Ethiopia

Case Studies – Oil Services.

Client: Emerging Markets Private Equity Fund, Washington, DC, USA

Client Opportunity: Fund exploring taking an equity position in a Chinese-run oil field services firm in a conflict-prone region of Ethiopia.

Questions from Client: What is the background of the conflict in the region where the firm operates? What are the dynamics on the ground? Are regional political actors engaged in the national political system? What is the reputation of the partner who brought us the deal?

Products Provided to Client: Analytical memo addressing client questions; follow-up Q&A with in-country experts based on the memo.

Foglamp Contributors Engaged: Senior political journalist in Addis Ababa.

Local Contacts Consulted: Political party leaders; local political analysts.

Turnaround Time: One week; follow-up Q&A in two days.

Summary Answers: The regional group generating unrest is marginal, and the mainstream players in the region are engaged with the national political process. The company has a good reputation with multinational clients, and has approached operations in Ethiopia with caution. The local partner is known to be an above-board player.

Outcome: Foglamp information incorporated directly into presentation to client’s investment committee.