Incentive Package

  • Income Tax Incentives
  • Customs Incentives
  • Financial Incentives

 

Ethiopian Investment Incentive Inventory
Incentive Name Brief Description Legal Reference Name Law Section/Article Sectors

Eligebility Criteria

(Description)

Awarding Authority Implementing Authority
Business Income Tax exemption in the manufacturing sector (up to six years) Business Income Tax exemption with differentiation based on sub-sector and location of investment (exemption reduced by up to two years if investment is in Addis Ababa and Special Zone of Oromia Surrounding Addis Ababa). Exemption up to six years for: manufacturing food, textile, leather, chemical, metal, machinery and vehicles. Less than six years for other industries.   Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended)  Article 5 (1) Manufacturing sectors listed under the Investment Regulation

1) Eligible sector/Sub-sector of investment

2) Holding of investment permit...................................   

3) Holding of business license

4) Investment to establish a new enterprise (Greenfield) or for expansion or upgrading of an existing enterprise as defined under the Investment Proclamation

Ethiopian Investment Commission, Regional Investment Offices (for domestic investors) Ethiopian Revenue and Customs Authority, Regional Revenue Offices  
Business Income Tax exemption in the agriculture sector (up to ten years) Business Income Tax with differentiation based on sub-sector and location of investment (exemption reduced by up to three years if investment is in Addis Ababa and Special Zone of Oromia surrounding Addis Ababa). Up to six years for crop production; up to four years for animal production and mixed farming; up to nine years for investment in forestry; and  up to ten years for horticulture development in special cluster zones identified by the government with atleast 80% export.

1) Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended)

2) Investment Board Decision, 15 June 2017

Article 5 (1) Agricultural sectors listed under the Investment Regulation: Crop production, Animal production, Mixed crop and animal farming, and Forestry

1) Eligible sector/Sub-sector of investment

2) Holding of investment permit

3) Holding of business license

4) Investment to establish a new enterprise (Greenfield) or for expansion or upgrading of an existing enterprise as defined under the Investment Proclamation

Ethiopian Investment Commission, Regional Investment Offices (for domestic investors) Ethiopian Revenue and Customs Authority, Regional Revenue Offices
Business Income Tax exemption in Information and Communication Technology (ICT) development (up to  five years) Business Income Tax exemption reduced by one year if investment is in Addis Ababa and Special Zone of Oromia  surrounding Addis Ababa Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended) Article 5 (1) ICT Development

1) Eligible sector/Sub-sector of investment

2) Holding of investment permit

3) Holding of business license

4) Investment to establish a new enterprise (Greenfield) or for expansion or upgrading of an existing enterprise as defined under the Investment Proclamation

Ethiopian Investment Commission, Regional Investment Offices (for domestic investor) Ethiopian Revenue and Customs Authority, Regional Revenue Offices
Business Income Tax exemption in Electricity generation, transmission and distribution (up to five years) Business Income Tax exemption reduced by one year if investment is in Addis Ababa and Special Zone of Oromia surrounding Addis Ababa Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended) Article 5 (1) Electricity generation, transmission and distribution (transimission and distribution is reserved for government only)

1) Eligible sector/sub-sector of investment

2) Holding of investment permit

3) Holding of business license

4) Investment to establish a new enterprise (Greenfield) or for expansion or upgrading of an existing enterprise as defined under the Investment Proclamation

Ethiopian Investment Commission Ethiopian Revenue and Customs Authority
Business Income Tax exemption for hotel and tour service providers in non-traditional tourism destinations (up to five years) The list of non-traditional tourism destinations is defined through Investment Board Decision including: Bale and Simien Mountains; Ertale, Gerehalta mountains; rift valley lakes (Abaya, Shala, Chamo and Abiyata); and Wanchi mountain (lake and afro-alpine).  Investment Board Decision, 7 January 2016  N/A Hotel and Tour operations in non-traditional tourist destinations

1) Eligible sector/sub-sector of investment

2) Minimum investment capital of USD 1 million

3) Holding of Investment permit

4) Holding of business license

5) Investment to establish a new enterprise (Greenfield) or for expansion or upgrading of an existing enterprise as defined under the investment proclamation

Ethiopian Investment Commission Ethiopian Revenue and Customs Authority
Business Income Tax exemption for industrial parks development /developers (ten-fifteen years) Ten years if the park is in Addis Ababa and Special Zone of Oromia Surrounding Addis Ababa; fifteen years for industrial parks in other areas Investment Incentives and Investment Areas Reserved for Domestic Investors Amendment Regulation No. 312/2014  Article 2 Investment in the development of industrial parks 

1) Holding of investment permit for industrial park development

2) Holding of business license  

Ethiopian Investment Commission Ethiopian Revenue and Customs Authority
Export-linked business income tax exemption (additional two years for at least 60% export or supply to exporter) Available for exporters Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended)  Article 7 Manufacturing, Agriculture, ICT Development, Electricity generation, transmission and distribution (investment sectors listed under the Investment Regulation)

1) Eligible sector/Sub-sector of investment

2) Holding of investment permit

3) Holding of business license

4) Direct export or supply to an exporter of at least 60% of own products or services

Ethiopian Investment Commission, Regional Investment Offices  (for domestic investors) Ethiopian Revenue and Customs Authority, Regional Revenue Offices
Business Income Tax exemption in industrial parks (additional two-four years for industrial park enterprises with 100% export plan and achive at least 80% export) Differentiation based on location of industrial park (two years if the park is in Addis Ababa and Special Zone of Oromia Surrounding Addis Ababa; four years for parks in other areas) Investment Incentives and Investment Areas Reserved for Domestic Investors Amendment Regulation No. 312/2014 Article 2 (3) Manufacturing

1) Manufacturing company investing within an Industrial Park

2) Holding of investment permit

3) Holding of business license

4) Direct export or supply as production input to a producer exporter of at least 80% of own products

Ethiopian Investment Commission Ethiopian Revenue and Customs Authority
Business Income Tax exemption for pharmaceutical sector in industrial parks

1) Investment in Active Pharmaceutical Ingredients: 12-14 years (eight-ten years base depending on location of park + two years for 30% export + two years for 60 % export)

2) Investment in Final medicine/Formulation 10-12 years (six-eight years base depending on location of park +  two years for 30% export + two years for 60 % export)

3) Investment in  Pharmaceutical Packaging 7-8 years (three-four years base depending on location of park + two years for 30% export + two years for 60 % export)

Investment Board Decision, 15 June 2017  N/A  Pharmaceutical

1) Eligible sector/Sub-sector of investment

2) Holding of investment permit

3) Holding of business license

4) Investment in an industrial park to establish a new enterprise (Greenfield) or for expansion or upgrading of an existing enterprise as defined under the Investment Proclamation

Ethiopian Investment Commission Ethiopian Revenue and Customs Authority
Loss carry forward for up to five years Loss incurred during the income tax exemption period can be carried forward for half of the exemption period after expiry, the maximum limit being five income tax period Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended)  Article 11 Manufacturing, Agriculture, ICT Development, Electricity generation, transmission and distribution (investment sectors listed under the Investment Regulation)

1) Eligibility  for Business Income Tax exemption

2) Submission of annual financial statements

Ethiopian Revenue and Customs Authority, Regional Revenue Offices (for domestic investors) Ethiopian Revenue and Customs Authority, Regional Revenue Offices 
Personal Income Tax (PIT) exemption for expatriate employees Up to five years for expatriate employees of sourcing companies located in industrial parks Investment Board Decision, June 2017  N/A Manufacturing in industrial parks

1) The employer company has to be in its first five years of operation

2) The expertise offered by the expatriate  has to be unavailable in the local market

Ethiopian Investment Commission Ethiopian Revenue and Customs Authority
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Ethiopian Investment Incentive Inventory
Incentive Name Brief Description Legal Reference Name Law Section/Article Sectors

Eligebility Criteria

(Description

Awarding Authority Implementing Authority
Exemption from customs duties and other taxes (VAT, sur tax, withholding and excise tax) on imported capital goo

Note 1: Capital goods are defined as: machinery equipment and their accessories needed to produce goods or render services and include workshop and laboratory machinery and equipment necessary for same. (Investment Proclamation No. 769/2012 Article 2.5 (as amended)). This definition is further expanded through decision of the Investment Board to include Special Purpose Integrated Trucks and handling equipment destined for sector-specific purposes.                      

Note 2:  Time limits for enjoying this right differ based on sector, size and employment potential of investment.

# If Manufacturing or agricultural investment that has invested at least 200,000 USD, and  permanently hired at least 50 Ethiopian nationals => at any time. 

# If investment in other eligible sectors with a capital and employment requirement same as above => until five years from the date of acquiring business license. 

# In other cases => up on establishment of a new enterprise or expansion/upgrading of existing one.

A) Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended)

B) Investment Board Decision

Article 12  Investments in sectors listed under the Investment Regulation No 270/2012 (as amended) except real estate development, publishing, export trade and wholesale trade

1) Eligible sector/Sub-sector of investment.............................

2) Holding of investment permit

3) Holding shipping documents (commercial invoice, packing list, certificate of origin, bill of lading)    

Ethiopian Investment Commission, Regional Investment Offices (for domestic investors)  Ethiopian Revenue and Customs Authority, 
Exemption from customs duties and other taxes (VAT, sur tax, withholding and excise tax)on imported construction materials

Note 1: Construction materials are defined as: basic inputs necessary for the construction of investment projects. (Investment Proclamation No. 769/2012 Article 2.6(as amended)).

Note 2: This right can be exercised up on establishment of a new enterprise (before commissioning) and for expansion/upgrading of an existing one as defined under the Investment Proclamation.

Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended)  Article 13 Investments in sectors listed under the Investment Regulation No 270/2012 (as amended) except real estate development, publishing, export trade and wholesale trade

1) Eligible sector/Sub-sector of investment

2) Holding of investment permit

3) Investment to establish a new enterprise (Greenfield) or for expansion or upgrading of an existing enterprise as defined under the Investment Proclamation

4) Holding of authenticated land lease or rental agreement

5) Holding of construction permit, site plan, and bill of quantity that is approved by a licensed consultant and city municipality

Ethiopian Investment Commission, Regional Investment Offices (for domestic investors) Ethiopian Revenue and Customs Authority
Exemption from customs duties and other taxes (VAT, sur tax, withholding and excise tax) on imported spare parts # For industrial park developers and enterprises (manufacturers with 100% export) , there is no time or value limitation.

# For other manufacturers and investments in agriculture, there is no time limit but the value should not be more than 15% of the total value of the capital goods.
 
# For other investors eligible to import  capitals good duty free, there is time limit of five years from the date of issuance of business license, and the value should not be more than 15% of the total value of the capital goods.

A)Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012  (as amended)

B) Investment Board Decision

 Article 13 Investments in sectors listed under the Investment Regulation No 270/2012 (as amended) except real estate development, publishing, export trade and wholesale trade 

1) Eligible sector/Sub-sector of investment for import of capital goods

2) Holding of investment permit

3) Holding shipping documents (commercial invoice, packing list, bill of lading)

4) Duly completed reconciliations form

Ethiopian Investment Commission, Regional Investment Offices (for domestic investors) Ethiopian Revenue and Customs Authority
Automatic exemption/zero duty and other tax (VAT, sur tax, withholding and excise tax) on imported spare parts by textile and apparel, and leather and leather products manufacturers Automatic exception (duties and other taxed are zero rated) for list of spare parts required by textile and apparel and leather industries (list identified by sector development institutes and published by Ministry of Finance and Economic Cooperation/MoFEC) Letter written by Ministry of Finance and Economic Cooperation Letter dated 14/07/2009 (E.C)

1) Textile and Apparel industry

2) Leather and leather products industry

1) Eligible sector (textile and apparel industry, and leather and leather product industry)

2) List of spare parts required by the relevant sectors (identified by sector development institutes and published by Ministry of Finance and Economic Cooperation)

Ministry of Finance and Economic Cooperation Ethiopian Revenue and Customs Authority
Exemption from customs duties and other taxes (VAT, sur tax, withholding and excise tax) on imported vehicles

Note 1: The type and number of vehicle that can be imported duty free varies depending on investment sector, size, nature and location of investment (within Vs outside industrial parks). Type of vehicles include: pickups minibuses, cargo trucks, SUVs, hybrid SUVs like, and special purpose trucks (crane trucks, garbage trucks, ambulances, fire trucks, refrigerated trucks etc.)

Note 2: For industrial park developers and for manufacturing companies inside industrial park, only 2 SUVs and SUV like hybrid vehicles                                         

Note 3: Manufacturing and agricultural investors which invest ETB 200 million and above, and export for three consecutive years more than 60% of their product qualify for 1-2station wagon

A) Investment Incentives and Investment Areas Reserved for Domestic Investors Regulation No. 270/2012 (as amended)

B) Investment Board Directive on Duty-free Import of Motor Vehicles No. 4/2005 (E.C),

C)  Investment Board Decision

 Article 14 Investments in sectors listed under the Investment Regulation No 270/2012 (as amended) except real estate development, publishing, export trade and wholesale trade

1) Eligible sector/Sub-sector of investment for import of capital goods

2) Investment land holding or lease certificate

3) Holding of business license (or progress report showing that the investment is actively working on establishment (shipping documents/purchase invoice showing import of capital goods, construction materials)

4) Shipping documents (commercial invoice, packing list, certificate of origin, bill of lading, LC from bank) for the vehicles to be imported

Ethiopian Investment Commission, Regional Investment Offices Ethiopian Revenue and Customs Authority
Export trade incentive - exemption from customs duties and other taxes on all imported raw materials and accessories - including packaging  materials -  used for export processing) Customs duty exemption for producer exporters, indirect producer exporters, raw material suppliers, and/or, exporters. Applicable through duty draw-back, voucher, and bonded export factory and similar schemes. Right excisable after issuance of business license. Export Trade Duty Incentive Schemes Proclamation No. 768/2012, MOFEC Export Incentive Scheme Directive 35-2005, ERCA Export Incentive Scheme Directive 86-2005, Ministry of Industry Export Incentive Scheme Directive Article 3 of the following proclamations Manufacturing and export business

1) Direct/indirect export-producer

2) Holding of investment permit and business license

3) Submission of export proposal to the relevant sector development institute

4) Signing export undertaking at the Ministry of Industry

5) Declaration of input-output coefficient

6) Export of final output within one year period

Ministry of Industry  Ethiopian Revenue and Customs Authority
Exemption from customs duties and other taxes (VAT, sur tax, withholding and excise taxes) on the import of raw materials needed for test-run production (sample production for issuance of business license) Limited to raw materials needed for sample production based on which business license will be granted. A maximum of 30 days for textile and leather, and a maximum of 7 days for other eligible sectors . Investment Board Decision, 7 January 2016  N/A  Manufacturing

1) Eligible sector of  investment

2) Company done with establishment stage and ready to test production

Ethiopian Investment Commission Ethiopian Revenue and Customs Authority 
Exemption from customs duties and other taxes on the import of personal effects by industrial park residents Right given to industrial park developers, industrial park enterprises, and workers living inside the park. List of items that can be imported duty free is annexed to the Industrial Park Directive of the Ethiopian Investment Board Industrial Park Proclamation 886/2015, Industrial Park Regulation, and Industrial Park Directive  Article 15 (2)  Manufacturing

1) Holding of certificate of residency within an industrial park at the time of claiming/exercising this right, or

2) To be an  industrial park developer or industrial park enterprise

Ethiopian Investment Commission Ethiopian Revenue and Customs Authority
Customs duty reduction on imported raw materials by import substituting local manufacturers Subject to meeting the minimum value addition threshold that varies for each sector (from 5% for manufacturing of electronics - 41% for manufacturing of wines) and  securing Second Schedule Beneficiary Certificate from the Minister of Industry Customs Duty Second Schedule Directive No. 45/2016  N/A  Manufacturing

1) Import substitution industry

2) Minimum value addition threshold (5% for manufacturing of electronics - 41% for manufacturing of wines)

Ministry of Industry  Ethiopian Revenue and Customs Authority 
Customs duties, Value Added Tax (VAT), and other taxes exemption/zero rating for the export of products Export duty exemption/zero rating for all export products Value Added Tax Proclamation No. 285/2002  Article 7(2) All sector on VAT exemption. All sectors except export of semi-processed hides and skins for customs duties  N/A  N/A Ethiopian Revenue and Customs Authority
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Ethiopian Investment Incentive Inventory
Incentive Name Brief Description Legal Reference Name Law Section/Article Sectors

Eligebility Criteria

(Description

Awarding Authority Implementing Authority
Skills development and retention cost-sharing grant for domestic industrialists (matching grant for training of local personnel)

Government cost sharing on labour recruitment and training as below:

Year 1: 85%

Year 2: 75%

Year 3:50%

Year 4:25%

As condition, domestic industrialists are expected to apply sound management practices and ensure retention of trained labour force. Cost of training new personnel, upon departure of trained ones, will be fully covered by the employer.

Investment Board Decision

N/A Textile & leather manufacturing in industrial parks (100% for export)

1) Domestic investor status

2) Investment in Industrial park

3) Commitment for cost sharing....................................

Ethiopian Investment Commission Ministry of Finance and Economic Cooperation
Skills development and retention cost-sharing grant for domestic industrialists (matching grant for recruitment of expatriates)

Cost-sharing on recruitment of expatriate managers and special technicians as below:

Year 1: 85%

Year 2: 75%

Year 3: 50%

Year 4: 25%

Domestic industrialists who are beneficiaries of the above incentives are expected to match to at least 75% productivity by foreign investors operating in same industrial park in year one, and raise performance to 85% and 100% in years two and three, respectively.

Investment Board Decision N/A Textile & leather manufacturing in industrial parks (100% for export)

1) Domestic investor status

2) Eligible sector

3) Investment in industrial park

4) Commitment for cost sharing

5) Undertaking for scaling up production capacity

Ethiopian Investment Commission Ministry of Finance and Economic Cooperation
Development Bank of Ethiopia (DBE) - Export credit guarantee Guarantee by DBE that covers 80% of loan and interest provided by commercial banks to exporters with bankable export project except for coffee export Export credit guarantee Directive No.SBB/41/2007 Article 3

 N/A

1) Valid investment permit and/or business license

2) Bankable export project (assessment based on DBE's credit policy and procedures and found within acceptable risk level)

3)  Presentation of a bona-fide order from a foreign buyer

4) Credit worthiness (submission of documents on company's credit discipline and financial statements)

5) Collateral equivalent to at least 40% of loan for new producer exporters (operational for less than 12 months)

Development Bank of Ethiopia Development Bank of Ethiopia
Development Bank of Ethiopia (DBE) - Soft/Subsidized project loan Soft loan for strategic investment projects in priority sectors. Repayment term goes up to 20 years; and interest rate ranges between 9%-9.5% depending on export capability. Also longer grace period (up to five years) is provided, and the project itself is taken as a collateral Development Bank of Ethiopia Credit Policy  N/A Strategic investments in priority sectors (agriculture, agro processing,  manufacturing and extractive industries).  Mainly for domestic investors, foreign investors are encouraged to come with own capital and foreign loan

1) Eligible sector/Sub-sector of investment

2) Project viability (assessment of project feasibility including size, capacity, value addition etc.) based on Sector-specific parameters of the bank

3) Credit worthiness (assessed based on previous track record)

1) Normally: Development Bank of Ethiopia

2) For project loan that accounts more than 25% of DBE paid-up capital (35% in case of corporate clients): National Bank of Ethiopia

Development Bank of Ethiopia
Development Bank of Ethiopia (DBE) Subsidized loan - Higher debt: equity ratio for project finance to domestic investors located outside of industrial parks (75:25) Domestic investors engaged in eligible sectors for Development Bank of Ethiopia's finance can access 70:30 debt:equity (75% loan with 25% equity) Development Bank of Ethiopia Credit Policy  N/A Strategic investments in priority sectors (agriculture, agro processing,  manufacturing and extractive industries)

1) All the general eligibility criteria for project loan holds

2) Domestic investor status

Development Bank of Ethiopia Development Bank of Ethiopia
Development Bank of Ethiopia (DBE) Subsidized loan - Highest debt: equity ratio for project finance to domestic manufacturers located in industrial parks (85:15) Domestic investors engaged in the manufacturing sector and undertaking their investment in industrial parks (with export orientation) can access 85% start-up loan from the Development Bank of Ethiopia

Development Bank of Ethiopia Credit Policy.

Investment Board Decision.

 N/A Manufacturing and horticulture with 100% export

1) All the general eligibility criteria for project loan holds

2) Domestic investor status

3) Investment located in industrial parks and horticulture clusters

Development Bank of Ethiopia Development Bank of Ethiopia
Development Bank of Ethiopia (DBE) - Lease financing Soft loan for capital goods/machinery  purchase by SMEs (domestic businesses with paid up capital ranging between ETB 500,000 - ETB 7.5 million). Development Bank of Ethiopia finances full cost of machinery including installation cost (ETB 1 million - 30 million) using the capital good/machinery as a collateral; interest rate of about 9%; repayment schedule goes up to five years with grace period of about six months after commissioning/commencement of production or service provision. The investor has to contribute at least 20% of the machinery value for running cost. Ownership is transferred up on full repayment.

A) Capital Goods Leasing Business Proclamation No. 103/1998, Amendment Proclamation No. 807/2013

B) Development Bank of Ethiopia Lease Finance Policy.

 N/A Agriculture, agro processing, manufacturing, tour operations, mining and quarries, construction

1) Eligible sector/Sub-sector of investment

2) Local firms operating at SME scale (paid up capital ranging between ETB 500,000 - ETB 7.5 million; employment of more than 6 workers)

3) Business plan feasibility

4) Credit worthiness (assessed based on previous track record)

Development Bank of Ethiopia Development Bank of Ethiopia
Subsidized land lease and shed rental rates in industrial parks Industrial park developers can access land at promotional rate. Industrial park enterprises pay subsidized shed rental/sub-lease rate for developed lands. Investment Board Decision N/A Manufacturing Manufacturing in industrial parks meeting the specific criteria for the park (sector of investment, export performance etc.) Ethiopian Investment Commission Industrial Parks Development Corporation
Access to suppliers credit for import of goods by exporting companies Subject to National Bank of Ethiopia's (NBE) assessment and approval, and limited to finance an export-oriented investment that generates forex National Bank of Ethiopia's  External Loan and Supplier's Credit Directive No. FXD/47/2017 Article 4 Export-oriented investments

1)  Export of goods or services

2) Allowed only for direct business related import

3) Repay the credit from the export earning

4) Submission of the following documents: a) Application letter; b) Valid investment permit/ business license; c) Foregin capital registration certification; d) Document justifying repayment capacity; e) Pro-forma invoice with repayment period

National Bank of Ethiopia National Bank of Ethiopia
Franco valuta import of capital goods, raw materials, spare parts and other accessories  

A)Regulation
on the Importation of Goods on Franco Valuta Basis No 88/2003

B) ERCA Directive on franco valuta No 66/2004; Amendment Directive No 88/2006

Regulation No 88/2003, Article 2(9) Manufacturing

The eligibility criteria are different depending on type of items:

1) Capital goods, raw materials, and personal items -   allowed for Ethiopians and foreign nationals of Ethiopian origin.

2) Non-capital items important for the investment, and spare parts and other accessories of capital goods imported duty free - allowed for foreign investors engaged in the manufacturing sector; with a condition that such items are not available in the local market

3) Labels and packaging materials - allowed only as inputs to export products

Ethiopian Revenue and Customs Authority, Ethiopian Investment Commission Ethiopian Revenue and Customs Authority
Priority forex access for manufacturers, construction  companies and conversion/transfer of sales from shares  or liquidation of FDI Priority forex access for manufacturers, construction companies and conversion/transfer of sales from shares  or liquidation of FDI Transparency in Foreign Currency Allocation and Foreign Exchange management Directive No. FXD/46/2017  Article 6 Manufacturing, Construction   National Bank of Ethiopia Commercial Banks of Ethiopia
Export earnings retention Retention of 30% of export earnings for an indefinite period of time; and retention of 70% of export earnings for 28 days National Bank of Ethiopia's Retention and Utilization of Export Earnings  and Inward Remittances Directive No. FXD/48/2017  Article 5 Export of goods and services

 ) Export of goods or services

2) Export earnings on process

3) Opening foreign exchange retention account in an authorized bank

National Bank of Ethiopia  Commercial Banks of Ethiopia
Access to foreign loan (with debt; equity ratio of 60:40 for foregin investors)

a) Foreign investors can raise up to 60% of their finance through loan from foreign markets

b) Domestic investors engaged in export-oriented business that generate forex can access foreign loan

National Bank of Ethiopia's  External Loan and Supplier's Credit Directive No. FXD/47/2017 Article 4

a) Economy wide for foreign investors

b) Limited to export business for domestic investors

1) Application letter

2) Valid investment permit/ business license

3) Foreign capital registration certification

4) Document justifying repayment capacity

5) Draft loan agreement

National Bank of Ethiopia National Bank of Ethiopia
Reduced charge for opening Letter of Credit (LoC) by manufacturers (reduced from the regular rate of 3.5%  to 0.5%) Availed by public banks Letter written by Ministry of Finance and Economic Cooperation   Manufacturing   Commercial Bank of Ethiopia, Development Bank of Ethiopia Commercial Bank of Ethiopia, Development Bank of Ethiopia
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