Mitsui-backed ETG seeks $120 million in claim against Mozambique

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Mitsui-backed ETG seeks $120 million in claim against Mozambique

7:13 CAT | 16 Oct 2024

File photo: MzNews

Agricultural trader files arbitration request in London

Company claims Mozambique facilitated unlawful expropriation

ETG, an agricultural-commodity trader that counts Mitsui & Co. among its biggest shareholders, began arbitration proceedings against Mozambique, claiming more than $120 million for what it says is the state’s role in expropriating its assets.

“ETG has made many attempts to amicably resolve the matter with the state, but all efforts have failed to-date,” the company said in a statement Wednesday. ETG therefore has “no choice but to begin investment arbitration against Mozambique to recover damages suffered at the hands of the state,” it said.

The Mozambican attorney general’s office didn’t respond to a request for comment.

The dispute dates back to 2022, when Indian authorities seized a cargo of one of ETG’s Mozambican competitors, known as Royal Group, on suspicion that it contained genetically modified produce banned in the Asian nation. Royal accused ETG’s workers of tipping off India, and sued the company in Mozambique. ETG denied involvement.

After a series of court cases in the southeast African nation, Royal won an order in June allowing it to sell ETG agricultural products it had seized in December. At the time, Royal said this was to avoid the deterioration of the commodities. Much of the seized product was pigeon peas, a legume that Mozambique exports to India.

ETG, which filed a request for arbitration in London, claimed the Mozambican state orchestrated and facilitated the unlawful expropriation of its goods. It also said the state had harassed its workers and failed to ensure ETG’s right to export goods without obstruction.

Royal didn’t respond to a request seeking comment.

By Matthew Hill