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INVESTMENT ADMINISTRATION IN ETHIOPIA

The Ethiopian Investment Commission (EIC) is the principal government organ responsible for promoting, coordinating and facilitating foreign investment in Ethiopia. 

            Regional Investment Offices (RIOs) have also been established to promote and handle local investments in their respective regions.  There is a strong linkage between EIC and RIOs with respect to technical assistance, the exchange of information and provision of investment facilities.

            EIC is a truly one-stop-shop for all foreign investment in Ethiopia, and it:

F        provides the necessary information required by investors;

F        receives investment applications;

F        approves and issues investment permits to foreign investors;

F        provides registration services to newly incorporated business organizations;

F        issues trade and operation licenses to approved foreign investments;

F        notarizes memorandum of association and articles of association;

F        grades construction contractors;

F        approves and registers technology transfer agreements;

F        registers export-oriented non-equity based foreign enterprise collaborations;

F        provides advisory and aftercare services to investors;

F        approves expatriate posts and issues work permits to foreign employees;

F        facilitates the acquisition of land by foreign investors in accordance with the relevant laws of the Federal and Regional Governments, and

F        renders other pre- and post- investment approval services.

How to Do Business in Ethiopia

 Investment in Ethiopia can be effected in one of the following forms:

a.      sole proprietorship;

b.      business organizations incorporated in Ethiopia or abroad;

c.       public enterprises established in accordance with the relevant law;

d.     co-operative societies formed in accordance with the relevant law.

 Company Registration

 All foreign companies intending to invest in Ethiopia must be registered in accordance with the Commercial Code of Ethiopia.  The EIC, representing the Ministry of Trade and Industry, carries out such company registration.

            Companies are required to submit draft memorandum and articles of association to the Commission.  The Commission, after examining these documents, notarizes the memorandum and articles of association and subsequently issues a certificate of incorporation evidencing the registration of the company.  

Access to Land

In Ethiopia, land is public property.  Both rural and urban lands are made available to investors at competitive price on a leasehold basis.  Leaseholders have the right of use over urban land for periods ranging from 50 to 99 years.

            Lease right over land can be transferred together with on-built facilities.

            Each Regional Government delivers, based on the Federal Law and its own laws, the required land to an investor within 60 days after receiving an application for allocation of land for an approved investment.

            The Ethiopian Investment Commission, in cooperation with the concerned Regional Government entities, facilitates and follow up the allocation of land for approved foreign investments.

            Investors who intend to invest in export-oriented projects are given priority to acquire land at reduced lease price.

            During the period July 2004 - October 2004 EIC has approved more than 284 investment projects in different sectors.   Some 132 projects are domestic while the remaining 152 projects are foreign.  The approved investment projects will create about 25,301 permanent and temporary employment opportunities.  The following table shows number, investment capital and new employment opportunities

To See the Table :- Number, Investment Capital and Employment Creation of Investment Projects Approved by EIC by Sector  July   2004 - October 2004 (Click Hear)