Proclamation No. 116/1998 Investment (Amendment) Proclamation | GOALGOOLE | Because you need Information for your goals !
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Proclamation No. 116/1998 Investment (Amendment) Proclamation

PROCLAMATION NO. 116/1998

A PROCLAMATION TO AMEND
THE INVESTMENT PROCLAMATION

WHEREAS, it has become necessary to amend the Investment Proclamation;
NOW, THEREFORE,  in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows;

1. Short Title
This Proclamation may be cited as the “Investment (Amendment) Proclamation No. 116/1998.”

2. Amendment
The Investment Proclamation No. 37/1996 is hereby amended as follows:
1. Sub-Article(5) of Article 2 of the Proclamation is hereby deleted and replaced by the following new sub-Article(5):
“5. ‘Domestic Investor’ means an Ethiopian or a foreign national permanently residing in Ethiopia having made an investment and includes the Government, public enterprises as well as a foreign national, Ethiopian by birth, and desiring to be considered as a domestic investor,”
2.  Article 5 of the Proclamation is hereby delivered and replaced by the following new Article 5;
“5. Areas of Investment Reserved for the
1. The following investment areas are exclusively reserved for the Government;
a. Excluding generation of electricity from hydro-power; generation and supply of electricity above an installed capacity of  25 megawatts as well as transmission and supply of electrical energy through the Integrated National Grid System;
b. Air transport services using aircraft with a seating capacity of more than 20 passengers or with a cargo capacity of more than 2,700 kg.;
c. Rail transport services;
d. Postal servic3es with the exception of courier services.
2. Investors shall be allowed to invest in the following areas only in partnership with the Government;
a. Defence industries;
b. Telecommunication services.’
3. Article 6 of the Proclamation is hereby deleted and replaced by the following new Article 6;
“6. Areas of Investment Reserved for Domestic Investors
1. The following investment areas are exclusively reserved for Ethiopian Nationals;
a. Banking and insurance business;
b. Excluding generation of electricity from hydro-power; generation and supply of electrical energy up to 25 megawatts;
c. Air transport services using aircraft with a seating capacity of up to 20 passengers or with a cargo capacity of up to 2,700 kg.;
d. Forwarding and shipping agency services; provided, however, where the government [permits otherwise, same shall be open for foreign investors as well.
2. The investment areas exclusively reserved for domestic investors shall be determined by Regulations issued by the Council of Ministers.
3.  Nothing in this Article shall be construed to exclude domestic investors from investing in other areas of investment.”
4. Sub-Article(4) of Article 11 of the Proclamation is hereby deleted and replaced by the following new sub-Article(4)
“4. The minimum capital required of a foreign investor investing in areas of engineering, architectural or other technical consultancy services; in accounting and audit services; in project studies or business and management consultancy
5.  The following new sub-Article(10) is added under Article 28 of the Proclamation;
“10. Whenever it deems it necessary, it shall decide on new or additional incentives, other than what is provide under the Investment Incentives Regulations and submit same to the Council of Ministers for approval.”
6.   The following new sub-Article(3) is added under Article 37 of the Proclamation;
“3. Notwithstanding the provisions of sub-Articles(1) and (2) of this Article a foreign investor upon obtaining the prior consent of the Authority shall, without any restriction, have the right to recruit expatriate employees on top management positions of an enterprise of which he is the sole or major owner.”
7.  The following new Article 39 is added after Article 38 of the Proclamation;
“39. Ownership of Immovable Property Notwithstanding the provisions of Articles 390-393 of the Civil Code, investors of foreign nationality can own immovable property requisite for their investment activities.”
8.   Articles 39, 40, 41 and 42 of the Proclamation are re-numbered as Article 40, 41 42 and 43 respectively.
9. The Schedule on investment areas reserved for domestic investors, attached to the Proclamation, is hereby deleted.

3. Effective Date
This Proclamation shall come into force as of the 11th day of June, 1998.

Done at Addis Ababa, this 11th day of June, 1998.
NEGASO GIDADA (DR.)
PRESIDENT OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA