Federal High Court Lifts Ban on 21 EFFORT-Managed Organizations











The Federal High Court has lifted the ban on 21 organizations under the Tigray Rehabilitation Endowment Fund (EFFORT). The court also ordered that the responsibility of Commercial Nominees Limited Liability Company, which has been temporarily managing the companies, be revoked.

The decision was made on July 28, 2023, at a hearing held by the 1st Schedule Criminal Court. The court ruled that there was no “sufficient, convincing, and legal reason” for the ban to remain in place.

EFFORT was founded in 1994 with the aim of reforming the economy of the Tigray region, which was affected by war and drought. The organization manages a number of companies in the construction, textile, agriculture, mining, and transportation sectors.

The ban on EFFORT-managed organizations was imposed in November 2021, two weeks after the outbreak of the war in northern Ethiopia. The Federal Attorney General at the time said that the companies were suspected of “financially supporting terrorism.”

In September 2022, the Federal Attorney General asked the Federal High Court to remove the board members of EFFORT and appoint a new management team. The court granted the request, and Commercial Nominees were appointed to manage the companies.

However, Sur Construction, the largest company managed by EFFORT, filed a lawsuit in March 2023 asking the court to remove Commercial Nominees from its management role. The company argued that Commercial Nominees was not managing the assets of the companies properly.

The Federal High Court agreed with Sur Construction and ordered Commercial Nominees to be removed from its management role. The court also ordered the assets of the companies to be returned to their “legal representatives.”

The decision by the Federal High Court is a major victory for EFFORT and its affiliates. The lifting of the ban will allow the companies to resume their operations and contribute to the economic development of the Tigray region.



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