Investment Incentives in Ethiopia

Investment Incentives in Ethiopia

To encourage private investment and promote the inflow of foreign capital and technology into Ethiopia, the following incentives are granted to both domestic and foreign investors engaged in areas eligible forinvestment incentives:

a) Exemption from import customs duty

One hundred per cent exemption from the payment of import customs duties and other taxes levied on imports is granted to an investor to import all investment capital goods, such as plant, machinery and equipment, construction materials, as well as spare parts worth up to 15% of the value of the imported investment capital goods. However, the following investment areas are not eligible for exemption from import customs duty:

  • Hotels(excluding star-designated hotels), motels, tearooms, coffee shops, bars, night clubs and restaurants, which do not have international standards
  • Wholesale, retail and import trade
  • Maintenance services
  • Commercial road transport and car-hire services
  • Postal and courier services
  • Real estate development
  • Business and management consultancy services
  • Advertisement services
  • Cinematography and similar activities
  • Radio and television broadcasting services
  • Theatre and cinema hall operations
  • Customs clearance services
  • Laundry services
  • Travel agency, trade auxiliary and ticket selling services
  • Lottery and games of similar nature.

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