The Ethiopian Investment Commission (EIC) is the government agency responsible for regulating and facilitating foreign direct investment in Ethiopia. As Ethiopia emerges as one of the fastest growing economies in Africa, the EIC plays a pivotal role in attracting FDI and enabling a conducive business environment. This article provides an overview of the EIC, its functions, services, incentives offered to foreign investors, and the investment climate in Ethiopia.
EIC’s organizational structure and objectives
The Ethiopian Investment Commission was established in 2014 by Proclamation No. 769/2012. It operates autonomously under the supervision of the Investment Board chaired by the Prime Minister. The objectives of EIC are to promote, coordinate and enhance investment activities in Ethiopia. It acts as a one-stop shop for investors by providing information, issuing investment permits and business licenses, facilitating visa and work permits, assisting site selection etc.
Services provided by EIC to facilitate FDI
The EIC provides a wide range of services to foreign investors interested in entering the Ethiopian market:
– Investment information and promotion services – sector profiles, market studies, partnership linkage with local firms
– Issuing investment licenses, business registration, construction permits, expatriate work visas
– Post-approval services – assisting land acquisition, utilities, logistics
– Policy advocacy and facilitating bureaucratic processes
– Aftercare services to address investor grievances and issues
Investment incentives offered by EIC
The EIC administers various incentives and tax exemptions to attract FDI and spur industrial development. Key incentives include:
– Corporate tax holiday up to 10 years depending on sector and location
– Duty-free, quota-free access for export-oriented investments
– Remittance of profits and dividends permitted freely
– Capital goods imported duty-free
– Access to industrial zones with plug-and-play infrastructure
Ethiopia’s investment climate and FDI trends
Under EIC’s leadership, Ethiopia has become one of the top FDI destinations in Africa. It offers a huge domestic market of 110+ million consumers, rapidly growing economy, low labor costs and pro-investment policies. Major FDI sources include China, Turkey, India, Sudan, Saudi Arabia etc. Key sectors receiving FDI are manufacturing, agriculture, construction, hospitality, energy and mining.
The Ethiopian Investment Commission serves as the gateway for foreign investors by facilitating investment procedures, offering incentives, and promoting the vast opportunities in Ethiopia across sectors. It plays a key role in attracting FDI, supporting industrialization and overall economic development.