AGM and thematic networking held
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
Eurocham was elected to the board of European Business Organization Worldwide Network
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.
Eurocham Business Climate Study Report 2021 Validation Sessions Held
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.
Eurocham took part in briefing on investment safety organized by EIC and Ministry of Peace
Eurocham took part in security briefing in connection with the national elections along side its member bilateral associations-the CAFE and ENLBA, as well as other prominent FDI associations. The briefing was led by Mrs. Frealem Shibabaw, state minister of law enforcement at MoF, Commissioner of EIC Ms Lelise Neme and Deputy Commissioner of EIC Temesgen Tilahun.
MoP briefed investors on the general preparation on security pre and post election. Following this session, dedicated emergency contact numbers were disseminated via Eurocham to all members to report any incidents they deem unsafe.
Eurocham Held Meeting with Ministry of Finance
Eurocham delegation held meeting with the Minister of Finance- HE Ahmed Shide. Led by the head of cooperation at the EU Delegation Mr. Erik Habers, Eurocham representatives, composed of board chair, executive director and presidents of bilateral member associations presented a summary of the major achievements of Eurocham in its advocacy engagement with a number of ministires. Moreover, the Eurocham delegation outlined keen interest to establish a sustained and structured platform with the Ministry Finance, where the concerns and challenges of member companies can be addressed. Stressing Eurocham mission of improving the doing business climate in the country, it is currenlty engaged in producing empirical studies that aid policy interventions to this end.
HE Mr. Ahmed Shide on his part appreciated the initiative of Eurocham and outlined key econnomic reforms that led to the opening of the country’s economy to FDI. He pledged to assist in resolving any bottlenecks member companies face. The meeting concluded by establishing a team from both sides that would overlook the formalisation of relationship between MoF and EUBFE that would get regular consultation gain traction
Joint Workshop between Eurocham and Ministry of Revenues Held
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;
- Ato Kebede Lidetu- Director, Risk and Compliance
- Ato Birhanu Kebede-Director, Tax Audit Management
- Ato Sisay Gezu-Director Tax Fraud Investigation
- Wro. Abaynesh Abate- Directress, Tax Debt Management
- 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
Eurocham Addressed Participants during Investment Engagement Summit Organized by EIC
The new commissioner of the Ethiopian Investment Commission (EIC) held consultative meeting with the board of the Eurocham and the EU Delegation
Hosted by HE Ambassador Johan Borgstam, head of the EU delegation to Ethiopia, the meeting was the first since HE Ms. Lelise Neme took helms at the commission
Following round of introductions and congratulatory messages on the appointment of HE Lelise from HE Ambassador Borgstam and Mr. Depraetere-Chair of Eurocham , representatives of the EU delegation and the Eurocham made power point presentations on the previous and current engagements of their respective institutions with the EIC.
On the discussion that ensued, Eurocham members indicated that despite the robust relationship established with the EIC and the tangible results registered, in particular via the public-private-dialogue (PPD) platform, a number of concerns of European FDI community remain unresolved. In addition to a more recent concern that is investment security, work permit renewal, logistical bottlenecks, foreign exchange shortage and uneven application of regulations and laws were pointed out. In response, HE Lelise pointed out that multi-regional forum, led by regional presidents and investment commissioners, has been established to oversee any concerns that might arise by investors and EIC will be happy to invite Eurocham to attend an upcoming meeting. Moreover, Commissioner Lelise promised to dedicate personnel and time to look into the challenges raised by Eurocham . In conclusion, Eurocham invited HE to an introductory meeting with members of Eurocham .
Eurocham Held Consultative E-Meeting with the new EIC Commissioner
The new commissioner of the Ethiopian Investment Commission (EIC) held consultative meeting with the board of the Eurocham and the EU Delegation
Hosted by HE Ambassador Johan Borgstam, head of the EU delegation to Ethiopia, the meeting was the first since HE Ms. Lelise Neme took helms at the commission
Following round of introductions and congratulatory messages on the appointment of HE Lelise from HE Ambassador Borgstam and Mr. Depraetere-Chair of Eurocham , representatives of the EU delegation and the Eurocham made power point presentations on the previous and current engagements of their respective institutions with the EIC.
On the discussion that ensued, Eurocham members indicated that despite the robust relationship established with the EIC and the tangible results registered, in particular via the public-private-dialogue (PPD) platform, a number of concerns of European FDI community remain unresolved. In addition to a more recent concern that is investment security, work permit renewal, logistical bottlenecks, foreign exchange shortage and uneven application of regulations and laws were pointed out. In response, HE Lelise pointed out that multi-regional forum, led by regional presidents and investment commissioners, has been established to oversee any concerns that might arise by investors and EIC will be happy to invite Eurocham to attend an upcoming meeting. Moreover, Commissioner Lelise promised to dedicate personnel and time to look into the challenges raised by Eurocham . In conclusion, Eurocham invited HE to an introductory meeting with members of Eurocham .
Eurocham Released Early COVID-19 Early Impact Assessment
Eurocham conducted a survey to assess the early impacts of the COVID-19 pandemic on its member companies in Ethiopia. Key findings of the survey indicate that eventhough the on set of the virus was late in Ethiopia, witht the first case reported in mid-march, its impact was sharp and significant to many. Moreover, data indicated that at this early level estimation, many companies expect to recover from its impact in around a year’s time. Concerns over safety and security were also flagged. To read the full report please follow the link below.
Read Full Early Impact Report
Eurocham held its first thematic networking event of 2020 on the sidelines of its general assembly
Eurocham general assembly held on February 27, 2020 saw approval of external audit report of FY 2019 as well as review and approval of annual plan for 2020. Major strategic focus for the year 2020 include expansion of membership base, enhance engagement and advocacy work as well as add new services and ventures. The EU Delegation in Ethiopia has pledged some 300 thousand euros worth of technical assistance towards improving Eurocham and this was officially announced at the general assembly. This is believed to be an important contribution towards realizing the key strategic goals set by the board of management of Eurocham .
Following the general assembly, a thematic networking event that focused on the implementation of the new customs legislation took place. It was hosted in partnership with Eurocham member association, the Ethiopian Netherlands Business Association (ENLBA). A panel composed of distinguished guests that include Mr. Gaim Yibrah (Director of the Strategic Partnership Directorate- Customs Commission), Mrs. Elisabeth Getahun (President of freight Forwarders and Shipping Association) Mr. Getachew Zewdu (Representative of Clearing Agents), Mr. Hayo Hamster (President of ENLBA) as well as Mr. Ben Depraetere (Chair of Eurocham ) led the discussion on the application of the new customs legislation 1160/19 and the challenges associated with it. Particular concern was the reduction of maximum allowable deadline of goods in customs warehouses to 15 days in dry ports and 10 at airport and the fine of 20% of customs value sanction who fail to remove their imports within these day limits. Mr. Gaim responded to questions and concerns on behalf of Customs Commission and took away some suggestions for further scrutiny.