INTRODUCTION
The Investment Proclamation No. 769/2012 (as amended by Proclamation No. 849/2014) and the related regulations and directives are to be further amended. As understood from the Validation Workshop with the Private Sector and Development Partners of July 06, 2019, the Ethiopian Investment Commission has announced that the Ethiopian Investment Laws will be amended.
The main aims of these amendments are to “modernize the investment regulatory and administrative framework; align the investment legal regime with recent changes in economic policy priorities; consolidate protracted rules and regulations on investment; consolidate and rationalize the investment incentives regime; revisit investment areas closed to the private sector and adopt best practices for efficient investment administration”.
As per the proposed amendments the private sector will be allowed to engage in the manufacturing of weapons, ammunition and explosives. In the current Investment Proclamation these were exclusively reserved for the state and for the joint venture arrangement with the government. In addition, the proposed amendment also allows the private sector to invest in air transport and postal services, to engage in the import and export of as well as the transmission and distribution of electricity partnering with the state.
The composition and the number of the Board of Directors of the Investment Commission, which is its highest governing organ, are also part of the amendment. In particular, the amendment proposes one non-voting private sector representative to join the Investment Board of Directors. An organ that will review the grievances of investors is also envisaged under this amendment.
The amendment will also bring a new organ to life, which will be reviewing grievances from investors. In the existing system, the investors lodge complaints with the Commission. Investors can also appeal to the Investment Board if they are not satisfied with the decisions of the grievance hearing body. These amendments are expected to be tabled for discussion and promulgation in the first quarter of the new Ethiopian fiscal year that has commenced as of date.
Sources: The Twitter page of the Ethiopian Investment Commission Commissioner, @AbebeAbebayehu and The Weekly Addis Fortune.
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Posted on July 8th 2019
