Purpose Black Ethiopia Ordered to Repay Deposits with Interest

Last month, the Lideta Federal High Court ordered Purpose Black Ethiopia to return deposits to a class of prospective apartment buyers, with accruing interest and an award of costs. The decision, after a six-month trial, also annulled contracts tied to units at costs adding up to nearly 2.3 million Birr

The ruling offers relief to those plaintiffs but does not cover the wider group of roughly 1,750 shareholders with unresolved investments and other lawsuits.

Founded in 2021 by 135 shareholders as a “pro-black community” enterprise led by Unity University founder Fiseha Eshetu, M.D., Purpose Black first pitched affordable groceries sourced from farmers before pivoting to real estate: a proposed 115-story “Ke’Geberew Tower” in central Addis Ababa and a homeownership scheme linked to purchasing company shares worth about 1.5 million Birr.

The model drew scrutiny, and turbulence followed. Police detained senior managers; a planned property acquisition from BGI-Ethiopia in the Mexico area collapsed; and the chief executive was reported to have left the country. A raft of lawsuits ensued.

For the successful plaintiffs, enforcement now becomes the test: securing refunds and interest in a system where judgments can take time to execute, even as other investors seek clarity over the fate of their funds.