian citizens, in light of the fierce fighting between local forces and the Ethiopian army.
The Egyptian Embassy in Ethiopia in November evacuated nine of its citizens who were stranded in the city of Mekelle, capital of the Tigray region. The embassy said in a statement on Nov.18 that it has been making efforts to evacuate workers since the outbreak of the fighting, with the full support of the operation of the United Nations offices in Addis Ababa and the International Committee of the Cross. Red, in coordination and cooperation with the relevant Ethiopian authorities.
Regarding the volume of Egyptian investments in Ethiopia, Saqati, who owns several projects in Tigray with other Egyptian investors, told Al-Monitor, “Egyptian investments in the Tigray region in Ethiopia amount to around $ 10 million, while total Egyptian investments in Ethiopia exceeded $ 750 million between 2010 and 2018. ”
Saqati, who is also vice president of the Egyptian Federation of Investor Associations, said 25 Egyptian employees and five engineers returned to Egypt after the recent outbreak of armed clashes in the Tigray region, emphasizing the need for protection for Egyptian investors in Africa. . He also explained that investors have been greatly affected by the current armed events in the Tigray region and that factories have stopped operating.
On December 16, a French agency released an internal European document indicating that the European Union would suspend the payment of 90 million euros (about 110 million dollars) in budget support payments to Ethiopia due to the ongoing conflict in Tigray, while the military operation was launched. by the Ethiopian army in the northern region of the country it has received much criticism.
Saqati confirmed that the decision to appeal to international tribunals is aimed at preserving their rights as a result of the heavy losses they have suffered since the outbreak of the recent conflict in Ethiopia.
The Ethiopian embassy in Cairo did not issue any official statement after the announcement that the country would be sued internationally for the loss of Egyptian investments in the Tigray region. The embassy did not respond to Al-Monitor’s request for comment.
According to Saqati, he and several Egyptian investors and an Ethiopian partner have established two factories since 2015 in an area of 10,000 square meters in Tigray, one for the manufacture of electrical transformers and the other for wooden furniture. He explained that since Ahmed took office, “we began to face some harassment in the residence documents and the treatment at the airport.”
The Egyptian investor crisis in Ethiopia comes at a time when relations between the two countries are experiencing strains due to the Ethiopia Great Renaissance Dam crisis. Cairo fears the impact of the crisis on its water share, on which more than 90% of Egyptians depend. Negotiations between the two countries and with the participation of Sudan, which have been ongoing for about 10 years, have not resulted in an agreement so far.
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