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PART FOUR
Investment Permit

12. Requirement of Permit

1) The following investors shall be required to obtain investment
permits:
(a) Foreign investors;
(b) Foreign nationals, excluding Ethiopians by birth, taken for domestic
investors pursuant to Article 2(5) of this Proclamation;
(c) Domestic investors investing in areas eligible for incentives;
(d) Domestic and foreign investors making investments in partnerships.

2) Notwithstanding Article 2(1) of this Proclamation, a foreign investor intending to buy an existing enterprise in order to operate it as it stands or to buy shares in an existing enterprise shall have to obtain prior approval from the Authority. A request for such approval shall be decided upon within 10 days of receipt of an application accompanied by complete information.

3) The provisions of this Article shall not affect the right of an investor of Ethiopian national or foreign national, an Ethiopian by birth taken for domestic investor, intending to invest, in conformity with the relevant laws of the country, in areas not eligible for incentives or, waiving his right of entitlement in those areas eligible for incentives.

13. Application for Investment Permit

An application for investment permit shall be made in a form designed for such purpose and submitted to the appropriate investment organ together with the following information:
1) the project profile;
2) a list of the type and quantity of machinery and equipment intended to be exempted from import duties and taxes;
3) in case of a business organization, the memorandum and articles of association;
4) in the case of expansion or upgrading, a brief description of same and the implementation programme;
5) in the case of planned employment of expatriate staff, with the exception of top management positions, a statement on the time schedule for their replacement by Ethiopians and the training program designed for such replacement;
6) power of attorney in the case of an application made through an agent; and
7) other relevant information relating to the particulars of the project.

14. Issuance of Investment Permit

1) Upon receiving an application for investment permit made in full compliance with the provisions of Article 13 of this Proclamation, and after ascertaining, within 10 days, that the intended investment activity complies with the conditions stipulated in the regulations and directives to be issued to implement this Proclamation, the appropriate investment organ shall issue an investment permit to the applicant.

2) An investment permit shall contain the following:
a) the name, nationality and the address of the investor;
b) the investment activity; and
c) the region in which the investment is to be made

3) A holder of an investment permit shall not be required to obtain a business license until completion of project implementation and the commencement of production or of rendering of service.

4) An investment permit may not be transferred to another person without the prior authorization of the appropriate investment organ.

5) Where an investment permit is transferred to another person or where any change occurs in its content, it shall be submitted to the appropriate investment organ and amended accordingly.

15. Renewal of Investment Permit

1) An investment permit shall be renewed annually until the investor commences the marketing of his output or services; provided, however, the investor shall submit progress reports on the implementation of the project, to the appropriate investment organ, at the end of every six months.

2) An application for renewal of an investment permit shall be submitted at least a month before the end of a period of one year for which the permit remains valid.

3) The appropriate investment organ shall renew the investment permit, where satisfied, as to the existence of sufficient cause for the delay in the commencement or completion of implementation of the project.

16. Suspension or Revocation of Investment Permit

1) Where an investor violates the provisions of this Proclamation or regulations or directives issued to implement this Proclamation, the appropriate investment organ may suspend the investment permit until the investor takes due corrective measures.

2) The appropriate investment organ may revoke an investment permit where it is ascertained that:

a) the investor obtained the permit fraudulently or by submitting false information or statements;
b) the investor has transferred the permit to another person without the authorization of the appropriate investment organ;
c) incentives granted are misused or illegally transferred to another person;
d) the investor has failed, without good cause, to renew the permit in accordance with Article 15 of this Proclamation.

3) The appropriate investment organ shall, prior to suspending or revoking a permit, notify the investor in writing as to the causes for taking such action and allow him a period of one month to present his views thereon.

4) The appropriate investment organ shall suspend or revoke the permit where the investor fails to respond within the time limit prescribed in Sub-Article (3) of this Article or presents unacceptable justification.

5) Upon suspension or revocation of an investment permit, the investor shall immediately lose entitlement to all benefits.

6) Upon revocation of an investment permit, the investor shall return within 6 months all the benefit he was granted.

7) An investment permit may not be suspended or revoked by an organ other than the appropriate investment organ having issued same.

17. Right to Appeal

An investor who has a grievance against a decision of an appropriate investment organ may, within 30 days from receipt of the decision, appeal to the Federal Investment Board or to the concerned organ of a Regional Government, as may be appropriate.