It is anticipated that the ethiopian investment commission will enact further implementation directives and guidelines that will elaborate and simplify investment admission and administration. It is grounded in ethiopia s ancient laws and customs and has been further extended by reference to the laws of other great commercial powers. Investment guide ethiopian chamber of commerce and sectoral. Ethiopian business development services network ebdsn p. Rt ne this regulation may be cited as the regulation no. On january 30, 2020, the house of peoples representative approved a draft investment proclamation new proclamation that replaces the investment proclamation no. Because of the countrys negative trade balance, the availability of forex is highly restricted by laws and strictly regulated by the central bank, the national bank of ethiopia nbe.
It is made available with the understanding that unctad is not engaged in rendering legal or other professional services. The bankruptcy law and the company law of 12th july, 1933, are herehy repealed as fromt,he 11th day of september, 1960. As indicated by ethiopian investment commission and some researches, most of the fdi in ethiopia seems to go the manufacturing sector which has the potential of causing serious environmental pollution. Over the past few years, substantive issues which call for the revision of the. Definitions in this proclamation, unless the context otherwise requires. Investment guide alliance of top tier african law firms. The legal and institutional frameworks of fdi in ethiopia. Legal framework for competition in ethiopia the evolution of competition policy and competition law in ethiopia can be traced back to the 1960s, with the introduction of the commercial code and civil code of.
This includes the 1996 investment law and regulations, as both were amended in. Ethiopia investment proclamation no11802020 investment. The ethiopian investment law oxford academic journals. Ethiopia s agriculture sector policy and investment framework. An investment permit is only valid until the company becomes operational and is issued with a business license to market its products. Moreover, as enunciated in 2005 in the draft governments plan for accelerated and sustained development to end poverty pasdep, there is renewed resolve in ethiopia to promote. Thus, subject to these limited exceptions and petroleum and minerals. Whereas, to these ends, it has become necessary to revise the existing law on investment. Ethiopia investment policies and incentives and opportunities. Reflections on legitimate expectations of foreign investors in ethiopia haftu tekleab alema abstract an.
The investment law framework in ethiopia as an incentive. Framework and hierarchy of foreign investment laws and treaties. The proclamation is to establish an improved system for coffee quality control and marketing. The house of peoples representative of ethiopia on thursday ratified investment law that envisages to further opening up economy and attracting more foreign direct investment fdi to country. Ethiopias primary law concerning foreign investment is the investment. Under a bilateral investment treaty to which ethiopia is a party, investment is defined as. Ethiopia has become a preferred destination for foreign direct investment and emerging. International investment law and sustainable development. There are also d ozens of factories a nd other business enti ties of which the government is. Investment permit issuance and renewal the eic will issue an investment permit for investors and investors are required to obtain investment permit to commence their project in ethiopia. Faculty of law investment limitations in and by banks in ethiopia prepared by. Case study overview research question ethiopia is a subsaharan country with a population of 99.
Ethiopia, who has made an investment, and includes the government, public enterprises as well as a foreign national, ethiopian by birth and desiring to be considered as a domestic investor. Ethiopia, describes some aspects of the new ethiopian investment. The protection of noneconomic interest in investment. The investment laws navigator is a comprehensive and regularly updated collection of national investment laws. However, the gap between domestic investment and savings has remained wide thereby reinforcing the need for fdi in the development of the economy.
Foreign direct investment fdi in ethiopian agriculture has. Addis ababa university school of post graduate school of law. Promotion of employment of host countrys nationals is one of the labour issues treated by the investment law. Ethiopia passes new investment law in bid to reform economy. Ethiopia investment proclamation no11802020 investment laws. Professor tilahun teshome a thesis submitted to addis ababa university, the school of graduate studies, faculty of law in partial fulfillment of the requirements for the degree of master of laws ll. Ethiopia is not also an exception to this fact and there are many non economic interests in ethiopia which seek the protection of investment laws. Accordance with prior to be amended of ethiopia written by the house, law or rental value of religious organizations employees, the commercial law years not to separate proclamation ethiopia is one of them or provident fund. The new proclamation becomes effective as of the date of its publication in the official nagarit gazetta. Tsahafe taezaz aklilu habte wold deputy prime minister and minister of pen iii. Ethiopia introduces new investment law february 2020. Modernizethe investment regulatory and administrative framework alignthe investment legal regime with recent changes in economic policy priorities revisitinvestment areas open to the private sector consolidateprotracted rules on investment adopt best practices for efficient investment administrationservice provision, including onestopservices and devise a faster and more transparent. Home laws blog laws subject index teaching materials useful links about me contact charities and societies national bank of ethiopia. The ethiopian government has made commendable efforts, through legislative and procedural reforms, to improve the investment climate of the country and thereby attracting more foreign direct investment.
This proclamation shall apply to all investments carried out in ethiopia except to investments in. The highlights of investment proclamation and guideline bellows are compiled from investment proclamation no. The investment proclamation sets a minimum capital requirement on foreign. Investment incentives in ethiopia fikadu and associates law.
May 27, 2020 investment permit issuance and renewal the eic will issue an investment permit for investors and investors are required to obtain investment permit to commence their project in ethiopia. Download amended labour proclamation of ethiopia doc. The other important thing in this chapter is ethiopian investments incentives to attract foreign direct investment and to promote the in flow of. As shown in table 1, domestic investment in ethiopia has increased rapidly since the introduction of liberal policies in 1992. International investment law understanding concepts and. 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. Since 1992, the investment law has been revised four times to ensure the participation of more foreign investments in various sectors of the economy. This treaty contained some modern notions of international. Pdf report on ethiopian foreign investment law and practice. A joint report by the houses trade and industry affairs standing committee, and revenue, budget, and finance standing committee indicated that the law will also promote the transfer of technology and skills and creation more jobs while contributing to the coming of transparent and effective.
Investments undertaken jointly with the government 8. Download amended labour proclamation of ethiopia pdf. Background and context industry background although ethiopia s garments industry has been identified as a key growth industry since 1995,9 its performance was lackluster until the implementation of the gtp in 2015. For example, the ethiopian investment law requires, in some cases, that foreigners be replaced within a specified period of time by ethiopians who have been trained by the investors employer.
Democratic republic of ethiopia, it is hereby proclaimed as follows. Legal framework for the protection of foreign direct. Ethiopia foreign agricultural investment country profile igad land. Ethiopia s investment profile in the past five years, fdi flow to ethiopia has increased by more than four folds 0 2000 3000 4000 5000 200708 200809 200910 201011 201112 2012 2014 201415 201516 201617 total fdi manufacturing fdi. But there are many problems under ethiopian investment laws and the practice with regard to giving protection to the non economic interests.
Ethiopia ratifies new investment law to attract fdi new. Mar 30, 2021 the contemporary legal framework is a product of many external influences. Professor a masters thesis submitted to school of graduate studies of addis ababa. Investment objectives part three areas of investment, forms of enterprise and capital requirements 6.
Investment incentives in ethiopia fikadu and associates. Unlike in previous rounds of investment laws, the regulations are. International investment law principles have been part of ethiopia s investment law since 1903, when ethiopia signed the treaty of amity and commerce with the united states. The revision of the investment law has been dictated by the need to. Addis ababa ethiopia passed a new investment law on thursday, part of a bid by prime minister abiy ahmed to transform the horn of africa nations economy and drive progress toward a middleincome status. In the chapter, there is a brief legal analysis about the historical background of ethiopian investment law since. Ethiopia s vision of becoming a middle income country by 2025 is built around economic, social, and environmental pillars ethiopian investment comission 9 1. 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.
It is stated that the objectives of the new investment law of ethiopia include the following. Investment guide for ethiopia business environment investment policy investment areas incentivesguarantees taxation investment opportunities investment procedures addis ababa, ethiopia january 2004 published by. For example, the ethiopian investment law requires, in some cases, that foreigners be replaced within a specified period of time by ethiopians who. Consultancy report prepared by demese chanyalew, berhanu adenew and john mellor. The ethiopian investment board is hereby reestablished under this proclamation. The law and policy of foreign investment promotion and. In ethiopia, as in most other jurisdictions, one of the major issues for foreign investors is access to foreign exchange forex. Foreign investors are required to obtain investment permits and business licences from the eic. 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. The main purpose of this paper is to analyze the protection of noneconomic interest groups under. Pdf the legal and institutional frameworks of fdi in. In line with marketoriented economic policy, the investment regime has been liberalised through a series of government legislation. Proclamations of investment law in ethiopia allaboutethio.
Before planning to invest in ethiopia and begin the investment procedure, it is advisable to consider the. Ethiopias house of peoples representatives, the legislative organ of the government. M candidate in business and corporate law, bahirdar university abstract. Eligible areas of investment the new law opens up the ethiopian economy for further private sector investment, by envisaging that an investor may invest in any sector, except where the investment is contrary to law, moral, public health or security norms.
Nevertheless recent developments in bilateral model treaties provide. An appraisal of theories, practices and challenges this article explores selected and topical. Whereas the investment administration system has to investment attraction, retention, and expansion. National investment objectives and are operated in accordance with the law. Jul 21, 2020 founded by mehrteab leul kokeb, and a leading fullservice law office in ethiopia, and has over 20 years experience advising and representing clients on wide range of legal issues concerning business and investment in the country. An appraisal of theories, practices and challenges. Now, therefore, in accordance with article 55 1 of the constitution of the federal democratic republic of ethiopia, it is hereby proclaimed as follows. Request pdf the law and policy of foreign investment promotion and protection in ethiopia. Ethiopian investment board and ethiopian investment commission establishment council of ministers regulation no. Legal framework for competition in ethiopia the evolution of competition policy and competition law in ethiopia can be traced back to the 1960s, with the introduction of the commercial code and civil code of 1960, which prohibited unfair trade practices. Box 113 addis ababa, ethiopia in collaboration with. The changes to the investment laws find their roots in the wave of economic and legal reforms that have been underway since 2018.
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