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

Influential shareholders in the Ethiopian banking sector are individuals, companies, or institutions that hold directly or indirectly two percent or more of the total subscribed capital of a bank. They play a key role in the growth and development of the banking sector by providing capital, expertise, and strategic guidance. The National Bank of Ethiopia (NBE) regulates...Read More

Capital gains refer to the profits earned from the sale of business assets such as stocks, bonds, or immovable properties. Capital gains taxation is the process of taxing these gains at different rates depending on the type of asset. “Business asset” is defined to mean any asset held or used in the conduct of a...Read More

A security right in a movable property is established through a security agreement. The security agreement must be in writing and signed by the grantor and the secured creditor. The security agreement must also identify the secured obligation and provide a reasonable description of the collateral. There are three ways for a security right in...Read More

Understanding the Legal Requirements for Electronic Signatures in Ethiopia PDF Version Available Here In December 2018, Ethiopia adopted the Electronic Signature Proclamation No.1072/2018 in order to create a conducive legal framework to promote electronic commerce and electronic government service. The Proclamation provides legal recognition to electronic signatures to promote trust in electronic communication and to...Read More

Legal Update on the Revised Property Tax Levied by the Addis Ababa City Administration PDF Version Available Here The land tax, sometimes referred to as the property tax, is regarded by the government as one of the most significant sources of revenue for the government and is used to meet the increasing demand for services...Read More

The Distinction between a Commercial Agent and a Commission Agent in Ethiopia Both commercial and commission agents are traders that need commercial registration and licensing to operate in Ethiopia according to the Commercial Code, the Commercial Registration and Business Licensing Proclamation No. 980/2016, and the Directive to Provide for Commercial Registration, Licensing, and Post-licensing Inspection,...Read More

Is the Declaration of Bankruptcy a Mandatory Requirement to Terminate an Employment Contract due to a Reduction in Work Volume or Profit? The Labor Proclamation No. 1165/2019 provides conditions under which an employer may terminate a worker’s employment contract with prior notice. Article 28(3) of the Proclamation, specifically, stipulates that those grounds attributable to the...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