Proclamation No.769/2012 Investment Proclamation

PART ONE GENERAL

1. Short Title

This Proclamation may be cited as the “Investment Proclamation No. 769/2012”.

2. Definitions

In this Proclamation, unless the context otherwise requires:

11 “investment” means expenditure of capital in cash or in kind or in both by an investor to establish a new enterprise or to expand or upgrade one that already exists;

21″enterprise” means an undertaking established for the purpose of profit making;

31″capital” means local or foreign currency, negotiable instruments, machinery or equipment, buildings, working capital, property rights, patent rights, or other business assets;

41″investor” means a domestic or a foreign investor having invested in Ethiopia;

51″domestic investor” means an Ethiopian national or a foreign national treated as a domestic investor as per the relevant law, and includes the government, public enterprises as well as cooperative societies established as per the relevant law;

61″foreign investor” means a foreigner or an enterprise wholly owned by foreign nationals, having invested foreign capital in Ethiopia or a foreigner or an Ethiopian incorporated enterprise owned by foreign nationals jointly investing with a domestic investor, and includes an Ethiopian permanently residing abroad and preferring treatment as a foreign investor;

7/ “foreign capital” means capital obtained from foreign sources, and includes the reinvested profits and dividends of a foreign investor;

8/”expansion” or “upgrading” includes increasing in volume, by at least 50% the attainable production or service rendering capacity of an existing enterprise or increasing in variety, by at least 100%, by introducing a new production or service rendering line of an existing enterprise or increment by both;

9/”public enterprise” means an enterprise, wholly or partially owned by the federal or regional government;

10/”transfer of technology” means the transfer of systematic knowledge for the manufacture of a product, for the application or improvement of a process or for the rendering of a service, including management and technical know-how as well as marketing technologies, but may not extend to transactions involving the mere sale or lease of goods;

11/” export-oriented non-equity based enterprise collaboration” means a 100% export oriented contractual agreement between a domestic investor and foreign enterprise in which the foreign enterprise provides, among others, all or some of the following:

a)guaranteed external market access;

b)production know-how of products for export market;

c)export marketing know-how;

d)export business management know-how;

e)strategies for the supply of raw materials and intermediate inputs needed for export products;

12/”government” means the federal government or a regional government;

13/”region” means any state specified under Article 47(1) of the Constitution of the Federal Democratic Republic of Ethiopia and includes the Addis Ababa and Dire Dawa city administrations;

14/ “Agency” means the Ethiopian Investment

Agency to be established by regulation of the Council of Ministers;

15/”Investment Board” means the highest governing body of the Agency;

16/ “appropriate investment organ” means the

Agency or the executive organ of a region empowered to issue investment permits;

171″industrial development zone” means an area with distinct boundary designated by the appropriate organ to develop identical, similar and interrelated industries together or to develop multi· faceted industries based on a plan fulfilling infrastructures such as road, electric power and water and having incentive schemes with purposes containing industrial development, mitigating the impacts of environmental pollution and administering the development of urbans with plan and system;

18/any expression in the masculine gender includes the feminine.

3. Scope of Application
The provisions of this Proclamation may not be applicable to investments in the prospecting, exploration and development of minerals and petroleum resources.

4.Jurisdiction

1/ The administration of the following investments shall be under the jurisdiction of the Agency:

a) wholly foreign owned investment;

b) joint investment made by domestic and foreign investors;

c)investment made by a foreign national, not Ethiopian by origin, treated as a domestic investor pursuant to Article 2(5) of this Proclamation;

d) investment made, in areas eligible for incentives, by a domestic investor who is required to obtain a business license from the concerned federal organ.

2/ Notwithstanding the provisions of sub-article (I) of this Article, the issuance, renewal, replacement and cancellation of investment permits for air transport services and for generation or transmission or distribution of electrical energy shall be carried out by the Ethiopian Civil Aviation Authority and the Ethiopian Electricity Agency respectively, representing the Agency.

3/ The Ethiopian Civil Aviation Authority and the Ethiopian Electricity Agency shall:

a) carry out functions delegated to them under sub-article (2) of this Article in accordance with this Proclamation, and regulations and directives issued hereunder;

b) forward to the Agency information regarding the services they have rendered by way of delegation.

4/Investments other than those referred to in sub- article (1) and (2) of this Article shall fall under the jurisdiction of regional investment organs

Haramaya, Ethiopia

Published by

Abrham Yohannes

Abrham Yohannes Hailu Licensed Lawyer & Consultant

10 thoughts on “Proclamation No.769/2012 Investment Proclamation”

  1. Hi sir, I am a consultant,& I asked to prepare feasibility study of investment projects. Hence,I need the current Ethiopian proclamations of investment and the current need of Ethiopia for economic development please can you send me your opinion with best regards

  2. Dear, first I very grateful for all your devotion to make laws ….. accessible.
    would mind please to send me federal and Oromia RNS proclamation, regulation, directives, if any, concerning Investment other than this proc. 769/2012.
    And please any literature, thesis, journal articles on Expropriation of Investment in general and Foreign investment in particular.

    with best regards,

  3. 1st of all i would like thanks for ur help . it is known that an invester is exmted from stamp duty charge when he get bank loan but am a little bit confiused i do have one coustomer how have investment license and retaile business the loan loan is used for both. my qustion is the customer can pay stampduty charge or not. if it is possible pls send me you reply on my email

  4. please send to me the newly issued or Draft -proclamation For Financial Statments Prepration- which was proclamed in June 2014. Thank you!

  5. Sir Abrham . I would like to wonder you for all your efforts, that you make known the current laws of Ethiopia to every one . Through this opportunity i will ask your contribution regarding the requirements of registration and license as you give me some explanation .

    1. I was asked to deliver some speech on newly enacted proclamation of investment and the current need of ethiopia for economic development please can you send me your opinion with best regards

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.