Problems of courts

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“Root problem of Ethiopia’s justice system,

is courts became job opportunities”

Mehrteab Leul is a solicitor behind 300 major foreign investments in Ethiopia, including Coca

Cola, JTI, Sheraton, Hilton and other new projects. He is the founder and principal lawyer at

Mehrteab Leul and Associates (MLA), a leading private sector advocate with decades of

experience. Almost all foreign investors first consult MLA, even before going to government

offices like the Ethiopian Investment Commission.

This week, MLA, a de facto law firm since Ethiopia’s commercial code does not recognize law

firms, converted from a sole proprietorship into a de jure law firm, becoming one of the first

in the country to reach that milestone.

Mehrteab says the external investment appetite towards Ethiopia is positive since the past

few months, after years of impasse due to COVID-19 and conflict in Ethiopia. He stressed the

government should be seriously cautious towards opening up of the financial sector, which

he says is vital but can also devastate local banks. The Reporter’s Ashenafi Endale sat with

Mehrteab to discuss on a wide range of topics. Excerpts:

The Reporter: MLA lately evolved from a de facto law firm into a de jure law firm. What

are the changes corporate-wise and advantages under new arrangement?

Mehrteab Leul: Because a law firm is not allowed in Ethiopia before, it was licensed with my

name, under a de facto arrangement. We have been providing attorney and legal services

under this arrangement.

But following the ratification of the Federal Advocacy Service Licensing and Administration

Proclamation (2021), we re-established as a de jure law firm. We received the license from

the Ministry of Justice and launched the firm this week.

MLA is now an institution. There are advantages that come with being an institution than a

company owned by individual. A corporate lawyer should not engage in intellectual

property, real estate, mining law, and others, at the same time. It requires specialized

lawyers. But since we became an institution, we can install different specialized

departments that can deploy specialized lawyers in specialized sub-sectors.

The second advantage is improvement in governance of the law. The firm now has new

structures, with new partners. It has COOs, finance head, senior associates and associates

and others.

This firm is cofounded by me and Getu Shiferaw. Under the de facto arrangement, the

continuity of the firm depended on as long as the two of us were actively engaged. But now,

it is a firm, not individuals. The name is now Mehrteab & Getu Advocates LLP, tough MLA

logo continues.

The leading law office in Ethiopia, which was founded by Teshome Gebremariam, could not

sustain its presence because it could not register as a law firm. When the founder died, the

firm died. The firm could have lived for up to 300 years, just like law firms in other

developed countries with modern commercial codes. Ethiopia had no modern legal

frameworks that could enable this, until it was introduced last year.

What is your stake in the newly formed firm?

Formerly, I owned 100 percent of MLA but after its reestablishment, I became a

shareholder. Now I manage the firm with Getu and my title in the firm changed from a

‘principal lawyer’ into a managing partner.

So many laws are revised and introduced in the past few years. How do you evaluate their

impacts?

The old commercial code was revised, which is good for the private sector. Ethiopia also

ratified the 1958 convention on recognition and enforcement of arbitral awards last year.

Our ambassador at New York deposited the ratification at the UN. Local laws are also

introduced to make Ethiopia an arbitration friendly country.

The investment regulation was also revised last year, which also opened many sectors for

foreign investors and detailed those that are reserved for locals.

In general, the legal reforms are crucial for the efforts underway to make Ethiopia a

business friendly jurisdiction. But introducing new laws and implementing them are quite

different things. If they are well implemented, the laws are very good to make Ethiopia a

globally competitive Foreign Direct Investment (FDI) destination. Big investors across the

world first evaluate the laws, before deciding where to invest.

Do you think these reforms are improving FDI inflow into Ethiopia, especially since the last

two years?

Ethiopia is not attracting sufficient FDIs. There are so many works left. The Investment

Commission, Ministry of Revenue, and other regulatory bodies must upgrade their services

and implement the new laws efficiently.

Ethiopia must improve its ease of doing business rank and regulatory environment.

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“Root problem of Ethiopia’s justice system, is courts became job opportunities” Mehrteab Leul is a solicitor behind 300 major foreign investments in Ethiopia, including Coca Cola, JTI, Sheraton, Hilton and other new projects. He is the founder and principal lawyer at Mehrteab Leul and Associates (MLA), a leading private sector advocate with decades of experience. Almost all foreign investors first consult MLA, even before going to government offices like the Ethiopian Investment Commission. This week, MLA, a de facto law firm since Ethiopia’s commercial code does not recognize law firms, converted from a sole proprietorship into a de jure law firm, becoming one of the first in the country to reach that milestone. Mehrteab says the external investment appetite towards Ethiopia is positive since the past few months, after years of impasse due to COVID-19 and conflict in Ethiopia. He stressed the government should be seriously cautious towards opening up of the financial sector, which he says is vital but can also devastate local banks. The Reporter’s Ashenafi Endale sat with Mehrteab to discuss on a wide range of topics. Excerpts: The Reporter: MLA lately evolved from a de ...
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