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”.
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”