Edna Mall, located in Addis Ababa, Ethiopia, was once a prominent entertainment and shopping destination. Established in November 2008, it quickly became a popular spot, housing 30 offices and shops, restaurants, and underground parking garages. Among its attractions were Matti Cinema and Bob and Bongo's Fun Palace.
Edna Mall in the evening (photo : borkena. Picture was taken in 2019 )
Foreclosure and Acquisition
Ownership of Edna Mall initially belonged to Tekleberhan Ambaye Construction PLC (TACON). However, TACON faced financial difficulties and was unable to repay a loan from the Commercial Bank of Ethiopia (CBE). As a result, the mall was used as collateral and eventually put up for sale in foreclosure. The asking price was 236.9 million Ethiopian birr.
In July 2021, East Steel Plc, a Chinese company, acquired Edna Mall for 810 million birr. This amount was more than three times the bid’s floor price.
East Steel's Plans for Repurposing
East Steel Plc has announced plans to repurpose the building as a modern mall. The company issued a one-week notice for former tenants to remove their properties and has since sealed off the premises. According to the notice posted on April 4, 2022, the company intends to renovate the building and rent out commercial spaces.
Read also: Naalya's Community Hub
The Chinese firm has called on interested lessees to bid for space and move in once renovation work is completed. For businesses previously situated in Edna Mall, reclaiming their old spots is crucial to holding on to their customer base.
Legal Considerations and Government Review
Ethiopia’s investment law proscribes foreign investors from engaging in retail activities such as renting shops unless a special agreement is concluded. According to Michael Teshome, a legal expert, Ethiopia’s investment law proscribes foreign investors from engaging in retail activities such as renting shops unless a special agreement is concluded.
According to the 2020 Investment Proclamation, the investment board has the authority to revise the list of specified investment areas, as needed. In addition, the board may decide, in consultation with relevant public and private sector stakeholders, to open to foreign investors investment areas previously reserved for joint ventures with the government, domestic investors, or joint undertakings between domestic/foreign investors.
Temesgen Tilahun, deputy commissioner of the Ethiopian Investment Commission (EIC), stated that because the issue is new to the commission, a team of experts is studying it. “This case is still under review, we can’t reveal any information now,” the official added.
Michael argued that the acquisition of Edna Mall by the Chinese company cannot take place without the knowledge of EIC. “There might be a bilateral investment treaty or a special agreement between the Ethiopian and Chinese governments,” he said.
Read also: Opportunities in Ghana
Yu Jun, general manager of East Steel, Plc, declined to comment on whether any agreement was reached with the government on proceeding with renting Edna Mall as a shopping center.
Addis Ababa 4K, Edna Mall Area, Bole Medhanialem UHD
Background of East Steel Plc
East Steel, a subsidiary of a Chinese firm, was founded in 2012 in the Eastern Industry Zone, in Dukem town of Oromia region, 35 km south of Addis Ababa.
Timeline of Events
| Date | Event |
|---|---|
| November 2008 | Edna Mall opens as an entertainment venue |
| July 2021 | East Steel Plc acquires Edna Mall for 810 million birr |
| April 4, 2022 | East Steel issues notice to former tenants to remove properties |
The plan is under review by Investment Commission. East Steel is intent on doing up the building and repurposing it as a modern mall, according to the notice.
Read also: Mauritius Shopping Mall
Popular articles:
tags: #Ethiopia
