(Accredited to Cambodia, D.P.R Korea, Laos, Malaysia, Mongolia, Pakistan, Singapore & Vietnam) |
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Ethiopia's
Investment Policy Highlights, Guarantees Policy Ethiopia's market-oriented economic development strategy embraces wide reforms, with inducements to both domestic and foreign private investments. The private sector is encouraged to invest in most areas of the economy. Even those economic areas hitherto exclusively reserved for the government, namely defense industries, hydropower generation, and telecommunications services are now open for private, domestic and foreign investors. The Agriculture, Manufacturing, Mining, Power, Telecommunications and Tourism sectors provide wide range of investment opportunities while investors are also encouraged to look for opportunities in the government privatization programs. Foreign investors may invest on their own or jointly with domestic investor(s). Forms of Investment 1. Joint Ventures A foreign investor can team up with a domestic investor or company for
a joint investment, usually in the form of a partnership, private limited
company or a share company. Under the Investment Proclamation No.280/2002,
a foreign investor requires a minimum equity capital of USD 60,000(except
in consultancy services and publishing) to enter into a joint venture
partnership with a domestic investor. The minimum equity capital can be
raised either in cash or in kind, in the form of capital goods such as
machinery, equipment or other tangible assets, imported specially and
exclusively to establish the enterprise. There is no restriction at all
in share ownership in a joint venture. 2. Wholly Foreign Owned Investments |