Business & Regulation Environment
Movement of People & Goods
Public Peace & Security
Bank & Financing
- National Bank of Ethiopia to avail Birr 15 Billion liquidity for private banks to enable them to provide debt relief and additional loans to their customers in need
- Banks to avail foreign currency for importers primarily importing goods and input material for the prevention of Covid 19
- Commercial bank of Ethiopia to increase the amount of money individuals can transfer through mobile banking, to limit in-person cash handling
- Removal of the minimum price set by the National Bank of Ethiopia on the horticulture sector for flower exports
- Tax exemptions for the import of materials and equipment to be used in the prevention and containment of COVID 19
- Ministry of Revenue to expedite VAT returns to support companies with cash flow
- Donations to the government are deductible from the 2012 EFY taxable income. Deductibles cannot exceed 20% of the taxable income.
- Taxpayers who are required to file a tax return and pay the tax every month shall file the tax return and pay the tax that shall be due in the month of Megabit, Miazia, and Ginbot, 2012 (EC) in the month of Sene 2012(EC) without interest and penalty
- If taxpayers have a loss in 2012 (EC) Fiscal Year, shall carry the amount of such loss to the next fiscal year
- pension contribution of organizations engaged in business due in the month of Megabit, Miazia, and Ginbot 2012 (EC) shall be paid in the month of Sene 2012 (EC)
Refer to the Resources and Links tab here or Click here to directly download the document related to Fiscal Relief.
Price of Locally Sold Goods
- Ministry of Trade and Industry to monitor and take measures against individuals and businesses that are exploiting the health situation and profiting from the above-market sell of consumer goods.
COVID-19 Medical Products Import and Production Requirements
- The Ethiopian Food and Drug Authority (EFDA) has recently issued a temporary COVID 19 medical products approval and import permit authorization directive and a guideline that portraits regulatory approval process of COVID 19 Personal Protective Equipment (PPE)
- The main purpose of the above two documents is to issue expedited authorization processes for manufacturers, importers, and sales of medical products that are being put in place to fight the spread of COVID 19.
- The rules stated under the documents are applicable to COVID 19 medical products manufactured locally and brought from abroad to be supplied to the local market.
- The documents address issues related to the certification of COVID 19 medical products for medical uses by the Ethiopian Government, documentary requirements, and specification of the product.
Refer to the Resources and Links tab here or Click here to directly download the document.
Tax Debt Waiver
- Ministry of Finance issued a directive on tax debt relief. This directive remits tax debt (including principal tax, interest, and penalties) to mitigate the adverse impact of COVID 19 on taxpayers. The Directive, in general, introduces three instrumental measures i.e.
- Remittance of tax debts,
- Deferral of payments, and
- Incentives applicable to taxpayers that agree to settle tax debts in a given period of time.
- The directive is applicable to two categories of taxpayers that are engaged in the service, manufacturing, export trade, finance, and construction sectors.
- ‘Category A taxpayers’ whose accounting period runs up to 2007 E.C and 2014 G.C, benefit from absolute remittance of principal tax, penalty, and late payment interest.
- 'Category B taxpayers' whose accounting period runs from 2008-2011 E.C or from 2015-2018 GC also benefit from penalty and interest remittance if they pay 25% of the principal tax owed within 30 days and pay 75% of the principal within one year from the date on which installment agreement has been signed.
Additionally, property that has been seized as a result of failure to pay that Tax debt will be instated upon fulfilling the conditions laid in the directive. Refer to the Resources and Links tab or download the summary file directly from here.
- Collective bargaining agreements negotiation is suspended for the coming 12 months.
- Salary increment decisions are frozen for the coming 12 months.
- Payments of fringe benefits and allowances, such as hardship allowance, transport allowance, house allowance, bonuses and commissions are suspended until the situation fully controlled.
- Existing salary scales can be revised based on dialogue between employers and trade unions to support survival of enterprises
- Unused annual leaves to be used by workers; for those who have already fully utilized it, to be arranged for them to take at least half of their annual leave from upcoming budget year.
- Temporary loans are to be provided for workers who occupy non-essential functions in the enterprises; assurance to be given of their return when situation gets better
- Addis Ababa’s light rail is to be operated with 25% seat occupancy
- Ethio-Djibouti railway is to operate with 50% seat occupancy
- All other public transportation (buses, taxies, etc.,) are to be operated with 50% seat occupancy.
- Government buses are available free of charge to the public to limit overcrowding in the public transport system.
- All vehicles are to be operated with occupancy level 50% of available seats (excluding the driver)
- Code 2 license plates having their last digit as odd number can drive on Monday, Wednesday, Friday and Sunday. Code 2 license plates having their last digit as even number (including 0) can drive on Tuesday, Thursday, Saturday and Sunday
Incoming Passengers to the Country
- All incoming passengers into the country will undergo a 14-day mandatory quarantine at his/her personal cost.
Movement of goods across boarders:
- All movements across land borders, except for the flow of cargo and essential goods, are banned
- Security sector will be enforcing measures taken by the Ministerial Committee to cease large gatherings and maintain social distancing
- Federal Government agencies are currently operating at a reduced capacity with significant employees working from home (effective as of March 25, 2020, until further notified)
- Working hours for government agencies has been adjusted; All federal government agencies are providing services from 07:30 am to 03:30 pm. Addis Ababa City Administration is providing services between 09:30 am to 05:30 pm
Flights and logistics - Inland transfers
- Export manufacturing industries who do not use railway services due to location distances will have a 50% discounted export freight services.
- Transport services will be dedicated for freights from Hawassa to Mojo with 50% discounted price: 73% discount for manufacturing sector exports using service of ESLSE
- Ethio-Djibouti Railway will transport export materials from industrial parks and export manufacturing industries that come through Mojo dry port to Djibouti free of charge for the next three months (starting May 1/2020) with a possible extension of an offer for the next 5 months.
- 50% cost reduction on inland transfer from industrial parks to Mojo railways.
- Demurrage cost at the port is not applicable until the situation on COVID-19 pandemic is changing
Flights and Logistics - Dry Port Services
- Manufacturing export freights passing through Mojo port to Djibouti will have the entrance gate payment waived and all other charges will have a 50% discount from their initial prices.
Flights and Logistics - Ethiopian Airlines
- Ethiopian Airlines has ceased flight operations to several countries in the interim (please follow this [link] for detailed information on Ethiopian Cargo and Logistics Services)
Commercial registration, work permit & aftercare services
- Without presenting notarized and authenticated documents firms can register, but conditional on time-limited undertakings letter from the firm.
- Without the need for presenting notarized and authenticated documents entry expatriate work permit facilitation is allowed, but conditional on time-limited undertakings letter from the firm.
- Aftercare services are provided based on submitted documents without conditioning on sites visit.
- A system established for quick visa acquisition and extension and issuance of residence ID to IP firms, who want to produce PPE.
- The Nationality and Vital Events Agency (INVIA) has communicated temporary adjustments to simplify the administrative procedures for foreign workers’ permits.
- Temporary resident permit and visa will be given without penalties for the period between March 24 and when the agency starts its services after normal operations resume
- For foreigners who left Ethiopia after March 24 before the expiry of their temporary residence permit, cancellation of temporary residence permits can be done via company representatives if all necessary documents are fulfilled
- For customers who couldn’t renew their resident permit to facilitate their right to get services from banks, support letter will be issued from the Agency upon request
- New investment visas will be issued online by using the EVISA services through www.evisa.gov.et