The National Bank of Ethiopia has introduced Directive No. SBB/92/2024, which serves to regulate the investment activities of banks within the country. This directive is designed to effectively manage risks, encourage diversification of business activities, and establish clear investment limits. Key definitions are provided for terms such as “Bank,” “Banking Business,” “Capital Market Service Provider,” and...Read More

A new directive has been issued by the Ministry of Finance, giving a new direction on the treatment of items exempt from Value Added Tax (“VAT”). With the intent to relieve certain economic stress observed in society, the Ministry of Finance (“MoF”) has revisited the exemptions of items from VAT. The Directive issued by the...Read More

The Ethiopian Investment Board has issued a new Directive outlining the conditions under which foreign investors can engage in specific trade activities previously reserved for domestic businesses. This transparency aims to attract foreign investment while ensuring a level playing field for Ethiopian enterprises. The Directive is titled “Ethiopian Investment Board Directive to Regulate Foreign Investors’...Read More

The Federal Democratic Republic of Ethiopia (FDRE) Ministry of Agriculture is currently in the final stages of releasing a directive that aims to regulate contractual arrangements between producers and contractors. This directive is aimed at executing the Agricultural Production Contracts Proclamation No. 1289/2023. Once approved, the directive will govern the tripartite relationship involving agricultural producers,...Read More

The Federal Authority for Civil Societies Organizations (ACSO) in Ethiopia has issued Directive No. 986/2024, outlining key procedures for the registration and administration of foreign civil society organizations operating within the country. This marks a significant step towards clarifying existing ambiguities and establishing a more cooperative environment for foreign CSOs to contribute to Ethiopia’s development....Read More

Ethiopian businesses and investors eagerly awaited the news today, as the Ethiopian Capital Market Authority (ECMA) announced the official registration of the “Capital Market Service Providers Licensing and Supervision Directive No. 980/2024.” This landmark directive serves as the foundation for a robust legal framework, governing everything from licensable activities within the capital market to the...Read More

Who does the Directive apply to?The Directive applies to traders engaged in trading graded and value-added export coffee domestically in foreign currency. What is value-added coffee?Value-added coffee is a raw coffee that has been roasted, roasted, and grind or converted into a different type of coffee product according to approved technical procedures. Where can graded...Read More

The National Bank of Ethiopia (NBE) has issued a directive to attract foreign direct investment by allowing eligible projects to open offshore accounts and guaranteeing currency convertibility. The eligible projects to open an offshore account are: Public-private partnership (PPP) projects in the power generation and infrastructure sectors with large capital investment needs. Large mining projects...Read More

Authorities are collecting a 3% social welfare levy on imported goods.   It was back in August 2022 that a new social welfare levy was introduced by the government through the Social Welfare Levy on Imported Goods Regulation No. 519/2022. With a 3% rate, the social welfare levy applies to all goods imported into Ethiopia...Read More

Legal Update- Civil Society Organizations’ Income-Generating Activity Directive No. 937/2022 PDF Version Available Here Civil Society Organizations (CSOs) undertake their activities primarily from the donations they receive from domestic/foreign organizations and individuals. But donation is not reliable and donated funds may not always be sufficient to carry out their objectives. Thus, it is crucial to...Read More