IPELA Investment Services
IPELA tailor your investment dreams to the peculiar features of Ethiopian investment law. We advise on Ethiopian FDI rules and regulations in range of investment sectors including manufacturing, mining, construction, agriculture, and tourism and hospitality. We advise on investment incentive packages and Bilateral Investment Treaties (BITs) to which Ethiopia is signatory. IPELA also represent investors to process investment license and deliver other related services.
Ethiopian investment law welcomes both local and foreign investors in a number of investment opportunities allotted in different investment areas. Foreign investors have an option of working in a joint venture arrangement with domestic investors.
Investment license is a prerequisite to engage in investment activity. Investment licensing procedures and requirements differ depending on the investment sector, the mode and form of the investment. Foreign investors are supposed to meet the minimum capital requirement set under the investment law. Any foreign investor is required to allocate a minimum of 200,000 USD for a single investment project if the investment is not in the area of architectural or engineering works or related technical consultancy services, technical testing and analysis or in publishing works. However the minimum capital requirement will be reduced to 150,000 USD if the foreign investor is investing jointly with domestic investor.
Foreign investors who are interested to engage in the area of architectural or engineering works or related technical consultancy services, technical testing and analysis or in publishing works are required to allocate a minimum capital of 100,000 USD if the investment is made wholly on his own and 50,000 USD if the investment is made in joint venture with domestic investor.
The Ethiopian investment law demarcates investment areas which are open to foreign investors, reserved to domestic investors, government and areas only open for private investors in joint venture arrangement with government.
- Postal services except courier services;
- Transmission and supply of electrical energy through the Integrated National Grid System; and
- Passenger air transport services using aircraft with a capacity of more than 50 passengers.
- Production of weapons and ammunition;
- Telecommunication services.
- Export of raw coffee chat, oil seeds, pulses, precious minerals, natural forestry products, hides and skins bought from the market, and live sheep, goats, camel, equines and cattle not raised by the investor;
- Import trade (excluding LPG and bitumen); and
- Wholesale trade (excluding supply of petroleum and its by-products as well as wholesale trade by foreign investors of their locally produced products).
- Manufacturing of ice cream and cakes;
- Finishing of fabrics, yarn, warp and weft, apparel and other textile products by bleaching, dyeing, shrinking, sanforizing, mercerizing or dressing;
- Tanning of hides and skins below finished level;
- Manufacture of cement;
- Manufacture of clay and cement products;
- Tour operation below grade 1;
- Construction, water wheel and mining exploration drilling companies below grade 1;
- Kindergarten, elementary and junior secondary education by constructing own building;
- Diagnostic center service by constructing own building;
- Clinical service by constructing own building;
- Capital goods leasing (this doesn’t include leasing of motor vehicles);
- Printing industries;
- Manufacturing of plastic shopping bags; and
- Manufacturing of corrugated metal sheet for roofing and nails.
- Banking, insurance and micro-credit and saving services;
- Broadcasting service;
- Mass media services;
- Attorney and legal consultancy service;
- Preparation of indigenous traditional medicines;
- Advertisement, promotion and translation works; and
- Air transport services using aircrafts with a siting capacity up to 50 passengers.