Sudanese Foreign Minister Omar Qamaruddin is expected to meet the EU delegation to discuss the border dispute between Sudan and Ethiopia. EPA
Sudanese Foreign Minister Omar Qamaruddin is expected to meet the EU delegation to discuss the border dispute between Sudan and Ethiopia. EPA
Sudanese Foreign Minister Omar Qamaruddin is expected to meet the EU delegation to discuss the border dispute between Sudan and Ethiopia. EPA
Sudanese Foreign Minister Omar Qamaruddin is expected to meet the EU delegation to discuss the border dispute between Sudan and Ethiopia. EPA

EU delegation in Sudan to help solve border dispute with Ethiopia


Hamza Hendawi
  • English
  • Arabic

A European Union delegation arrived in Khartoum on Sunday to begin a mission intended to resolve an armed border dispute between Sudan and Ethiopia.

Finnish Foreign Minister Pekka Haavisto and his delegation are scheduled to meet with Sudanese leaders including Foreign Minister Omar Qamaruddin during a two-day stay in the capital before they travel to Ethiopia.

It was not clear if Mr Haavisto took specific proposals to resolve the dispute or if he was on a fact-finding mission.

Whatever the case, the visit demonstrated how seriously the EU views the border dispute and the danger it poses to stability.

At the root of the dispute is a move by Sudanese troops in December to take back control of border enclaves inside Sudan’s border.

The areas have been settled by farmers from Ethiopia's powerful Amhara ethnic group under an decades-old informal arrangement.

The farmers have been protected by government-sanctioned Amhara militiamen and security forces.

Ethiopia said it would not negotiate a settlement of the dispute until Sudanese forces pulled out of the areas they took, a condition rejected by Khartoum.

It also accused Sudan of taking advantage of the conflict in the Tigray region, where Ethiopian federal forces are fighting separatist rebels to take back the border enclaves.

Tensions between Sudan and Ethiopia have been growing for months.

They are also locked in a long-running quarrel over a hydroelectric dam Ethiopia is building on the Blue Nile, fewer than 20 kilometres from the border.

Sudan insisted that Ethiopia must share data on the operation of the dam to ensure that its own hydro-electric dams on the Blue Nile are not disrupted and to avert flooding.

Ethiopia refused to enter a legally-binding agreement on the operation of the dam, saying that it preferred recommendations.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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