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EUBFE held consultative workshop with member companies’ on August 18, 2022 with sourcing and procurement experts on challenges and potentials for local sourcing. The outcome of this consultative workshop will be used to develop a policy brief that would present the potential for linkage between local manufacturers with European FDI. It will also present the exiting bottlenecks that hampered the backward linkage with a view of recommending potential solutions and policy interventions. In addition to the active consultation that helped in garnering helpful qualitative data, a survey will be disseminated to capture the quantitative potential for local sourcing.

Together with the EU Delegation to Ethiopia, the EU business forum and its member companies hosted members of the parliament of the European Union led by Mr. David McAllister. On the occasion, the head of delegation of the EU delegation to Ethiopia, Ambassador Roland Kobia, appreciated the perseverance of the European business community that has remained committed to contributing to the enhancement of the business climate. Board chairman of Eurocham , Mr. Ben Depraetere, thanked the members of the parliament for taking the time to engage with the business community and share opinions that would strengthen the economic partnership between Europe and Ethiopia. He also shared copies of the Business Climate Report 2021 that depicts the perception of European investors in Ethiopia, including summaries of policy interventions that would contribute to the ease of doing business.

The EUBFE ratified several motions and elected new board members on the occasion of its annual general assembly of 2022. The AGM was hosted by Heineken breweries in their new headquarters. The executive director of EUBFE presented annual activity and audit report for FY 2021 as well as plans for 2022.

Two motions were also presented for ratification were- the amendment of membership rules and a motion to change EUBFE’s name to European Chamber in Ethiopia. The executive director and the board chairman explained to the general assembly on the background of the need for such motions. Both also responded to queries from members. After a brief deliberation, the two motions were unanimously endorsed by the general assembly. The third agenda was the election of new board members that would replace the one who served for the previous two years. Representatives of BASF Vegetable Seeds, TotalEnergies, Unilever, Heineken, Neumann Kaffe Gruppe, Krones-Ethiopia, Varnero Construction, Ethiopia-Netherlands Business Association and French Business Club came forward to take up the responsibility at the board of EUBFE. All were unanimously elected to the board.

The last session of the afternoon was a presentation by a member law firm-BonellieErede- on the new investment incentive regulation vis-a-vis the old one. Following Q&A the day was concluded with a cocktail reception. The full content of the legal review that was presented at the thematic networking can be accessed below.

New Investment Incentives Regulation Summary by BonelliErede

On the conclusion of the annual summit of European Chambers in third countires, held under the umbrella of the EBOWWN (European Business Organisations Worldwide Network), Eurocham was elected to the board of management to serve the network for the coming two years representing Africa-based European chambers. The summit which took place in Brussels from June 06-10 2022 via the support of European Commission’s DG GROW (Directorate General for Internal Market, Industry, Entrepreneurship and SMEs), saw European chambers engage with various Directorate Generals of the commission on pertinent issues faced by European companies in third markets. The first two days were dedicated for African EBOs (European Business Organisations), whereby the eleven chambers exchanged best practices and pledged to create a strong African chapter that can engage with external partners in a structured manner.

From 16-18 June, the various EBOs from across the globe met and discussed with DG Trade, DG INTPA, DG , Business Europe, EuroChamber and DG CLIMA. The discussions with the various representatives of the commission informed the ensuing key steps of the network as well as create clarity on the depth of European businesses represented by this network. The last day of the summit was dedicated to AGM of EBOWWN members where the outgoing board presented its activity and financial reports, followiing which new board was elected. Eurocham was elected to lead the African voice given its stature and experience both in-country as well as on regional matters.

As part of its strategic goal of supporting its advocacy engagement with empirical studies, the Eurocham commissioned its maiden business climate report in the middle of 2021. The draft report was presented to its members as well as government stakeholders on two separate sessions.

The validation session with member companies took place on the 21st of October in virtual setting. The consultants made a presentation of summary of the key findings, preceded by welcome and opening remarks from Nahom F. Abraham, the executive director of Eurocham, and Mr. Ben Depraetere, board chairman. Member companies who took part in the session provided key input into the report with suggestions and questions that would help in further enriching the report to reflect their perceptions and views.

The second validation session was held on November 02 2021, in the presence of key government ministries and commissions. Representatives of ministries of Finance, Trade, Revenues, Innovation and technology were in attendance. Moreover, the National Bank and the customs commission were also in attendance. The guest of honor at the session was the deputy commission of the Ethiopian Investment Commission, Mr. Temesgen Tilahun. He appreciated the efforts of Eurocham in it endeavor of working in tandem with the government in continuously improving the business climate. Ms. Sanne Willems, team leader at the EU Delegation in Ethiopia, also underscored the importance of public-private partnership and the EU’s readiness to support the country’s drive towards creating conducive environment of the private sector in general. The comments and suggestions garnered at the session, including those from the first session will be incorporated into the draft report. It is, tentatively planned that the report will be officially launched by early December 2021.

A joint workshop organized in collaboration with the Ministry of Revenues was held on January 29, 2021 at the BestWesten Plus Hotel in Addis Ababa. The workshop focused on Auditing, tax compliance and related issues. It attracted more than 40 finance managers, drawn from member European companies. 

This workshop falls within the memorandum of understanding signed between Eurocham and the ministry to bolster relationship between member companies and the ministry. A small survey was conducted at the end of 2020, that brought some problematic areas in the tax administration that gave rise to the design and the delivery of this workshop.

Hence, the major objectives of the workshop were

• enable participants grasp the basics of risk-based audit
• to equip participants on basic assumptions taken into consideration on frequency of audit
• exchange experiences on audit work between European companies and auditors of MoR and identify areas that require better collaboration

The Ministry of Revenues was represented by five directors;

1. Ato Kebede Lidetu- Director, Risk and Compliance
2. Ato Birhanu Kebede-Director, Tax Audit Management
3. Ato Sisay Gezu-Director Tax Fraud Investigation
4. Wro. Abaynesh Abate- Directress, Tax Debt Management
5. Ato Dereje Meonnen- Director Filing and Return Processing

All the directors made a brief presentation on the major tasks of their respective directorates and the challenges encountered in expediting their responsibilities. 

The discussion that ensued addressed concerns raised by participants in the areas of VAT fund delay, frequency of audit, withholding tax, capacity of auditors and related tax administration concerns.

Follow this link to download the full content of the workshop: https://eubfe.eu/images/Minutes-_Workshop_on_Audit_and_Tax_Compliance_29.01.21.pdf