Ethiopian investment agency 17 the ethiopian investment agency eia is a onestop shop for investors continued services delivery time notarization of memorandum and articles of associations and amendments effecting commercial registration, renewal, amendment, replacement and cancellation of same. Though, not consistent, foreign direct investment fdi flows into ethiopia have gradually increased in the last two decades. Ethiopia is a conducive investment destination for commercial farming. The overall vision of the pif is to move ethiopia to a middle income industrialized country by 2020, while decreasing its dependence on. It is responsible for facilitating the implementation of new investment projects, providing after care services for new and existing investments, as well as organizing investment promotion activities both locally and internationally. Investment laws navigator the investment laws navigator is a comprehensive and regularly updated collection of national investment laws. Ethiopias agriculture sector policy and investment. As shown in table 1, domestic investment in ethiopia has increased r apidly since the introduction of liberal policies in 1992. On the other hand, the outcomes of the investment and export incentives appears quite limited in terms of investment, export and the resultant production capacity one of the major findings that deserves urgent policy attention is the low and deteriorating investment realization rate. Admission foreign investors can invest alone or in partnership with domestic investors in areas open for fdi. Reconsidering ethiopias investment policies and practices. Trade and foreign direct investment fdi figure in the new plan but less reliance is placed on fdi inflows than in the past and as much emphasis appears to be placed on import substitution as on export expansion to reduce the trade deficit. Has five business owners, none of whom is a legal entity. Ensuring to establish proactive policies in trade and investment for inclusive development of the country.
The policy emphasized the role of private investment in the development of the ethiopian economy. Ethiopias admission policy has been modified more than four times in the last 22 years in favor of investors foreign investors can invest on their own or in partnership with domestic investors in areas open for fdi. Reconsidering ethiopias investment policies and practices, by asefa belachew asefa. Investment investment regulation in ethiopia is subjected to several laws that are mainly enacted to facilitate, promote and enhance foreign direct investment in ethiopia. Assessment of the ethiopian investment and export policy. Required to have investment permit from eia required to allocate minimum capital usd 200,000 for a single investment project usd 150,000 for joint with a domestic investor usd 100,000 for technical consultancy if wholly owned or usd 50,000 jointly with a domestic investor. The other investment limitations by banks are generally matters of regulating the scope of investment in banks by eligible investors and controlling the scope of services to be rendered by banks and scope of equity investment by banks.
The effects of ethiopias investment policy and incentives on. Investment investment in line with the marketoriented economic policy of 1992, the investment regime has also liberalized since then. In 1992, ethiopia embarked up on the liberal economic policy which is deemed to be a favorable condition for investment. Democratic republic of ethiopia, it is hereby proclaimed as follows. The highlights of investment proclamation and guideline bellows are compiled from investment proclamation no. Forum for agricultural research in africa fara, accra ghana. The impact of policy measures on ethiopian private banks performance. Ordering information to order copies of investment policies and bilateral investment treaties in africa. Contribution of the manufacturing industry to gdp remained marginal and stagnant over time, 3. Pdf this paper attempts to study the determinant of fdi in ethiopia for the time period from 19812007. Ethiopia is the 27th largest country in the world by land size and given its diverse topography and geographical location, it is suitable for the production of some of the worlds most coveted food crops cereals, pulses, oil seeds, a wide range of fruits and vegetables, coffee, tobacco, sugar cane, tea and spices, among others.
This week we travel to to the horn of africa for a closer look at the investment opportunities and challenges in the east african nation of ethiopia. The research focuses on the frontend governance of major construction projects. Status of agricultural innovations, innovation platforms, and innovations investment. Investment procedures in ethiopia details written by administrator published on 30 april 2008 category. Ethiopia once the byword for famine in the region is garnering attention from foreign investors. Full length research paper hotel sector investment in. The second section assessing fdi incentive policies. The imfs transparency policy allows for the deletion of marketsensitive information and.
This page uses frames, but your browser doesnt support them. Macroeconomic policy fiscal and monetary policy ethiopias current fiscal policy objective is to achieve public debt sustainability and maximise the efficient use of highly concessional resources for poverty. Ethiopia proclamation on investment investment laws. Modernize the investment regulatory and administrative framework align the investment legal regime with recent changes in economic policy priorities revisit investment areas open to the private sector consolidate protracted rules on investment adopt best practices for efficient investment administrationservice provision. Ethiopian investment policy and its incentives fikadu and. Department of state 2015 investment climate statement may 2015 1 table of contents executive summary 1. Ethiopias vision of becoming a middle income country by 2025 is built around economic, social, and environmental pillars. Short title this proclamation may be cited as the 7692012. Openness to, and restrictions upon, foreign investment 1. The policy for ethiopian investment has been modified in the last 20 years for more. Growth and transformation plan gtp 201011201415 draft. Pdf ethiopias new financial sector and its regulation.
High level political commitment for investment promotion and protection. In ethiopia, land is public property and individuals, companies and other organisations including foreign entities only have the right to use the land, which is acquired through rent or lease. 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. Health policy of ethiopia 1993 cmp cowash ethiopia. Then, the factory should produce sample cement, distribute the product, and. The ethiopian investment agency eia, which is an autonomous government body, serves as a onestopshop for issuing investment licenses and investment. Ethiopia has great potential for investments for several reasons. Overview of ethiopias investment policies and incentives the policy for ethiopian investment has been modified in the last 20 years for more than 4 times. Ethiopia chapter special report on investment in africa. To implement this policy, the transitional government enacted investment proclamation no 151992 so as to open the door to private investment.
Country financial accountability assessment ethiopia. Pdf determinants of foreign direct investment in ethiopia. Foreign investment in ethiopia slumps after business. Ethiopia will introduce a secondary market in government and corporate bonds next fiscal year to expand the countrys fundraising options, a central bank official said. The national information and communication technology ict policy and strategy. 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 long growing season, fertile soils and water availability for irrigation. 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.
The country financial accountability assessment cfaa for ethiopia was undertaken between april 2001 and november 2002, culminating in the incountry mission carried out over a threeweek period in september and early october 2002 by a joint team of federal govemment of ethiopia officials, world bank staff, and a number of donorfunded. Access to education in ethiopia has improved significantly. Overview of ethiopias investment policies and incentives. Indian economic policy, foreign investment was allowed on a casebycase basis. Checklist for foreign direct investment incentive policies. A checklist was released by cime with the intention of providing policy makers with a tool. Does not qualify for investment incentives or any special benefits.
The impact of ethiopian labor laws on business efficiency and. The definition given under our investment law is in line with this definition. The role of foreign investment in ethiopias leather value chain. Structure, problems and policy issues investment promotion and incentives in ethiopia tsegaye teldu 1. Determinants of foreign direct investment in ethiopia.
Several agroindustrial projects had been initiated through the public as well as the private sectors. Ethiopias heavy dependence on foreign aid will continue into the foreseeable future. Initial focus 2 vision and strategy investment attraction. In general, investment may be defined as making an outlay of money or capital for profit. Ethiopia investment policies and incentives and opportunities. Implementation report 14 march 2011 revised unctad. National policies and strategies ethiopian legal brief. June 22, 2016, with the officials of the federal democratic republic of ethiopia on economic developments and policies. Short title this regulation may be cited as the investment incen tives and investment areas reserved for domestic investors council of ministers regulation no. Ethiopian insurance law archives ethiopian legal brief. Foreign direct investment in ethiopia dropped by a fifth in the first half of the countrys fiscal year after violent antigovernment protests in which foreignowned businesses were targeted. Ethiopian investment legal regime have been identified.
Ethiopas investment commission eic is mandated with promoting investments in ethiopia. Overview of economic, geographic, social, and political outlook. The year 1992 marked a policy watershed in the ethiopian financial sector, as well as the countrys economic policy at large. However, the gap between domestic investment and savings has remained wide thereby reinforcing the need for fdi in the development of the economy. In line with the marketoriented economic policy of 1992, the investment regime has also liberalized since then. Investment policy and promotion strategy for ethiopia to 2010 45. The transitional government, which was established in 1991, adopted an economic and investment policy directly opposite to that of the derg regime. Ethiopian investment law archives ethiopian legal brief. History of investment law in ethiopia allaboutethio. Foreign direct investment fdi in ethiopia investing. Implications for regional integration by the economic commission for africa, please contact.
The role of trade and foreign investment in this process, and particularly the role of trade and investment policy liberalization, has been much disputed. Ethiopia to introduce secondary government bonds in 2016. Rather than enjoying a good pdf when a mug of coffee in the afternoon, otherwise they juggled subsequently some harmful virus inside their computer. Below you will find a summary of the investment policy and incentives provided as per the ethiopian investment laws. Concerning water, the recent bilateral cooperation agreement with ethiopia is strategically important to increase the supply and reduce costs. This has led to some degree of technology transfer, albeit limited so far. Birhanu gedif, tegegn molla, solomon addisu and yibeltal ayenew 2016. To develop human capital, djibouti is advised to adopt a national policy for skills formation, with input from all. Policies toward attracting foreign direct investment is a statement endorsed by cime as part of its consideration of incentivebased policies to attract fdi. Ethiopia investment policies and incentives and opportunities unido. Full length research paper hotel sector investment in ethiopia. Overview of ethiopian investment opportunities and policies. Ethiopian investment policy the ethiopian constitution and the investment law guarantee protection of private property and investment in addition, ethiopia is a signatory of 29 bilateral investment treaties and 6 multilateral investment agreements that stipulate.
This is underpinned by a strong foundation in formal education from the primary to the tertiary le vel. Coronavirus live update live statistics and coronavirus news tracking the number of confirmed cases, recovered patients, and death toll by country due to the covid 19 coronavirus from wuhan, china. As shown in table 1, domestic investment in ethiopia has increased rapidly since the introduction of liberal policies in 1992. However, the gap between domestic investment and savings has remained wide. The ethiopian investment agency eia, which is an autonomous government body, serves as a onestopshop for issuing investment licenses and investment facilitations. In part i of top 5 opportunities for investment in ethiopia, i recommended financial services, telecoms, and heavy constructions as sectors that investors should look into. Investment means expenditure of capital by an investor to establish a new enterprise or to. Low investment rate, of all, low investment realization rate, investment low, then output, employment, export necessarily are low and below plans and expectations. Discover unctads one stop shop on all investment policy matters ranging from national and international regulation to cuttingedge publications, news and discussions. This was highlighted in relation to developing the potential of the agriculture sector and improving productivity. Document wttprs305 contains the policy statement submitted by djibouti. Investment policy and promotion strategy for ethiopia to 2010. So, foreign investors are able to rely on these laws either. Are there restrictions on foreign entities holding interests in land, and if so, how are they expressed.
As ethiopias new government begins work in september 2010, it is armed with a new plan. The african setting while the african continent has immense human and natural resources, a combination of factors, including the colonial heritage, structural weaknesses of. The impact of policy measures on ethiopian private banks. 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. Human capital is the sum total of the skills level of a countrys entire workforce including managers and administrators. Overview of environmental impact assessment in ethiopia. Fdre youth policy 532 kb national culture policy 560 kb national sport policy 528 kb national science technolgy and innovation policy 399 kb transitional government health policy 5 mb water policy 612 kb adult education strategy amharic 4 mb. Definitions in this proclamation, unless the context otherwise requires.
Apr 30, 2008 investment regulations in ethiopia details written by administrator published on 30 april 2008 category. One business owner holds 30% of the company shares, two owners have 20% of shares each, and two owners have 15% of. Ethiopian investment agency 17 the ethiopian investment agency eia is a onestop shop for investors continued services delivery time notarization of memorandum and articles of associations and amendments effecting commercial registration, renewal, amendment, replacement and. No restrictions on equity ownership in joint investment required to have investment permit from the eic or relevant. 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.
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