Due to existence of of peace and political stability, macro-economic stability and growing economy, low government budget deficit (less than2% of GDP) and double digit GDP growth rate of an average of11.0% per year over the last 8 years the investment climate in the country has continued to favourable.
The World Bank’s Doing Business report for 2011 ranked Ethiopia at 111 out of 183 countries, losing ground from the 2010 ranking of 104
Ethiopia Investment Agency
The Ethiopia Investment Agency (EIA) is a government agency established to promote, encourage and facilitate private investments in general and foreign investment in particular in Ethiopia. EIA operates as a one-stop-shop to enhance prompt services in Ethiopia
Mandates of Ethiopia Investment Agency
- Providing pre and post investment services to investors;
- Collect, compile, analyze and disseminate information about investment opportunities in the country and advise upon request on the availability of partners for joint-ventures
- Identify specific projects and invite interested investors to participate
- Register and keep records of all technology transfer agreements relating to investments
- Initiate, organize and participate in investment promotional activities such as exhibitions, conferences and seminars
- Issue all legal permits including investment, work, residence and expatriate posts;
- Review, evaluate and forward policy recommendations to the concerned government body for approval
- Perform such other functions that would enhance the attainment of its objectives
Ethiopia Investment Policy
The policy states that foreign investors can invest alone or in partnership with domestic investors in areas open for FDI No restrictions on equity ownership in joint venture (JV) investment.
Guarantee against expropriation or nationalization (Constitution & Investment Law,MIGA & BITs)
The constitution protects private property. Investment Proclamation No. 15/1992 and the revised Investment Proclamation No. 37/1996 also provide investment guarantees against measures of expropriation and nationalization, except when required by the public interest.
Investment Climate in Ethiopia has been summarized to include the following
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