Fortune News | Jan 05,2020
A new proclamation paves the way for foreign nationals and native Ethiopians to open overseas employment agencies, in partnership with nationals.
Legislated by parliament last week, the proclamation is expected to significantly boost the number of employment agencies working in the country, falling after the outbreak of the COVID-19 pandemic and a sharp drop in the number of Ethiopian labour force migrating legally to the Middle Eastern countries. Members of the diaspora and foreign nationals must enter into partnerships or form a share company with local businesses, while they are not allowed to own shares above 20pc of the established agencies.
However, contribution in equity is limited to two million Birr.
“The aim of the amendment is clear and concise," says Dereje Taye, communications director at the Ministry of Labour & Social Affairs. "We wanted to encourage businesses to invest in this particular sub-sector and set up the foundation for strong agencies which can safeguard our citizens when they work abroad.”
The law is the latest in a series of legal reforms introduced over the last two years, aiming to open up the economy to foreign competition. Last year, a revised investment law expanded the definition of domestic investors, which include Ethiopian nationals, members of the diaspora, and foreign enterprises accorded a domestic investor status. Despite such a move, some laws, including the overseas employment agency law, put some restrictions on those under this category, including the diaspora.
Even though this was opposed by some experts, who assert such measures contradict the regulation, Samuel Girma, a business lawyer, begs to differ.
"The overseas employment proclamation does not contradict the investment law," said Samuel. "The latest and most specific law always prevails."
The Ethiopian Overseas Employment Agencies Federation has already expressed its disappointment over the opening of the sub-sector for foreign nationals.
Nebil Mohammed, chairman of the Federation, insists that the responsibility to protect Ethiopian workers travelling overseas is heavy and domestic companies are better suited to carry it.
The law has changed the eligibility requirement put on labourers. Unlike the previous law where migrant workers needed to prove to complete eighth grade, anyone without formal education can travel as long as they are trained and have obtained a Certificate of Competency (COC) from authorised institutions. This is a departure from the past when many have been forced to travel illegally, avoiding such stringent requirements, according to Nebil.
"We hope there will be a narrow opportunity for illegal migration to thrive," Nebil told Fortune.
More than 400,000 Ethiopians have crossed the Arabian Peninsula since 2017, according to the International Organisation for Migration (IOM), whose recent study concluded that less than half of migrants understand the dangers of boats capsizing at sea.
Exporting labour overseas to countries where there are better job opportunities has been adopted as a pro-development policy by many countries worldwide, with major players being China, Mexico, India, and Indonesia. Understanding its benefits to reduce unemployment and boost remittance inflow, Ethiopia has been following the same path, though the ill-treatment of citizens overseas undermined this.
PUBLISHED ON
[ VOL
, NO
]
Fortune News | Jan 05,2020
Commentaries | Jan 13,2024
Commentaries | Oct 16,2020
Life Matters | Feb 06,2021
Fortune News | Mar 28,2020
Fortune News | Aug 21,2023
Radar | Mar 19,2022
Fortune News | Jul 18,2021
Fortune News | Apr 13,2024
View From Arada | Feb 20,2021
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
Apr 27 , 2024
The Prosperity Party (PP) - Prosperitians - is charting a course through treacherous...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...
Apr 6 , 2024
In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (C...