Commentaries | Nov 26,2022
Jul 6 , 2019
By TEMESGEN MULUGETA ( FORTUNE STAFF WRITER )
The administration of Prime Minister Abiy Ahmed (PhD) has been amending the investment law to enable the private sector engage in the manufacturing of weapons, ammunition and explosives, which were exclusively reserved for the state, in a joint venture arrangement with the government.
The bill, drafted by the Ethiopian Investment Commission and a technical team, also allows the private sector to invest in air transport and postal services, engage in the import and export of as well as the transmission and distribution of electricity partnering with the state.
Drafted by a 17-member technical team composed of experts from the Addis Abeba University, the federal government and private institutions, the bill is up for deliberation and validation at workshops by representatives from the private sector, institutions and development partners in two sessions.
The amendment aims to catch up with the changes in the global and local economy, according to Fantu Farris, co-chair of the technical team.
"The initiative to amend the law also shows the country's initiative in opening up the investment climate for the private sector," she said.
The team, which operates under the management team of the Commission, has been revising the law since January. In amending the proclamation, the team reviewed the investment laws of 25 countries including Uganda, Kenya, Tanzania, Brazil, Argentina and China.
The bill also defined the membership and structure of the Commission's board of directors. In the existing structure, the composition and number of members of the board of directors is not specified. However, the amendment stipulates the members to be nine people pooled from the ministries of Finance, Trade & Industry, Agriculture and Revenues, as well as from the energy sector.
Existing law does not allow the membership of representatives from the private sector to be represented in the board of directors. The new law proposes one non-voting private sector representative to join the board of directors.
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.
"We expect the bill to be legislated in the first quarter of the coming fiscal year," Abebe Abebayehu, head of the Ethiopian Investment Commission, said.
Tewodros Meheret, a lawyer and legal consultant and a lecturer at Addis Ababa University's College of Law and Governance Studies, says the revision would potentially help the country in attracting more foreign direct investment (FDI).
"The bill relaxes many areas of investment, which will definitely motivate foreign investors to invest in the country," said Tewodros.
In the last fiscal year, the country managed to attract 3.3 billion dollars in FDI, making the country the fifth largest FDI recipient in Africa. The value is also nearly half of the total inflow to East Africa. Manufacturing is the biggest driver of FDI, accounting 69pc of the total value.
Zemedeneh Negatu, investment consultant and chairperson of Fairfax Africa Fund, recommends the government consider different incentive packages in a bid to attract as many foreign companies as possible.
"In doing so, the country will get many global companies that will invest in the country as well as transfer knowledge to local firms," Zemedeneh said.
CLARIFICATION: We have reported that the Ethiopian Investment Commission has drafted a bill to amend the existing investment law where it opens the manufacturing of weapons and ammunition to the private sector through joint venture arrangements with the government. However, it came to our attention that the existing investment law allows joint venture investments in these sector with the government. We sincerely apologise for any misunderstanding and inconvenience this may have created for our readers and the Commission.
PUBLISHED ON Jul 06,2019 [ VOL 20 , NO 1001]
Commentaries | Nov 26,2022
Radar | Sep 14,2019
Radar | Aug 03,2019
Commentaries | Jan 26,2019
Fortune News | Nov 11,2019
Fortune News | Jul 25,2020
Fortune News | Jul 27,2019
Radar | Dec 10,2022
Fortune News | Jan 29,2022
Dec 24 , 2022
Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...
Feb 4 , 2023
Rene Lefort is a French journalist with a keen interest in Ethiopia, spanning over ha...
Jan 28 , 2023
It is not common to see an appointment for a senior federal government office stir de...
Jan 21 , 2023
Eyob Tekalign, state minister for Finance, took to social media platforms last week t...
Jan 14 , 2023
The longing for normalcy and a semblance of individual and collective security in Eth...
Folks awed by the devastating national exam results have ignored the massive crisis that engulf the academic sector for nearly half a centur...
Inspired by the stories of business people who started small, I have been on the quest to decode the custom-made recipe of wealth for th...
Or see contact page