Investigating Fairfax Africa Fund LLC’s Claimed $17 Billion Deals

Fairfax Africa Fund LLC (FAF), led by CEO Ato Zemedeneh Negatu, claims to have an impressive portfolio of investment projects globally, including across Africa, totaling over $17 billion in recent years. However, there is skepticism regarding the accuracy of this claim.

FAF’s website highlights several African countries, including Nigeria, Ghana, Ethiopia, Malawi, and Togo, but lacks concrete evidence to support the $17 billion figure. Notably, their $4 billion oil refinery project announced on January 13, 2018, in Awash, Ethiopia, which aimed to process 120,000 barrels of crude oil per day for the East African market, was ultimately shelved due to financial, logistical, and possibly other challenges. Similarly, FAF’s investment plan announced in September 2022 for Ethiopian Airlines to acquire a 49% stake in a Nigerian airline faced similar challenges and ultimately failed.

Mr. Dickson Omobola’s article, “Man behind Nigeria Air tells his story” raises important questions about Zemedeneh Negatu’s involvement in the Ethiopian Airlines and Nigeria Air project. The article’s tone is inquisitive and skeptical, implying that Zemedeneh’s actions and claims may not be entirely transparent or in the best interest of Nigeria. [I wonder if it’s in the best interest of Ethiopian Airlines instead?] Through Omobola’s reporting, it becomes clear that Negatu’s story warrants closer examination.

These unfulfilled projects, which are not mentioned on FAF’s website, raise questions about FAF’s claimed deals. While they assert an extensive track record of success, the lack of evidence supporting the $17 billion figure warrants further investigation.

Furthermore, Zemedeneh Negatu’s frequent appearances on Ethiopian state-owned media as a national economic strategic advisor, despite being a CPA and not an economist, raise questions about his expertise and potential ethical implications. His financial association with PM Abiy Ahmed’s leadership team adds to the intrigue. Although PM Abiy has not been rumored to be financially corrupt, some of his leadership team members are. Why is Zemedeneh a regular commentator on Ethiopian macroeconomics despite not being an economist? What message is the state-owned media such as the Ethiopian Broadcasting Corporation are sending by presenting him as a macroeconomic expert when he is a CPA?

As curious observers, it is crucial to seek transparency and verify FAF and its CEO Zemedeneh Negatu’s claims and motives. Understanding the true extent of their deals and the credibility of their CEO’s macroeconomic expertise will help form a clearer picture of their role in the investment landscape as an advisor for Ethiopia’s national economy and as an investor in the same country.

The writer, LJDemissie, can be reached at [email protected] or @L