Investment Incentives and Investment Areas Reserved for Domestic Investors Council of Ministers Regulation No. 270-2012

COUNCIL OF MINISTERS REGULATION No. 270/2012         DOWNLOAD (.pdf)

COUNCIL OF MINISTERS REGULATION ON INVESTMENT INCENTIVES AND INVESTMENT AREAS RESERVED FOR DOMESTIC INVESTORS

This Regulation is issued by the Council of Ministers Pursuant to Article 5 of the Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 691/2010 and Article 39 of the Investment Proclamation No.769/2012.

PART ONE GENERAL

1. Short Title

This Regulation may be cited as the “Investment Incentives and Investment Areas Reserved for Domestic Investors Council of Ministers Regulation No. 270/2012”.

2. Definitions
In this Regulation unless the context otherwise requires:

1/ “Proclamation” means the Investment Proclamation No. 769/2012;

2/ the definitions provided for in Article 2 of the Proclamation shall also apply to this Regulation;

3/ “Agency” means the Ethiopian Investment Agency re-established under the Council of Ministers Regulation No. 269/2012;

4/”Board” means the Investment Board referred to in

Article 6(1) of the Council of Ministers Regulation No. 269/2012;

5/”capital goods” means machinery, equipment and their accessories needed to produce goods or render services and include workshop and laboratory machinery and equipment necessary for same;

6/ “construction material” includes basic inputs necessary for the construction of investment projects;

7/ “customs duty” includes indirect taxes levied on imported goods;

8/ “income tax” means tax levied on profits from business and categorized as the revenue of the federal government, regional governments or as their joint revenue.

3. Investment Areas Reserved for Domestic Investors
1/ The following areas of investment are exclusively reserved for Ethiopian nationals:

a) banking, insurance and micro-credit and saving services;

b) packaging, forwarding and shipping agency services;

c) broadcasting service;

d) mass media services;

e) attorney and legal consultancy services;

f) preparation of indigenous traditional medicines;

g) advertisement, promotion and translation works;

h) air transport services using aircraft with a seating capacity up to 50 passengers.

2/ For the purpose of sub-article (1) of this Article, a business organization may have Ethiopian nationality, provided that its total capital is owned by Ethiopian nationals.

4. Investment Areas Allowed for Foreign Investors

1/A foreign investor shall be allowed to invest in areas of investment specified in the Schedule attached hereto, except those areas provided for in number 1.3.3, 1.4.2, 1.7, 1.11.3, 1.11.4, 5.3, 6.2, 8.2,9.2,9.3 and 12 of the Schedule.

2/ Notwithstanding the provisions of sub-article (1) of this Article, the Board may allow foreign investors to invest in areas other than those specified in the Schedule, except those areas provided for in Article 6 (1) and (2) of the Proclamation and Article 3(1) of this Regulation.

3/ A foreign investor who invests pursuant to sub-article (1) or (2) of this Article may acquire a private commercial road transport vehicle necessary for his business operations. Continue reading Investment Incentives and Investment Areas Reserved for Domestic Investors Council of Ministers Regulation No. 270-2012

Proclamation No.769/2012 Investment Proclamation

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Preamble

PART ONE GENERAL

PART TWO INVESTMENT OBJECTIVES AND AREAS OF INVESTMENT

PART THREE FORMS OF INVESTMENT AND CAPITAL REQUIREMENT FOR FOREIGN INVESTORS

PART FOUR INVESTMENT PERMIT

PART FIVE REGISTRATION OF TECHNOLOGY TRANSFER AND COLLABORATION AGREEMENTS WITH DOMESTIC INVESTORS

PART SIX INVESTMENT INCENTIVES GUARANTEES AND PROTECTION

PART SEVEN INVESTMENT ADMINISTRATION

PART EIGHT INDUSTRIAL DEVELOPMENT ZONE

PART NINE MISCELLANEOUS PROVISIONS

Compiled Administrattive Directives

Now You can easily get all directive in ONE.

Use Bookmark or Table of Contents to find a specific directive within the compilation.

Ethiopian Revenue and Customs Authority Consolidated Tax and Customs Directives

የተጠቃለሉ የቀረጥ ግብር እና ጉምሩክ መመሪያዎች

National Bank of Ethiopia

LICENSING AND SUPERVISION OF BANKING BUSINESS Consolidated National Bank Directives

LICENSING AND SUPERVISION OF INSURANCE BUSINESS Consolidated National Bank Directives

LICENSING AND SUPERVISION OF THE BUSINESS OF MICRO-FINANCING INSTITUTIONS Consolidated National Bank Directives

Consolidated Foreign Exchange Directives

National Election Board

Consolidated National Election Board Directives (English)

የኢትዮጵያ ብሔራዊ የምርጫ ቦርድ መመሪያዎች

Ethiopian Broadcasting Authority

Consolidated Ethiopian Broadcasting Authority Directives

የመንግስት ቤቶች ኤጄንሲ (Agency for Government Houses Directive)

(የመንግስት ቤቶች ኤጄንሲ በሚያስተዳድራቸው ቤቶች የተፈፀሙ ህገ-ወጥ ተግባራትን ስርዓት ለማስያዝ እንዲቻል ተሻሽሎ የተዘጋጀ መመሪያ)

Consolidated Ministry of Education Directives

ትምህርት ሚኒስቴር

  • በትምህርት ተቋማት የአምልኮ ሥርዓትን በሚመለከት የወጣ መመሪያ
  • የግል ከፍተኛ ትምህርት ተቋም የመጀመሪያ ዱግሪ ትምህርት የዕውቅና አሰጣጥ መመሪያ
  • ከቴክኒክና ሙያ ትምህርትና ሥልጠና መስክ ወደ ከፍተኛ ትምህርት ተቋም መሸጋገሪያ መመሪያ

Consolidated Ethiopian Investment Agency Directives

የተጠቃለሉ የኢትዮጵያ ኢንቨስትመንት ባለስልጣን መመሪዎች

Consolidated Charities and Societies Agency Directives

የተጠቃለሉ የበጎ አድራጎት ድርጅቶችና ማህበራት ኤጀንሲ መመሪያዎች

Consolidated Ethiopian Athletics Federation Directives

የተጠቃለሉ የኢትዮጵያ አትሌቲክስ ፌዴሬሽን መመሪያዎች

Consolidated Ministry of Construction and Urban Development Directives

የተጠቃለሉ የከተማ ልማትና ኮንስትራክሽን ሚኒስቴር መመሪያዎች

For list of Directives included in Each directives CLICK HERE

Mizan Law Review Vol 5, No 2 (2011)

Mizan Law Review publishes peer reviewed scholarly articles that identify, examine, explore and analyze legal and related principles, stipulations and concepts based on research findings. Mizan’s articles aim at interpretation, description, exploration and diagnosis towards the solution of problems (or legal issues) including proactive critique and projection that assist the development of laws.(Source African Journals on-line   http://www.ajol.info)

BETWEEN ‘LAND GRABS AND AGRICULTURAL INVESTMENT: LAND RENT CONTRACTS WITH FOREIGN INVESTORS AND ETHIOPIAS NORMATIVE SETTING IN FOCUS

Elias N. Stebek

Abstract

This article examines whether the land rent contracts and the Ethiopian legal framework on rural land use rights can assure win-win mutual benefits expected from large-scale land transfers to foreign investors. The article further examines the challenges in the realization of the Seven Principles for Responsible Agricultural Investments prepared by FAO, IFAD, UNCTAD and the World Bank Group as a framework of standards for the current global dialogue on large-scale farmland acquisitions. I argue that land-use insecurity in the Ethiopian context results from the extensive powers of executive offices that are empowered to dispossess holders and reallocate land to investors. These powers can be even more discretionary where land transfers are made without prior mapping and demarcation of protected forests and wildlife, and where registration and the issuance of land-holding certificates to smallholder farmers and pastoralists have not yet been made. The article suggests the need to rectify the gaps in the land transfer contracts and most importantly, the need to render the government a custodian (and not owner) of land in conformity with the FDRE Constitution and to ensure that the termination of land use rights is decided by courts so that executive offices would not perform the dual functions of revoking and reallocating rural land use rights.

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THE POLITICS UNDERPINNING THE NONREALISATION OF THE RIGHT TO DEVELOPMENT

Belachew Mekuria Fikre

Abstract

The right to development stands out as one of the controversial rights ever since its articulation in the 1970s. The adoption of the 1986 United Nations Declaration on the Right to Development underlines the importance of international cooperation for it to be realised. I argue that the emphasis on ‘development aid’ rather than the broader ‘development cooperation’ has contributed a great deal to the politicisation of the right and consequently undermined its materialisation. Indeed, there is the need for semantic and conceptual clarity in the use of the term ‘international assistance and cooperation’ that has deceptively supplanted ‘international cooperation.’ While the former is a term used under Article 2(1) of the International Covenant on Economic, Social and Cultural Rights with a view to laying down the broader States Parties’ obligations, the latter is what the Declaration on the Right to Development exclusively employs. I argue that even if development assistance is indispensable, taking it as the sole approach to the realisation of the right to development is both wrong and unhelpful.

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ETHIOPIAN LAW OF INTERNATIONAL CARRIAGE BY AIR: AN OVERVIEW

Hailegabriel G. Feyissa

Abstract

Ethiopia’s aviation history goes back to the late 1920s. And, carriage of goods and passengers by air dates at least as far back as the 1940s – the decade which witnessed the establishment of Ethiopian Air Lines Corporation (now Ethiopian Airlines). Despite Ethiopia’s relative success in commercial aviation, domestic literature on commercial air law has been scanty. Court decisions involving air carriage are rare, and one can seldom find a course on air law in the curricula of Ethiopian law schools. This article is an attempt to briefly address the gap in literature and encourage further academic discourse on Ethiopian law of air carriage with particular attention to the law and practice regarding international carriage by air.

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TO TAX OR NOT TO TAX: IS THAT REALLY THE QUESTION?  VAT, BANK FORECLOSURE SALES, AND THE SCOPE OF EXEMPTIONS FOR FINANCIAL SERVICES IN ETHIOPIA

Taddese Lencho

Abstract

The Ethiopian Value Added Tax of 2002 follows the standard approach of exempting financial services from VAT. Not all ‘financial services’ are, however, exempted from VAT. A number of services provided by the financial institutions are made taxable by the VAT laws of Ethiopia. No subject in this regard has probably attracted as much attention and controversy as that of sale by foreclosure of property held as security by banks. Both sides (i.e., members of the financial industry and the tax authorities) seemed locked in their conviction over the treatment of foreclosure sales in VAT. Members of the financial industry (in particular banks) are convinced that foreclosure sales enjoy the privilege of exemption in VAT while some within the Tax Authorities are equally convinced that foreclosure sales should be chargeable with VAT. These controversies have played out in the courtrooms, the press and a number of communications between the Tax Authorities and the members of the financial industry. This article examines these controversies and analyzes the scope of exemptions for financial institutions under Ethiopian VAT laws.

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Ethiopian Investment Laws

Investment Proclamations
Proc No. 37-1996 Investment  Proclamation

Proc No. 116-1998 Investment Proclamation (Amendment) 
Proc No. 168-1999 Investment Proclamation (Amendment)   

Proc No. 280-2002 Investment  Proclamation

Proc No. 375-2003 Investment Proclamation (Amendment

Export trade and capital goods leasing business

Proc No 543 2007 The Revised Export Trade  Duty Incentive Scheme Establishing  Proclamation 
Proc No. 103-1998 Capital Goods Leasing Business Proclamation

Bilateral agreements
Proc No. 70-1997 The Investment Promotion and Protection Agreement with the State of Kuwait Ratification

proclamationProc No. 324-2003 A Proclamation to Ratify the Investment Incentive Agreement between the Government of theFederal Democratic Republic of Ethiopia and the Government of the United States of America

Proc No. 404-2004Investment Encouragement and Reciprocal Protection Treaty with the Federal Republic of Germany Ratification
Proc No. 405-2004 Investment Reciprocal Encouragement and Protection Agreement with the Government of the Republic of  France Ratification
Proc No. 406-2004 Investment Encouragement and Reciprocal  Protection Treaty with  the Great Socialist People’s Libyan Arm, Jamahiriya Ratification
Proc No. 417-2004 Investment Reciprocal Promotion and Protection Agreement with  the Republic of Tunisia Ratification
Proc No. 436-2005 European Investment Bank Finance Contract  for financing small and medium sized private sector enterprises Ratification
Proc No. 460-2005 Investment Promotion and Protection Agreement with the Republic of Austria Ratification
Proc No. 461-2005 Investment Promotion and Reciprocal Protection Agreement with the Kingdom of Sweden Ratification
Proc No. 69-1997 The Investment Promotion and Protection Agreement with the Government of the Republic of Italy Ratification Proclamation

Investment incentives and investment areas reserved for domestic investors

Reg No. 7-1996 Investment Incentives Council of Ministers Regulations No. 7/1996]

Reg No. 9-1996 Investment Incentives (Amendment)

Reg No. 35-1998 Investment Areas Reserved for Domestic investors  
Reg No. 36-1998 Investment Incentives Council of Ministers (Amendment)
Reg No. 84-2003 Investment Incentives and Investment Areas Reserved for Domestic Investors 

Reg 146 Investment Incentives and Investment Areas Reserved for Domestic Investors