VII. INVESTMENT CLIMATE ------------------------ A.1. OPENNESS TO FOREIGN INVESTMENT: The Government of the Federal
Democratic Republic of Ethiopia (GFDRE) is committed to ensuring that private capital plays a significant role in the economy. To this end, it has eliminated discriminatory tax, credit, and foreign trade treatment of
the private sector, simplified administrative procedures, and established a clear and consistent set of rules regulating business activities. In June 1996, the Government revised its investment code. The Investment
Office of Ethiopia was up-graded to the Ethiopian Investment Authority. The investment code eliminates deposit requirements for investors, provide additional incentives for development-related investments, reduces
capital entry requirements for joint ventures and technical consultancy services, creates incentives in the education and health sectors, permits the duty-free entry of capital goods (although not including computers
and vehicles), opens the real estate sector to expatriate Ethiopians, allows investment by foreigners in rated hotels, extends the losses carried forward provision, cuts the capital gains tax from 40 to 10 percent, and
gives priority to investors in obtaining land to lease. More ===>
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