Meeting Held with Ministry of Revenue on Issues Distilled from Eurocham Members
The EU-Ethiopia business forum took place in Brussels, attracting some 200 high-level investors from EU, top officials from Ethiopian government as well as the EU Commission. Opening remark as well as presentations were made by Mr. Stefano Manservisi, Director-General for International Cooperation and Development (DEVCO) of the European Commission , HE Dr. Markos Tekle, State Minister of Foreign Affairs, Mr. Abebe Abebayehu, Commissioner of Ethiopian Investment Commission as well as Ms. Eleni Kyrou, Head of the European Investment Bank representative to Ethiopia and the African Union. The goal of the forum was to provide important and practical information to potential investors who are interested in doing business in Ethiopia.As part of the forum, the EU Business Forum (Eurocham ) through its board chairman Mr. Ben Depraetere, moderated a panel discussion entitled “Doing Business in Ethiopia”. The panel was composed of three notable guests; Mr. Thomas Schaefer, Chairman and Managing Director of Volkswagen Group South Africa, Mr. Dougie Brew, Corporate Affairs and Sustainable Business Director Africa of Unilever and Mr. Melaku Ezezew, President of the Ethiopian Chamber of Commerce and Sector Associations.
Breakout sessions on agro-processing, textile and apparel, ICT as well as Pharma sector took place in the afternoon following the opening remarks and panel discussion, where a number of EU companies shared their experiences of investing in these sectors in Ethiopia.
The frorum also featured a company visit. A delegation that included the EIC commissioner, Eurocham executive director, guests of the forum, representative from the EU commission as well as diplomats from the Ethiopian embassy in Brussels attended a half day visit to Desmet Engineers & Contractors (DSEC) based in Louvain-la-Neuve, Belgium.
At the end of the forum, closing remark was delivered by Mr. Jyrki Katainen, Vice-President of the European Commission and responsible for Jobs, Growth, Investment and Competitiveness, in which he pointed out to policy conviction of the commission in promoting investmentin third countries via various instruments including the external investment plan.
The last day of the EU-Ethiopia Business Forum was dedicated to a morning-long networking and B2B session, where Eurocham was able to confer with a number of EU companies who showed interest to invest in Ethiopia.
The EU-Ethiopia Business Forum took place from 13-15 May in Brussels
The EU-Ethiopia business forum took place in Brussels, attracting some 200 high-level investors from EU, top officials from Ethiopian government as well as the EU Commission. Opening remark as well as presentations were made by Mr. Stefano Manservisi, Director-General for International Cooperation and Development (DEVCO) of the European Commission , HE Dr. Markos Tekle, State Minister of Foreign Affairs, Mr. Abebe Abebayehu, Commissioner of Ethiopian Investment Commission as well as Ms. Eleni Kyrou, Head of the European Investment Bank representative to Ethiopia and the African Union. The goal of the forum was to provide important and practical information to potential investors who are interested in doing business in Ethiopia.As part of the forum, the EU Business Forum (EUBFE) through its board chairman Mr. Ben Depraetere, moderated a panel discussion entitled “Doing Business in Ethiopia”. The panel was composed of three notable guests; Mr. Thomas Schaefer, Chairman and Managing Director of Volkswagen Group South Africa, Mr. Dougie Brew, Corporate Affairs and Sustainable Business Director Africa of Unilever and Mr. Melaku Ezezew, President of the Ethiopian Chamber of Commerce and Sector Associations.
Breakout sessions on agro-processing, textile and apparel, ICT as well as Pharma sector took place in the afternoon following the opening remarks and panel discussion, where a number of EU companies shared their experiences of investing in these sectors in Ethiopia.
The frorum also featured a company visit. A delegation that included the EIC commissioner, EUBFE executive director, guests of the forum, representative from the EU commission as well as diplomats from the Ethiopian embassy in Brussels attended a half day visit to Desmet Engineers & Contractors (DSEC) based in Louvain-la-Neuve, Belgium.
At the end of the forum, closing remark was delivered by Mr. Jyrki Katainen, Vice-President of the European Commission and responsible for Jobs, Growth, Investment and Competitiveness, in which he pointed out to policy conviction of the commission in promoting investmentin third countries via various instruments including the external investment plan.
The last day of the EU-Ethiopia Business Forum was dedicated to a morning-long networking and B2B session, where EUBFE was able to confer with a number of EU companies who showed interest to invest in Ethiopia.
The Ethiopian Investment Commission Launched online portal to service investment permits and renewals
The online portal intends to provide services including: request for new investment permit certificate, request for commercial registration certificate, application for expansion of existing investment permit or existing business license, application to renew investment permit and replace the investment permit certificate.
In addition, application for tax holiday incentive support of eligible projects, application for duty-free incentive support qualified projects were among the other services mentioned.
For more information please visit the web portal at https://www.invest-ethiopia.com/
EU Business Forum Provided Input on Consultation of the Draft Investment Law
On Saturday, July 6, 2019, following an invitation from the Ethiopian Investment Commission (EIC), a consultative workshop was held on the draf of the Ethiopian Investment law. Some 200 companies, embassies and other development partners were invited to this meeting.
Representatives of the task force of 17 professionals set up to oversee the drafting of the law presented their findings followed by a question and answer session chaired by HE Abebe Abebayehu, commissioner of the EIC.
The presentation started with an outline of the method the task force applied in its review of the investment code.
Following this the working group presented some seven key policy implications for “Investment Policy White Paper”. These are rethinking of long held assumptions on investments; revising goals for investment promotion in line with changing context; holistic approach to investment (both attraction and retention thereof); consider both foreign direct investment and domestic investment as one policy area; comparing a sector-specific approach to the general promotion of (foreign) investments; incentive schemes for investments and investment administration. This white paper has been prepared based on an analysis of current laws, a comparison with relevant other markets and based on various consultations. The white paper serves as the basis for the committee’s final advice.
The subsequent presentation included the history of investment legislation and the international comparison about openness vs closedness of the market. Ethiopia currently has investment legislation in which some sectors are open to foreign investors, which often causes confusion regarding definition and definition. The committee’s recommendation was that Ethiopia would benefit restrictive listing approach, where negative list would be outlined. Any sector that is not enumerated in the negative list is considered open for FDI, clarifying any potential confusion. In this connection, the committee recommended three components to sector specific listing; .
1. areas of investment for Joint Ventures with the government (such as weapons manufacturing, the entire electricity sector, postal services);
2. areas of investment reserved for domestic investors (such as banking and insurance, retail, import trade (excl. LPG and bitumen), wholesale, export trade (of raw coffee, chat oil seeds), bakeries…..,) and
3. areas of investment reserved for joint venture with domestic investors with equity cap (such as forwarding and shipping agency services, advertising, market research, audio-visual services, domestic transport services, accounting, mass media service, land public transport, making indigenous medicine..).
All sectors not mentioned in the list, which would become public shorty according to the presenters, will be fully open to foreign investors.
The third presentation dealt with the proposals on the legal and organizational duties of the Ethiopian Investment Commission. Several recommendations were made, some of which are; coordination between the Ethiopian Aviation Authority, the Ethiopian Energy Authority and the EIC in developing sector specific studies with a view to attracting foreign investors; setting clear and minimal grounds for revoking or suspending the investment licenses; expand one-stop-shop (OSS) service provided by the EIC to include post-investment full scope service as well as the creation of comprehensive grievance management system.
Moreover, a nine member Ethiopian Investment Board is also recommended to be established under the leadership of the PM and representatives of all relevant Ministries and one none-voting seat reserved for the private sector.
A question and answer session chaired by the Commissioner of the EIC followed, in which several questions and comments were raised by participants. The commissioner acknowledged the suggestions as important input into the draft law. The draft law will be publicly available once such comments have been incorporated, he also added.
Board members of EUBFE in collaboration with AmCham counterparts lodged a brief reflection on the consultative session to the management of the EIC. The brief recommendation is believed to be enriched once the draft investment law becomes public.
EUBFE Signed MoU with the Ministry of Revenue on the Occasion of its General Assembly
The Ministry of Revenue, represented by State Minister Mr. Mohammed Abdi, signed a Memorandum of Understanding (MoU) with EU Business Forum and its member national business associations on May 2, 2019. The MoU is aimed at forging constructive dialogue between the Ministry of Revenue (MoR), as well as the Customs Commission (which is under the MoR), and members of EUBFE. In his key note address, H.E. Mr. Mohammed welcomed the initiative to construct meaningful dialogue with EU businesses and encouraged those involved to work towards its fruition.
In this connection, a joint steering committee has been established that would compile, review and address challenges of members of EUBFE in connection with tax and customs. The committee will be led by the Head of the Office of the Minister of Revenue and will be composed of directors of various directorates of MoR and board members of EUBFE. The steering committee will commence its task within two weeks’ time of the signing of MoU.
The General Assembly meeting that preceded the signing of MoU approved annual report for 2018, audit report of external auditor, plan for 2019 and extended the appointment of the existing board members by a further two years. The event was attended by various guests from government as well as EU diplomatic community.
EUBFE took part in the annual summit of EU Chambers in Brussels
As a member of global alliance of EU Chambers called European Business Organizations Worldwide Network (EBOWWN), the EUBFE attended a general assembly meeting at the EU Commission from June 17-19, 2019.
In his opening remark, Mr. Eric Mamer, Director of DG for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) of the European Commission highlighted the key contributions European Chambers make to expanding EU companies’ reach to third markets. Moreover, the US-China trade war has also brought into about a potential paradigm shift on global trade focus on developing EU industrial policy that would support the internationalization of EU companies. Free Trade Agreements with various EU partners is also gaining traction as a result.
The three-day intensive meeting saw election of new board members for EBOWWN, bilateral meetings with DG for International Cooperation and Development (DG DEVCO), DG for Energy (DG ENER), European External Action Service (EEAS) as well as Business Europe and Eurochambers. The discussion focused on EU’s position on internalization of EU businesses, funding plans on the new MFF in this connection as well as possibilities for cooperation on sustainable energy investments with Africa. Two visits at the EU parliament also saw delegates from EBOWWN discussing with representatives of parliamentarians and commissioners on the state of affairs of the ever-expanding network of EU chambers and how to cooperate further for maximum impact for companies who’ve invested outside the EU.
EUBFE took part in the annual summit of EU Chambers in Brussels #2
As a member of global alliance of EU Chambers called European Business Organizations Worldwide Network (EBOWWN), the EUBFE attended a general assembly meeting at the EU Commission from June 17-19, 2019.
In his opening remark, Mr. Eric Mamer, Director of DG for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) of the European Commission highlighted the key contributions European Chambers make to expanding EU companies’ reach to third markets. Moreover, the US-China trade war has also brought into about a potential paradigm shift on global trade focus on developing EU industrial policy that would support the internationalization of EU companies. Free Trade Agreements with various EU partners is also gaining traction as a result.
The three-day intensive meeting saw election of new board members for EBOWWN, bilateral meetings with DG for International Cooperation and Development (DG DEVCO), DG for Energy (DG ENER), European External Action Service (EEAS) as well as Business Europe and Eurochambers. The discussion focused on EU’s position on internalization of EU businesses, funding plans on the new MFF in this connection as well as possibilities for cooperation on sustainable energy investments with Africa. Two visits at the EU parliament also saw delegates from EBOWWN discussing with representatives of parliamentarians and commissioners on the state of affairs of the ever-expanding network of EU chambers and how to cooperate further for maximum impact for companies who’ve invested outside the EU.
The EU-Ethiopia Business Forum to take place from 13-15 May in Brussels
The EU-Ethiopia Business Forum 2019 will take place in Brussels on Tuesday, May 14th and Wednesday, May 15th2019. The objective of this Forum is to promote and stimulate European private sector trade and investment in Ethiopia through the organization of a Business Forum aimed at advertising the potential opportunities in the country and at offering a networking platform for European and Ethiopian companies as well as Ethiopian government representatives.
During this high-level business Forum participants will gain practical information about doing business in Ethiopia and be able to interact with top-officials from the Ethiopian Investment Commission and with other high-ranking officials from Ethiopia. Mr. Jyrki Katainen, vice-president of the European Commission and Commissioner for Jobs, Growth, Investment and Competitiveness, will also take part in the event.
Please follow the link below to participate.
https://en.xing-events.com/eu_ethiopia_businessforum.html?page=1699742
EUBFE Conferred with Investment Commissioner on bolstering dialogue with the government #2
Led by Mr. Markus Soder, Minister-President of the German Free State of Bavaria, a high-level delegation visited Ethiopia, accompanied by representatives from sixty companies. As part of the visit, which also saw leaders of the delegation received by President Sahle-Work Zewde, a breakfast meeting was held with EUBFE member companies on April 17, 2019. In the opening of the meeting, representatives of EUBFE as well as the trade mission, highlighted the importance of engaging with EU businesses that are already in operation in the Ethiopian business environment to form comprehensive understanding. The executive director of EUBFE, Mr. Nahom Abraham, encouraged delegates of the Bavaria state to join the EUBFE to continue to access uptodate information on business in Ethiopia. Following a round of introduction, the breakfast meeting proceeded with informal networking. The meeting was co-organized in colse collaboration with the delegation of German Industry and Commerce for Eastern Africa (AHK-Kenya), which is also a member of the EUBFE.
EUBFE Conferred with Investment Commissioner on bolstering dialogue with the government
EU Business Forum in Ethiopia together with the EU Delegation in Ethiopia held discussion on March 26, 2019 with the Ethiopian Investment Commission (EIC) on improving the existing platform of dialogue with EU businesses in Ethiopia. EUBFE members were honored with the presence of HE Abebe Abebayehu, Commissioner of Ethiopian Investment Commission and HE Ambassador Johan Borgstam, Head of the EU Delegation to Ethiopia.
In the discussion that ensued, EU business leaders in attendance expressed their appreciation for the commitment shown by the EIC in facilitating dialogue with government agencies in previous instance through the Public-Private-Dialogue (PPD) platform. They further expressed their desire to continue in this vein and contribute in the reformulation of investment code as well as the second version of PPD. The guest of honor at the breakfast meeting, HE Abebe Abebayehu, highlighted previous successes close collaboration between businesses have brought and vowed to improve on disruptions on the regularity of such engagements. The delayed PPD-2, he also indicated, will go through at the earliest opportunity. HE Johan Borgstam, in his concluding remark indicated that it is important for businesses to closely work with regulators while also highlighting EU Delegation’s contribution to improving the business environment in Ethiopia, including the automated customs system currently operational.
The meeting cocluded with a joint committment to continue to build on the on-going constructive dialogue.