Last Change:

05/01/2024

Investment Proclamation No1180/2020

Year: 2020

Type: Domestic law

Rights Category: Housing, land & property, Work & Workplace rights

Description

The Ethiopian Investment Proclamation is a legal framework established by the Ethiopian government to promote and regulate investment activities in the country. It aims to attract both domestic and foreign investments by providing incentives, guarantees, and protections for investors. The proclamation outlines the rights and obligations of investors, procedures for investment registration and licensing, and mechanisms for dispute resolution. It also emphasizes the government's commitment to creating a conducive business environment and promoting sustainable economic development through investment.

Selected provisions
Article 9(1&2) Minimum Capital Requirements for Foreign Investors

Any foreign investor, to be allowed to invest under this Proclamation, shall be required to allocate a minimum capital of USD 200,000.00 (two hundred thousand) for a single investment project. 2/ Notwithstanding the provision of Sub-article (1) of this Article, the minimum capital required of a foreign investor jointly investing with a domestic investor shall be USD 150,000.00 (one hundred fifty thousand).

Article 20(1) - Remits

Any foreign investor shall have the right, in respect of his investment, to remit the following payments and earnings out of Ethiopia in convertible foreign currency at the prevailing exchange rate on the date of transfer: a) Profits and dividends accruing from his investment; b) Principal and interest payments on external loans; c) Payment related to technology transfer agreement registered in accordance with Article 15 of this Proclamation; d) Payments related to collaboration agreement registered in accordance with Article 16 of this Proclamation; e) Proceeds from the transfer of shares or conferral of partial or total ownership of an enterprise to another investor; f) Proceeds from the sale, capital reduction or liquidation of an enterprise; and g) Compensation paid to an investor pursuant to Sub-article (2) of Article 19 of this Proclamation.