Registration of Foreign Capital According to Ethiopian Law
Procedures and conditions
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
1. 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.
2. 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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