New Directive Hikes Service Fees for Foreign Investors in Free Trade Zones


New Directive Hikes Service Fees for Foreign Investors in Free Trade Zones

The Ethiopian Investment Board has issued a new directive revising the service fees from foreign investors payable in dollars to the Ethiopian Investment Commission (EIC), introducing updated rates for both the One Stop Shop and designated Free Trade Zones. The revised directive came into effect this April following its publication on the websites of the Ministry of Justice and the EIC. Issued pursuant to Article 23 of the Special Economic Zone Proclamation, the directive outlines charges for 67 distinct services rendered by the Commission. Under the revised scheme, fees for services such as investment permit issuance, trade name registration, work permits, and construction approvals now range between 25 and 155 dollars within the Commission's One Stop Shop. In parallel, service fees are significantly higher for investors operating within Free Trade Zones such as Dire Dawa. Issuance of a new investment permit in these zones, inclusive of related registration and documentation services, is set at 1,000 dollars as related services such as work permits and business licences range from 300 to 750 dollars, five times higher than their One Stop Shop counterparts. The Commission justifies the increases as part of efforts to modernise service delivery and recover administrative costs. It marks a departure from the previously modest charges that had remained largely unchanged till recent years. The directive is expected to impact mainly foreign investors, particularly those pursuing industrial and commercial projects in Special Economic and Free Trade Zones.

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