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Investment procedures and requirements

Investment Administration Organs

  • The Ethiopian Investment Board;
  • The Ethiopian Investment Commission;
  • The Federal Government and Regional State Administrations Investment Council; and
  • Investment administration Organs established pursuant to Regional Laws.

Tourism and hospitality investment areas reserved only for domestic investors

  • Hotel, lodge, resort, motel, guest house, pension services ( excluding those that are star designated)
  • Restaurant, tearoom, coffee shops, bars, night clubs and catering services (excluding star designated national cuisine restaurant services)
  • Travel agency, travel ticket sales and trade auxiliary services
  • Tour operation
  • Transport services (excluding Railway, Cable car, Cold-chain, freight transport having a capacity of more than 25 tones and transport services reserved for joint investment with the government or domestic investors)
  • Producing bakery products and pastries for domestic market

Tourism and hospitality investment areas reserved for joint investment domestic and foreign investors

  • Domestic air transport service
  • Cross country transport service using buses with a seating capacity of more than 45 passengers
  • Urban mass transport service with large carrying capacity
  • Note that a foreign investor jointly investing with a domestic investor in areas listed above shall not hold more than 49% of the share capital of the enterprise

Tourism and hospitality investment areas open to foreign investors

  • Investment areas that are not listed herein the above; are open to foreign investors.

Minimum Capital Requirements for Foreign Investors

  • Any foreign investor is required to allocate a minimum capital of USD 200,000.00 (two hundred thousand) for a single investment project. The minimum capital required of a foreign investor jointly investing with a domestic investor shall be USD 150,000.00 (one hundred fifty thousand).
  • The minimum capital requirement shall not apply to
  • Foreign investor re-investing his profits or dividends generated from the existing enterprise in any investment area open for foreign investors;
  • Persons elected as members of board of directors following the change of a private limited company to share company;
  • A foreign investor buying the entirety of an existing enterprise owned by a foreign investor or the shares therein.
  • Any foreign investor bringing investment capital into the country shall have such capital registered by the appropriate investment organ within one year and obtain a certificate of registration. The appropriate investment organ shall send a copy of the certificate to the National Bank of Ethiopia.

Requirement and Issuance of Investment Permit

These investors shall be required to obtain investment permits:

  • Foreign investors
  • Domestic and foreign investors investing jointly,
  • Investors investing as domestic investors
  • Domestic investors who, investing in areas eligible for incentives, seek to be beneficiaries of such incentives; and
  • An investor seeking to expend or upgrade an existing investment, provided that the investment is eligible for incentives and the investor seeks to be beneficiary of such incentives.

External Loan and Foreign Currency Account

Any investor may acquire external loan for his investment as per the applicable Directive of the National Bank of Ethiopia. Any investor may operate a foreign currency account in Banks in Ethiopia for the purpose of its investment as per the applicable Directive of the National Bank of Ethiopia.

Investment in Tourism and Hospitality

Incentive packages

The following attractive investment incentives are given by the investment board for seven potential destinations; Abijatta-Shalla National Park, Bale Mountain National Park, Semien Mountains National Park, Gheralta Mountains, Erta Ale, Abaya and Chamo lakes, Arbaminch and Wenchi Crater Lake.

  • 5 years of income tax exemption for those who invest on the five specified regions.
  • Duty free privileges on Capital good and spare-parts.
  • Duty free privileges on finishing construction materials (if they’re going to build the hotel themselves).
  • Duty free import of the following vehicles.
  • Station wagons (NEW)
  • A bus (minimum capacity of 30 passengers excluding the foldable seats)

Abijatta-Shalla National Park

It is located in the Oromia Region in the central rift valley, 200 kilometers south of Addis Ababa, and east of the ZiwayShashamane highway. It contains 887 square kilometers including the Rift Valley lakes of Abijatta and Shalla. The two lakes are separated by three kilometers of hilly land. The altitude of the park ranges from 1540 to 2075 meters, the highest peak being Mount Fike, which is situated between the two lakes. Besides the two lakes, the primary attraction of this national park are a number of hot springs on the northeast corner of Lake Abijatta, and large numbers of flamingoes on the lake.

Bale Mountain National Park

It is located in southeast Ethiopia with the state of Oromia, about 430 km from Addis Ababa and 150 km from Shashemene. The park was registered in 2009 as a World Heritage Tentative List. The total area of ​​the park is 2,150sq km and is visited annually by thousands of domestic and foreign tourists. Particular features of the park are; Saneti Plateau, Harena Forest, and the most famous wildlife species of the Ethiopian Wolf, Mountain Nyala and Bale Monkey.

Semien Mountains National Park

It is located in the Amhara National Regional State, 860km from Addis Ababa, and 120km from Gondar. The total area of ​​the park is currently 412 sq km, with annual visitor numbers more than 32,000 by 2019. Particular features of the park are fascinating scenery, with 8 different mountains above 4,000 meters high, including the tallest mountain peak Ras Dashen in Ethiopia. The park is a home for the indemics Walia ibex, Simien fox and Gelada baboon.

Gheralta Mountains

These mountains are located in the Tigray Region of Ethiopia, with more than 30 rock hewn churches built in the sixth century. The churches including; Abuna Yemata Guh, Abuna Abraham Debre Tsion,Debre Maryam Korkor.

Erta Ale

The natural wonders of Ertale are in the Afar region, north-eastern Ethiopia. The unique features include the Danakil Depression, Hadar the recovering place of Lucy, the Erta-Ale active volcano, Afdera the Salt stock lake, and numerous hot springs. Erta Ale (meaning “smoking mountain”) is 613 metres (2,011 ft) high, with one or sometimes two active lava lakes at the summit which occasionally overflow on the south side of the volcano. Denakil depression has developed as a result of Africa and Asia moving apart, causing rifting and volcanic activity and is about 125 meteres below sea level.

Abaya and Chamo lakes, Arbaminch

Located 500 Km from Addis Ababa and it is two cities in one. The settlements of Shecha and Sikela, is separated by 3km of virtual no-man’s land. It is one of Ethiopia’s last great surviving wildernesses; Offers fantastic views over the volcanic lakes, Abaya and Chamo, are angles of paradise. By far the largest of Ethiopia’s Rift Valley lakes, the 551-square-kilometre waters of Chamo and the 1,160-square-kilometre surface of Abaya are considered by many to be the most beautiful; alive with many species of fish (the fighting tiger fish), giant Nile perch, barbell, catfish and tilapia offering fine sport for fishery. Forms part of one of Ethiopia’s finest national parks, Nech Sar, established as a sanctuary for the rare Swayne’s hartebeest.

Wenchi Crater Lake

Wenchi is a highland area, situated in Oromia Regional state in South West Shewa Zone, 155 km west of Addis Ababa. The area is famed for its beautiful mountainous landscape, used partly as farmland and partly covered by natural forest. An old monastery with a church is situated on one of the lake islands. Other attractions included the hot mineral springs, waterfalls and dramatic valleys around the lake.

  • Our organization has nominated and introduced ten other potential sites on the second phase to be benefited from special incentives packages for Tourism investment; Chebera churchura national park, Sof omer cave, Lower omo valley (Omo, Mago, and Jinka’s Saturday market), Gambella national park, Geraile national park, Tis Abay, Tiya tombs, Bijimis national park and Hidase dam, Yayu forest and Konso landscape.

Why Invest In Oromia

1.Committed Government •        High level political commitment for investment promotion and protection; investment policy Reforms

•        Wide-ranging incentive packages for priority sectors and export-oriented investments.

•        Implemented one stop service and online registry platform

2. Developed infrastructure •        Huge investment potential in renewable energy including hydro, wind and geothermal

•        Expanding telecommunication services.

•        Expanding Power/electricity services.

•        New road construction

3. Favorable market factors ·        Strategic location with proximity to the the capital city , Addis Ababa

·        Excellent climate and fertile soils

·        Ample investment opportunities due to endowment of natural resource

4. Young and productive population ·        The population is about 48.2 million

·        About 47.6% of the population is under 15 years

·        49.24% ranging between 15-64 years (Active working age population)

huge natural resource base and development potentials Fertile land for agriculture, Water Resources, Energy Resources, Mineral Resource, Forest and Wildlife
KEY GOVERNMENT STRATEGIES ·        Policy Reforms and development of infrastructure

·        Development of world-class service delivery

·        Targeted investment in priority areas

·        Tailored incentives

Infrastructure Access

 

·        Road- High quality road infrastructure network connecting major cities, towns and local markets in the country.

·        Water – abundant water resource potential, about 58 billion cubic meter

·        Telecommunication– the country has national and international telecommunication services by using satellite, Micro-wave Digital Radio Multi Access (DRMAS), VSAT, UHF, VHF and HF Radio.

·        Power/ electricity – The government is investing to develop these potentials and as a result, the Grand Ethiopian Renaissance Dam (GERD), with an electricity generation capacity of 6,500MW, is under construction.

Development of world-class service delivery  ·        Targeted investment promotion

·        Streamlined One Stop Service including licensing, Visa, TIN, and other services

·        Approves incentives

·        Post establishment aftercare Support

·        Smart and proactive investment support by initiating policy and implementation measures necessary for a conducive and competitive investment climate in collaboration with relevant stakeholders.

Investment Opportunities

Targeted Investment Priorities are:

  • Tourism
  • Pharmaceuticals
  • Energy
  • Agriculture
  • Horticulture
  • Agro processing
  • Manufacturing
  • Electrical machinery

Investment Incentives

Tailored and competitive incentives are provided to investors
FISCAL ü  Income Tax exemptions

ü  Custom tax exemptions

ü  Loss carry forward

ü  Full export duty exemption

NON FISCAL ü  Guarantee against expropriation

ü  Guarantee for repatriation of funds

ü  Customs facilitation through bonded export factory and similar other schemes

ü  Relaxed Industrial park land regime

Others ü  One-Stop Shop Service

ü  Expedited procedure for securing visa, work permit and certificate of residency

ü  Facilitation of market linkages

ü  Aftercare Service

Priority Sector : Agriculture

1,920 Total number of projects

229,174 Total number of Jobs created

994 Operational

11 Completed construction

44 Pre Implementation

664 Not Implemented

16 Under Construction

158 Abandoned

Priority Sector : Agro-Industry

2468 Total number of projects

______ Total number of Jobs created

1358Operational

147 Completed construction

82Pre Implementation

576 Not Implemented

197 Under Construction

108 Abandoned

Priority Sector : Manufacturing

2204 Total number of projects

____Total number of Jobs created

1,051Operational

367 Completed construction

33 Pre Implementation

353 Not Implemented

319 Under Construction

158 Abandoned

Priority Sector : Service

6,348 Total number of projects

123,193 Total number of Jobs created

3,409 Operational

923 Not Implemented

160 Completed construction

52 Pre Implementation

1,517 Under Construction

287 Abandoned

Investment Inflow 

 

 

Investment Status by Sector

Massive investment has been made in infrastructure development in support of investors

Registered Capital by Investment Projects in Birr

Identified investment potentials in 5 Zone and 1 Town

  • Agriculture : 29 hek. Land
  • Industry : 14,982 hek. Land
  • Sevices : 83 hek. Land

Useful Contacts

Ethiopian Investment Commission

P.O. Box 2313
Tel: +251-11-551 0033
Fax: +251-11-551 4396
E-mail: ethioinvest@investethiopia.gov.et

Website: http://www.investethiopia.gov.et

Oromia Investment Commission

P.O. Box 2313
Tel: 251118350847

Free Call Center: 888
Email: getintouch@oromiainvest.com

Website:http://oromiainvest.com

Why Invest In Oromia

1.Committed Government •        High level political commitment for investment promotion and protection; investment policy Reforms

•        Wide-ranging incentive packages for priority sectors and export-oriented investments.

•        Implemented one stop service and online registry platform

2. Developed infrastructure •        Huge investment potential in renewable energy including hydro, wind and geothermal

•        Expanding telecommunication services.

•        Expanding Power/electricity services.

•        New road construction

3. Favorable market factors ·        Strategic location with proximity to the the capital city , Addis Ababa

·        Excellent climate and fertile soils

·        Ample investment opportunities due to endowment of natural resource

4. Young and productive population ·        The population is about 48.2 million

·        About 47.6% of the population is under 15 years

·        49.24% ranging between 15-64 years (Active working age population)

huge natural resource base and development potentials Fertile land for agriculture, Water Resources, Energy Resources, Mineral Resource, Forest and Wildlife
KEY GOVERNMENT STRATEGIES ·        Policy Reforms and development of infrastructure

·        Development of world-class service delivery

·        Targeted investment in priority areas

·        Tailored incentives

Infrastructure Access

 

·        Road- High quality road infrastructure network connecting major cities, towns and local markets in the country.

·        Water – abundant water resource potential, about 58 billion cubic meter

·        Telecommunication– the country has national and international telecommunication services by using satellite, Micro-wave Digital Radio Multi Access (DRMAS), VSAT, UHF, VHF and HF Radio.

·        Power/ electricity – The government is investing to develop these potentials and as a result, the Grand Ethiopian Renaissance Dam (GERD), with an electricity generation capacity of 6,500MW, is under construction.

Development of world-class service delivery  ·        Targeted investment promotion

·        Streamlined One Stop Service including licensing, Visa, TIN, and other services

·        Approves incentives

·        Post establishment aftercare Support

·        Smart and proactive investment support by initiating policy and implementation measures necessary for a conducive and competitive investment climate in collaboration with relevant stakeholders.

Investment Opportunities

Targeted Investment Priorities are:

  • Tourism
  • Pharmaceuticals
  • Energy
  • Agriculture
  • Horticulture
  • Agro processing
  • Manufacturing
  • Electrical machinery

Investment Incentives

Tailored and competitive incentives are provided to investors
FISCAL ü  Income Tax exemptions

ü  Custom tax exemptions

ü  Loss carry forward

ü  Full export duty exemption

NON FISCAL ü  Guarantee against expropriation

ü  Guarantee for repatriation of funds

ü  Customs facilitation through bonded export factory and similar other schemes

ü  Relaxed Industrial park land regime

Others ü  One-Stop Shop Service

ü  Expedited procedure for securing visa, work permit and certificate of residency

ü  Facilitation of market linkages

ü  Aftercare Service

Priority Sector : Agriculture

1,920 Total number of projects

229,174 Total number of Jobs created

994 Operational

11 Completed construction

44 Pre Implementation

664 Not Implemented

16 Under Construction

158 Abandoned

Priority Sector : Agro-Industry

2468 Total number of projects

______ Total number of Jobs created

1358Operational

147 Completed construction

82Pre Implementation

576 Not Implemented

197 Under Construction

108 Abandoned

Priority Sector : Manufacturing

2204 Total number of projects

____Total number of Jobs created

1,051Operational

367 Completed construction

33 Pre Implementation

353 Not Implemented

319 Under Construction

158 Abandoned

Priority Sector : Service

6,348 Total number of projects

123,193 Total number of Jobs created

3,409 Operational

923 Not Implemented

160 Completed construction

52 Pre Implementation

1,517 Under Construction

287 Abandoned

Investment Inflow 

 

 

Investment Status by Sector

Massive investment has been made in infrastructure development in support of investors

Registered Capital by Investment Projects in Birr

Identified investment potentials in 5 Zone and 1 Town

  • Agriculture : 29 hek. Land
  • Industry : 14,982 hek. Land
  • Sevices : 83 hek. Land

Useful Contacts

Ethiopian Investment Commission

P.O. Box 2313
Tel: +251-11-551 0033
Fax: +251-11-551 4396
E-mail: ethioinvest@investethiopia.gov.et

Website: http://www.investethiopia.gov.et

Oromia Investment Commission

P.O. Box 2313
Tel: 251118350847

Free Call Center: 888
Email: getintouch@oromiainvest.com

Website:http://oromiainvest.com