The Ethiopian Investment Commission (EIC) has announced that it has revoked 216 investment licenses during the first half of 2014/15 fiscal year. This number is notably decreased when compared to the 2,980 revoked licenses in the previous year. The commission has revoked these licenses for three major reasons;
- Failure to comply and proceed according to investment proclamation no. 769/2012
- Misusing the investment incentives which are granted by the commission and
- Failure to execute their investments within two years.
Although the licenses of these investors is revoked by the EIC, it have also approved the application of 200 new and 53 expansion investment license for investors who apply with the necessary initial capital of 200,000 USD for foreign investors or 150,000 USD for joint venture investors. The estimated capital of these investors has reached over 21 Billion Birr.
The EIC, which became accountable to the FDRE Prime Minister as of June 2014, major objective, is promoting private investors to invest in Ethiopia mainly through Foreign Direct Investment. Accordingly during the past six months 2,000 investors from 42 different countries has visited the commission in order to explore the investment opportunities in Ethiopia. Furthermore the most recent data of the commission shows that 108 projects have joined the Ethiopian market and these investors has given 16,661 employees a job opportunities and investors/companies from China has been front runners based on the number of investment projects they operate in Ethiopia and Companies from India and Sudan follows.
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Related notes
- Beware Of Suspension, Revocation, Cancelation of Investment License in Ethiopia
- Grounds of Company Dissolution under Ethiopian law
- Investment Opportunities open for Foreign Direct Investment in Ethiopia
- Guideline to Doing Business in Ethiopia: Especially Investing on Agriculture in Ethiopia
- Ethiopia- Amendment of the Investment Proclamation
- Brief Note on Business Incorporation and Investment Laws of Ethiopia
- Company Registration and Opening a Branch Office of an Overseas Company in Ethiopia
- Investment Guarantees and protections available under Ethiopian legal system
- Investors’ Access to Land as per Ethiopian Investment Laws
Note:This guide provides vital information on Ethiopian Investment law and practice and is not intended to substitute professional advice given with full knowledge of the specific circumstances of each case and proficiency in the law of Ethiopia such as might be provided by an Investment Attorney or Investment lawyer in Ethiopia.Such information about Investment in Ethiopia can be available from an Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian Employment Lawyer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.
