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PART TWO
Investment Objectives, Areas and Incentives
4. Investment Objectives of the Federal Democratic Republic of Ethiopia
The Objectives of the investment policy of the Federal Democratic
Republic of Ethiopia are designed to improve the living standards of the
peoples of Ethiopia through the realization of sustainable economic and
social development, the particulars of which are the following:
(1) to accelerate the country's economic development;
(2) to exploit and develop the immense natural resources of the country;
(3) to develop the domestic market through the growth of production, productivity,
and services;
(4) to increase foreign exchange earnings by encouraging expansion in
volume and variety of the county's export products and services and the
improvement of their quality as well as to save foreign exchange through
production of import substituting products;
(5) to encourage balanced development and integrated economic activity
among the Regions and to strengthen the inter-sectoral linkages of the
economy;
(6) to enhance the role of the private sector in the acceleration of the
development of the country's economy;
(7) to render foreign investment play its proper role in the country's
economic development;
(8) to create wide employment opportunities for Ethiopians and to foster
the transfer of technical know-how, of managerial skills, and of technology
required for the progress of the country.
5. Areas of Investment Reserved for the Government or Joint Investment
with the Government
1) The following investment areas are exclusively reserved for the
Government:
(a) Transmission and supply of electrical energy through the Integrated
National Grid System and
(b) Postal services with the exception of courier services.
2) Investors shall be allowed to invest in the following areas only in
joint venture with the Government:
(a) Manufacturing of weapons and ammunition and
(b) Telecommunication services.
6. Areas of Investment Reserved for Domestic Investors
Areas of investment exclusively reserved for Ethiopian nationals and other
domestic investors shall be specified by regulations to be issued by the
Council of Ministers.
7. Regarding investments to be undertaken in Joint Venture with the
Government
The Supervising Authority of Public Enterprises shall receive investment
proposals submitted by any private investor intending to invest in joint
venture with the government; it shall submit same to the Ministry of Trade
and Industry for decision and, upon approval, designate a public
enterprise to invest as partner in the joint investment.
8. Areas of Investment Open for Foreign Investors
All areas of investment, other than those exclusively reserved, under
this
Proclamation, for the Government or joint venture with the Government
or for Ethiopian nationals or other domestic investors which shall be
specified by regulations to be issued by the Council of Ministers, shall
be
open for foreign investors.
9. Investment Incentives
1) Areas of investment specified by regulations to be issued by the
Council of Ministers pursuant to the investment objectives stated under
Article 4 of this Proclamation shall be eligible for investment incentives.
2) The regulations to be issued pursuant to Sub Article (1) of this Article
shall determine the type and extent of entitlement to incentives.
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