Information for Investors

Export Incentives

Fiscal

The fiscal incentives given to all exporters are the following:

  • With the exception of few products (e.g. Semi-processed hides and skins – 150%), no export tax is levied on export products of Ethiopia;
  • Duty Drawback Scheme: this scheme offers investors an exemption from the payment of customs duties and other taxes levied on imported and locally purchased raw materials used in the production of export goods. Duties and other taxes paid are drawn back 100 percent at the time of the export of the finished goods;
  • Voucher Scheme: a voucher is a printed document having monetary value, which is used in lieu of duties and taxes payable on imported raw materials. The beneficiaries of the voucher scheme are also exporters; and
  • Bonded Factory and Manufacturing Warehouse Schemes: producers not eligible for voucher scheme but having licensed for bonded are entitled to operate such factory or warehouse in importing of raw materials duty free.

Non-fiscal

The non-fiscal incentives given to all exporters are the following:

  • Exporters are allowed to retain and deposit in a bank account up to 20 percent of their foreign exchange earnings for future use in the operation of their enterprises and no export price control is imposed by the National Bank of Ethiopia;
  • Franco valuta import of raw materials are allowed for enterprises engaged in export processing; and
  • Exporters can benefit from the export credit guarantee scheme, which is presently in place in order to ensure an exporter receives payment for goods shipped overseas in the event the customer defaults, reducing the risk of exporters’ business and allowing it to keep its price competitive.