Remittance According to Ethiopian Investment Law
Provided the foreign investor fulfils the requirements of the Ethiopian National Bank, the regulatory organ authorized to control foreign exchange in Ethiopia, the Ethiopian Investment law guarantees the foreign investor the privileged of Repatriation of capital and profits.
So Foreign investors can apply for transfer of foreign currency abroad from recognized investment if an investor earns profit or dividend from the capital put in operation (investment), or if the investor ceases operations and decides to close the firm, or If the investor decided to sell its equity wholly or partially to a third party, or if an investor wants to pay installments agreed on loan or supplies credit.
When transferring profits and dividends a foreign investor who earn profits or dividends from recognized investments shall be entitled to remit abroad by presenting documents such as:-
In case of ceasing operation an investor will be required to present the following document to transfer its capital.
By presenting letter of share authenticated by independent organization, credit advice if the equity is sold to foreigner and if sold to an Ethiopian, investor will be entitled to transfer the values sold based on the original agreement and recognition letter issued by NBE foreign investor who transfers the equity holdings (shares) partially or wholly to an Ethiopian national and /or foreign investors can apply for remittance of the share value sold.
If a foreign investor who wants to pay installments on loan or suppliers credit registered loan capital by NBE letter of recognition from NBE and registration of the loan capital, repayment schedule, letter of request by the invest organization/owner and any other document as may be required.
Finally, foreign businessmen who do not have recognized foreign investment and who have sold or liquidate their business or properties belonging to them may make foreign exchange remittance on final departures upon presenting.
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