Ethiopia's parliament, the House of People’s Representatives, has unanimously voted to approve the Commercial Code of Ethiopia. The Code will revise the one that has been in place for the past 61 years, since 1960.
The revision has seen to amend 825 sections related to trade issues in the Code, and it is expected to serve intact for 30 years as it has taken into account up-to-date technological advancements.
The amendment enables cooperatives to be led by a single individual, and those engaged in sectors of agriculture and forestry will not be obliged to register into the trading system.
Meseret Abate, the House's Trade and Industry Affairs Standing Committee Chairperson, presented a report on the draft proclamation and a proposal to the House. She said the amendment, which has been submitted to the House in September 2020, is a culmination of a 34-year long effort to make amends to the Code.
The need for revising the Commercial Code has been paramount in light of creating a smooth working environment for business activities in Ethiopia, the chairperson underlined. The amendment will also help speed up trade registration and licensing procedures.
The standing committee has reviewed the draft proclamation in detail with the participation of stakeholders, she noted. House Members also commented the amendment of the Code is especially significant for preventing illegal business practices and for establishing a fair trade system in Ethiopia.
The amended Commercial Code is hoped to facilitate Ethiopia's efforts in joining the World Trade Organization.
Sources: ENA, FBC