Investment Opportunities And Foreign Investment In Ethiopia
Ethiopian?s Investment Code provides incentives for development related investments,
reduces capital entry requirements for joint ventures , permits the duty free entry of capital
goods ( except computers and vehicles), opens the real estate sector to expatriate investors,
extends the losses carried forward provision, cuts the capital gains tax from 40% -10% and
gives priority to investors in obtaining land for lease.
Accordingly, the exclusive right to generate and supply electricity other than from
hydropower, above 25 megawatts, air transport service using aircraft with a seating capacity
of more than 20 passengers or with a cargo capacity greater than 2700 kms, rail transport
services or telecommunication services including the internet only in partnership with the
government are the sectors that are reserved for the government of Ethiopia.
Foreign investment in Ethiopia
A foreign investor is allowed to invest in all areas of investment except those reserved for
the government, Ethiopian nationals and other domestic investors. Foreign investment in
Ethiopia is regulated as described in proclamation number 280/2002.
According to this proclamation a foreign investor who intends to invest on his /her own,
except in consultancy services and publishing is requires investing not less than USD
100,000 in cash and/or in kind as an initial investment capital per project. The minimum
capital regard of a wholly foreign investor investing in consultancy, Services or publishing
USD 50,000 which may be in cash and/or in kind. a foreign investor reinvesting his/her
profit or dividends or exporting 75% of his /her out puts ,however, is not required to
allocate minimum capital .
Any pertinent information about investment in Ethiopia, tax in Ethiopia, can be available
from an Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian, Ethiopian
Employment Layer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.
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