Ethiopia has secured reductions in claims from two foreign companies at the World Bank's investment arbitration court. The Justice Ministry stated that the country defended itself with sufficient evidence. The decisions were made unanimously by three arbitrators.
Addis Ababa, April 8, 2026 - Ethiopia's Justice Ministry announced that the country successfully reduced a $500 million claim from Akgun Makina Sanayi Ve Ticaret company. The firm, involved in clean water supply from Addis Ababa sources, lost its investment license for failing to submit an environmental impact assessment affecting dams and irrigation projects.
The second company, African Asset Finance Company Holding, also known as Ethio Lease and registered in the Netherlands, sought over $400 million in compensation. In a hearing in The Hague, three arbitrators unanimously ordered the claimants to pay Ethiopia 65 percent of the specified arbitration costs after reducing the award.
The ministry highlighted Ethiopia's strengthened international arbitration capacity through reforms. It expressed satisfaction to the public, institutions, and affected experts, noting the victory upholds environmental protection laws and governmental accountability.
