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FEDERAL NEGARIT GAZETA

OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETIDOPIA
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CONTENTS'

SibYe~ No. 27 ADDISAaABA-2'"July,2002

f lh 1111 1'tD'1f-1- 9"t1 C (1,-r m fI<f~-r t'tDtT)

tryarlifi). hCP~cfl1'CUit/liH1!! ~.9"" fh. 1oll:rOD1:r nCP~ 1~ lii'f.%f:E~

Proclamation No. 280i2002 Investment Proclamation

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Page 1768

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PROCLAMATION 280/2002 NO. RE-ENACTMEMENTOF TIlE INVESTMENT PROCLAMATION

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1-l."If /\tryififA h. 1oll:rOD1-r1 hllLft1. 11''1OOD11"-I::

WHEREAS, the encpuragement and promotion of investmenthas become necessary so as to aCcelerate the tryllot-ct.-r economicdevelopmentof the country and to unprove the

WHEREAS, n additionto that of domestic investors, it i m-ll1' q ftU 1H'.if- 0 1'Q;1,try f ~ t q ftU11-r-:y.1 f.,.ta T b': is deemed essentialto widen the scope of participl!tionof ODllttif-1 tryll...ct.-rlj"v.~;r?'T1 o,e,O&\-r P'lOD:rT..p Otryll foreign investorsand to facilitateconditiorts" thereof with a viewto enhancingthe country's investmentactivities; L/\1-: WHEREAS, hesystemof administrationof investment t h.10i1-rOD1Tf"tODt-O-r I"'~T ,?&\~lj cf>&\tT)ct. needsto be transparentand efficient; h 1.1lU'1 try~l.'? ODlli1Lft1-: WHEREAS,to these ends, it has.become n~sary to "HLU1 ~fttry?,:y. h'?11 /\try~l.i1 Ol"'t- ft1- f/\tD-1 revisethe existinglaw on investments; t'h. 1oll-rOD1-r lh,? 01'if?f/\ lh,? 01'1''1-1: hllLft1. U'tj NOW,TIffiREFORE,m accordancewith Article 55(1) OOD11-1:1 of the Constitutionof th~ Federal Democratic Republic of Oh.-rf"kf ~.e..t-ftce ,Jt'l"ht-fL1ce tT11/\.,h lh1 Ethiopia,it is herebyproclaimedas follows: OD1'?1"'-}h1cf>~ 9.'{;!lil DIPl.-r O f"th1'/\m- ;rtD-~&\::
PART ONE

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General, 1. Short TicJe This Proclamation may be cited as the "Investment

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Federal Negarit Gazeta -

No. 27 2""July, 2002-Page 1769

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2. Definitions

In this Proclamation, unless the context requires otherwise: 1) "Investment" means expenditure of capital by an investorto establisha new enterpriseor to expand or tDJt.r' ~lIC t:'C~T") /\DlJh4.4.T (l)f,.r /\"7QQA 0 1I/\IH1 T f"7J.l.., fl1-r::t" A tDQ;l.~m-! upgrade one that already exists; I. "t:'C~T" DIJ/\T/l-rCCt: .,.'I:'l:out:'C;EoT f ~m-; 2) "Enterprise" means an undertaking establishedfor [. "t}-r::t"A" DIJ -r f V1C m-h1' tD /l f,.r f lIJo6lb Hof): 11 purposes pf gainingprofit; f"'l. .,.,,/\ Ct: it~t:'! fDIJr t..:r tD f,.r f" 1A..,fl--r 3) "Capital" means local or foreign cWTency, ./ h negotiable instrumentS, machinery or equipment, "~J..,t "i~~~1i' f P' <!-"'bh:Jf' f"Hld ~,! 'YhzrJ-r~.pu"H ,tDf,.r """ f1"'~ VilT buildings, initial working capital, property rightS, Ijj\;'i; ,,,,,,.~, ~m-!' , patent rightS,or other business assetS; 4) "Investor" means a dornestic or foreign investor g. "lI.~V-flf'~ "'~~Ji.tf"kl m-h1'''-'oh+ l1-l1 f"'CtD-iI11'~R.~ t~1l- lI/lV-oT ~m-i having invested in Ethiopia; 5) Domestic Investor" means an Ethiopian or a l; "fh1C m-h1' lI/\Vl1-r't DIJ/\T fh:.10hTOU1-r tt-r::t"A 0P't- "f,. ''''/\ "-Tf"kle tDf,.r OU1-0t;: foreign national permanently residing in Ethiopia ~'Pt~-I: "-Tf"k' m-h1' fl1'~ f~ h1C tf.,:J having made an investment,and includesthe Government, public enterprises as well as a foreign "([if1! Of,'~r~iU~'f1;tff0D1"'1P':'- A"7T t:'C~T'} ~"'Jlu-t"'S:l!,1C (J}oh1'lI/\V'O-r oP"'mCf6.-/\1 national, 'Ethiopian by birth and desiring to be: \ ,()+'JD.t.\~,,'~~kllf! fl1'~ f~ V1C H.,:J'} ''"',",.~a~1\) , con~dered as a domestic investor; :' t-'!t~~'tD1"..."Itl\fJ-o+""'~"7/\+f~ t}1::t"A (1)16) "Foreign 'Investor" means a foreign or an "--rf"kl 0"7h1~l)q.. "-10hT l1-l1 f~ tf.,:J enterpriseownedby foreign nationals,having'invesmf,.r ()~ tf.1T 1}/\~t~T f""H ~C;EoT ta.1f11 ted foreign capital in Ethiopia.- and includes an , ,",1,( ~ lI/\VofI-r oPcf:mc fJ./\1 ou1-0t;: ~tpt~-I: Ethiopian permanently residing abroad and ri'~ hic fl1'~".Tf"kl'f1 ~aJ.9"t-A! preferring treatmentas a foreign investor; ~:i,!,''''''f~ t}1:~A" "7/\;rh~ M~ f"'11 7) "Foreign Capital" means capital obtained from t}-r::t"A,t'a.11'1~ . O~ I}/lV-oT tD1. 117;;rA foreign sources, and includes the re-invested profits f"'/\(I)IR, -rCCt:1Cj,fTCCt:kCQ~ f,.aJ.r t-A! and dividends of a foreign investor; x. ''''7h4.~~/'''rlJ?iA'''''4T, ~I}C~C;EoT1 f(1Doft'..',. '",' . 8) "Expansionlup~g" means increasingin value, .,,;~t~t.fr tcg.r~"1A"'h-T~t~ TCll1T O",e. by more than 25%, the full production or service i " n~fL.,f.~?1,' &\11'1! f,.tJ9" ()~f,.~T tDf,.9" ()oPm'} capacity of an existing enterprise, be it in variety, tD$(r;~I)lJo~i11~.,~Q;).PUC1 f"'l.Jm:t>AA 11''i f,.tJ1 volume, or" both, through additional investment "";Eo /\ DIJ Ut.r h O"'l.(I)II)m- 1.1-0 O"'l.tDII~mmade to the extent determined in regulations to be OUtn1f"'Ltt..",.,.aJ.DlJt "-'nilToP'T ~m-! issuedfor the implementationof this Proclama~; ;ji:'~~~b"lIl)--'~~fh.1,oh-r~-}:" oPP'tl n.-r" , ,\.) J<'''.[ """",,' .. "/. 9) "Appropriate Investment Organ" means the r~f,ttqtttlh~;Eo OUlPlT f"'*'l:oPm- fh.Tf"kl EthIopian Investment Authority, (hereinafter ~~~,~:;.~tr,:~.!\eAIlJ1 /hlt.tJ ()~" "1I/lP' refecredto as the "Authority"), established under AIlJ)." tDg.r r"-'ohTOU'T U t:' /\ODhITlT this Proclamationor the executiveorgan of a Region .. ",. P'AIlJ") tfl\ffiizt. ftJAA h.1;ihTOD"}T ht}A ~m-! empowered to issue investmentpermitS; I. "fou1"'p'-r fA",!:':' ~C~T" "7/\T O~t-ft10) "Public Enterprise" means an undertaking, wholly Ji,'~';:f tD~~hhA,A oIih.,.J;t:'C ~lt- 1I/\n. owned by the Federal or Regional government T~-r r-,rl-r! fD1h4.J.Afh1A..,h-T fODhm-r establishedto carry out manufacturing, distribution, ,mt,. ~T' f",-t1;"'l. "'-'1lC'T1Cjh~lt.lJo,:JC service rendering or other economic and related r+l11 p't-"1:~f01;"~ ODAh/l"7t}~t:' r.,.'I:*oP activitiesforjain; ~~-r~~f' 11) "Government" means the Federal Governmentor a Ii- """"'P'T" DIJ/l-rf.~1.~/r OD"}"'P'T tDf,.r Regional Government; fhAA tlDh"''-;~ ~m-f 12) "Region" means any of those specified under II- "hAA" "7/\-r O~Tf"kl ~t-"'f Jl'l"h&.tLJ'ce Article 47(1) of ~e Constitution of the Federal tT-oll.h ih111D"}"'P'T h1+X-ifti,/i/ r"'OU/lhi:-r DemocraticRepublicof Ethiopia ang,forthe purpose ~/\-r f\.1t1f "'LV h!'f';Eo ~rtl.;I}A h f"Jlh hOll of this Proclamation,includes the Addis Ababa City h-t-t ouh"''-;~Cj f~~'" "h.,.'-;.(C t}m-1hA1 Administration and the Dire Dawa Administrative ~rt4\f Council. Ie- Uh~ ''''~ ;JC 0""'" f~ "-,.,.crt-f,.1f 13) The prbse "export-oncntcd non-equity based flHl+ ...,~ 1t11.C1f""l.tj I.m- +-n-oc" f"tl\tDo foreign' enterprise collaboration" means a 100% _I..., "..,. 0"..,. hlD~ .,.,.t- ;lC a"'lf" f~ export-oriented conttactu.a1 ammgement between a ,.,A.")'!tC'Uot.,, hJr.1C..,ID"h1" AU.g+ ;lC f"7.11Q domesticinvestorandforeign enterprisein whichthe ,',r; ';'C7ID- ".A ~~~+ IM"t rCD-~ A.."J+cT~.en- . " foreign ent.elprise provides. among others. all or '.M:JC~~"" fd1,h.,.it-M o""'a- tIJ/4" some of the following:

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- No.27 r- July,2002-Page 1770

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A) A~ '01 f-t4'Cn- rC"'T') ,.,rl+ III-I m) O~ '01 f".,1fT AA+I -) fID",-').,.(- "7~:Eo-')+ 6CD-++f IP) Amal rc+ f-UALA?:o .,...".,.~ "~C(1+= f-l-a-t~+ m(a')

(a) (b) (c) (d) (el

guranteedexternalmarket access, export product and production know-how; export marketingknow-how; export businessmanagementknow-how; raw materials and intermediate ,inputsneeded for export production.

3. Scope of Application fILl}"":Eo .(-');l1.1P~ 0"76,(-')'1'~~~ tt:A;n "C-t.li The provisionsof this Proclamatinshall not be applicable "7,.1.+ Ft.1P~ Oaou'-l..., \.')iih+OD')+ "" +1..""7. J to investments in. the prospecting, exploration and "".,.,.,.= developmentof miniralsand petroleum resources. htt:A v-A+ PART TWO hA "- ')iih+OD')+ '''''71P";f1 ODhf1T'i "701.;t-;J=1P";f Investment Objectives,Areas andIncentives , I' fJ\.*kl .f..1-t."'E -\'I"ht.t8.1'E ~Tof1A.hfJ\.1iih+ 4. Investment Obje<;tivesof the Federal Democratic OD')+'''''71PT Republic of Ethiopia fJ\.*kl ~t."'E -\'I"ht.il1'E ~Tof1A.hfJ\.1iih+ The objectives of the investment policy of the Federal -1+ :rA.lt. '''''''1P~ 4'lf)"~+ IACD-J\.f1er"7. f...,.., f li Democratic Republic of Ethiopia are designed to improve the iiving standards of the peoples of Ethiopia ot.re A"7+ ,,')-\erc 0"7,(-1..,fJ\.Tf"kn ih1f(1";f)-CO f through the realization of sustainable economic and 1.~ ..,2f2fAITerlIC1tC,,";1-TtD- f-th-l-irT 'iTCD-I social development.' the particulars of which are the I' f"'~-f:,) fJ\.f1cr-t A"7+ .,4.m')l folloWIng: I' f"'~-f:,) (a4C. f+L1't: Vof1+1'~" ",. ...,"Ali 1) to acceleratethe country's economic development; "'A"'TI 2) to exploit and develop the immense natural resourr. "C+')I rCM~T,)li ",A..,tt-+') 0"7~"'I f"1C ces of the country; dJoAT 101 "'-\~of1C "7.(-1..,1 3) to develop the domestic market through the growth of production,productivity, and services; I' ID~ rc~T'i "1A"'IH";f OODm')f O'''~+li 4) to increaSe foreign exchange earnings by enOTt.+ "')-\aI."~ n"701.;1-;1-+ f~ Mtf~ couraging expansion in volume and variety of the "'I'S+1 "7~"f "')-\v-,. h~ f-t1n- ,.C-f";f1 country's export products and servi~ and the OV'C CD-"'T O"7rl.+ Mtf~,) "7~')1 improvement of their quality as well as to save ~. OhAtroT ODtthA t+-lI)m~ 6.(:'1+li fJ\.f1er"7. foreign exchange through production of import "')~lt:Jt4.JP~ ~')~+ A')-\erC "701.;1-;1-T'i substitutingproducts; oJ\.f1er"t IICC:T-tthA IACD-') ...hC "7mlihCf + 5) to encouragebalanced development and integrated I' f"1t-f:,) J\.f1cr-t A"7+ A"74-m')0"'Lf..1.1CD1'1.+ economicactivityamongthe Regions and to strengM~1 4.h-l-C"t'i "'''1."'11 then the inter-sectorallinkages of the economy; 6) to enhance the role of the private sector in the I' f~ J\.1ii...+""')+ n"1t-f: fJ\.f1er"7. A...,+ acceleration of the development of the country's .,.., R.CD-') -t li ,,')ot erlCD-"7.(-I."'IJ economy; ~. M.+f"Ir'CD-n (a~ fFt. 6'(-A .ODtt:mCli A"1~-f: 7) to render foreign invesnnent play its proper role in 6.(-?+ f-t/hLA,CD-') f-f:hth tlD-lf fFt. the country's economicdevelopment; "-t.C 6a,..,.+lif-f:hertt-:(1i..,.,C"7h4-4-+11 8) to create wide employment opportunities for ~. A-1..,F.+ f-l-hA~ ID"" h"""'IFT ;lC OM~+ Ethiopians and to "foster the transfer of technical f-t."'tJS., fFt. -hf1";f know-how,of managerial skills, and of technology required for the progress of the country. I' f"th-l-fr+ fFt. ""hf1~ O""'"'1F+ of1;J= 5. Areas of Investment Reserved for the Government or f-ttt~ "IT'ifrf 0-1-1'''' -oAt.'E 'P'i 'Pli -h""C"~ f~A.h Tth ~"A Mh-l-"Att:li f"7h4.LA Ft.1 A) LII)') f:rh;1- "1A"'Itt-+') ta"aI.,.C f:rh;1",A .,tro+.. O-th-l-&T f F ~ -hf1";f IIAV-o-f";fJ\.') iihT A"7'(-/''' f-t";f~T hOD').,F+;lC O""+li1:+ of1;J= ""'1' AI V) flRC ".,..,'tl1PT"J1 TU";f1'i AtnC OD""~ I~T f-tlT)' ID"r flRC ".,..,tl AODFt.+ f-t/1A.,tr L '):(JP";f') "'rl+f A) f-f:A.f1t1D-t~ 111"1A.,froT" IIAV-o"'~ f-l-hAtr fFt. ""hf1";f V)
Joint Investment with the GovertJ11Jent

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1) The followmg investment areas are exclusively reserved for the Government: (a) Transmissionand supply of electrical energy through the Integrated National Grid System: and (b) Postal services with the exception of courier services. 2) Investorsshall be allowed to invest in the following areas only in joint venture with the,Government; (a) Manufacturingof weapons and ammunition; and (b) Telecommunicationservices. 6. Areas of mvestmelJtResDved for Domestic mvestors Areas of investmentexclusively reserved for Ethiopian nationalsand other domestic investors shall be specified by regulationsto be issued by the Council of Ministers.

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7. RegardingInvestmenfs to'beui1iJertiJC~i1iiffdint Venture with the Gdvernment rOD1'"JFt ~Drf:J.: ,':t8c~1-:f ""~t1Jt1Jt 1lt\F~t1J1 The Supervising Authority of Public Ehtctpri:>~'5 shall ",,~~ Ilt\LJll-r't{i1u1"'P'T;JC O""'~T J\.~>liil-r receive investmentproposals. submitted by;anY1'rivate t\eryt:I."I' rJ?jftnaf.1< fT,e:1:h-r yltll 1-+0"A; investor intending to invest in joint venture with the t\1"'~h.1iil-rt P7.~ilrf:C ~""Cfl ,f'ilCDilc;Ai government;it shall submit same to the Minist{yofTrade c't.L /:r 0:r1 ~-r .,.1t:1' f owz.~ar'} fAery .r:C~-r + ~ tf -r and IndustryfO,r ecision and, upon approval: designate a d .~tlferyA:: publicc;nterpriseto invest as partner in the joint investment. I\~ I1I\LJl1.,.:fr.,.L+* f", /,. ooil"':f
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8. Areas of Investment Open forForeign Investors ;JC O:r1~-r 1I;r t\D'/.tj~* J\.'}oil-roo'}.y.:f CD~IJO AU areas of investment. othef-than those exclusively f D'/.~il -foe::f IJOhCo...,. 0 D'/.! m t1J ar1. ,}1I 00 IPI. -r reserved,under this Proclamation.for the Govj:I11Il1~nt or , ,Ii:' ; J\...,.r- k"If H...,'1"" "" Tar CD 1-IJO1\t\,lt-:ff it1 C ar il 'I' joint venture with the Government or for. Et;b,i9pian 111\ 1I.,.:y. .,. t\ 1-'" ar h." h t\ ~..,. n il.,.+ C fbtr-:f f, tLJ nationals or other domestic investors which shall be oo il "':f t\ ClHi!"Il t\ LJ 1I.,.:f h tt:"" 1-tf c;~ II specified by regulations to be issued by the 'CounCilof ,Ministers, shall be'open for foreign'investors. I) 1\J\.1 if h :f.0u'}"" ery0 1.:1':r 9':f
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1) Areas of investment specifiedby reg':llationsto be issued by the,Council 6f~sters pursuant ~pthe investment objectives stated under Article 4 of this Proclamationshall be eligible for investment incen, tives. . 2) The regulationsto be issued pursuap.tto Sub Article (1) of this Article sh311 eterminethe type and extent d of entitlementto incentives. ,
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I 11 CapitaJRequirementsfor ForeignInvestor.
. 1) Any foreign investor; to be allowed to invest pursuant to this Proclamation. shall l1e,requiredto allocate a minimum capital of lPO,OOO dollars US for a single investmentproject 2) Notwiths~ding the pro\jsionsQ(.Sub Article (1) of this Article, the II1inimum9l1'i1a1required of a foreign investor investing;j9intly, with domestic
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3) The minimum capitalrequired of a:foreigninvestor investing ~~ areas; of ~ngiIleeting,,architectural. . acco~ting.. and audit se~~, pl'Ojec,tpStudies or busine5$.and, umagem~J,1t,consu1tancy,servi~or p publishing shaJ,lbe:

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f-z,mf!+ ,1I.p,"''JC fta1::'-A -10") S~itu

(a) '50,000 US dollars ,if tfie investnient is made whoUyort\.11is own; . , (b) 25,000 US dc511arsifthe investment is made jointly,with1iomesticinvestors~

I.f~ I1AU.~+'"" U)+of.1m,," f+Ct;: t;oc7fID-") ~A(t,A.")o~-r

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4) Aforeigninvestor:
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har';l CD"'"

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f9"C~") e~ TCl\")+(l\11 hr~T o-.r-)

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..' ~")-\tID~1 "''''mf.''11 ~".~'~ t'~CtItUofi+ m1. A1C "~'1' 1~1 Ctt1Je") t'A.")o~+-")+ ta1::'-~ OA.+f"kl-o.n.~'
Ct")h (1G7tatlD1f1ofi",taa tID11IAIt0+" II
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(a) re-inv~stinghispr06t,Sor dividends.;pr, (b) exportingat least 75% ofpis outpu.ts1. shallnot berequjred to alloCatea minimum"capital. 5) Any 'f~reigo investor 'having brought 'investment c~pitaliJ;lto cO\lnt;ryh~ have reg~t6fed same at the s theNanonalBankof Ethiopiaand obtain a certificate
of reg~straiion.
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InvestmentPermit

PARTFOUR

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12. ReqlJirerpt;Dt of Permit'

1) The 'foJlowj.ng investors shall be required to obtain , \'''' .. investmentpermits:

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(a) 'ForeignInvestors; . (b) -Foreignnationals, excluding Ethiopians.by

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. birth, taken for domestic.investors pursuant to Article 2(5) of this Proclamatioh; , ,(c) Domestic investors investing in areas eligible f~r inceQtiyes; . , (d) Bomestic and foreign investors making investments in partnerships. " 2) NotwithstandingArticle 2(1) of this Proclamation,a foreign investor intending to buy an existirigcnter,

, t1.p")~+ he ")olt+ f"t11.c-,. fV1!: t1Je~1''i

prise in order to operate it as it stands or to buy shares

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'I. 'OItU)t";E ~")+1\ lIi/ t''''~'i11t1Je a.'l'C'- f 'iI'lC '.ti:~.f") ,''''' 1'11\0+ Uo~;I1t.,t)~1:;;(D"'1" f'iI'lC t:1:~' "'tn\M AtID-l.,+ t'''tLA''i' t'tIJ1t CtAUof1+ O.p~ t'CtAP'AII)).") Jt1: '",1i-r L

in an existingenterpIisesh~ have.. op~ prior to appro.val rom the Authority.A ,requestfor such f approvalshall~ decidedupo~ within 10 days of
receipt of an application accompanied by complete information.' . ".

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3) The provisions of this Article mall not affect the

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rightof an investorof Ethiopiannatlon8I foreign or

national, an Ethiopian by birth taken for domestic iavestOr,intending to invest, in confomutyw~th the relevantlaws'of the country, in areas not eligiblefor .,incentives or, waiving his right of. entitlement in 'those areaseligible for incentives.

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f~ ")0h:"""")+ ",Ol:,-;I= 0"7 "l\'I'I'ITdJo t'P' ~

-'taft," tJj~,. t'A.")ota+tID")+ "70,:'-;1= ,O"tft'1'

f~t': ".taftT ftlDof11: 'm::Jt"t Ia~ar") " ~!if~f:~"7~l1f"tLA1" A.+"*I, 1i.1'i-r {'I/tt1Je' IJAVof1:f tIJ"" "")1. "'C t1JehT' I'IItVof1-r13. Application for Investment perinit t'-7..fmC O+t1JeA1: A.+t-kl' far'i .,~ A1C
1i.';J J A.,IM1','iJ't\Tt1Je") 'fA1~of:") lhi~MWIC"' h.;")ii~+Mt;ol'" tID~-I: f"'mO+.)t1Je JI,;

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-'l.'K".::JC,'''''~''A1Ctof1 t\At1Je t'A.'otaT-")-r -P'~1 0.+ tID.plof1 ltO:" f A ,,Ii' "ItA. ")oh+tID~+"Tt:'J:h"'; f.,.n:J:( tID11t1 ,. I' trJ..r'~b"+l'.1"i?bta~' "")JL1R-t'''tLIt1-:''")
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An'~pplication'forinvestmentpermit shall'-bcmade in a .fO;9Jl:dfsigD~for,sucl1, ;purpose and 'subp)itted to the appropriate inv~~ent organ together with the follqwingjpfo~on:. 1) the'projectprqf1Ie; '2) a list' ot"the type and quan~tj. of machinery and equipment intended iobe exempted from import

duti~'andtues;

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3) incase ola business organizatiolf, the memorandum and articles of association; 4) jn the, caseotexpansion or upgradin& a brief descriptiQn of "saIIle and the implementation
programme; . , S).. ill the. case :of planned ,employment ,of expatriate staff, ~ith .Jl\~..,exception of, top, management positionS, a s~cmcnt Qn~~ tiIne sbedule for their replacement 'by Ethiopipns and the training prograin dcsigne4 for ~uch repl~ment;
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hhti:~ M~:E-~+'1Ct.\:f.otaT+Ct'~ 1i.:J I T+,q~,,':f -'.'l'''- It.,.+~ A.+foklt1Jen ~It"t flmt.. fP'Ame; Tt:'1&,.e;" talt-7..,.h-O:" f1.1i.

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6) i"'pOwer' attom~i ilCtht'ease ofan application of

made through an agent; and
ticUlars of dle'lproject.., ,I"
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AS '11~ 1\.,41-0, t\:ft1Je~"f 1

7) other relevant'.infonDation retaDnj to the par" :

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FederalNeglQ'it azeta- No. 27r'July, G

2002-Page 1m

14. IS$lPU1cef lDvestmen.tPt:rmit o ~."7I)-n IftlD- fl\. ")nh-rQD"):" QDpltl ~:,. fl\.")n 1) Upon receiving.an application for investment peri' h+lID"):" U~ "'IOIIAb;F Otf.U ~.,~ ~")+,. If mit made in full compliance with the provisions of QDlPl+' .,.?-A'" l1.+c-nft+ O~"'AI1=Ji 1\..11~~ Article 13 of this Proclamation. and after ascer-. f;f-+1.(I)o fl\. ")n":"QD")-r ~~ ,e.u") ~.,~ ft",,, taining, within ,10 days, that the intended invest-ment "activity compiles with the conditions LIt" O"taJln' "")I'T'I' QDOIIt!9''f f.,.1.. '1,1stipulated in the regulations and directives to be rJ.~;f-"'f") f"t1?-I\ QDtr~") 01'+'1'0}- eD-"'1' issued to implement, this Proclamation, the ap;"t.;1.,(Pft~QDAI1:e fl\. ")n"o}-oP")+ U ~ propriate investment organ shall issue an invest,e.flmCP A IS ' ment permit to the applicant. 2) An investment permit shall contain the following: I' .rl\. 1n"0}-Q81 U'~ f"tb"'~+1 + oP!1I AftO-r! V) fltftUofl-l:") ",.! l1"'1-r "C:h~~if ! (a) the name, nationality and address of the ft) fk,")nh-rQ8")-I:1 fF~ oP"tJ! "'I' irtvestor, . (b) the investment activity; and th) I\.")ii"o}-OD')-J:f"tI1~~O-r") tJAA :: (c) the region in which the investment is to be C. fl\. 10":"QD")-rU t: f.,.flm(l)o ItftU-no}-fl\. ")" made. -roP")-r TC::!h-l:") "")I);f- hm'l'~'" "'9"l-r 3) A holder of an investment permit shall not be 1JJ,e.,. ~1A"ir--r oP"mo}- ""h"t:!,.cOo}1.l1 required to obtain a business license. until com1:l" f")"'1~ F~ U~ h")-'l1mil) h,e.mf~'-:: pletion of project implementation and the commen. 2' h"'l,It-n!ftlD- f~ ")o"o}-oP")o}-oP~t!n.o}- 0X"th-tt: cement of production or of rendering of service. ",e.L~~ fl\. ")O"o}-""")o}-U~") ft"'1\ fleD-",,,.,. 4) An investment permit may not be transferred to I\ftt;: ~,e.;FA." II another person without the prior authorization of the appropriate investment organ. ~- fl\. ")O":"OD")-r U~ ft"'1\ fleD-l1.",,,fttt: m,e.,. "5) Wher;e an investment permit is transferred to (P'f 0,e.1f I: I\,e. "'ir- 'f ftCD- l1.1;1"''''' h., Itofl1\ft (1)0 another person or where any change occurs in its fl\.'oh:"018"):" "}pt.! o.++Cfl oPififA content, it shall be submitted to the appropriate ~ftO+1I investment organ and amended accordingly. I~.' fl\. ")oho}-oP")+U"~ c)~"o}15. Renewal of Investment Permit fl\. ")nh:"-")+ U~f I)ftv-n-t: f,.Co}- eD-m.-I:") 1) An investment permit shall be renewed annually i' until the investor commences the marketing of his aJ~" h1A.,lI-fi") ft101 ",:"l-n ""h"tt"cO-r output or services; provided, however, the investor 1.l1 1:l" Of'QD-I: oP;f-1.." ~fto-r It IfCj" shall submit progress reports on the implementation I)ftVofl-l: ""I\. ")n":"oP")-I: hLU" y.1.:t- Of" of thc?project, to the appropriate investment organ, .t-"-r" m~ ~"'II)-n I\fteD-fh. ")o"-roP")-r oPFt! at the end of every six months. l1.:t-trc+ "'~l-n hftOo}-IS 2) An application for renewal of an investment permit I, fJ\.")ohTOD")o}- U~ ft",,,,.,, f"t+ClI shall be submitted at least a month before the end of "'QDAh;F.U~ f"t/,ft.,AOo}-fh")1: ~oP-r 1.l1 a period of one year for which the permit remains ~ft. h~")~ ~C 0,,0}-oP:"lofl ~ftOo}-IS valid. oPFt.f n.+ I)ftUofl-l: 3) The appropriate investment organ shall renew the 1:' 1.'"ltH1!ft.. fl\. ")n"o}-oP")o}investment permit, where satisfied, as to .the exisfTC"1:h+ .,")I);f-ID-") tt.."!.,-C m,e.,. I\..~C" tence of sufficient cause for the delay in the !A;FfteD- nnot ,.h")!o}- ""tf~1 l1.1MOo}commencement or completion of implementation of IS UJI,.") '~"ft;f-~ the project Ii-, fl\.")ii"""lID")o}- Ur:'J"ft"'l11: m,e.,. "ft oPlPl1l 16. Suspension or Revocation of Investment Permit I)ftUofl-l:,e.U") A"~ fII,e.,. ,e.U1 h"~ ft"'l"u.,. i' 1) Where an investor violates the provisions of this fCDIn' 1.")I''f") m,e.,. ...ODt'9'"f") flfJft ~")"If" Proclamation or regulations or directives issued to ~lia ~"LI\1."") Mh.,.l1hf ~C"X ""h.m"~ implement ~s' Proclamation, the appropriate 1."1)0(1fA.. fl\. ")ntao}-tI8"):" OIIplt! ~o}- fl\.")o investment organ may suspend the invest;ment tao}-~+ UJI,.") ft...M1:0+ .e.'fl\A. II permit until the investor takes due corrective h"7l)ofl!ft.. fl\. ")nta-roP")+ OIIFt! tio}- h"th measures. I' ~,,)JI,. 0"'a).1)~ 11.l:J1'1' fh.")o .,.A--r,.h".,."f 2) The(appropriate investment organ may revoke an "o}-OD")o}U~")tt..IPC1I ,e.'f1\A f investment permit where it is ascettai11edthat: " u) I)ftv-n -I: fho ~n ta:"QD"):" U" JI,. ) 111 eD'(~) the investor obtained the permit fraudulently n-7;f-ftA tD,e.,. 'OAT tID~ m,e.,. ",...,ft8i or by submitting false' information or O",:"lo(l h If., f statements; ft) I)ftuili: ~..,I)-n IAIIJo")f1\. ")nta:"DI"') 0}(b) the investor has transferred the permit to lIDP't! ~+ "!taL"'~ fh. ")nn-rIlD")-r another person without the . authorization of ~JI,.") ft"'1\ ltllJo I1ta.,."ftLf the appropriate investment organ; (c) incentives granted are misused pr illegally dt) ,f+OO ..,nt.;f-~9'"f h;f-+1..I\Tm- ~I\'" It,,,. transferred to another person; ~ ""AlD-tD,e.,. bib., ~ ft"'" m,e.,. (d) the investor has failed,witboutaood cause, to -MAL"" b""~f renew the permit ill IDCOrdaDce with Article -) 'lAU_-IrIAR4:r1J,,:"RIt.U A"~ A")et" . . IS of this Proclamation. ' II n"'~""" -IP~'" fJi.,ii18+-1-r

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~ta-No.
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27'~,July.2002~Page1774
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r~,',;,A'~'A~:',~.:)ii4t"":"~~~t,o.+ ID~"',~~P,':~'" 0.+ .' fJ\.10 1A+ .-,tF~~'rJ'~11~

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,

3) The ;q)prOpQate inves~l)t. organ ,shall: prior to suspending r~vokinga,perDut. o notifytheinvestor

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rth.t+'I\t1t\V~~ fOb-tr1 "la""f+
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in Writingas to the caUseSforuitcing'such action and

OX""'"~, nOD1A~llAV-o-f: ~'U~C-o 'fX1k- mc 1.n.

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IlAU-o-l: OtUf''''~x-' ")O-la "'~X" O"'ODA b.,.1IJo Milt' '1~-o ~i4'1kQlrAla t)Aftm m~lJ" f ftmllJolID A:h" '1';Jfl t)A1''', ,,-, ,,-0 l/\aJo f h. "} 0 ta+OD"}+ ilD,f;..t.1 O,X..~JS."} f"11.(' m~lJ"
f-lPl.1I )\cf8)t ,e.lDd~AIs "', '

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thereon. 4) The appropriate.investmentorgan shall suspend'or revoke~e pefII1it her; thein:,estorfails to respond w withinthetime limitprescribedin Sub-Article(3)of this Articleor presents unacceptablejustifiCation. 5) Upon suspension.or revocation bf 'an investment permit. the investor sh~l, immediately lose en'

allow him a period otone montbto present his views

titlementto

,all benefits.

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, 'fjf'f'K.'iih+""+ ~~t"'IPI."O+'q/\U-o+ . .'A '::.b"'Ui~JlO+ 1D.r.~'':h?1~ft+ ',,+'r'1.,.r: C,.' Jf~OI."'.~o1~.Jl1I1Jo~ ,e.5tI.'1'fT:rA.i

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6) Upon revocation of an invesnnent pennit. the investorshallreturnwithin 6 monthsall the benefits he was gr~ted. 7)"' An investment pemiit may not be suspended or revoked by any prgan O,therthan the appropriate invesnnentorgan.~ayingissued same.
"

17. Right to Appeal Aninvestorwhohas a grievanceagainsta decisionof an '-, .", ",', appropriateinvesnnentorgan may, within30 days from II' taA"o.-I::1" +~I.-o " receiptof the decision.appeafto'theFederalInvesnnent "-,,,-0 IAIIJof~,it((+DD1+ oDputl 0.+ OftmaJo Board or to the concernedorgan of a Regional Governco-t~ o1c f.,.ft1"qAV,"-TlIJorl~1IJo 01.l.ftaJo 00 +lj+ ment, as may be apPf9priate.
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PART FIVE i Transferof Technology,Loan~,Uti~on of ForeignCziJrency, ndRemittance of Funds a

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18. TechnologyTransferAgreements J) WhereaDinvestorintendstoconclude~technology transfer 'agreement related to his investment, he shallsubmitsameto the Authorityfor approvalqd
registration. '

2) WheretheAJ,Jthority receivesa technologytransfer agreement pursuant to Sub ArlEla (1) of this Article.it shall giveitsdecisionthereonsubsequent I. ,y~A~,Atq~:ntl,1I ,,'+X" ~Pr""1+X" li/ OOIPI.+ to the necessaryevaJuationin accordancewith the ,,,1~)1~t.\"":(~ 1I-,.,c ,larfD~:;":, f).+C:-o!\+ O"ttla . ,Co~cil of ~~Regu~tionS No. 121/1993. +C'T f8hc 0.+ 1.1-0"C If;A/!ifT~ ODIPI.+ 19. Loans and UtilizationofForeigo Currency' ~ta~~1.~1 ""1~ J\~ :fP"Uf~ ~ftlllArt 1) An 'inyestor who acquires an external loan shall III': "tiA.a.~'flD1".M.,t "m.f'+r h~vesuc;:hoanregisteredwiththeNationalBankof l Ethiopia hi accordance w~th' he directives of the t l..h~o(1~~ ,11-r"qAv-o+'-!-,"')' -o.('C/\h.+ Bank. \.'0 "*1 :ad..t.f 1l1h ".}oC(1 nI11'b-IIDODtl OIPI.+ O ,:; ".,ti~.f1 t'i;"cR:1"Ais'. 2) For transactionsrelated to theirinvestment.foreign , investors shall be allowed to open and operate ""'" . 't~ 'I'tlAv;fi"'T /\h. 1'0 taTOD1+'" ,o1la:JtlLITaJo " foreipcurrency accou,otS inautho~ localbanks '1\"7 f~ lJ",tft"fQ1h :-"'-0 fh.+f"kl in accordancewit,bdirectives9f the National Bank " ;c,' 'oftA~'1l1tJ O-Umdf~oD-tl Q.,lPi+ O.,.~ ofE~opia. ~1.I\TcD- fh1C IIJola'1' "'f1T :-hL+ ,.~+ 1:1\
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20. "Remittance9f Funt!s, I), ,Agy,foreigninvestoIb~lhave the right. in respect ~. 1111:9~1.~"1C..bA"'tl(DC , of an approv~ i~Ye.s~cnt.to make the following ,~I' P71'1D:'f8 f~ ,IlAUo(i-r h"'~+~A+ h. "}iila+ remittancesout of Ethiopia in convertible foreign , ""+~1.?C R-.t11dt:,ifJo).;J-f-nh.,.tt-+"} hti:I"~ CtUTetlcy aftbe prevailing rate of exchange on the
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O.1.1.,cPoClJtr'fI.", 1l~fP:'.fM.,t. ,-foODlODIP.+ ' I O~ Mtft hJ\.+f"A-l ~ /\",.,mc .e.~"Af v) hh.~iil)ftOD1tt}1::1"A ''''17f +Cti:lj f+Cti:
, "

date of reniittaBce:,

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(a)' Profits ,and dividends accruing ~m

invest-

ment;
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(b) ,Principal and interest payments on external loans;,

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~ayments related to a technology transfer agreement registered in accordance with this Proclamation; .,

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'(e) ProCeedsfrom the'trailsfer' of>sbares or of tic investor.

from the,saJeor liq.pdationof an .

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partialownershiP lDenteiprise a domesof to

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Neprit GIpta- No.27~ July,2002-P1p 177~

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iD a,nen~~ maylmlit, ~nc:y;'~es and other paymen~.lccruiDgfrom ~eir emplQ~ent in accordance With the foreip exchange ~regylationsor direCtivesof the country. PART SIX
l11vestment Guarantees lUJdProtections

~ emp~~ed IDCODvatiblefcriign

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InvestmelJt

GUJI1'1UJ~ lUJdPioft:ctions",

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1) No investmentmay be expropriatedor nationalized except when required by the public.interest and th~n, only in compliance with.th~, equirementsof r , the law. :Z) Adequate compensation. corresponding to the prevailing market value,,shallbe paid in advancein case of ,~xpropriation or. nationalization of an investment for public interest. 3) Any foreign investormay remitcomoensationoaid to him, pursuant to this Articl~,out of Ethiopia in wnvertibl~.foreign cUITency.
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PART SEVEN
bJvestment Ad1ziiDjstration 22. Investment Admipjstration Organs The admini~tration of investment shall be carried out
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1hrou~ the following organs: 1) The MiniStryof'Trade"andIndustry; , 2) The Investment Soant; 3) The Authority; 4) Regional.investment organs to be defined by the l.wI of the respective region. "ltof;',tI~C 0111\1'" 23. Jurisdiction
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1) The administration of iDvestrnentin respect of the following shall be wider the'jUrisdiction of the Authority: (a) investment'madeby foreign investor; (b) investmentmade by foreignnationaltakenfQr. domestic investor; . (c) investment made, in areas eligible for incentives by domestic inves~orwho is required to obtain business license from concerned . federal organs; . (d) joint investment ,by qomestic and foreign iDvestor. 2) Investments other than those referred to in Sub Articl~ (1) of this Article. s~all fall under the jurisdiction of regional investmentorgans. 3) The granting of incentives by way of exemotions , from import taXes and. customs,duties shall fall under the exclusive jurisdiction of the Ministryof Revenues. ,c',, . 4) Where aDinvestorwith a permitfromtheAuthority or a regional investment organ appliesfor incentives of exemption from imPorttaXesand customs duties, the Authority or the regional investment organ shall, after examiDingand ascertainingits acceptabilitywtihin5 days,transmittheapplication to the Ministry of Revenues together with the necessary infonnation. The Ministry of Revenues shall give itJ decision within 7 days of receipt of such complete iDformation.

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24.

One-Stop Shop Service

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f)'{Jhe,issuan,c;e..o~ busipe~,siice~~~St.tti~ l $fantingof

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legIstrapon

to :",patria~"':~rpH!9Y<7s. nd. the a

of bu~mess ?rgamzatfbnS' as requIred

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~n1er the rel:~~~ laws, ~han,~ w~t\1'respect.to

111~estorSoldm~ '~ny,estIhe?t, h pe~ts;:.be
compe~nt

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c.amed

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?ut by.theAuthonry or, by.a, reglona11nv~stment organ as may be 'apprJ.1ate. repres~ntmg ~e l

y. respective

Federal or RegIOnal executive bodies

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2) -The'Authority shalt register andrender,R one-stop

ente~ri,se~9UaJ:>o;a~ons.:

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service to export-ooented non-equity based foreign

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3) The Authorit5'-andregional investmentorg<i11shall s carry out their functions under Sub ArtiC5,le'(I)of this ArtiCle in c~rftpliarice witIl'the relevant laws thereof. 4) The A.uthorityor ategionalmvestment organ shall issu~ a .license within 5 ?ays ~fterrece~vi~g an apphcanon pursuanno thesArtIcle. and IS in full
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conformitywith the requirements,of the relevant , , '" .(

oflDform~tion onlJJvcstment

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AUthority' infonriationcompiled "with "'." respect to the ,," ."J';' ","" ,

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PARTEIGHT TheInvestmentBoard,
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1) The number,of membersbf the investmentBoard

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shall be detefmined.,by GOvernment.

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,: 2) The"Minister ofTI1lde.an4'Iiidii~tryshall be the

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3).. The, meIPbers of the BOard shall be: drawn from ,~ ' Gov~mm~~t ~dpriva~ s~to;~.
4[, c~e< Dirt;:ctor General' of the Auth9rity shall be a member of the Board. 5) The'Boatdshall .,. have its oWn "S&retariat. The ,

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powers and duties of" th~ Secretariat shall be determined by the internal rule of procedures of the
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Th~,Board shall'i . 1) supervise'1'Jl(~ follow up, as $,e'superior authority. . th~~implementatitl ,ot this Eroclamation and the

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activities oftheAuth()~ty;

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qecideon poliqy issues,:CU1sIugin connection with the implementation of tq~s Proc1am~tion; ,3), issue,diI:ectives neces~ary.JprJhe implelIlentation of this Proflamatipn ~Q regplati?Isissued hereunder; 4}, submit,. as ,necessary. axrie.,pdIri.ents n investment o q:entiv~, tq ti1e C:OUttcij()fMIDisters for approval; .'~l.S) d~ip,e 09. app~als,~)~bmitfed.t() itpy f~veslors against '. decisions ,of Ute Authority;'. .,' .

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6) determine service fees",to,~ ,.

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apprQvethe annual work program $1ct'l?udgetof the '; . ..;u, ,". i\uthooty; .' 8) public1y:~o~ i1:1\I~tors f,qir&tives iiissues from o

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whenever it deems necessary{d~itJ.e<Qn'newor additiQnal incentives, other than w~i~prqvidcd ',fQfundertheInv~.stm~tIncenfives'~."atiQns and submit same to ,the;Q:>u~fil;ef .Minis~ fOf approval.

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No. 7 ~ 2
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July, 2002--Page 1m

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nAPC,,"n-ailq,,"f 28. Meetingsof theBoard 1) The Boardshall meet regularly once in a month. i. PC'" OIDCA'I: 1.Jt. tID~O~ n-ailq 11.C;Ji\f. However,it may hold extra-ordinarymeetingsat "er,. AnL"1. "er il.1'SODl/'1:r=eJJe9W 1.Jt."'n~ anytime whennecessary. nofli1... AJ~C" t."f"AIl 2) Thereshallbe a quorum where more than halfof I' hPc... "11""" h-,.,,1in",e. f"'LII')''''' n{1C~ themembersarepresentat meetingsof theBoard. n...iI..."t. h""'~ 9"A~'" , ~ ,e."'1AII 3) Decisions of the Board shall be passed by a f. 'fPC'" co-t~01:f82r-aA11A~Af "'r" ~2r majorityvote.however,thechairpersonshallhave ~b-A O~b-Af.,.hLA ~,~,,~ ft.../t(1.COdJ/t'S a castingvotein case of a tie. 1:9"2r t.er ~CPAII 4) Withoutprejudiceto theprovisionsof this Anicle, Ii . flUJ "'+2r 1:';J1.,,"f ~,)~"'mn. II'~CO-f (1C~ the Board shall draw up its own rules of ft."'" fn-aft... JP~ JPC~"" ~,)""dJIIJA:1 procedure. htt:A 11m'S PAR T NINE
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TheInvestment Authority 29. Re-estabJishment I qt\jP AIIJ).t."'" f~" f ih., ftco-~""1 "CO- DJP t.1 Q 1) TheInvestmentAuthorityis herebyre-establishedas . 0."""er nlLU"cP~ ~'}~1'1.,.!t.?Ad an autonomouspublic institution having legal perI. f"'''JPNIJ). "'m/"~"" t\h.')iin..,.QD')"'"(1CI: sonality; t."'1Ad 2) TheAuthorityshallbe accountableto theInvestment cD. f"'''JPAIIJ''' JPAIIJ''1 ,...C Board. 11"JPAIIJ).f . I. f1\.'an"""","" -Mr-"f') n"'QD"h.,. ODllbhA~"" 30, PowersandDutiesof theAuthority The authorityshall: f14'71A1A fA.'an..,."..,+ ~'~n.4"t\,""f') In~ 1) serve as a nucleus for matters of investment and :I":I"Af In.,.q-at.Af In404-Af promote,coordinateand enhanceactivitiesthereon; I' ""',C ..n1'f8 q"u...+"f ,.=6fA.')ait ""QD')+ .,..~,,"f') AtlDtt:mCf"'LIDft... f?"t\.iI.'1 2) initiateand submitto the Boardpolicyand implementation measuresneededto create a conduciveinvest"ALASr ~CMf""f') IQD~1Af "PC'" I+C...Af il.L4'1:f8 .,..,qt.ce~-I:' t.h:l""'''Ad ment climatefor both domestic and foreign investors f' OA.Tf"A"1..it~ fCllf.,1""') fU-a..,. hr"fT'1 and follow up the implementation of same upon fA.'}an+"..,"" IJI:A QDa,,"f .e.l10n...AI approval; 1+'i1{AfU~-K'Af 11Pt.-t.Af",,,,"q~ fA.' a 3) collect,compile,analyzeand disseminateinformation n-to"..,+T~lb"'"f') In.,.,p"?Af il.mf.,r on the resourcepotentialof the country and on the O~'~+ A~~" A.'}iin+QD')"" .,./t:l"do""f') investmentopponunitiesit offers, promote concrete M1'if''''' A1A..,t\-+t.ltllJAf investmentprojects,provide, upon request, matchj. A.')an..,."..,+, ""70~:I":I"+ f"'L~JJ.1a."H.l1. makingserviceofpossiblejoint investmentpartners; 1I~"ff n-altq,,"ff JPAm'1,,"f1 t\,CIIf.,'1CO"f'1'fQDIt 4) organize, with a view to helping promote investta~+, ~,}AA"'9a- OU1C ..n1"i O~ U1C ment, such activities as exhibitions, training and. ft1tJlAf "qAIJ-a.,.."f9-frhc 1:;J'i-.e;tallJAf seminarslocally or abroad as may be c1Aa~ ~. A.')an+"..,:,.'} ""7it4040+O"'''U-a..."flOQD'" give advisorysupportto investors; . JPH QDJP&1o "fl fthAA QDn.,.JlI:C'"f'1 OAoA-"f .'}iin+"..,+'} O"'QD"h.,. A.,q...~:,. S) realize liaison and coordination between investors, A q,,:r=.. AiI"+ tlDtJhA..,,~~+ ~,... erc11.C;JAf public offices, Regional Governments and other In.,.q-at.Af relevantorgans,witha viewto enhancinginvestment. }. A., ait:,.OD'}+') ""7it404-+ f"'L~JJ. Jr,n.s:"f') f 6) prepareanddistributepamphlets,brochures,fiIrnsand "...,"1,,"f')1 doAIfD"f'}'1 fQD/t...~..,.'),,;J'J{Af ' other materialsthathelp enhanceinvestment; 11Pt.-t.AI 7) issueinvestment ermitsin accordancewithArticle23 p I. OIf.U A"~A'}+1i' ff O.,.tam" fJPAIIJ')hAA of this Proclamation; tlDlP~""fA.'an..,."..,+ UI: t.ltllJAI 8) monitorthe implementation investmentprojectsfor of ~. fA.'an+"..,:,. UI: fltllJ:r=..') "'''U-o'''"f fho whichithasissuedpermitsand ensurethatthetermsof 'an."'OD'}""TC':!h..."f ALUr ,e.h:l".,."AffA. the investmentpemiitsare compliedwith; 'an+iID')+ U,," fllf:r=.. fio~:J'>""f DhOt. Q 9) approveand registertechnology transfer agreements T"'} 1l.;J1I1JAI relatedto investments; ii' hA.,iin'''''''''+;JC f"'"", f-therA-:( lI.,.,C itr9"~..."f, 11.I:.4"AIt.QD".,...Af 10) negotiatebilater~ investmentpromotionand protec';. A.')an+tID'}"'" O;Jt. "Dl/Ol.+;rT'1' .,n..,.'1 tion treaties for conclusion between Ethiopia and, "QDhm+f~ A.'an+iID')~""f t\.QDIJ1o h-i"f. other countriesand sign same upon approvalby the ~q=FCJJo "1t:~ ;JC U1/,,-I:r:l"1.C;JTCO-') r,. f n Councilof Ministers; . ~,""f t.1.t.1.~Af OCllf.,1n+C'"f 9'11c 0.+ II) give advice and technicalsupport to regional investil.L +1:f8t.LCDIl Af mentorganswitha viewto buildingup theircapacity; 'II' fhAA A.')an:,.QD')"" tlDJPt.1 0."",) "DIlm'i"hC and fCllf.,~JI frhC'1 foI:h1h 1:;Jt;:t.tallJAf II.1\.' a n..,."..,+'} A"70l.+:1"+'1 "Dl/n~~"" 12) performsuchother functionsas may help to promote and enhanceinvestment. f"'L~JJ.A,r"f .,...,q~'f') 1b'1CJJo'i"Ad ~ii. fl1"JPAIIJ). A~" 31. Organization theAuthority of "'''JPAIIJ'''I . The Authorityshall have: i. O"..,..,JPT fCllf.,1t-- "'1 JI,e.~h"'C'1 A'I: 1) a Director General and a Deputy Director rh+A cpt;JlUhTC 1 ~'1 Generalto beappointedby theGovernment;and I. AnL"1." 1Pt..,.7f"f1 2) the necessarystaff.

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- No.27 2- Juiy.2002-Page 1778

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32.' Powers and Duties of the Director General 1) The Director General shall be the Chief Executive Ii' .pqdJ. .c;i&"h~C fI'lAFAtIJ'). If'tjP'&. "ilL~"t Officer .ofthe Authority and, as such shall, subject to 00ll1l',} h{1C~ ODtftmCD- "m.4'1\1- ODOD&I the general directives of the Board, direct and OIIlPl-r, f'lt\P'AtIJ').'} 'JP&-~"f 1-OD&.Ailil-l'.c; adfuinister the activities of the Authority, 1:&-AII 2) Without limiting the generality of Sub Article (1) of I' fflU "f.}+~1iJ.il "'}.,.~ (1i)"m.4'1\~ "":J1C this Article. the Director General shall: ~ '}1."'mO.,. lI''ii ."tjCD-.c;1-&,.h"'CI (a) exercise the duties of the Authority specified in U) OtttJ "'f~ "'}.,.~ @ f+ODi\hi:-r'} ffli\P'A Article 30 of this Proclamation; II)).'} "'''''I]C'"fP' &-'t1-;ICD-I\Af (b) employ and administer the personnel of the i\) 04...f..&-A ftJi-A ftcii.ll 'ih'? oDlPl-r ffli\P'A Authority in accordance with the Federal Civil tIJ). '} IP &.+Cf'"f .e."''P &-1\.I I il-t-.c;1: &.A i Service Law; ,0) ,fnt\JPAtIJ').'} ,'lJP&TC:'?&.9"tj O~-r (c) prepare and subInit to the Board the work "1I;J~.r-t\{1C~ f"'CflA f (\L.,.1:9" P' &.1\1program and budget of the Authority and im!~~Af plement same upon approval; 00) i\flttJPAiI]). O+L.,.1.CD- O~.,. OulPl-r 1'}Hl1 (d) effect expenditure in accordance with the budget ,aJt;Q" 11..C:JAi agpcoved for the Authority; (e) represent the Authority in all its dealings with ~) "h"il"'~ ~'J'i"f:JC O~l" '?'};..,+~ (}oft,
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(f), prepare and subrnitto the Board reports on the performaance and financial operations of the Authority. 3) The Director General may, to the extent necessary for the efficient performance of the functions of the Authority, delegate part of his powers and duties to other officials as well as employees of the Authority. 33. Source of Fund The spurces of the fund of the Authority shall be: (a) budgetary allocations made by the Federal Government; (b) income, assistance and grants obtained from any other sources. 34. B,ooks of Accounts 1) The Authority shall keep complete and accurate books of accounts. 2) The accounts and financial documents of the Authority shall be audited annually by the Auditor General or by auditors designated by him. PART TEN Afiscellaneous Provisions 35. Allocation()f Land 1) . Where a Regional Government receives an application for,the allocation of land for an approved investment, it shall, on the basis of the Federal and its own laws, deliver within 60 days, the required land to the investor. 2) The Region shall allocate land for investment activities and transmit information on such allocatiops to the appropriate investment organ. 3) Each Region shall, in the allocation of land. give prioritY'to approved investments. 4). The appropriate investment organ shall, in cooperation with the concerned regional executive organs, facilitate and follow up the allocation of land for approved investments. 36. Employment of Expatriates 1) Any investor may employ duly qualified expatriate experts required for the operation of his business, , 2) An investor who employs expatriates pursuant to Sub Anicle (1) of this Article, shall be responsible for replacing, within a limited period, such expatriate personnel by Ethiopians by arranging the necessary training thereof. 3) Notwithstanding the provisions of Sub-Articles (1) and (2) ,of this Article, a foreign investor upon obtaining the prior consent of the Authority shall, , withou.t any restriction, have the right to recruit e~patriate employees on top mamagement positions of an enteq>rise of which he is the sole or major
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- No.272M July,2002-Page 1779

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37. Po~igIJNaiionaJs TakCllforDomestic Investors 1) Rights and'iprivilegesas well,as restric:ions solely f~ '1t\ViI.,.,'f, -0;1= fGlf.tlDt\h~ tID-o...:r-'1 relating to foreign investors..shall ot beapplicableto n '1';r'P'f ",.tLv-~. ..,1w,;r?,'f'1 1~P:r-"'1.h1C a foreign national who in've'stsin Ethiopia being m-h'1''1t\V-o:" OoiJ4'mC 0}\.:,.r-*1 CD-h-r . taken for a dome'sticinvestor. I\.'Hih-r f"t11.C'" f~ h1C, ",;J' OGlf.tID"h:"
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A foreign ,national,excluding an Ethiopianby binh. taken for a domestic investor shall declare same by fiUing in a form designed for such purpose by the

Authoriry,and submit it to~etherwith hisapplication for inves~ent permit' 38. '.OWnershipof Immovable PropertY. . hl.e.,. ''''1;rlil ht\O:"11 1) NotWithstandingthe provisions of Articles 390-393 4)~. fD8J.e.,.,./t.,.it ,-ol-r '1t\Cl-r ht\tID." of the Civil Code, a foreign national taken for a i' Ot;:-rthil~C in.., hcfc-rc ef~-ef~fi: fT1-'111CDdomestic investoror aforeign investorshallhave the n.tjC~1 ",1. "'1C (I)oh-r '1/W-oTf"'''ml f~ right to own a dwelling house and other immovable H.;1dJ.e.9"f ~ '1t\U-O:" tID~6.1 n.:"'1 t\I\. , ii h:" property requisite for ,his investment. OD'-r F&o(l)of"t1itL~1(1)o' fD8J~,.,./t"'it ,-ol:" 2) The provisions of Sub;,Article(1)of thisArticleshall '1f\n.-r f\OD'" .e.'fl\~I: include those who haVeinvestedpriorto the issuance I' OtLU """'1\ ,o-it h1"'1\ IiI f1"1.'111(1)ohtLU of this'Proclamation.
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39. Duty to Provide Infonnadon' Any executive organ of the Federal or a Regional Government shall have the dutYto proyide information relating to investment whenever so requested by appropriate investment organ. ' .

40. RepeaJedLa ws ~- fT7f~ in1'f 1) The Investment Proclamation No. 37/1996 (as i' fl\. ,iiit-rOD'-r "''P~ cfc-rC 4)1/I~fit~ ;",1.+ amended) is hereby repealed. 7f7ft\1 OtLU h'P~ "'1iZ:~d 2) No law, regulation,directive or practiceinconsistent I- .e.U1"''P~ f"'lJtl1 ""~CD-9'" in..,I1-"Hh OD0D61 with this Proclamation shall have effectwith respect dJ.e.9"f~~&oc~9"~OtLUh'P~n+wL.,.~r-:rto matters provided for in this Proclamation. 1\" T~"7.'1:" h~~l~9"1J 41. TransitoryProvisions ;;/ifODW'",161 .('? ;11.' 1) NotWithstanding provisionsof Article40, incenthe Ii' OtlU "''P~ """'1\ ~ fT1-'111(1)on..~C"1 ~tJ
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tives provided for irl the Investment Proclamation No. 37/1996 (as amended and inreguhitions and dire~tivesissued thereundershall remain applicable in ~spect of inves~ent approved prior to the :issuanceof this Proclamation. 2)

Where an investor, eligible' for incentives under IpvestmentProclamation No. 37/1996(asamended), opts instead to be a beneficiary of incentives '" 'P:E- f\D8Jt~ 9" 0"7. dJtI)CD- 1.,-0 i ODII' l :,. proviqed for in this Pro.c1amation m!in regulations a O"'(}mm-"'10l;r;1="'m:JtGlf.t\OD'" hLt\1 ~tJ'''' I , to be issued hereunder,he may notify the approriate ""1'1i1 I\t\(I)ofl\. ,iih:"OD'-r oDp'6.f Cl-r OD8Jh inyestmentorgan andbe entitled thereby. 42. Effective Date ;t-dJ;r fODiI-f: Tm:JtGlf. t\OD'" ~'fI\IA:I This Proclamationshall come into forceas of the 2/111 day ;;1' "'P:( f"'U'in-r 1.", of July, 2002. , . .e.u "'P~ hlt~ 1t'~ .,., Iitf~2 ,-~ :f~r: f~'i".e."'1~::

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Done at Addis Ababa, this 2'" dayofJuly, 2002. GIRMA WOLDE GIORGIS . .

PRESIDENT OF THE FEDERAL DEMOCRATICREPUBUC OF ETHIOPIA

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~ERHANENA SEL.AM'RlNTU-lO ENTERPRISE