Since the introduction of the Free-Market Economic Policy in 1992, five investment proclamations, including the current Investment law No. 769/2012, have been ratified. And the aims have been to attract, manage and protect investment and business.
It is essential to put in place the required legal frameworks timely to building an efficient and competitive investment environment. As per of the continued improvements of investment legislations, Ethiopian Investment Commission has prepared a new draft investment proclamation gathering inputs from relevant public and private bodies.
Last Saturday, House of Peoples Representative’s Trade and Industry Affairs Standing Committee in collaboration with stakeholders held a public discussion on the draft investment proclamation.
Opening the discussion forum, EIC’s Commissioner Abebe Abebayehu said the need for accelerating the country’s knowledge, skills and technology transfer as well as boosting international competitiveness in the economy has necessitated the revision of the law.
Besides, the new law is also expected to attract foreign investments, create more jobs for citizens and ease business entry.
The new proclamation is needed to keep the existing investment law up-to-date with the reforms in the economic sector in the country, according to him.
In fact, the draft proclamation is meant to essentially accelerate country’s economic development; ensure sustainability of the development, strengthen domestic production capacity and improve the living standards of citizens.
The new law has also been described as helping to speed up the competitiveness of the country’s economy at international level besides expanding export trade, creating broad and quality job opportunity, establishing an economic system that promotes sustainable and linkage between different sectors, it was learnt.
The draft investment proclamation which has 57 articles in ten parts is also expected to play an important role in maximizing investment flow, expansion, and duration. It is also instrumental in make the investment process more transparent, predictable and efficient, it was learnt.
House of Peoples Representative’s Trade and Industry Affairs Standing Committee Chairperson, Yeshimebet Negash stated that various efforts have been in the pipeline at national level to attract foreign investors. The amendment of the existing investment proclamation is to boost foreign investors’ confidence to invest in the country by easing bureaucratic labyrinth that would face during entry. More emphasis must be placed on amending the proclamation to make young Ethiopians more beneficiaries from employment opportunities.
On her part, Deputy Director General of Ethiopian Food, Beverage, and Pharmaceutical Industry Development Institute Belaynesh Kumsa said that revision of the investment proclamation is necessary, pointing out that there are some articles that should be reviewed.
President of Ethiopian Cement Manufacturers Association, Haile Assegide said on the discussion that investments in the country have not been creating the right jobs for large unemployed citizens. “Special consideration must be given to the unemployment issue under the amended proclamation.”
He, however, stressed that the article in the draft proclamation that says the company will be nationalized when investors violate the law of the country should be reviewed and revised again.
There have been limitation in terms of the availability of land, power, trained personnel as well as telecom service; he added indicating that these issues should come into consideration in the draft proclamation. Summing up the discussion, Abebe said that ideas raised by participants of the discussion are considered good input adding that the Proclamation will provide an enabling environment for domestic and foreign investors to engage in the investment sector.
The Ethiopian Herald January 10, 2020
BY ABDUREZAK MOHAMMED
