Diaspora Forum

Ample Opportunities to Invest in the Homeland

          Ever since the formation of the transitional government, Ethiopia has been exerting efforts to attract investment. Several investment policies were drawn to facilitate sustainable and reliable investment flow. In line with relevant government policies, due attention was given to the Ethiopian Diaspora, particularly in encouraging them to maintain strong attachments with their homeland through involvement in various investment activities.

Ethiopian Investment Commissioner Abbi Woldemeskel says, his office has overhauled its working procedures doing away with  bureaucratic   red tape.

      Following the implementation of the civil service reform programme, radical steps were taken to improve service delivery in investment offices both at the national and regional levels. The one-stop shopping definitely promoted the commission's service delivery. These days, it will not take an investor more than a day to obtain an investment permit. Committed to the overall development of the country, the government has set aside significant

amount of resources to improve the infrastructure,           

one of the major areas that could impact investment. Fundamental changes have also been effected to help investors get into the actual work within the shortest time possible.

            Special department for investment follow up has been established at the federal level to oversee and address the problems encountered by investors in the process while assisting in expediting the development of infrastructural facilities like   water, electricity and telecommunications. Concerning the participation of the Ethiopian Diaspora  in the sector, Ato Abbi says that there are many investment opportunities. The government believes that the Ethiopian Diaspora play a significant role in their country's economic development.

            So they can launch joint ventures with local investors or with foreign nationals or take it all alone. Besides opening up wide-ranging areas of investment for the Ethiopian Diaspora, a range of (investment) incentives has been given by the government.  Any foreign national of Ethiopian origin has the right to own a fixed asset in the country. He can either purchase or construct a residential   house. Members of the Diaspora can also have different options to invest in Ethiopia. In the first place, they can engage in investment activities as a foreign citizen or they can engage like an Ethiopian.

            Two years back, the Ethiopian expatriates were not allowed to   engage in investment activities without securing a license. But now any member of the Ethiopian Diaspora can invest without taking a license in any one of the investment areas. This shows that the government is committed to make things easier for the Diaspora to invest either by coming to Ethiopia or while staying abroad.

            According to Abbi, the Ethiopian Diaspora when they finally come to settle in their home country, they have a tax- free right to bring a car and their belongings.

            As far as land acquisition is concerned, Ato Abbi says about a year ago it would take two to three years for a member of the Ethiopian  Diaspora to get land for both  housing or investment activities. But now, investment zones with all the necessary infrastructure have been designated.   Hence, it is possible to get land for construction within a short period of time.

            Abbi said, the Ethiopian Diaspora have also been given the privilege to be exempted from customs duty while importing capital goods and construction material that are necessary for the establishenment of a new enterprise or upgrading of an old one. Privilege is also given for duty-free importation for spare parts whose values are not more than 15 percent of the total value of the capital goods to be imported. All the incentives and initiatives taken by the Ethiopian government open-up ample opportunities for interested investors including Ethiopians in the Diaspora to invest in their homeland.