nvestment is established in accordance with laws to make sure that it is properly registered and licensed and complies with the laws and regulations of the host countries.
As Ethiopia is undertaking a reform, it has also been amending its investment law with the major view of attracting more foreign investment to the country.
The country’s investment law has been effective over the past ten years. Recently, a workshop has been organized in Addis Ababa to gather important imputes for the amendment of the law.
TamruWondemagegnhu, Lawyer, and workshop participant told the Amharic daily Addis Zemen that though it has been amended five times, it has been 28 years since the country’s investment law was formulated.
As the investment climate changes over time, it is timely to amend the investment law this time around. And the new draft law has in it several improvements.
On the other hand, the previous experience indicates that amending or making a new law alone is not enough by itself. It is also vital to put in place a fertile ground or conducive environment for its enforcement. Most importantly, officials need to refrain from malpractice and focus on serving the investors’ demand.
Doctor Tilahun Ismael, Investments Law Amendment Task Force Member with the commission on his part said that as business and economy are the pillars of the investment law, it should be amended in conformity with the concurrent situation.
As to Dr. Tilahun the investment law had been amended every five years. But the existing law has been in effect for the past ten years. In addition, the task force has identified that it has also some shortcomings.
For instance, the new draft law is set to establish divisions to hear appeals/complaints and serve as instruments of conflict resolution. When the new law goes operational, it is expected to effectively address the complaints of investors. Besides, it will build a strong tie between the government and investors, he added.
Abebe Abebayehu, Ethiopian Investment Commission Commi ssioner said the formulation of the law has been undertaken by a 15 member group comprising relelvant government authorities, the private sector, world bank, IMF and other development partners.
On the other hand, the existing law doesn’t clearly stipulate how to handle or solve administrative difficulties that investors may face while making business. The new proclamation on the other hand introduces a system for the investors to submit whatever complaints they may have to the Investment Board.
The new law is a legal document which enables both domestic and foreign investors to expand their projects and become competitive on the global market. It also aims to create strong market linkage between domestic and foreign investors. The other objectives include creating enormous job opportunities for the youth and ensuring sustainable economic development.
The draft law will be submitted to the House of People Representative for ratification next year.
The Ethiopian Herald July 25/2019
By LAKACHEW ATINAFU
