Below you will find a summary of the investment policy and incentives provided as per the ethiopian investment laws. Investment procedures in ethiopia ethiopian business portal. The highlights of investment proclamation and guideline bellows are compiled from investment proclamation no. The ethiopian investment commission is obliged to receive an application for an investment permit and issue the permit upon examination of the intended investment activity in light of the proclamation, regulation and directives, and receipt of the appropriate fee. Ethiopia investment policies and incentives and opportunities.
Investment regulations in ethiopia details written by administrator published on 30 april 2008 category. Investment guide for ethiopia business environment investment policy investment areas incentivesguarantees taxation investment opportunities investment procedures addis ababa, ethiopia january 2004 published by. Document wttprs305 contains the policy statement submitted by djibouti. An objective evaluation of a countrys legal, regulatory and institutional framework to attract direct. The policy and investment framework pif provides a strategic framework for the prioritisation and planning of investments that will drive ethiopias agricultural growth and development. Admission foreign investors can invest alone or in partnership with domestic investors in areas open for fdi. Highlight the priority industries and sectors newly opened for foreign direct investment and joint venture partnerships. Present opportunities in various sectors ripe for investments. Strategy, and other sectoral ects and capital invested have shown slight increase. As shown in table 1, domestic investment in ethiopia has increased r apidly since the introduction of liberal policies in 1992. Proclamation on investment unctad investment policy hub. Ethiopias ethiopian leather industry reveals that the change in government policy was successful in attracting foreign direct investment in the processing of raw hides and in the manufacturing of leather products.
The policy for ethiopian investment has been modified in the last 20 years for more. In general, investment may be defined as making an outlay of money or capital for profit. Over the last decade, israeli investment in ethiopia totalled over 600 million birr and is growing. Ethiopian investment policy foreign investors can invest alone or in partnership with domestic investors in areas open for fdi all investors are required to have an investment permit allocate minimum of usd 200,000 the ethiopian investment policy has been modified more than 4 times in the last 20 years, in favor of investors. Impact of foreign direct investment on economic growth of. Encouraged by this several domestic and expatriate companies have showed interest to work in joint ventures and private investment on sugar and related sectors. However, the gap between domestic investment and savings has remained wide thereby reinforcing the need for fdi in the development of the economy. However, the gap between domestic investment and savings has remained wide. 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. Ethiopias agriculture sector policy and investment.
Investment objectives of the federal democratic republic of ethiopia the objectives of the investment policy of the federal democratic republic of ethiopia are designed to improve the living standards of the peoples of ethiopia through the realization of sustainable economic and social development, the particulars of which are the following. Government and all ethiopian citizens shall have the duty to protect the countrys natural endowment, historical sites and objects. Foreign agricultural investment country profile ethiopia region subsaharan africa income group low population 84. National policy principles and objectives ethiopia.
Israeli investment and transfer of technology, in particular in agriculture conditioned by semiarid. New organizational structure with more precise mandates in. Investment opportunities in industrial park investments. The ethiopian investment agency eia approves the submitted documents and issues an investment permit in 23 hours time if the above documents are received in full. 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. Clearly articulate the economic reform policy of the government of ethiopia. Top 5 opportunities for investment in ethiopia part ii. Ten year road map 20102020 1 dated august 5 th 2010. Economic policy analysis this site presents an analysis of the ethiopian governments economic policies compared to a revised list of 34 economic policies as prepared by student serkalem tekletsadik with the mckeever institute of economic policy analysis miepain december 20. Several agroindustrial projects had been initiated through the public as well as the private sectors.
Ethiopian education policy pdf free download as pdf file. Smallholder peasant agriculture, in some areas including forestry, is the dominant sector accounting for. Economic policy analysis this site presents an analysis of the ethiopian governments economic policies compared to a revised list of 34 economic policies as prepared by student serkalem tekletsadik with the mckeever institute of economic policy analysis miepa in december 20. Structure, problems and policy issues investment promotion and incentives in ethiopia tsegaye teldu 1. As shown in table 1, domestic investment in ethiopia has increased rapidly since the introduction of liberal policies in 1992. Ethiopian foreign direct investment data between the years 19902011. Trade and foreign direct investment fdi figure in the. Before planning to invest in ethiopia and begin the investment procedure, it is advisable to consider the. Overview of economic, geographic, social, and political outlook. One challenge investors will face in this sector is a consumer base that remains relatively poor. Investment policy and promotion strategy for ethiopia to 2010 45. Ethiopias agriculture sector policy and investment framework. Expand and ensure the qualities of education and health services thereby achieving the mdgs in the social sectors, 3.
Strategic and tactical issues of ethiopias foreign policy. Investment means expenditure of capital by an investor to establish a new enterprise or to. Dec 30, 2015 moreover, a joint venture law in 1983 and a foreign investment policy initiated in 1988 had stimulated the gradual return of private investors, although the level of such investments remained low. Overview of ethiopias investment policies and incentives. Reconsidering ethiopias investment policies and practices, by asefa belachew asefa. The growth and transformation plan has the following major objectives. The ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. The african setting while the african continent has immense human and natural resources, a combination of factors, including the colonial heritage, structural weaknesses of. Ethiopia investment guide 20172018 aln ethiopia mesfin. Ethiopian investment policy and its incentives fikadu and. This has led to some degree of technology transfer, albeit limited so far. Ethiopian business development services network ebdsn p. Investment regulations in ethiopia ethiopian business portal. Trade policy reform measures included import liberalization through rationalization of the tariff structure and reduction of quantitative restrictions, simplified licensing procedures, the introduction of marketoriented and more transparent allocation of foreign.
Impact of foreign direct investment on economic growth of ethiopia a time series empirical analysis, 19742011 meskerem daniel menamo thesis for the degree of master of philosophy in environmental and development economics department of economics unversity of oslo januar, 2014. According to the eia, the areas with the most promising potential for investment are agriculture, agroprocessing, textiles and garment, leather and leather products, tourism, mining, and hydropower. Reconsidering ethiopias investment policies and practices. Trade policy in ethiopia, 19912016 oxford handbooks. Benchmarking indepth desk research on best practice. The ethiopian investment agency eia, which was established in the year 1992 is responsible for facilitating investment both domestic and foreign.
Overview of ethiopian investment opportunities and policies. The definition given under our investment law is in line with this definition. Growth and transformation plan gtp 201011201415 draft. High level political commitment for investment promotion and protection.
Application for investment permit for expansion or upgrading. Policy priorities for the new government as ethiopias new government begins work in september 2010, it is armed with a new plan. Even though ethiopia was dependent on western economic aid, no western donor was able to influence daytoday economic policy on a regular basis. As shown in table 1, domestic investment in ethiopia has increased r. 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. 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. Investment opportunities and joint venture the government has decided to transfer public enterprises to the private sector totally or partially. Ethiopia s vision of becoming a middle income country by 2025 is built around economic, social, and environmental pillars. Box 113 addis ababa, ethiopia in collaboration with. Overview of ethiopia s investment policies and incentives the policy for ethiopian investment has been modified in the last 20 years for more than 4 times.
One ethiopian university has already expanded operations to neighboring somaliland. Latest trends in investment policy measures and international investment agreements. The role of trade and foreign investment in this process, and particularly the role of trade and investment policy liberalization, has been much disputed. Government shall have the duty, to the extent its resources permit, to support the development of the arts, science and technology. Mckeever institute of economic policy analysis ethiopia. The investment laws navigator is a comprehensive and regularly updated collection of national investment laws. As ethiopias new government begins work in september 2010, it is armed with a new plan. 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. Admission foreign investors can invest alone or in. Maintain at least an average real gdp growth rate of 11% and meet the millennium development goals, 2. A key point of reference for policymakers in formulating investment policies and negotiating investment agreements. Investment investment regulation in ethiopia is subjected to several laws that are mainly enacted to facilitate, promote and enhance foreign direct investment in ethiopia.
228 541 1243 558 1517 985 325 1434 363 816 6 120 1339 129 653 1422 1376 969 948 1181 114 321 176 560 63 102 200 1412 941 831 879 917