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Ethiopia: EIA Proposing Amendment to the Investment Law

The Ethiopian Investment Agency (EIA) is proposing amendment to the Investment law, Fortune reported.

The proposed amendment, which has now reached the Council of Ministers (CoM), has been in the making for the past six months, according to Fortune.

“The main reason to amend the regulation is to prolong the period that investors can import capital goods (machinery) duty free,” said Getahun Negash, the Agency’s public relations and communication director told Fortune.

Under the current law, investors enjoy duty and tax exemptions on capital goods imported for the establishment of the businesses only until they acquire a commercial license. After the commencement of operation, investors will then be considered as an existing business and are thus not entitled to the incentives, according to Getahun.

The Agency is helping investors seeking to import machinery after acquiring a trade license "through its board decision, by issuing a special letter,” Getahun told Fortune. The incentive framework only embraces investors in the manufacturing and agricultural sectors, excluding services.

The proposed amendment now seeks to extend the period of time duty free privileges enjoyed by investors.

Source: Fortune