National coffer

Newsletter 12

Investment Environment in Tigray

The region of Tigray has become the hub of trade activities where entrepreneurs are busy launching new ventures. The region has immense potential for various investments, and now it is in a better position more than ever before to attract an increased amount of investment capital and a large number of investment projects.

               The regional investment office is organized as a one-stop shop service and hence, provides both pre and post approval investment services for both domestic and foreign investors. To encourage private investment and promote the flow of  foreign  capital  and

The region will provide land freely for selected and strategic projects and for some others at a lower negotiable price within and  outside  the  industrial  zone.

technology, incentives are granted to investors (both domestic and foreign) engaged in new ventures and expansions in areas qualified for investment incentives. In addition to the incentives granted at the federal level the region provides its own package.

               The region has designated industrial zones with all the necessary infrastructure in seven towns of the region. It allows investors to acquire land at a lower and fixed lease price without auction. The following shows the annual lease price per square meter for each town.

Type of projects to be given land free from lease include Nurseries, Dairy Farming and Processing plants, Construction of low cost houses, Leather manufacturing industries,... etc.

         For agricultural projects the current land rent ranges from 30-40 Birr per hectare and will remain fixed for the coming 10 years. In the event it is revised, the increment of rent will not exceed 20%. Owning farm plots on rent is possible from both government and individual farmers up to 50 and 20 years respectively.

               Grace period based on the type of projects and investment capital ranges from 1-7 years of land acquisition.  

The newly amended urban lease regulation has extended the lease term (duration) for trade, industry, social service, real estate developers and others as follows.  

When one contemplates the region's investment potentials the economy of the region, like that of the nation, is based on agriculture. The region is suitable for crops such as sorghum, sesame, cotton, barley, wheat, teff and other cereals. A considerable amount of incense and wild gum could be harvested in the region.   

           Reports indicate that there are 20,000 and 100,000 hectares of land suitable for wild gum and incense plantation, respectively.

           Investors could develop these vast stretch of land opening job opportunities to multitudes of compatriots while contributing their share in the on going nation-building endeavors.