Legal Protections of Investment from Non-Commercial Risks in Ethiopia: A Critical Appraisal of Responses to Post-2015 Civil Disturbances
Biruk Abiyu Mengesha§
Business and Corporate Law, Debre Markos University, School of Law
Int. J. Grad. Res. Rev. Vol 7(3): 96-108.
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The very purpose of this study is to examine the legal protections for investment in Ethiopia particularly in times of civil disturbances and proposing better protection mechanisms and remedy schemes for investments in these times. By employing a qualitative legal research approach the study has investigated the protections provided for investments in civil disturbances and their adequacy under the domestic legislations of Ethiopia and the BITs to which a country is a party. To assess their practical applications and adequacy the study has also critically examined the impacts of the civil disturbances, begun in late 2015, on the investments; and the legal remedies provided by the Government to redress the economic damage. It is found that the Ethiopian domestic investment legislations failed to integrate the issue of investment protections during civil disturbances, while the BITs to which Ethiopia is a party provides a detail of rules for the protection of investments during civil disturbances and remedies after destructions. During the civil disturbances begun on the late 2015 the government has provided a police protection through its security forces for investments and rescued many investments from destructions. However, due to its inadequacy many investments have been destructed and multi-faced crisis has occurred. After the destructions, the government has provided different kinds of remedies for investments, though the remedies lacked a legal basis. Based on the findings, the research presents important measures need to be taken for formation of a strong system of investment protections during civil disturbances.
Keywords: Legal Protection, Investment, Non-Commercial Risk, and Civil Disturbance.