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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.

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.

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

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.

Panel Discussion on middle-to-short-term economic was held on December 6, 2018. The panel discussion was co-organized in collaboration with the EU Delegation in Ethiopia. H.E. Johan Borgstam, head of EU Delegation in Ethiopia made an opening remark at the opening of the event. It featured three prominent speakers; Mr. Tamrat G. Giorgis (managing editor of Fortune Business Newspaper, one of the largest in circulation), Mr. Helaway Tadesse (formerly with IMF and currently manager of Cepheus Capital managing a capital close to 100 mln USD) and Mr. Henock Assefa (Manager of Precise Consult-one of the largest consulting firms in Ethiopia).

The panel deliberated on a theme entitled “charting uncertain economic future of Ethiopia; challenges and prospects”. The reflection of the panelists was rooted in the government’s new plan of action called “new horizon of hope”. Panelists shared their reflections on the latest economic reforms of the government on the private sector, renewed dialogue and collaboration with international financial institutions such as the World Bank and IMF, as well as other relevant concerns as raised by participants during Q&A. The major takeaway from the discussion was that political instability, poor/inefficient bureaucratic system as well as persistent economic structural failure remain a challenge despite the move for more privatization and allowing for partial opening of some sector for FDI (eg. logistics) resulting in temporary relief of chronic forex shortage, owing to financial injections from global financial institutions, particularly the World Bank.

EUBFE and EUD welcomed delegates of the Eastern Africa Association (EAA) at a networking event held on October 25, 2018 at the premises of EUBFE member company MOSS-ICT, the pioneer of mobile money service technology, M-Birr, in Ethiopia . The event was attended by more than 40 guests from government, diplomatic and businesses communities. HE Ambassador Johan Borgstam, head of EU Delegation in Ethiopia, opened the thematic event. After welcoming delegates of EAA, invited diplomats and members of EUBFE, he invited EUBFE Chairman Mr. Ben Depraetere to make an opening statement. Mr. Ben, in his address, highlighted the major activities and achievements of EUBFE and invited delegates to engage with members and management of EUBFE to learn more. Mr. John Small, CEO of EAA took up the stage subsequently. In his brief address he thanked the EU Delegation as well as the EUBFE for hosting EAA’s delegates. He reiterated that over the course of their stay, they have learnt a great deal on investment opportunities in Ethiopia. Events such as this networking event hosted by EUBFE and EUD, will further help in cementing the delegates understanding of the Ethiopian business climate from EU businesses already operating in Ethiopia. Following the opening remarks the thematic networking continued over cocktail reception.