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Investment I Export-Import I Marketing
Guide I
Trade Promotion Institutions I
E-Commerce
I
Trade Fair Databases
The national authority for investment promotion is the
Ethiopian Investment Commission
(EIC)
P.O.Box 2313
Addis Ababa
Tel.
251-1-539474/ 251-1-510033,
Fax: 251-1-514396
ethiopian.invest.@telecom.net.et
,
www.investinethiopia.org
On the Ethiopian BDS Network site
www.bds-ethiopia.net you will find
further information:
Investment Incentives for Local and Foreign Investors in Ethiopia
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Investment
incentives for download
investment_incentives.doc
50 KB
1. Customs
Duty Exemption
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A 100 percent exemption from the payment of
import customs duty and other taxes levied on imports is granted to
investment capital goods and construction materials necessary for the
establishment of a new enterprise, or for the expansion or upgrading of
an existing enterprise, as well as spare parts with values up to 15
percent of the value of the imported capital goods;
-
Investment capital goods imported without
the payment of import customs duties and other taxes levied on imports
may be transferred to investors enjoying similar privileges;
-
Exemptions from customs duties or other
taxes levied on imports are granted for raw materials and packing
materials necessary for the production of export goods. Taxes and duties
paid on raw materials and packaging materials are drawn back at the time
of exports of finished products. The voucher system and bonded
manufacturing warehouse facilities are also in place.
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All goods and services destined for export
are exempted from any export and other taxes levied on exports.
2. Income
Tax Exemption
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Any
income derived from an approved new manufacturing, agro-industrial or
agricultural investment is exempted from the payment of income tax
ranging from 2-8 years depending up on the area of investment, the
volume of export and the location in which the investment is undertaken.
In the case of the floriculture sector, the duration of exemption is 5
years.
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Income derived from an expansion or
upgrading of an existing manufacturing, agro-industrial or agricultural
enterprise is exempted from income tax for a period of two years if it
exports at least 50% of its products and increases, in value, its production
by 25%.
3. Loss
Carry forward
Business
enterprises that suffer losses during the tax holiday period can carry
forward such losses for half of the income tax exemption period, after the
expiry of such period.
4.
Remittance of Funds
Foreign
investors are entitled to make the
following remittances out of Ethiopia in convertible foreign currency at
the prevailing rate of exchange on the date of remittance:
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Profits
and dividends accruing from investment;
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Principal and interest payment on external loans;
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Payments related to a technology transfer agreement;
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Proceeds from the sale or liquidation of an enterprise;
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Proceeds from the transfer of shares or of partial ownership of an
enterprise to a domestic investor;
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Expatriate employees may remit in
convertible foreign currency, unspent salaries
and other payments accruing from their employment in hard currency.
5.
Investment Guarantee and Protection
In Ethiopia
both the Constitution and the Investment Code protect private property.
Ethiopia is also a member of the Multilateral International Guarantee
Agency (MIGA), which issues guarantees against non-commercial risks to
enterprises that invest in signatory Countries.
6.
One-Stop Shop Service
Foreign
investors obtain pre-and post-approval services from the Ethiopian
Investment Agency (EIA). In addition to facilitation and promotional
services, the EIA offers the following services under the one-stop shop
arrangement:
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issuance
of Investment Permit in 4 hours
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issuance of Commercial Registration Certificate » 4 »
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issuance of Business License » 4 »
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issuance of Work Permit » 1 hour
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registration of Technology Transfer Agreement » 2 hours
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registration of export oriented non-equity basedforeign
collaboration » 1 hour
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facilitation
of the acquisition of land and utilities.
7. Loan
Provision
The
development bank of Ethiopia gives loan to investors in the floriculture
sector. Investors can borrow an amount up to 70% of the investment cost.
Incentives for
Investment in Southern Nations, Nationalities
and Peoples’ Regional State
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The following
incentives are granted to both domestic and foreign investors engaged in
areas eligible for investment incentives.
Customs
Import Duty
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One hundred
percent exemption from payment of import customs and other taxes levied
on imports of 15 %(in value) of the capital goods, provided that the
goods are not locally produced in comparable quality, quantity and
price.
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Investment capital goods imported without the payment of import customs
duties and other taxes levied on imports may be transferred to another
investor enjoying similar privileges
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Exemptions from customs duties or other taxes levied on imports of raw
materials necessary for the
production of export goods.
Exemption
from payment of export customs duties
Income Tax
Holiday
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Any
income derived from an approved new manufacturing and agro-industry
investment or investment made in agriculture shall be exempted from
payment of income tax for the periods ranging 2 to 5 years. The Council
of Ministers and Board of Investment may under special circumstances,
grant income tax exemption for a period of 7 years and
longer than 7 years.
Incentives
granted at the Regional Level
Incentives
that are granted to investors engaged in different investment projects at
regional level can be grouped in general as:
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Exemption
from payment of customs duties
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Income tax exemptions
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Rural land rent holiday for some types of development projects
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Priority in servicing investment sites
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Render investment services under “One-Stop-Shop-Service”
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Low rural land rental – minimum 30 Birr/hectar/year and maximum
117 Birr.
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Reasonable land rental ranging from 0.10 – 0.80 cents/m2 in the reform
towns of the region.
Incentives for
Investment in OROMIA Region
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An investor
holding investment permit is eligible to any incentive granted to
prospective investor in a given sector. Incentives are mainly granted in
the form of income tax exemption for some years and duty-free import of
capital goods necessary for the investment activity. In Oromia, land is
also provided at a reasonable price and free of charge under special
circumstances as part of enhancing the private sector. The investment
incentives are listed below:
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100% exemption
from payment of import duties and other taxes levied on all goods and
spare parts that are worth up to 15% of the goods.
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5
to 7 years income tax exemption for an investor who exports at least 50%
of his products.
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5
to 7 years income tax exemption for an investor who supplies at least 75
% of his products to an exporter.
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2
to 5 years income tax exemption for an investor who exports less than
50% of his products.
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2
to 5 years income tax exemption for an investor who supplies his
products only to the domestic market.
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2
years income exemption for an investor who is expanding or upgrading his
existing enterprise and exports at least 50% of the products and
increases production (in value) by 25%.
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4
years exemption from land rent payment for an investor who plants
coffee, tea, sugarcane, or any other perennial crops on more than 100
hectars
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Land rent exemption that can be extended up to 3 years for an investor
who develops virgin or left fallow land for a period of more than 5
years.
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Land rent payment exemption for up to 4 years for an investor who
cultivates fruits, vegetables, foor crops or oil seeds under irrigation
scheme.
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Land rent payment exemption for up to 4 years for an investor who
cultivates flowers, medicinal herbs, and spices.
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Land free of charge for an investor who plants indigenous trees
excluding eucalyptus on a land that can not be used for crop production
or animal rearing.
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Right to mortgage or pledge his holdings an the properties on the rented
land as a collateral to secure
loans from banks or other financial sources.
The period of
exemption from income tax begins from the date of commencement of
production or provision of services. In case the investor incurs a loss
within this period, he shall be allowed to carry forward the loss for half
of the exemption period, after the expiry of such period.
An investor
has the right to hold land either on lease or rental basis in Oromia. Land
in towns like Adama, Bishoftu, Mojo, Shashemenne, Jimma, Burayu and Sebeta
towns is administered under urban lease. Moreover, rural land
within the radius of 10 km in all directions from the boundary of Addis
Ababa city is treated under lease system as urban land.
The floor
annual charge ranges from 0.6475 to 4.0775 Birr per m2
depending on location and size of the land. The maximum land holding
period is 80 to 99 years with a minimum holding period of 30 years.
Payment for lease holding is effected within 40 years; and within 30 years
for holding less than 40 years.
Rural land is
provided on a rent basis at a reasonable price for investments or
free of charge for some specified activities. The annual rural land rent
and land in non-lease designated towns for establishing industry ranges
from 0.01 to 0.32 Birr per m2. Land is provided for a period of
20-45 years for agricultural purposes depending on the nature and location
of the project and method of production (rain-fed or irrigation). Rent
payment is effected on an annual basis throughout the contract period.
Land rent for tourism purposes is Birr 0.10 – 2.00 per m2 per
year.
Institutions of International Trade
Promotion
[top]
Export Helpdesk for Developing Countries
http://export-help.cec.eu.int/
Requirements + Taxes
I Import
Tariffs I
Customs
Documents
Rules of Origin
I Trade
Statistics
I
Market Place
I
Links
World Trade Organization
www.wto.org Goods, Services,
Electronic commerce, Regional trade agreements, Trade policy reviews.
International Trade Center (UNCTAD/WTO)
www.intracen.org/ Market analysis and development services.
Statistics.
Center for the Promotion of Imports of Developing
Countries (CBI)
www.cbi.nl/ Netherlands.
Exporters - Importers - Business Supporters
The Centre for the Promotion of Imports From Developing Countries
(CBI) is an Agency of the Ministry of Foreign Affairs of the Dutch
Government, created in 1971. It has three target groups: Medium sized
exporters from developing countries, Export Promotion agencies (TPOs), and
European importers. In order to accomplish its mission CBI concentrates on
five core competencies.
FITA. Federation of
International Trade Associations
www.fita.org/
European Business Directory. International Trade Directory. Advertising
Opportunities. Calendar of Trade Events. Links to 7,000 trade related
websites.
Buy an Sell.
The FITA Buy/Sell Exchange is an
international, business-to-business marketplace that facilitates
international trade by providing qualified import/export trade leads and
catalog posting.
Bundesagentur für Aussenwirtschaft (BFAI)
Germany
www.bfai.com
KfW Tenders, Business Opportunities
German Business Portal
www.german-business-portal.info/
Business infrastructure, Industrial sectors, Fireign trade statistics,
Economic data
Tradeport
USA
www.tradeport.org
All about export to USA. Import-Export guide.
Buy and Sell Online -
Virtual Business Market Places
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One Trade World Market Place
www.onetrade.biz/ot/
Buy and
sell. All sectors.
Alibaba.
http://importer.alibaba.com/ The directory of buyers by
Industry. Database on how find your buyers.
http://importer.alibaba.com/buy_leads/4c1p/Textiles_Leather_Products.html
All cate-gories of textile and leather products
The Import-Export Help Buy/Sell Exchange
http://imexhelp.worldbid.com/ is the
largest source of international trade leads, and tender
opportunities from companies and government organizations around the
world. Over 340,000 businesses have registered with us to help increase
their sales, reduce supplier costs, and find new business contacts.The
Import-Export Help Buy/Sell Exchange is an online international
marketplace designed to help small to mid-sized companies do business.
Whether it is buying or selling products or services, domestically or
internationally, we are confident our marketplace will meet your company's
needs. Company Showroom: Your Company has
the opportunity to showcase your product or service offering to the world.
The Import-Export Help Buy/Sell Exchange's Company Showrooms enable your
company to upload its complete product line and market it internationally
24 hours a day, 7 days a week.
E-Trade Center.
www.e-trade-center.com Looking for business
contacts. This is a market place for searching and offering business
contacts around the world in different sectors.
Berlinkauf.
www.berlinkauf.com/ Business Exchange. Trade
Markets. Trade News
German
E-Trade Center
www.e-trade-center.com
Market place, Business opportunities
Premier
International Business to Business Trade Portal
www.foreign-trade.com/ with the most complete foreign trade,
import and export information! FREE services
for importers, exporters & trade shows organizers.
Directories of Importers and Exporters, of Freight Transporters, Embassies
and Consulates, Marker Research Tools Trade terms and Codes, Measurements
and Conversions.
Kompass -
The Business to Business Search Engine
www.kompass.com/kinl/index.php?_Lang=en
Directory. Public tenders. Requests for quotation.
TOBOC,
Canada - Directory of Exporters, Importers, Manufacturers
and Suppliers by sectors
www.toboc.com
Trade leads. Exporters, Importers,
Transporters.
International Trade Fair Databases
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The Fair Calendar of the German
Federation of Exhibitions
and Fairs
http://www.auma.de/default.asp?sprache=2
(multilingual)
Database of all German and
international fairs and exhibitions, including a search engine for
detailed information.
Biz Tradeshows
www.biztradeshows.com The Indian directory of international
trade fairs and business events by industry, by country, by date or by
organizer brings you an exhaustive coverage of exhibitions, trade shows &
expositions, conferences and seminars for various industries worldwide:
individual trade events worldwide, along with their event profile,
organizer, exhibitor and visitor profile, venues and dates to plan your
participation.
The Fair Calendar of the
Tunisian Centre of Export Promotion
http://www.cepex.nat.tn/eng/salon/program.asp?ProgID=1
Concerns all information on
international textile fairs (multilingual)
The South
African Fair Calendar
Trade
fairs in Africa
www.expolink.ae
Expolink
Exhibitions Organizers (M.E.+Africa )
Tel: +971-4-3977786, Fax: +971-4-3966684/3967446
Email :
vij@expolink.ae /
info@expolink.ae
Exhibitions/Trade Fairs in Africa
http://www.ieoexhibitions.com
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http://www.africantradefairs.com
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Investment I Export-Import I Marketing
Guide I
Trade Promotion Institutions I
E-Commerce
I
Trade Fair Databases
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