This week we travel to to the horn of africa for a closer look at the investment opportunities and challenges in the east african nation of ethiopia. Pdf an assessment of challenges and prospects of foreign. The effects of ethiopias investment policy and incentives on. National employment policy and strategy of ethiopia. Though, not consistent, foreign direct investment fdi flows into ethiopia have gradually increased in the last two decades. The national regional state of tigray mekelle city administration environmental impact assessment for the abattoir project final draft report november, 2012 mekelle, ethiopia business enterprise consultancy office of mekelle university, mekelle ethiopia public disclosure authorized e1844 v12 public disclosure authorized. The policy for ethiopian investment has been modified in the last 20 years for more. Ethiopias agriculture sector policy and investment.
Ethiopas investment commission eic is mandated with promoting investments in ethiopia. As shown in table 1, domestic investment in ethiopia has increased r apidly since the introduction of liberal policies in 1992. The ethiopian government has formulated and started the implementation of the second five year growth and transformation plan gtp to carry forward the important strategic directions to maintaining a fast growing economy in all sectors. The investment laws navigator is a comprehensive and regularly updated collection of national investment laws. The composition of the national armed forces shall reflect the equitable representation of the nations, nationalities and peoples of ethiopia. Overview of economic, geographic, social, and political outlook. Box 113 addis ababa, ethiopia in collaboration with. Land policy there is a great need to help the ethiopian leadership think about how it can modify land policy and administration in ways that will encourage efficient farmers to produce more and improve their land management without reducing their livelihood security.
Policy priorities for the new government as ethiopias new government begins work in september 2010, it is. Ethiopia investment policies and incentives and opportunities. Ethiopia has a tremendous potential for renewable energy generation hydropower generating capacity of about 45,000 mw, wind power of about 10,00 mw, and geothermal capacity of about 5,000 mw. An objective evaluation of a countrys legal, regulatory and institutional framework to attract direct. National policy principles and objectives ethiopia. Introduction to what extent are the fundamentals of ethiopian foreign policy aligned with the multipolar global.
Strategic and tactical issues of ethiopia s foreign policy. Economic policy analysis this site presents an analysis of the ethiopian governments economic policies compared to a revised list of 34 economic policies as prepared by student serkalem tekletsadik with the mckeever institute of economic policy analysis miepa in december 20. Foreign agricultural investment country profile ethiopia region subsaharan africa income group low population 84. Strengths, weaknesses, opportunities and threats makonnen tesfaye, 18 october 2017 geopolitical areas of the horn of africa and the middle east 1.
Investment policies and bilateral investment treaties in africa investment policies and bilateral investment treaties in africa. This high rate of propoor investment has helped to ensure that ethiopia s growth has been inclusive in nature, spanning different level 1. Ethiopia has great potential for investments for several reasons. Development bank functions of investment banking in ethiopia bank recapitalization in ethiopia bank fraud in ethiopia the effect of environment. Implications for regional integration implications for regional integration printed in addis ababa, ethiopia by the eca printing and publishing unit. Economic implications of foreign exchange rationing in ethiopia paul dorosh, sherman robinson and hashim ahmed development strategy and governance division, international food policy research institute ethiopia strategy support program 2, ethiopia ifpriaddis ababa p. The armed forces shall protect the sovereignty of the country and carry out any responsibilities as may be assigned to them under any state of emergency. The process of policy making and decisions are strongly influenced by a long history of centralized. Foreign direct investment fdi in ethiopia investing. The survey finds that the social networks of chinese investors function as a significant factor in making their investment decision in favor of ethiopia. It will seek in particular to assess whether ethiopia is a case of a win win. It contains the full text of the laws and offers userfriendly tools for searching and filtering for selected provisions that are specifically relevant to foreign investors. This national employment policy and strategy document is. Ethiopia once the byword for famine in the region is garnering attention from foreign investors.
Areas of investment opportunities and incentives setting up an investment operating an investment factors at a glance legal and institutional framework annexes 3 5 6 18 22 23 28 32 1 an investment guide to ethiopia. Top 5 opportunities for investment in ethiopia part ii. In unctads 200506 report, the fdi inflow to ethiopia increased from 0. Foreign direct investment and economic development in. The government of ethiopia has attempted to promote private sector investment through the provision of investment incentives, by implementing an investor friendly taxation, trade and credit system, and by simplifying and clarifying business and administrative procedures for investors.
The overall vision of the pif is to move ethiopia to a middle income industrialized country by 2020, while decreasing its dependence on. The federal and regional governments encourage investment. Overview of ethiopian investment opportunities and policies. Pdf on apr 1, 2017, mulu gebreeyesus and others published foreign direct investment in ethiopia. Compared to other countries in the region, the amount of foreign investment in ethiopia during this period was equivalent to only 5. Therefore, this study is done with the main objective. Ethiopia s admission policy has been modified more than four times in the last 22 years in favor of investors foreign investors can invest on their own or in partnership with domestic investors in areas open for fdi. Department of policy, research and statistics working paper 212018 industrial park development in ethiopia case study report xiaodi zhang unido. Ethiopian business development services network ebdsn p. In the process of identifying the investment strategies to be used, these guidelines provide consistency in the management of the portfolio. Trade and foreign direct investment fdi figure in the. Strategic and tactical issues of ethiopias foreign policy. What is the policy making process in ethiopia answers. Overview of ethiopias investment policies and incentives.
A key point of reference for policymakers in formulating investment policies and negotiating investment agreements. Latest trends in investment policy measures and international investment agreements. Strategy, the industrial develop investment in 2012 both the total number of proj ment strategy. The african setting while the african continent has immense human and natural resources, a combination of factors, including the colonial heritage, structural weaknesses of. Investment objectives of the federal democratic republic of ethiopia the objectives of the investment policy of the federal democratic republic of ethiopia are designed to improve the living standards of the peoples of ethiopia through the realization of sustainable economic and social development, the particulars of which are the following.
This is intended to ensure that the investment has been. It also provides a broad negotiation strategy and a detailed roadmap for implementing the provisions in the epa on these policy areas. No restrictions on equity ownership in joint investment required to have investment permit from the eic or relevant. This policy driven approach reduces the boards, investment committees of the board, and investment managers propensity to act impulsively during volatile markets. Foreign investment in ethiopia slumps after business. As shown in table 1, domestic investment in ethiopia has increased rapidly since the introduction of liberal policies in 1992. Economic implications of foreign exchange rationing in. Investment in ethiopia the highlights of investment proclamation and guideline bellows are compiled from investment proclamation no. The national employment policy and strategy n eps of ethiopia is prepared in response to the need for such a framework to guide interventions aimed at improving employment and its poverty outcomes in the country. Growth and transformation plan ii gtp ii is ethiopia s fiveyear development plan for 20152020. A part from being as enabler of socioeconomic development, ict also supports ethiopia s ongoing process of democratization and good governance. It is obvious that our country has engaged in farmland deal with foreign agricultural investors.
Foreign direct investment in ethiopia dropped by a fifth in the first half of the countrys fiscal year after violent antigovernment protests in which foreignowned businesses were targeted. Investment, competition policy, government procurement and trade and the environment in ethiopia. The role of trade policy on ethiopia s leather industry. However, the gap between domestic investment and savings has remained wide. Ethiopia proclamation on investment investment laws. It is responsible for facilitating the implementation of new investment projects, providing after care services for new and existing investments, as well as organizing investment promotion activities both locally and internationally. The government is leasing tenth of thousands of hectors of farmland to foreign agricultural firms. Investment a foreign investor, domestic investor or a partnership of foreign and domestic investors who plans to engage in investment activities in ethiopia are expected to follow the investment procedures in ethiopia. Challenges, opportunities and policy options for effective use to stimulate industrialization. Ethiopia s vision of becoming a middle income country by 2025 is built around economic, social, and environmental pillars. Investment policies and bilateral investment treaties in.
To take advantage of a good understanding of the investment climate gained from entrepreneurs social networks. Ethiopia economic analysis of governments policies. However, the gap between domestic investment and savings has remained wide thereby reinforcing the need for fdi in the development of the economy. Investment policy and promotion strategy for ethiopia to 2010. Investment guide for ethiopia business environment investment policy investment areas incentivesguarantees taxation investment opportunities investment procedures addis ababa, ethiopia january 2004 published by. Investment guide 2014 ethiopia investment commission. Any kind of asset and any direct or indirect contribution in cash, in kind or in services, invested or reinvested in any sector of economic activity. The definition given under our investment law is in line with this definition. Investment means expenditure of capital by an investor to establish a new enterprise or to.
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