KEY POINTS
- The Investment Proclamation No. 1180/2020 governs investment permits, incentives, guarantees and protection, and investor grievances and disputes.
- Land cannot be owned privately (Constitution Article 40(3)); Article 40(6) requires the government to ensure private investors’ right to use land on the basis of payment arrangements established by law.
- Foreign nationals of Ethiopian origin can obtain an identification card that gives them certain rights in Ethiopia under Proclamation No. 270.
The Investment Proclamation
Proclamation No. 1180/2020 is organised in nine parts: general provisions; investment objectives; areas of investment, forms of enterprise and capital requirements; investment permits; registration of technology transfer and collaboration agreements; investment incentives, guarantees, protection and facilitation; grievance procedures and settlement of investment disputes; investment administration organs; and miscellaneous provisions. Council of Ministers regulations made under it set out details such as the investment areas and incentives.
The laws that apply alongside it
An investment project typically also involves the Commercial Code No. 1243/2021 for the business vehicle, the Commercial Registration and Business Licensing Proclamation No. 980/2016, the land laws described in our property and land guide, the federal tax proclamations, and the Immigration Proclamation No. 354/2003 for foreign staff. Disputes may be resolved by arbitration under Proclamation No. 1237/2021 where the parties agree.
Foreign nationals of Ethiopian origin
Proclamation No. 270 provides for an identification card for foreign nationals of Ethiopian origin, often called the Yellow Card. As published, it says a holder does not need an entry visa or residence permit to live in Ethiopia and may be employed without a work permit, subject to listed exceptions; a holder has no right to vote or to be elected. The proclamation also addresses treatment as a domestic investor. Check any later amendment and the implementing rules before relying on a specific right.
Frequently asked questions
What is the main investment law in Ethiopia?
The Investment Proclamation No. 1180/2020, implemented by Council of Ministers regulations on matters such as investment areas and incentives.
Can a foreign investor own land in Ethiopia?
Land is not privately owned in Ethiopia (Constitution Article 40(3)). Investors obtain the right to use land on the basis of payment arrangements established by law (Article 40(6)), under the applicable land laws.
What is the Ethiopian Yellow Card?
The common name for the identification card for foreign nationals of Ethiopian origin under Proclamation No. 270. As published, it removes the need for an entry visa, residence permit or work permit, with exceptions, but does not give the right to vote or be elected.
How are investment disputes resolved in Ethiopia?
Part Seven of the Investment Proclamation No. 1180/2020 deals with grievance procedures and the settlement of investment disputes. Where the parties agree, arbitration under Proclamation No. 1237/2021 is also available.
This page is general legal information about Ethiopian law, prepared from the published texts it cites. It is not legal advice and does not confirm whether a provision is still in force or has been amended. Federal laws are published in the Federal Negarit Gazeta in Amharic and English, and the Amharic version prevails where they differ. Consult a qualified Ethiopian lawyer about your situation.