Ethiopia’s New Investment Laws: Briefing Note

Ethiopia enacted a new Investment Proclamation No.1180/2020 (hereinafter the “Proclamation”) that opens all business sectors, subject to few exceptions, to foreign
investment. A new Investment Regulation No. 474/2020 (hereinafter the “Regulation”) is
also issued replacing the Investment Regulation No. 270/2012 providing details on matters
related to areas of investment reserved for certain categories of investors, incentive
packages, local content requirements, and one stop shop services.
A foreign investor that wishes to engage in business in Ethiopia is required to allocate a
minimum capital of USD 200,000 for a single investment project or USD 150,000 in case
of joint investment with a domestic investor. A foreign investor, however, is relieved from
allocating minimum capital in the case of reinvestment of profits or dividends from an
existing enterprise.

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