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Ethiopian Law Blog
Areas of Investment Provided By the Ethiopian Investment Laws for Domestic and Foreign Investors

Do you want to know about areas of investment permitted for investment according to Ethiopian law? Below you will find these areas of investment divided by sector of investment.

 A.     Areas Of Investment Permitted For Foreign Investment

All major areas of investment are open for foreign investors other than the following. In other words except areas of investment mentioned under B, C and


B.    
Areas Reserved Exclusively For The Government Only:

  • Postal services with the exception of courier service;
  • Transmission and supply of electrical energy through the integrated national grid system; and
  • Passenger air transport services using aircraft with seating capacity of more than 20 passengers.

C.     Areas Reserved For Ethiopian Nationals Only:

  • Banking, insurance and micro credit and saving services ;
  • Travel and shipping agency services ;
  • Broadcasting services ; and
  • Air transport services using aircraft with a seating capacity of up to 20 passengers

 

D.    Areas Reserved For Domestic Investors Only:

  • Retail trade and brokerage;
  • Wholesale trade( Excluding supply of petroleum and its by –products locally Produced);
  • Import trade( Excluding LPG, bitumen and up on the approval of the Council of ministers materials used as inputs for export products);
  • Export trade of raw coffee, chat, oil seeds, pulses, hides and skins bought from the market ad live sheep, goats and cattle not raised and fattened by the investor;
  • Constriction companies excluding those designated as grade1:
  • Tanning of hides and skins up to crust level;
  • Hotels other than those star-designated, motels, pensions, tea rooms, coffee shops, bars, night clubs and restaurants excluding international and specialized restaurants;
  • Travel agency, trade auxiliary and ticket selling services;
  • Car-hire and taxi-cabs transport services;
  • Commercial road transport and inland water transport a services;
  • Bakery products and pastries for the domestic market;
  • Grinding mills;
  • Bakery products and pastries for the domestic market;
  • Grinding mills;
  • Barber shops, beauty salons, and provision of smith workshops and tailoring series except garment factory;
  • Building maintenance and repair and maintenance of vehicles;
  • Saw milling and timber making products;
  • Customs clearance services;
  • Museums theaters and cinema hall operations;
  • Printing industries.

 

Capital Requirement for Foreign Investment in Ethiopia

Under the Investment proclamation No. 280/2002 (as amended), a foreign investor, who invests on his own, except in consultancy services and publishing, is required to invest not less than US $ 100,000 in cash and/or in kind for a single project. However, if he invests in partnership with domestic investor(s) the minimum capital required of him in US $ 60,000.

 

The minimum capital required of a wholly foreign investor investing in consultancy services or publishing is US $ 50,000, which may be in cash and/or in kind. This capital amount is lowered to US $ 25,000, if he invests in partnership with domestic investor(s). A foreign investor reinvesting his profit or dividends, or exporting 75% of his outputs, however, is not required to allocate a minimum capital.

 

If you have any question or comment or need to get a practical legal support in this regard please  Contact us.

Any pertinent information about trade mark registration and protection can be available from any Ethiopian Trade mark Lawyer, Ethiopian Copyright Lawyer or Ethiopian Intellectual Property Lawyer.

 

By: Fikadu Asfaw On Thursday, 18 August 2011 Comment Comments( 0 ) Hits Views(7614)
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