Ethiopia investment policies and incentives and opportunities. Ethiopian legal information portal find laws, cases. Part one this proclamation may be cited as the investment proclamation no. Ethiopia country procurement assessment report, june 28, 2002. Investment regulations no 270 of 2012 pdf click to download. The highlights of investment proclamation and guideline bellows are compiled from investment proclamation no. Short title this proclamation may be cited as the value added tax proclamation no. Investment guide for ethiopia business environment investment policy investment areas incentivesguarantees taxation investment opportunities investment procedures addis ababa, ethiopia january 2004 published by. Investment procedures in ethiopia details written by administrator published on 30 april 2008 category. Democratic republic of ethiopia, it is hereby proclaimed as follows. Ethiopias investment proclamation allows all registered foreign investors to remit profits and dividends, principal and interest on foreign loans, and fees related to technology transfer. Amendment the investment proclamation no, 7692012 is hereby amended as follows. Determinants of private investment in ethiopia hailu adugna 1, 2 lecturer. Ethiopias vision of becoming a middle income country by 2025 is built around economic, social, and environmental pillars ethiopian investment comission 9 1.
Federal democratic republic of ethiopia, it is hereby proclaimed as follows. Protection of private property rights principle of national treatment repatriation of capital and profit. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The federal democratic republic of ethiopia ministry of w. Of the federal democratic republic of ethiopia 20th year no.
Ethiopian ministry of revenues mor is the body responsible for collecting revenue from customs duties and domestic taxes. Ethiopia amendment of the investment proclamation fikadu. The revised export trade duty incentive scheme establishing proclamation no. Agriculture ethiopia is a conducive investment destination for commercial farming. It in particular examines how fdi affects gdp growth, both directly and also conditioning on trade liberalization that ethiopia adopted in early 1990s. Fikadu asfaw and associates law office is a fullfledged corporate and commercial law firm in addis ababa, ethiopia with highly professional attorneys providing legal advice and services to clients throughout the surrounding areas of ethiopia as well as all around the world. Update on ethiopias new excise tax proclamation africa. The impact of tax holiday on investment in ethiopia. Department of state 2015 investment climate statement may 2015 5 the 2012 amendment to ethiopias investment proclamation introduced provisions for the establishment of industrial development zones, both staterun and private, with favorable investment, tax, and infrastructure incentives. Definitions and sources of data the ethiopia investment code defines a foreign investor as a physical or juridical person of foreign nationality which has invested imported capital investment proclamation no. Foreign investors may remit proceeds from the sale or liquidation of assets, from the transfer of shares or of partial ownership of an enterprise, and. Persons displaced by the ulgdp will be meaningfully consulted. An investment guide to ethiopia import duty exemption on import of capital goods, construction materials, spare parts with a value up to 15% of the total value of capital goods 100% of total value.
Administrative procedure proclamation ethiopia covid19 workplace response protocol ministry of labor ethiopia. On january 30, 2020, the house of peoples representative approved a draft investment proclamation new proclamation that replaces the investment proclamation no. Investment a foreign investor, domestic investor or a partnership of foreign and domestic investors who plans to engage in investment activities in ethiopia are expected to follow the investment procedures in ethiopia. Box 113 addis ababa, ethiopia in collaboration with. Ethiopia has enacted an expropriation of landholdings for public purposes proclamation no. Dec 10, 2019 ethiopia has enacted an expropriation of landholdings for public purposes proclamation no. The ethiopian investment commission eic is an autonomous government institution responsible for promoting, coordinating and facilitating private investments in ethiopia as defined in the investment proclamation no. Overview of economic, geographic, social, and political outlook. The new proclamation provides clarity on the composition and mandate of. Ethiopia amendment of the investment proclamation a new amendment has been made on the previous investment proclamation number 7692012. Investment climate in ethiopia fortune of africa ethiopia.
Ethiopian compensation and expropriation law and regulations the esmf will ensure compliance with the relevant requirements of the. Now, therefore, in accordance with article 551 of the constitution of the federal denuxratic republic of ethiopia, it is hereby proclainrd as follows. Pdf this paper attempts to study the determinant of fdi in ethiopia for the time period from 19812007. Hence,i need the current ethiopian proclamations of investment. Now therefore, in accordance with article 551 of the constitution of the federal democratic republic of ethiopia, it is hereby proclaimed as follows. Before planning to invest in ethiopia and begin the investment procedure, it is advisable to consider the.
Part nine establishes the ethiopian investment authority. Proclamations of investment law in ethiopia allaboutethio. A proclamation to provide for lease holding of urban lands whereas, it is provided by article 40 of the constitution of the federal democratic republic of ethiopia that land is the property of the state and the peoples of ethiopia and that its use shall be subject to specific regulation by law. This article provides information regarding foreign investment and forex regulation in ethiopia, which is essential for existing and potential investors in ethiopia. This paper measures the impact of foreign direct investment fdi on economic growth in ethiopia based on annual time series data over the period 1974 to 2011.
Impact of foreign direct investment on economic growth of. It is endowed with large land size 8th largest country in africa and 27th in the world and huge proportion of arable land, diverse topography and agroclimatic zones, a. Definitions for the purpose of this proclamation, unless the context otherwise requires. Privilege to full repatriation of profits, dividends, principal and interest payments on external loan, etc. General 1 short title this proclamation may be cited as the organizations of. Ethiopian legal information portal find laws, cases, legal.
The responsible organ for collecting the data on foreign direct investment. Republic of ethiopia, it is hereby proclaimed as follows. On february, 2020, the federal parliament approved a new excise tax proclamation no. Rights and obligations of employees and employers as per. Proclamation number 6212009, which was in force prior to the issuance of this proclamation. Determinants of foreign direct investment in ethiopia. Ethiopia country procurement assessment report, june 28, 2002 5 federal government based on international agreements etc. Short title this proclamation may be cited as the 7692012. Determinants of private investment in ethiopia hailu adugna 1, 2 lecturer former, 1college of business and economics, haramaya university, p. Proclamation no2019 investment proclamation recognizing. Definitions in this proclamation, unless the context requires otherwise. The ethiopian government has formulated and started the implementation of the second five year growth and transformation plan gtp to carry forward the important strategic directions to maintaining a fast growing economy in all sectors. It contains the full text of the laws and offers userfriendly tools for searching and filtering for selected provisions that are specifically relevant to foreign investors.
Ethiopia proclamation on investment investment laws. Ethiopia investment guide 20172018 aln ethiopia mesfin. In ethiopia, any income derived from an approved new manufacturing and agroindustry investment or investment made in agriculture is exempted from the payment of income tax for the periods depicted on investment proclamation no. Ethiopian investment law, house of peoples representatives, industrial zone, investment incentives, investment proclamation. Short title this proclamation may be cited as the investment proclamation no. Ethiopias excise tax regime has been in place for almost two decades. Foreign direct investment fdi in ethiopia investing. Short title this proclamation may be cited a the investment proclamation no. In addition to raising revenue, the mor is responsible to protect the society from adverse effects of smuggling. This proclamation may be cited as the investment amendment proclamation no, 8492014, 2. Investors may employ senior expatriate experts provided that it has been ascertained that no equally qualified ethiopian is available to fill the job. Introduction country overview the federal democratic republic of ethiopia ethiopia is located in the horn of africa and shares borders with eritrea, djibouti, somalia, sudan, south sudan, and kenya.
This page contains a guide to the existing investment proclamations and regulations. A new amendment has been made on the previous investment proclamation number 7692012. Pdf determinants of foreign direct investment in ethiopia. Short title this proclamation may be cited as the insurance business proclamation no. Ethiopian business development services network ebdsn p. Ethiopia has enacted an expropriation of landholdings for. Definitions a term used in this proclamation that is defined in the tax. Expanded investment administration organs and clarification of mandates. The new proclamation becomes effective as of the date of its publication in the official nagarit gazetta. Ethiopias primary law concerning foreign investment is the investment proclamation. Prevention and suppression of terrorism crimes proclamation. The investment laws navigator is a comprehensive and regularly updated collection of national investment laws.
Constitution of the federal democratic republic of ethiopia, it is hereby proclaimed as follows. This proclamation may be cited as the investment mendment proclamation no. Short title this proclamation may be cited as the federal income tax proclamation no. It seizes and takes legal action on the people and vehicles involved in the act of smuggling while it facilitates the legitimate movement of goods and people. Foreign investment and forex regulation in ethiopia.
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