Super User

Super User

Sunday, 06 July 2014 17:20

Fiscal Export Incentives

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: It 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 Manufacturing Warehouse Scheme: Producers not eligible for voucher scheme but having licensed for bonded are entitled to operate such warehouse in importing of raw materials duty free.
Sunday, 06 July 2014 17:16

Export Incentives

The fiscal and non-incentives given to all exporters are:

  •  Fiscal
    • Duty Drawback Scheme
    • Voucher Scheme
    •  Bonded Manufacturing Warehouse Scheme
  • Non-fiscal

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

  • Retain up to 20 percent of foreign exchange;
  • Franco valuta import of raw materials; and
  • Export credit guarantee scheme.
Sunday, 06 July 2014 17:28

Investment Protection

The 1995 constitution provides for the following protection of person and property. 

  • Articles 14–18 of the constitution enumerate several guaranteed personal rights including the rights to liberty and equality before the law;
  • Articles 29–44 guarantees ‘Democratic Rights’, including the right to freedom of thought and expression, the right to property, the right of assembly, and economic, social and cultural rights; and 
  • Article 40 ensures the right of every citizen to the ownership of private property, including the right to acquire, use and dispose of such property as the owner sees fit.

The government may expropriate property for public interest, strictly according to the law and only after making adequate compensation. Article 25.1 of the Investment Proclamation (769/2012) guarantees investors against measures of expropriation or nationalization, and Article 25.2 specifies advance payment of compensation “corresponding to the prevailing market value” of an investment earmarked for nationalization in the public interest.

Sunday, 06 July 2014 17:05

Loss carry forward

Business enterprises that suffer losses during the income tax exemption period can carry forward such losses, following the expiry of the exemption period, for half of the tax exemption period. For the purpose of calculating a period of loss carry forward, a half year period shall be considered as a full income tax period. Any loss during income tax exemption period is not allowed to carry forward such loss for more than five income tax period.

Sunday, 06 July 2014 17:04


A foreign investor has the right to make the following remittances out of Ethiopia in convertible foreign currency:

  • profits and dividends;
  • principals and interest payments on external loans;
  • payments related to technology transfer agreements;
  • payments related to collaboration agreements
  • proceeds from the sale or liquidation of an enterprise; 
  • compensation paid to an investor and
  • proceeds from the sale or transfer of shares or partial ownership of an enterprise to a domestic investor.
Sunday, 06 July 2014 17:01


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

  • Investors who invest to produce export products will be allowed to import machinery and equipment necessary for their investment projects through suppliers credit;
  • Investors who invest in areas of agriculture, manufacturing and agro-industry will be eligible to obtain loan up to 70 percent of their investment capital from the Development Bank of Ethiopia (DBE) if their investment is sound to be feasible; and
  • The Government of Ethiopia will cover up to 30 percent of the cost of infrastructure (access road, water supply, electric and telephone lines) for investors investing in industrial zone development.
Sunday, 06 July 2014 16:59


Custom Duty

The following customs duty exemptions are provided for investors (both domestic and foreign) engaged in eligible new enterprises or expansion projects such as manufacturing, agriculture, agro-industries, generation, transmission and supply of electrical energy, Information and Communication Technology Development , hotel and tourism, construction contracting, education and training, hotel services, architectural and engineering works, technical testing and analysis, capital goods leasing and importation of LPG and bitumen.

  • 100% exemption from the payment of customs duties and other taxes levied on imports is granted to all capital goods, such as plant, machinery and equipment and construction materials;
  • Spare parts worth up to 15% of the total value of the imported investment capital goods, provided that the goods are also exempt from the payment of customs duties;
  • An investor granted with a customs duty exemption will be allowed to import capital goods duty free within five years from the date of commissioning of a project; 
  • An investor entitled to a duty-free privilege buys capital goods or construction materials from local manufacturing industries shall be refunded customs duty paid for raw materials or components used as in puts for the production of goods; and
  • Investment capital goods imported without the payment of custom duties and other taxes levied on imports may be transferred to another investor enjoying similar privileges.
Tuesday, 10 May 2016 09:34


Telecommunication in Ethiopia owned by the state, however, it does provide services national and international services by using Micro wave Digital Radio Multi Access System, Satellite, VHE, UHF, Long Line and HF Radio. According to Ethio Telecom between 2013/14 the mobile subscriber reached 28.3 and this staggering subscription shows that this nation is aggressively towards a high demand for the expansion of telecom services. In todays competitive and highly skilled labor world a high and efficient services needed. The telecom services helped and cut service deliverance by avoiding traveling times.

The administration is making sure all regional states, towns are connected and deliver services so that not only those who are investing in Ethiopia are benefiting out of this transformation but in fact, the first people to use this would be the indigenous people. The demand for the services is higher than before and understanding and acknowledging these factspressed the administration of Ethiopia to create a world class telecom services provider. From the Ethio Telecom stands, they are presently put forward a huge transformation work of Next generation Network projects to create a fascinating world class telecom services.

Saturday, 07 June 2014 21:32


If it wasn’t for ignorance there wouldn’t have been knowledge, and with this in mind, an emerging country like Ethiopia has been aggressively focused the importance of education. Inclusive and transparent educational systems brought forward to advance economically and technologically. Inclusive education means that all students, regardless of poverty, gender, ethnic background attend schools and attain in all aspects of life of the school.  The contribution and investing in education is one way to get access in Ethiopia to those who are interested to benefit financial gains.

“To achieve universal primary education” constitute the 2nd Millennium Development Goal set by the United Nations. Meeting the Education Goal will speed progress toward every other Millennium Goal. Educating children helps reduce poverty and promote gender equality.

Capacity building is strategic for overcoming poverty and achieving development. In the process of Africa’s economic and social development, human development is crucial for effective policy making and strengthening institutional capacity of African countries. Achieving high level of enrollment in primary and secondary education is one aspect of capacity development. Another aspect is to effectively tap existing resources and capacity of Ethiopian diasporas with qualifications, relevant skills and expertise living abroad and who actually hope that, one day they return back to their respective homes to join hands in building and developing their countries of origin.

According to His Excellency Ato Shiferaw Shugutie, the Federal Minister of Education, "over the last two decades Ethiopia’s Gross Enrollment Rate has soared, government has allocated a huge budget and admirable results have been achieved.”

Ethiopia has steadily increased the number of children in school in the last two decades from as low as 2 million in the 1990’s to over 22 million in 2012, trebling its Gross  Enrollment  Rates from as low as 32% in 1990s to 95 in 2012. With the current Net Enrollment Rate of 86%, Ethiopia is on track to meet MDG 2 (UNICEF, 2014).

However, current data from the just completed Study on the “Situation of Out of School Children in Ethiopia” shows that 3 million children remain out of school, while enrollment rates reveal marked regional disparities with regions like Afar recording enrollments as low as 32%. Key barriers in the way of the country’s drive towards access to universal primary education include costs around schooling, lack of basic facilities and quality education. These are often compounded by negative and harmful traditional practices, like early marriage and the preference for boys over girls, which put education out of reach for many girls.

Ethiopia has no shortage of universities – there are more than 30 across the country. The government has successfully put schools into most villages. As a result, primary schooling continues to grow. Yet the literacy rate sits around 42 percent. This figure will improve over time. And as both primary education attendance and literacy improves, the secondary level of education, specifically universities and vocational schools, will become most attractive for private investment.

Furthermore, investing at this level presents multiple opportunities for scaling and developing infrastructure. Institutions can scale across the country with Ethiopia’s much dispersed population – the country is not nearly as urbanized as its neighbors. Institutions can also potentially scale across borders as Africans demand better secondary schooling options because companies and investors require higher training. One Ethiopian university has already expanded operations to neighboring Somaliland.

In addition, “the changing dynamic of mobile phones and internet access can reduce the cost of soft infrastructure for institutions. Online and virtual training enables a group of institutions to share and fully utilize teachers across borders. Partnerships between institutions in Ethiopia and those in developed countries, such as the United States and United Kingdom, could also enrich students’ experience.

The following areas are some of the opportunities for foreign investors by constructing own building:

  •  Secondary schools;
  • Science and technology colleges/universities;
  • Colleges for business and marketing;
  • Schools for medical science;
  • ICT institutions;
  • Vocational training centers; and
  • Training centre for hospitability industry.




Saturday, 07 June 2014 21:28

Electric Power

The private sector can participate in electricity generation from any source and without any capacity limit. Transmission and supply of electrical energy through the Integrated National Grid System is, however, exclusively reserved for the Government. But, private investors, both foreign and domestic, are allowed to operate an off-grid transmission and distribution of electricity.

Page 2 of 7