Two major international arbitration rulings have gone in Ethiopia’s favour, with the country successfully defending claims exceeding $850 million, the Ministry of Justice has announced.
The cases, involving a Turkish construction firm and a Netherlands-based company, challenged the nation’s regulatory powers and its resolve to protect public interest. Authorities described the outcomes as conclusive, with both tribunals fully dismissing the claims.
One of the disputes was filed by Akgun Insaat Makina Sanayii ve Dis Ticaret Ltd. Sti., which demanded more than $500 million after its permit to develop an industrial zone was revoked. The government stepped in after finding the proposed location was close to the Legedadi Dam and Dire Dam, both vital sources of potable water for Addis Ababa.
State Minister of Justice Belayihun Yirga explained that the company did not provide a satisfactory environmental impact assessment and refused alternative locations. The tribunal backed Ethiopia’s stance, confirming its right under international law to safeguard public health and essential infrastructure.
In a separate case, African Asset Finance Company Holding B.V. commonly known as Ethio Lease sought over $350 million, claiming that regulatory measures breached investment protections. After detailed proceedings in The Hague, the tribunal unanimously dismissed the claim and directed partial repayment of Ethiopia’s legal expenses.
“Our Ministry led the defence, drawing on both internal and external expertise,” Yirga stated, noting the complexity and scale of the cases.
Officials added that the rulings enhance Ethiopia’s credibility in international dispute resolution and reinforce its dedication to enforcing environmental and regulatory laws. As a signatory to more than 30 bilateral investment treaties, the country is also strengthening its institutional capacity to handle similar disputes and defend national interests.