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December 4,2016

Open Letter to BEDiSA Group, with regards to Purchase of Tana Beles Project – Located in Amhara Region, Ethiopia

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Amhara Professionals Union- አምባ

info@ambapu.org

www.ambapu.org

amba

TO: Mr. Binai Boran, Chairperson BEDiSA Group

Mebusevleri Mahallesi lller Caddesi

No: 38 Tandogan 06580

Cankaya, Ankara, Turkey

CC:

– Turkish Embassy in Addis Ababa, Ethiopia

– Turkish Embassy in Washington, DC

– Turkish Embassy in London, UK

– Embassy of Turkey in Berlin, Germany

Subject: Open Letter to BEDiSA Group, with regards to Purchase of Tana Beles Project –

Located in Amhara Region, Ethiopia

The Amhara Professionals Union (APU) based in Washington DC, United States, has learned from

the African Business Communities website that the BEDiSA Group is purchasing 75% of Tana Beles

project from the Government of Ethiopia. We are writing this to request that you should not proceed

with this planned purchase. First, this project, which is located in the Amhara Region, does not

benefit the Amhara people who are the inhabitants of this region and make up 40% of the Ethiopian

population. Instead, the profit from foreign business ventures goes directly into the pocket book of

the regime. Thus, the Amhara people are resentful and not supportive of these foreign investments.

Second, as an executive, you have a fiduciary duty to be a warden of BEDiSA Group shareholders.

The current unstable climate in Amhara Region is not conducive for such a large investment.

The current political leadership in Ethiopia, the Tigray People’s Liberation Front (TPLF) is a

minority brutal regime that has been in power for the past 25 years. TPLF assumes to represent the

Tigray ethnic group, which makes up only 6.1% of Ethiopian population but control all aspects of

Ethiopia: military, economy, and politics. TPLF has forcefully taken millions of acres of land from

the various endogenous ethnic people in Ethiopia and have sold them to foreign companies like the

BEDiSA Group. This illegal land grab has caused the displacement of millions of Ethiopians, untold

suffering, and resentment towards the TPLF regime and foreign investors.

The Ethiopian Government has one of the worst human rights record as documented by all major

human rights groups including Human Rights Watch and Amnesty International.

 Freedom House ranks Ethiopia as “Not Free” in its “FREEDOM STATUS”

ranking, https://freedomhouse.org/report/freedom-world/2016/ethiopia, including Internet.

 The Fund for Peace which ranks the fragile state of each country has a Fragile States Index

Score of 97.2 for Ethiopia with a status of Alert”, http://fsi.fundforpeace.org/2016-ethiopia.

 The World Bank’s Worldwide Governance Indicators (WGI) ranks Ethiopia 8.1/100 for

Political Stability and Absence of

violence/Terrorism, http://info.worldbank.org/governance/wgi/index.aspx#home. A very low

and dangerous ranking.

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Amhara Professionals Union- አምባ

info@ambapu.org

www.ambapu.org

amba

 In 2013, the US Intelligence Report describes Ethiopia as a Failed

State! http://www.pbs.org/newshour/rundown/countries-at-risk/.

Additionally, there an active civil war in the Amhara Region where people are retaliating against

investments that jeopardize their livelihood. The regime has responded by declaring a State of

Emergency on October 8, 2016 for an indefinite period of time and shutting down the Internet to halt

communication. Multinational corporations operating in the country are now unable to use emails

and many other applications that are vital for communication and exchanging

(ordering/shipping/receiving) business related matters. Right now Ethiopia is a very unstable

country not favorable for investment or even travel.

Amhara and Oromo Regions are now at war with the TPLF regime. Together, these two ethnic

groups makeup 70% of the Ethiopian population. Thousands of Amhara’s and Oromo’s have been

killed, arrested, and tortured. The State of Emergency is simply to suppress the rights of Ethiopians

who seek freedom, dignity, and equal representation.

Many companies have pulled out of projects from Ethiopia due to the yearlong instability of the

country and/or corrupt nature of the regime’s bureaucracy. A Netherlands based company, Esmeralda

Farms and “flower farms owned by Israeli, Italian, Indian, and Belgium companies were among nine

commercial properties damaged in the protests” in the Amhara Region,

(https://www.bloomberg.com/news/articles/2016-09-01/ethiopian-protesters-burn-dutch-owned- flower-farm-in-north). Juan Carlos Vallejo, co-owner of Esmeralda Farms, stated “Right now,

everyone is really scared.” He added, “We never expected something like this to happen. I don’t

think anyone is going to want to invest here anymore.” (https://www.ft.com/content/a1ceca0e-8b11-

11e6-8cb7-e7ada1d123b1).

“Atlas African Industries” has exited Ethiopia “after Ethiopian authorities forcefully seized its

$2.4million capital following a tax dispute.” (http://www.nation.co.ke/business/Atlas-seeks-new- acquisitions-in-Africa-after-Ethiopia-exit/996-3458850-8a4g05/). On October 5, 2016, a Turkish

owned plant by Saygin Dima was attacked by locals in retaliation for exploitation.

(http://www.presstv.ir/Detail/2016/10/05/487807/Ethiopia-Addis-Ababa-Turkey-Sebeta-Fatih- Mehmet-Yangin).

As adumbrated above, the reason for the locals attacking foreign owned businesses in Ethiopia is

because they (natives) do not directly benefit from those “investments” but more often are gravely

affected because they are forcefully displaced from their homes (without adequate compensation)

where they have lived in their entire life.

The state of foreign investment in Ethiopia is summed up by Anuradha Mittal, executive director of

the Oakland Institute, “If I am a foreign investor, I look for opportunities. I understand that there are

risks but in the face of this growing unrest where foreign companies have been targets, given all that

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Amhara Professionals Union- አምባ

info@ambapu.org

www.ambapu.org

amba

has happened in terms of displacement of people and their lands given away to foreign investors, it

would be astute to not go into a country like that” (http://allafrica.com/stories/201610130455.html).

For a more insightful detail on foreign investment in Ethiopia, please review the report by Global

Risk Insights, http://globalriskinsights.com/2016/10/radar-foreign-investors-attack-ethiopia/.

Understanding the dire humanitarian crisis that is unfolding in Ethiopia which has resulted in the

deaths and arrest of thousands of innocent Ethiopians for simply wanting respect, dignity, and equal

representation, and forceful displacement of people leading to additional suffering. Understanding

the lack of accountability and rampant corruption by the Ethiopian Government, and instability

across the whole country, we believe it is ill advised for the BEDiSA Group to invest in the Tana

Beles project. We are certain the grieving Amharas will dismantle the project and frustrate the

business if the BEDiSA Group dares to invest in the Tana Beles project in the current atmosphere.

Therefore, the Amhara Professional Union (APU) suggests the BEDiSA Group to hold off all of its

investment in Tana Beles until a government that represents the concerns and aspirations of the

Amhara people is installed. The BEDiSA Group can invest in Amhara region once a government that

represents the wishes and aspirations of the Amhara people is in place and by then the hospitable

Amhara people will welcome the group to invest in the region that will surely boost the investment’s

value, safety, and profitability.

Respectfully,

Amhara Professional Union – Working to defend and protect the ideals and interests of the Amhara of

Ethiopia in all sectors.

Signed:

አምባ/Amhara Professionals Union,

Washington D.C.

12/01/2016

Open Letter to BEDiSA Group, with regards to Purchase of Tana Beles Project – Located in Amhara Region, Ethiopia

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