Most frequently asked questions and answers about investment in Ethiopia

Yes, For wholly foreign owned companies, the minimum capital requirement is 200,000 USD (USD 100.000 if the investment is in architectural or engineering works or related technical consultancy services, technical testing and analysis or in publishing)

For joint venture companies, where a foreign investor collaborates with an Ethiopian Citizen to open the business, the minimum capital requirement is 150,000 USD (USD 50.000 if it is architectural or engineering works or related technical consultancy services, technical testing and analysis or in publishing)

With the exception of a few areas which are reserved for the government and domestic investors most areas of investment are open to foreign investors to engage in either on their own or jointly with domestic partners. A detailed list of investment areas restricted to foreign investors can be found here.

Proclamation 270/2002 confers the right to be considered as domestic investors, to all holders of the Ethiopian Origin Identification card. Thus holders of this ID will be considered for all intents and purposes as Ethiopian nationals in their Investment endeavours.

No, All documents whose sources are outside of Ethiopia shall be

– Authenticated by the concerned notary office and Ethiopian Embassy in the foreign country; and

– Authenticated and registered by the Ministry of Foreign Affairs of Ethiopia

A foreign investor can recruit expatriate employees on top management positions. Additionally a foreign investor is allowed to employ qualified expatriate experts for the operation of his business, but it is generally expected that, such expatriate personnel should be replaced within a limited period of time by Ethiopians.

Government Authorities require you to have a special type of Business Visa known as Investment Visa(IV) to register your request. Foreigners who enter the country through other types of visas like Tourist visas are in most cases not able to be register their investments and changing your visa to another type is near impossible without leaving the country and returning back, We advice our clients to make sure they apply for the right type of visas whenever they come to Ethiopia. Our office can assist you in choosing and applying for the right types of visas for your specific purposes.

The materials contained on this website are intended for informational purposes only and are not intended to be, nor should they be interpreted as, legal advice or legal opinion. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. While we have attempted to maintain information on this website as accurately as possible, this information may contain errors or omissions, for which disclaims any liability. This website contains information on legal issues and is not a substitute for legal advice from a qualified attorney licensed in the appropriate jurisdiction.

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