October 10, 2024

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BGI-Ethiopia

BGI-Ethiopia and Purpose Black Settle Billion Birr Land Dispute

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BGI-Ethiopia and Purpose Black Trading have reached an agreement to resolve their legal dispute over a canceled property sale transaction. As part of the agreement, BGI-Ethiopia will refund the 1.15 billion birr deposit that Purpose Black Trading had paid earlier.

Purpose Black is a new company started last year by Fisseha Eshetu. BGI Ethiopia Plc., one of the biggest breweries in Ethiopia, is a division of the French beverage business Castel Group. The company manufactures a selection of bottled water, soft drinks, energy drinks, beer, wine, and other alcoholic and non-alcoholic beverages.

The disagreement between them arose in March 2024 when BGI-Ethiopia decided to stop the ongoing negotiations to sell its brewery headquarters located in the Bole area of Addis Ababa to Purpose Black Trading.

“BGI-Ethiopia and Purpose Black have settled their dispute through court-annexed mediation,” states BGI.

The agreement was endorsed by the Federal Higher Court which led to the closure of the case. And the restriction on the property is also lifted. As part of the deal, BGI-Ethiopia refunded the money Purpose Black Trading had paid earlier. Now that the money is back, the court has removed the restriction, and everything is settled.

The settlement allows BGI to find a new buyer for the property, while Purpose Black will need to find a new location or potentially adjust their project plans. The entire situation could cause delays for both companies.

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