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; 

  1. Failure to comply and proceed according to investment proclamation no. 769/2012
  2. Misusing the investment incentives which are granted by the commission  and
  3. 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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“Copyright © 2003-2015 Fikadu Asfaw and Associate Law Office

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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.