Any foreign investor who has brought investment capital into Ethiopia must register it at the National Bank of Ethiopian and must obtain a certificate. All foreign investments made through a concessionary or a partnership agreement with the government or with an autonomous institution, and profits ploughed back capital gain on asset revaluation into the business may be repatriated provided that requirements are fulfilled.
It is the National Bank of Ethiopian (NBE) that registers foreign direct investment made into Ethiopia. Documents such as valid foreign investment license, article and memorandum of Association, a copy of bank advice (if the capital is transferred in cash) bank permit (if the capital is invested in kind) and other relevant documents are required for registration of foreign capital investment.
For foreign investors who have the interest to re-invest their share of dividend or capital gain acquired into the capital stocks of a company, can do so on submission of the following documents.
- In case of a re-investment from the projects of a business, confirmation from the shareholder or owner authorizing the increase in capital, minutes of the board of director and audited financial statement are required.
- And in case of registration of capital gain on assets, Letter of request from the investment group or owner, minutes of the Board of directors, Audited asset evolution report and audited finical statement are required.
The National Bank of Ethiopian registers capital inflows received in the form of loan and suppliers credit by forging investors. Accordingly, if the loan is disbursed in cash form documents related to the loan agreement, bank transfer advice and registration request letter by the applicant or investor must be presented.
However, in case of payments effected from loan A/c to suppliers’ letter from the investment entity, invoice for the goods purchased and shipping documents, declaration proofing the entry of goods to the country and registration request letter by the applicant or inventory are required to be presented.
For goods purchased on suppliers’ credit basis agreement made between the investor and supplier of the goods that include schedule of payment and the total amount of the credit clearly stating principal and interest involved. Description of the goods, value and quantity arranged on supplier credit basis request registration request letter by the applicant or investor is as well needed. And if the goods have been already received copies of shipping documents and customs declaration, in addition to this, if a foreign investor needs a consent letter prior to shipment of the items intended for purchase on installment payment basis, NBE shall issue the letter on presentation of documents stated above.
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