The Multilateral Investment Guarantee Agency (Miga), the private sector branch of the World Bank Group, has announced the resolution of two outstanding investment claims resulting from the expropriation of foreign-owned assets 30 years ago under Ethiopia’s Mengistu government.

The cases were resolved and compensation agreements reached during two days of discussions facilitated by Miga between the major claimants and Ethiopia’s minister of finance and economic development, Sufian Ahmed.
The first case involved investments in a tannery, shoe factory, and housing by French and Greek investors. The other claim concerned shares held by a group of Norwegian investors in the former Mosvold companies, which included woodworking, furniture, and retail stores.

Miga’s involvement in these cases stems from a request by the Ethiopian government in 2000 for the agency to act as a third-party facilitator to help resolve the disputes. The investments were not insured by Miga. As a development institution, Miga’s goal is to help Ethiopia resolve the claims and honour its international obligations, which will help improve the country’s investment climate and allow it to attract the private investment needed for economic growth and poverty reduction.