Bunna Messaggi sano profitto Bunna International Bank S. C si è guadagnato un profitto record sette anni e l'utile per azione. Quest'anno, il suo utile netto è salito a 39.5pc a 187 milioni di fr. Tuttavia, la crescita dei profitti è la metà di quello che è stato nel corso dell'anno precedente. L'utile per azione è salito a 19.6pc a 343 Br per i sette anni, banca privata. Questo è leggermente superiore alla media del settore del private banking, che è a 333 fr. Questo è tre volte superiore a quello che era nel 2013. Questo deriva in mezzo delle dimissioni del capo della banca, Eshetu Fantaye, che ha lasciato a causa di problemi di salute. La performance è una buona notizia per Tadesse Chinkel, da lungo tempo Chief Operations Officer, ora il CEO agire della banca. La banca ha visto una crescita da vari redditi compresi i prestiti, anticipi e obbligazioni NBE che sono aumentati del 59.3pc a 491 milioni di fr. I suoi scambi con l'estero anche andato da 27.2pc a 48 milioni di fr. Questo è un po 'al di sotto del due per cento di ciò che è stato raggiunto dal settore nel 2015. Nonostante i numerosi successi della banca negli ultimi quattro anni, è rimasto sul fondo del settore nei rapporti di cambio. La quota di valuta estera si occupa al suo reddito lordo è in calo e insignificante, con una media 9.7pc. ldquoThis devono essere dovuto al tendenza al calo dei proventi delle esportazioni del paese, il rdquo un esperto bancario che ha voluto essere senza nome osservata. Tadesse fatto eco questo sentimento, ldquoThe calo dei proventi delle esportazioni e delle rimesse ci ha costretto a guadagnare meno quantità di forex nel industryrdquo. Tibebu Eshetu, Presidente della banca, ha riconosciuto per fortuna questo carenze della banca. quotWe capito la nostra strategia non è riuscita in questo stancequot. Di conseguenza, il consiglio ha ordinato la gestione della banca di elaborare nuove strategie per il miglioramento del reddito dei cambi entro dicembre di quest'anno. D'altra parte, gli azionisti si lamentavano del tasso di crescita dei profitti della banca durante i recenti companyrsquos azionisti riuniti al Millennium Hall. quotThe crescita è molto basso in confronto con le banche pari come Brehan Bank, quot azionista lamentava. Due settimane fa, Brehan sorpreso i suoi azionisti, che annuncia un utile di 260 milioni di Br, un confronto aumento 149pc con il precedente esercizio. Allo stesso tempo, è riuscita ad aumentare i suoi utili per azione di 102 Br a 399 fr. Nel 2015, il reddito Bunna039s era 29pc superiore Brehan Bank. Tuttavia, nel 2016 il secondo guadagnato 7pc di più. Nel complesso, la crescita del reddito non è stato senza costi. Nel 2015, Bunna speso 66 centesimi per ogni birr ha guadagnato, che è 10pc superiore alla media industryrsquos. La cifra è stata di circa 45 centesimi di quattro anni fa. Il settore bancario è stato colpito duramente, con un aumento della sua spesa complessiva rispetto al reddito. L'anno scorso, Debub Globale Banca S. C. era il spender più alto con 79 centesimi, mentre il più basso è stato Spender Banca Cooperativa di Oromia con 55 centesimi di spesa per ogni uno birr di reddito. Bunna039s spese generali e amministrative è salito da 30pc a 144.400.000 Br nel 2016. La crescita è 18pc inferiore rispetto al precedente esercizio. Al contrario, ha registrato il più alto fondo crediti dubbi e acconti. Ciò equivale a 204pc a 35 milioni di fr. ldquoThe banca ha bisogno di installare un sistema per evitare tale perde accada di nuovo, rdquo un esperto bancario riflette Fortune. Tuttavia, la banca sembra ottimista circa l'aumento della sua disposizione. Ciò è dovuto ad un aumento della sua portafoglio crediti, secondo Tadesse. Nel corso dell'esercizio appena concluso, la banca ha erogato prestiti e anticipazioni del valore di 3,7 miliardi di Br, che è 97.4pc più alto del precedente anno fiscale. L'anno scorso, Ethiopiarsquos settore bancario ha visto un aumento di fondo svalutazione crediti. E 'andato da 65pc a Birr 302 milioni. Di questi, quattro per cento del totale è stato fornito da Bunna. Cooperative Bank di Oromia ha la quota più alta a oltre 50pc. Nel corso dell'esercizio appena concluso, il prestito non performing (NPL) del Bunna era 3.5pc, ben al di sotto la soglia regolamentare di 5pc. D'altra parte, gli stipendi ed i benefici sono aumentati del 50pc di 130 milioni di Br, che rappresentano 69.5pc di profitto dopo le tasse. All'inizio di questo anno fiscale, ha fatto un adeguamento salariale per i suoi banchieri ad un tasso medio di 30pc. La logica del rilancio è stato giustificato per le questioni come la ritenzione del personale, la banca ha notato. Gli adeguamenti salariali non comprendono i dirigenti della banca. Il livello di liquidità della banca mostra un leggero miglioramento rispetto allo scorso anno. E 'salito a 18.3pc da 17.8pc. In termini di valore, il suo saldo di cassa e banca è aumentato a 1,25 miliardi Br da 0,8 miliardi di Fr. scorso anno. Nel corso degli ultimi anni, il livello di liquidità del settore è diminuita a causa della maggiore prestito al rapporto di deposito e investimento nella Banca Nazionale di Ethiopia039s cinque titoli all'anno. Oltre a questa tendenza, la banca mostra un leggero miglioramento rispetto allo scorso anno. E 'salito a 18.3pc da 17.8pc. In termini di valore il suo saldo di cassa e banca è aumentato a 1,25 miliardi Br da 0,8 miliardi di Fr. scorso anno. Questo non è, tuttavia, sorprende come il primo lotto di NBErsquos cinque anni legame che era dovuto per il riscatto a giugno 2016. Questa è stata una notevole quantità di risorse di liquidità che ci si aspettava da iniettare nel settore, su cui il livello di liquidità della maggior parte delle banche dovrebbe essere migliorata. Un anno prima, il calo della liquidità era una preoccupazione all'interno del settore. Il declino è stato osservato in tutte le banche. Nel 2015, la banca almeno liquidato era inondato, con un rapporto di liquidità di 16pc, mentre la banca più liquido è Berhan con un rapporto di 30pc. Nel frattempo, Bunna non ha ancora deciso quando e come intende trovare la sua prossima CEO. U.S. permanente Dipartimento di Stato OpennessRestrictions agli investimenti stranieri Ethiopiarsquos piano quinquennale crescita e trasformazione (GTP), che è stata approvata dal Parlamento etiope nel novembre 2010 ed è attualmente alla sua terza edizione, è in gran parte alla guida Ethiopiarsquos apertura agli investimenti stranieri. L'progetti GTP significativo investimento che contribuiscono ad un prodotto interno lordo (PIL) tasso annuo di crescita di almeno 11. Migliorare la qualità dei servizi sociali e delle infrastrutture, garantire la stabilità macroeconomica, e migliorando la produttività in agricoltura e nella produzione sono i principali obiettivi del piano. Il GTP pone anche un accento significativo sullo sviluppo di produzione locale per ridurre la dipendenza Ethiopiarsquos sulle merci importate, e incoraggiare gli investimenti nei settori orientati all'esportazione di prodotti, textilesgarments leatherleather, fiori recisi, frutta e verdura, e trasformazione dei prodotti agricoli. Data la portata degli investimenti pubblici necessari per raggiungere gli obiettivi di GTP, l'Etiopia avrà bisogno di significativi afflussi di investimenti diretti esteri. crescita economica interna forte è stata registrata nei primi due anni del periodo di piano, con il governo dell'Etiopia (GOE) la stima della crescita ad una media di 11.2 all'anno. Fondo monetario internazionale (FMI) le previsioni cadere la crescita di un ancora impressionante 7-7,5. Mentre il governo etiope prevede una crescita a rimanere al di sopra 11 ogni anno, il FMI si aspetta che la crescita annuale per decelerare a 6,5 nel medio periodo a causa di limitate opportunità per il settore privato a sfruttare il grande investimento pubblico, spiazzamento del credito al settore privato, e radicata le aspettative di inflazione. Il mondo Bank39s Doing Business Report per il 2013 classificato Etiopia a 127 su 185 paesi, perdendo terreno dalla classifica 2012 di 125. contribuire al calo sono stati cali punteggi per le protezioni degli investitori, pagamenti fiscali, applicazione dei contratti, e la risoluzione di insolvenza. Gli investitori stranieri in genere non affrontano un trattamento fiscale sfavorevole, il rifiuto di licenze, politiche di importazione o di esportazione discriminatori, o tariffarie iniquo e non tariffarie barriere. Anche se ostacoli burocratici continuano a colpire l'attuazione del progetto, l'Agenzia per gli investimenti etiope (EIA) ha proposto un servizio shopquot accelerato quotone-stop che si spera possa ridurre in modo significativo i tempi ei costi di acquisizione di investimento e di business delle licenze, anche se gli investitori americani riferiscono che la VIA ancora manca la capacità di soddisfare le proprie scadenze stringenti. Una licenza di business può essere ottenuto in un giorno se vengono soddisfatti tutti i requisiti, anche se in pratica questo è raro. Un investitore straniero che intende acquistare una impresa privata esistente o comprare azioni di un'impresa esistente ha bisogno di ottenere l'approvazione preventiva della VIA. Ethiopia39s Organizzazione Mondiale del Commercio (OMC), il processo di adesione è in corso dal 2003. L'Etiopia ha presentato un memorandum del commercio estero Regime al segretariato dell'OMC nel dicembre 2006, ha inviato risposte al primo giro di domande membri dell'OMC nel gennaio 2007, e ha tenuto il suo primo lavoro riunione di partito nel maggio 2008. Ethiopiarsquos mercato dei beni di offerta di accesso è stato presentato nel febbraio 2012 e la terza riunione gruppo di lavoro si è svolta a marzo 2012. I funzionari governativi etiopi hanno dichiarato che l'adesione all'OMC entro il 2014 è una priorità. Nel 2009, il governo etiope ha ampliato la sua attenzione politica agricola di aumentare la produttività dei piccoli agricoltori, l'aggiunta di promozione degli investimenti privati (nazionali ed esteri) in aziende commerciali su larga scala alle priorità esistenti. Il Ministero dell'Agricoltura (MOA) ha creato una nuova Direzione agricola Investment Support che ha il compito di negoziare contratti di locazione a lungo termine (tutta la terra è di proprietà del governo) a oltre 7 milioni di acri di terreno per queste aziende agricole professionali. L'obiettivo è quello di Directorate39s incrementare la produttività, l'occupazione, il trasferimento di tecnologie, e riserve di valuta estera, offrendo incentivi agli investitori privati. Il programma, anche nelle sue fasi iniziali, ha incontrato alcune proteste da individui e gruppi che sostengono gli interessi in terra per essere messi a disposizione di nuovi investitori. Nel 2010 il governo ha istituito un'Agenzia trasformazione agricola (ATA), con il mandato di aiutare a semplificare gli investimenti agricoli e più in generale per migliorare l'ambiente favorevole per entrambe su piccola scala e lo sviluppo agricolo commerciale del paese. Secondo una serie di studi, l'Etiopia è ricca di risorse energetiche rinnovabili. Mentre la dotazione totale di energia idroelettrica è stimato fino a 45.000 MW all'anno, solo il 3 del potenziale idroelettrico countryrsquos è attualmente sfruttata. L'Etiopia è un paese sull'orlo di una rivoluzione energetica, ma richiede l'assistenza significativo per realizzare il suo potenziale, in particolare nei settori del geotermico, eolico e le risorse solari e biomassa come opzioni a lungo termine per la produzione di energia sia per l'industrializzazione locale e come un potenziale fonte di guadagno FX. In accordo con gli obiettivi delineati nel GTP, l'etiope Electric Power Corporation (EEPCo) ha stabilito piani concreti per realizzare 75 accesso all'energia entro il 2015 e aspira a diventare una potenza esportatore regionale e hub di energia verde per l'Africa orientale. La produzione di energia ha migliorato di circa 230 tra il 2008 e il 2012, con sei progetti idroelettrici ed eolici provenienti on-line: Tekeze (2009, idroelettrico, 300 MW), Gibe II (2010, idroelettrica, 420 MW), Tana Beles (2010, idroelettrico, 460 MW), Amerti Nesha (2011, idroelettrica, 97 MW), Ashegoda (2012, eolica, 30 MW), e Adama I (2012, eolica, 51 MW). Inoltre, altri quattro progetti (Gibe III, espansione Ashegoda, Adama II, e il Rinascimento Dam Gran etiope) sono in costruzione. La loro produzione combinata sarebbe quasi 8.150 MW. Tuttavia, un sistema di trasmissione di potenza inadeguata significa che Ethiopiarsquos aumentato l'approvvigionamento energetico non è ancora in fase utilizzata in modo efficiente. Il Ministero di Acqua ed energia (MOWE) sta attivamente cercando ulteriori investimenti nel settore energetico Ethiopia39s, di soddisfare rapidamente crescenti esigenze nazionali e di adempiere ambiziosi piani di esportare elettricità nei paesi vicini. Nel mese di ottobre 2011, l'Etiopia ha cominciato 35 MW di esportazioni di energia per Gibuti stimato per generare US1.5 milioni di dollari al mese e sta mettendo a punto piani per iniziare l'esportazione di 100 MW di potenza in Sudan nei primi mesi del 2013. Il finanziamento è a posto per la costruzione di una linea di trasmissione in Kenya come parte di un più ampio progetto di autostrada elettrica East African finanziato dalla Banca mondiale e Banca africana di sviluppo. Sviluppo delle energie rinnovabili è un principio fondamentale della politica energetica governmentrsquos e il governo sta cercando di investimenti privati per aiutare lo sviluppo di auto di non-idro risorse energetiche rinnovabili. MOWE ha introdotto una legislazione tariffa feed-in che stabilirà le tariffe e le condizioni per i produttori indipendenti di elettricità di vendere energia elettrica alla rete nazionale, ma il disegno di legge è passato attraverso diverse revisioni e non è chiaro quando diventerà legge. Il Codice rivisto di investimento del 1996, così come il Proclama di investimento forniscono incentivi per gli investimenti legati allo sviluppo, e hanno gradualmente rimosso la maggior parte delle restrizioni settoriali sulla codice degli investimenti investimento Ethiopia39s vieta gli investimenti stranieri nel settore bancario, assicurativo e dei servizi finanziari. I settori controllati dallo Stato rimanenti: telecomunicazioni, trasmissione e distribuzione di energia e servizi postali, ad eccezione dei servizi di corriere. Fabbricazione di armi e munizioni può essere intrapresa solo come joint venture con il governo. Altre aree di investimento riservati ai cittadini etiopi sono: radiodiffusione servizi di agenzia di servizi di trasporto aereo di viaggio, spedizione e trasporto agenzie commerciali di vendita al dettaglio ed intermediazione del commercio all'ingrosso (esclusa la fornitura di petrolio e suoi derivati, nonché all'ingrosso da parte di investitori esteri della loro produzione locale prodotti) la maggior parte dei beni di investimento di importazione del commercio affitti esportazione commercio di caffè crudo, chat, semi oleosi, legumi, pelli acquistato dal mercato dal vivo pecore, capre e bovini non allevati o ingrassati dalle imprese di costruzione investitore esclusi quelli designati come di grado 1 concia delle pelli hotel fino a livello della crosta (escluso hotel stelle-designato) ristoranti e bar (esclusi ristoranti internazionali e specializzati) ausiliarie del commercio e dei servizi di biglietteria vendita di servizi di trasporto di prodotti da forno e pasticceria per la macinazione del mercato nazionale mulini capelli laboratori saloni di abbigliamento (ad eccezione di indumento fabbriche) costruzione e manutenzione del veicolo visto musei servizi di fresatura e la produzione di legname di sdoganamento, i teatri e le operazioni di sala cinematografica e le industrie di stampa. Tuttavia, il GOE ha indicato un interesse ad esteri competenze del settore privato per alcuni dei settori sopra. Etiope-americani possono ottenere una carta di residente locale da parte del Ministero degli Affari Esteri che permette loro di investire in molti settori chiusi agli stranieri. Le imprese straniere possono fornire beni e servizi alle imprese etiopi nei settori chiusi. Del 2012 modifica Ethiopiarsquos proclamazione degli investimenti ha introdotto disposizioni per la creazione di zone di sviluppo industriale, sia statali e private, con favorevole agli investimenti, fiscali e gli incentivi delle infrastrutture. L'emendamento ha anche sollevato il requisito minimo di capitale per US200,000 per progetto per gli investimenti interamente controllate estere e US150,000 per investimenti congiunti con investitori nazionali (o US100,000US50,000 rispettivamente nei settori di ingegneria, architettura, contabilità e servizi di revisione , servizi di consulenza commerciale e di gestione, e la pubblicazione). Un investitore straniero reinvestimento profitsdividends potrebbe non essere necessaria per allocare capitale minimo. I tassi di inflazione, mentre ancora alto, stabilizzato sopra 2012. Il governo egiziano ha assunto un ruolo attivo nella gestione di inflazione attraverso una serie di misure tra cui politiche monetarie e fiscali rigorose che limitano la crescita dell'aggregato monetario ampio, con conseguente inflazione anno su anno sottoposti a costante serie di cali e dei periodi di stabilizzazione, passando da 39,3 nel mese di novembre 2011-15,6 nel mese di novembre 2012. Il governo egiziano rimane vigile su lotta contro l'inflazione tuttavia, le inefficienze strutturali come uno stato monopolizzato sistema logistico multimodale e un oligopolistica del settore all'ingrosso sarà probabilmente continuerà a mantenere Ethiopiarsquos tasso di inflazione a due cifre. Etiopia non ha requisiti di autorizzazione dei visti, residenza o di lavoro discriminatorie o eccessivamente onerose per gli investitori stranieri tuttavia, gli investitori possono affrontare ritardi burocratici a ottenere questi documenti. Ethiopia39s posizionamento sui vari indici: Politiche conversione e il trasferimento Tutte le operazioni in valuta estera devono essere approvate dalla banca centrale Ethiopia39s, la Banca nazionale dell'Etiopia (NBE). La valuta locale (Birr) non è liberamente convertibile. Una direttiva NBE 2004 consente non residenti etiopi e non residenti i cittadini stranieri di origine etiope di istituire e gestire conti in valuta estera fino a US50,000. Ethiopia39s investimenti Proclama consente a tutti gli investitori stranieri registrati, anche se non ricevono incentivi, di rimettere liberamente profitti e dividendi, capitale e degli interessi sui prestiti esteri, e le spese legate al trasferimento di tecnologia. Gli investitori stranieri possono anche rimettere proventi della vendita o della liquidazione dei beni, dalla cessione di azioni o di parziale proprietà di un'impresa, e fondi necessari per il servizio del debito o di altri pagamenti internazionali. Il diritto dei lavoratori espatriati di rimettere i loro stipendi è concesso in conformità alla normativa di cambio NBE. Ethiopiarsquos riserve forex è sceso da un livello medio di 3 mesi copertura delle importazioni nel periodo 2010-2011 a 1,8 mesi la copertura nel mese di aprile 2012. riserve di Forex sono stati pesantemente impoverito, ma hanno mostrato segni di stabilizzazione verso la fine del 2012. Secondo il FMI, l'uso delle vendite forex come mezzo di sterilizzazione liquidità in valuta locale è la causa principale del deficit anche se è stata ulteriormente aggravata dalla più debole di esportazioni attese di caffè, Ethiopiarsquos principale delle colture di esportazione. Il Birr si è deprezzato di circa 100 rispetto al Dollaro degli Stati Uniti tra il novembre 2006 e novembre 2012, attraverso una serie di step-down controllate, di cui 20 svalutazione nel settembre 2010. A dicembre 2012, il tasso di cambio era di circa 18,15 birr per dollaro. Il tasso di cambio di mercato parallelo illegale è stato di circa 19,06 birr per dollaro, un premio di 5 rispetto al tasso ufficiale. Ethiopiarsquos Unità di informazione finanziaria controlla trasferimenti valutari sospetti, tra cui operazioni di grandi dimensioni superiori a 200.000 birr (più o meno equivalente a obblighi di comunicazione degli Stati Uniti per i trasferimenti di valuta superiori US10,000). Espropriazione e redditi per Ethiopia39s 1996 investimenti Proclamazione e successive modificazioni, le attività di un investitore nazionale o un investitore straniero, impresa o l'espansione non possono essere nazionalizzate, in tutto o in parte, salvo nei casi previsti dalla interesse pubblico e nel rispetto delle leggi vigenti e con il pagamento di un adeguato indennizzo . Tali attività non possono essere sequestrati, sequestrati o smaltiti se non in un ordine del tribunale. Il regime militare Derg nazionalizzato molte proprietà nel 1970. La posizione attuale è che government39s beni sequestrati quotlawfullyquot dal Derg (vale a dire per ordine del tribunale o l'annuncio del governo pubblicato in Gazzetta Ufficiale) rimane di proprietà dello Stato. Nella maggior parte dei casi, beni sequestrati per ordine orale o altri mezzi informali viene gradualmente restituito ai proprietari legittimi o ai loro eredi attraverso un iter burocratico lungo. Richiedenti sono tenuti a pagare per i miglioramenti fatti dal governo durante il periodo del suo controllo sulla proprietà. Privatizzazione Ethiopia39s e imprese pubbliche Supervisione Agency (PPESA) smesso di accettare le richieste dai proprietari per la restituzione di queste proprietà precedentemente espropriate nel luglio 2008. Secondo il Proclama di investimento, le controversie derivanti da investimenti stranieri che coinvolgono un investitore straniero o lo Stato possono essere risolte da significa piacevole per entrambe le parti. Una controversia che non può essere risolta in via amichevole può essere presentata a un tribunale etiope competente o ad arbitrato internazionale nel quadro di un accordo bilaterale o multilaterale a cui il governo e lo stato investor39s di origine sono parti contraenti. Entrambi gli investitori stranieri e nazionali coinvolti in dispute hanno espresso una mancanza di fiducia nella magistratura per valutare oggettivamente e risolvere le controversie. sistema giudiziario Ethiopia39s è sovraccaricato, mal di personale e inesperto in materia commerciale, anche se gli sforzi sono in corso per rafforzare la sua capacità. Mentre i diritti di proprietà e contrattuali sono riconosciuti e ci sono leggi commerciali e fallimentari, giudici spesso mancano di comprensione delle questioni commerciali e di pianificazione caso soffre di ritardi prolungati. Il Abeba Camera di Commercio di Addis ha un centro di arbitrato dedicata ad aiutare quelli con il processo di arbitrato. Non vi è alcuna garanzia che l'attribuzione di un tribunale arbitrale internazionale sarà pienamente accettato e implementato da parte delle autorità etiopi. L'Etiopia ha né firmato né ratificato la Convenzione del 1958 per il riconoscimento e l'esecuzione delle sentenze arbitrali straniere, comunemente conosciuta come la ldquoNew York Convention. rdquo Ethiopiarsquos commerciale Pratica e consumatori protezione Authority (TPCPA), è responsabile nei confronti del Ministero del Commercio, ed è compito con la promozione di un ambiente di business competitivo regolando anticoncorrenziali, immorali, e le pratiche commerciali sleali per migliorare l'efficienza economica e il benessere sociale. Alcuni dei poteri Commission39s comprendono: l'esame delle denunce di parti lese testimoni convincenti per apparire e testimoniare alle udienze e la ricerca dei locali dei partiti accusati. Dal 2011, il TPCPA ha condotto 15 laboratori per oltre 5000 partecipanti del settore privato e di governo. Tuttavia, sin dal suo inizio, il TPCPA è stata focalizzata principalmente sulla auto-organizzazione e il lavoro amministrativo, e non aveva condotto alcuna attività significativa di applicazione a partire da gennaio 2013. requisiti di prestazioni e incentivi l'Etiopia non impone formalmente requisiti di prestazione sugli investitori stranieri. La modifica del Proclama investimenti 2003 delinea incentivi agli investimenti per gli investitori in settori specifici. I nuovi investitori impegnati in attività di produzione, trasformazione dei prodotti agricoli, o la produzione di taluni prodotti agricoli, che esportano almeno il 50 dei loro prodotti o fornitura di almeno 75 dei loro prodotti ad un esportatore come input produttivi, sono esenti dall'imposta sul reddito per cinque anni . Un investitore che esporta meno del 50 del suo prodotto o fornisce il suo prodotto solo per il mercato interno è imposta sul reddito esente per due anni. Gli investitori che si espandono o si aggiornano le imprese esistenti e di esportare almeno il 50 della loro produzione o di aumentare la produzione del 25 possono beneficiare di esenzione dall'imposta sul reddito per due anni. Un investitore che investe nella regionsrdquo rdquodeveloping di Gambella, Benishangul Gumuz, South Omo, Afar o somalo regione potranno beneficiare di una esenzione di imposta sul reddito supplementare di un anno. Un investitore che esporta pelli dopo l'elaborazione solo fino al livello di crosta non avrà diritto all'incentivo imposta sul reddito. Un fondo speciale di prestito attraverso la Banca per lo sviluppo dell'Etiopia (DBE) fornisce terreni a prezzi di locazione bassi per le aree di esportazione prioritari quali la floricoltura, pelletteria, tessuti e capi di abbigliamento, e trasformazione dei prodotti agricoli prodotti correlati. Un investitore può prendere in prestito fino al 70 del costo del progetto, da questo fondo speciale senza garanzie su presentazione di un business plan valido e 30 equità personale. Gli investitori sono autorizzati a importare beni strumentali duty-free e materiali da costruzione necessari per la costituzione di una nuova impresa o per l'espansione di un'impresa esistente. Inoltre, i pezzi di ricambio per un valore 15 del valore dei beni strumentali possono essere importati duty-free. Questo privilegio non può essere concessa se i beni strumentali comparabili o materiali da costruzione possono essere di produzione locale e hanno prezzi competitivi, qualità e quantità. beni strumentali importati duty-free non possono più essere utilizzati come garanzia del prestito. Viaggi aziende agenciestour hanno aumentato i privilegi duty-free per l'importazione di beni come i veicoli, a condizione che siano utilizzati esclusivamente in attività turistiche. Il Ministero della Agriculture39s (MOA) Agricultural Investment Support Direzione offre il periodo di tolleranza fino a sette anni di rendite fondiarie. La Direzione è attualmente focalizzata su offerte di terra nelle regioni remote del Gambella, Benishangul Gumuz, Southern Nations, e Afar. Diritto di proprietà privata e istituzione Entrambi i soggetti privati nazionali e stranieri hanno il diritto di stabilire, acquistare, possedere e disporre della maggior parte delle forme di imprese commerciali. Non vi è alcun diritto di proprietà privata della terra. Tutti i terreni è di proprietà dello Stato e può essere affittata per un massimo di 99 anni. Nel novembre 2011, il governo ha promulgato una controversa territorio urbano locazione annuncio che permette al governo di determinare il valore dei terreni nei trasferimenti di diritti su beni di terzi, nel tentativo di frenare la speculazione da parte degli investitori. Tutela dei diritti di proprietà interessi garantiti in immobilizzazioni sono protetti e applicati, anche se tutti proprietà della terra rimane nelle mani dello Stato. Alcuni residenti sono stati trasferiti (e di solito compensato) quando il governo decide che la terra che vivono sulla dovrebbe essere utilizzato per una strada o altro uso pubblico. regolamenti terreno su beni di terzi variano nella forma e pratica per regione. Mutui sono rari come condizioni di prestito sono generalmente piuttosto breve. L'Etiopia ha ancora firmato una serie di importanti diritti di proprietà intellettuale internazionale (DPI) trattati, come ad esempio: la Convenzione di Parigi per la protezione della proprietà industriale della World Intellectual Property Organization (WIPO) sul diritto d'autore della Convenzione di Berna per opere letterarie ed artistiche di Madrid sistema per la registrazione internazionale dei marchi e del trattato di cooperazione. Il governo egiziano ha espresso l'intenzione di aderire alla Convenzione di Berna e Protocollo di Madrid entro il 2015. L'etiope Ufficio diritti di proprietà intellettuale (Eipo) è stato incaricato in primo luogo per proteggere i materiali protetti da copyright etiopi e software pirata. In generale, ha una capacità Eipo debole in termini di manodopera e nessuno in termini di applicazione della legge. Inoltre, un certo numero di imprese, in particolare nel settore del turismo e dei servizi, operano in Etiopia liberamente utilizzando nomi a marchi noti o simboli senza permesso. La trasparenza del sistema normativo di regolamentazione del sistema Ethiopia39s è generalmente considerato giusto, anche se ci sono casi in cui onerosi requisiti normativi o di licenza hanno impedito la vendita locale delle esportazioni degli Stati Uniti, in particolare prodotti correlati con la salute. ministeri spesso passano decisioni e documenti associati ai vari ministeri prima di qualsiasi decisione è finalizzato. In molti casi, questo lavoro di ufficio si blocca in un ministero e nessuna decisione è fatto. Nel 2011, la banca centrale ha emesso una direttiva per tutte le banche e le compagnie di assicurazione ad aderire agli International Financial Reporting Standards (IFRS). Gli investitori stranieri si sono lamentati per la cancellazione improvvisa di alcune offerte di governo, una percezione di favoritismo nei confronti di fornitori che offrono finanziamenti agevolati, e una generale mancanza di trasparenza nel sistema degli appalti. Nel settembre 2009, il governo ha istituito una nuova agenzia di appalti pubblici e l'amministrazione di proprietà. Questa agenzia è un organo di governo autonomo, ha un proprio braccio giudiziario, ed è responsabile nei confronti del Ministero delle Finanze e dello Sviluppo Economico. Efficient Capital Markets e Investment Portfolio accesso ai finanziamenti è un ostacolo per un aumento degli investimenti privati nazionali etiope. Mentre il credito è a disposizione degli investitori a condizioni di mercato, un requisito collaterale 100 limita la capacità di alcuni investitori di sfruttare le opportunità di business. Inoltre, una misura di aprile 2011 costringendo le banche non governative di investire l'equivalente di 27 di ciascun credito realizzato in Banca nazionale dell'Etiopia (NBE) obbligazioni ha contribuito alla carenza di liquidità che hanno ridotto la capacità delle banche a concedere prestiti al settore privato. L'Etiopia ha attualmente diciannove banche - tre di proprietà dello Stato, una parte di proprietà, e quindici di proprietà privata. Nel settembre 2011, il NBE ha sollevato il minimo capitale versato necessario per stabilire una nuova banca da Birr 75 a 500 milioni che si è fermato in modo efficace l'ingresso della maggior parte delle nuove banche nel mercato. Le banche estere non sono autorizzati a fornire servizi finanziari in Etiopia. La statale Commercial Bank of Ethiopia mobilitato 65,1 del totale dei depositi bancari e ha fornito più di 50 dei prestiti bancari totali nel corso dell'anno fiscale 201112. Il non performing rapporto banks39 commerciale prestito è diminuita a meno di 5. L'Etiopia non ha un titoli del mercato, e salespurchases del debito sono fortemente regolamentato. Il governo egiziano sta elaborando una normativa per regolamentare il mercato over-the-counter per la società per azioni private. La NBE controlla il tasso di deposito minimo di banca, che è attualmente pari a 5, mentre i tassi di interessi sui prestiti sono autorizzati a stare a galla. i tassi di interesse reali sono stati negativi negli ultimi anni grazie soprattutto alla forte inflazione. Il governo offre un numero limitato di 28 giorni, 3 mesi e 6 mesi buoni del Tesoro, ma vieta il tasso di interesse superi il tasso di deposito bancario. Il governo ha iniziato ad offrire un anno buono del tesoro nel novembre 2011. I rendimenti dei Buoni del Tesoro questi sono al di sotto 2. Questo mercato rimane poco attraente per il settore privato e il 95 dei Buoni del Tesoro sono detenute dalla statale Commercial Bank dell'Etiopia e imprese pubbliche. L'Etiopia Commodity Exchange (ECX), lanciato nel 2008, commercializza prodotti quali il caffè, semi di sesamo, mais, grano e fagioli. Il governo egiziano ha lanciato ECX per aumentare la trasparenza dei prezzi delle materie prime, alleviare la scarsità di cibo, e favorire la commercializzazione di agricoltura. Tuttavia, i critici sostengono che le politiche e le strutture dei prezzi ECX sono inefficienti rispetto alle vendite dirette a prezzi internazionali prevalenti. La concorrenza di imprese di aziende di Stato di proprietà dello Stato e degli enti di partito di proprietà di governo dominano i principali settori dell'economia. Vi è monopolio di Stato o il dominio dello Stato in settori quali le telecomunicazioni, l'energia, banche, assicurazioni, trasporto aereo, il trasporto e lo zucchero. Ruling Companies quotendowmentquot parti affiliate hanno una forte presenza nei settori dei trasporti terra, fertilizzanti, e tessile. Entrambe le imprese statali e le società quotendowmentquot dominano il settore del cemento. imprese statali hanno notevoli vantaggi rispetto alle imprese private, in particolare nel campo del contesto normativo e burocratico Ethiopia39s, tra cui facilità di accesso al credito e dei costumi più veloci gioco. imprenditori locali e gli investitori stranieri si lamentano della mancanza di condizioni di parità quando si tratta di imprese di proprietà statale e di partito-proprietà. Mentre non ci sono rapporti conclusivi di preferenza credito per a queste entità, ci sono indicazioni che ricevono incentivi quali l'assegnazione di priorità dei cambi, le preferenze di offerte del governo e assistenza marketing. Etiopia pubblica i dati finanziari aggregati di imprese di proprietà statale, ma le informazioni dettagliate non è incluso nel bilancio nazionale, e poche imprese statali al di fuori della Ethiopian Airlines rilasciare pubblicamente bilancio dettagliate. Corporate governance of state-owned enterprises is structured and monitored by a board of directors composed of senior government officials and politically-affiliated individuals. In 2010, the Ethiopian government quotcorporatizedquot state-owned enterprise Ethiopian Telecommunications Corporation (ETC) by turning over its management to France-Telecom per a two-year contract. As part of this process, a new company, Ethio Telecom (ET), was formed to replace ETC. In January 2013, France-Telecom handed back the management of Ethio Telecom after completion of the contract. Similar to the ldquocorporatizationrdquo of ETC, a tender for the management of Ethiopian Electric Power Company (EEPCO) was advertised in 2011, though no winner has been announced. The Public-Private Dialogue Forum (PPDF), a joint consultative forum between the private sector and the government, held its second meeting in February 2012, focusing on customs, logistics and transport issues, especially those involving the inefficiency of state-owned enterprises. The private sector was represented by the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) and the government by the Ministry of Trade (MOT). Additionally, Prime Minister Hailemariam Desalegn met with representatives of the private sector in October 2012 to discuss their commercial concerns, continuing a series of direct private sector engagements started by former Prime Minister Meles Zenawi. Nearly all tenders issued by the Ethiopian government39s Privatization and Public Enterprises Supervising Agency (PPESA) are open to foreign participation. In some instances, the government prefers to engage in joint ventures with private companies rather than sell an entire entity. The government has sold over 300 public enterprises since 1994. Most of these enterprises were small enterprises in the trade and service sectors. Approximately 20 enterprises were privatized in 2011, including two major breweries, and around 60 public enterprises remain under PPESA control. Corporate Social Responsibility Some larger international companies have introduced corporate social responsibility (CSR) programs however, most local companies do not practice CSR. There is a movement to develop CSR programs by the Ministry of Industry in collaboration with the World Bank, U. S. Agency for International Development, and others. Ethiopia has been relatively stable and secure for investors. Insurgents operating in parts of the Somali Region of Ethiopia have warned investors against exploring for oil or natural gas resources in this area. Some elements of the outlawed Ogaden National Liberation Front continue to operate in parts of the Somali Region and there are reports of sporadic clashes with security forces. Beginning in 2008, the government enacted a series of laws that effectively constrained opposition parties, the media, and civil society. The Ethiopian Peoplersquos Revolutionary Democratic Front (EPRDF), which is the ruling party coalition, and its allied parties subsequently took close to 90 percent of the popular vote and won 545 out of 547 parliamentary seats in the 2010 national elections, which were judged to have lacked anything close to a level playing field. Regional-level elections (including for seats in the Addis Ababa and Dire Dawa city councils) will be held in 2013, followed by national parliamentary elections in 2015. In 2009, the Ethiopian government passed an Antiterrorism Proclamation granting executive branch-controlled security services virtually unlimited authority to take unilateral action to disrupt suspected terrorist activities. Terrorist activities are broadly defined in the legislation. As of December 31, 2012, the law has been cited in the convictions of nine journalists, five political opposition leaders, and an Ethiopian employee of the UN. Two Swedish journalists were found guilty of ldquoproviding support for terroristsrdquo and illegally entering the country in 2011 and were sentenced to eleven years in prison, but received a pardon in September 2012. Five European tourists were killed and two were kidnapped in January 2012 by the Afar Revolutionary Democratic Unit Front (ARDUF), an extremist group backed by Eritrea. In retaliation, the Ethiopian military made incursions into Eritrea in March targeting the ARDUF and the Eritrean military. An attack on a farm operated by Saudi Star Development in the Gambella Region in April left five people dead, and was blamed on the Gambella Nilotic Union. The Ethiopian government regards these incidents as terrorist attacks. In February 2012, the Ethiopian government announced that it had arrested eight al-Qaida operatives with links to Kenya, Sudan, Philippines, Saudi Arabia, and South Africa in the Bale area of Oromia Region in December 2011. Ethiopia ratified the United Nations (UN) Anticorruption Convention in 2007. The UN Investment Guide to Ethiopia (2004) asserted that routine bureaucratic corruption is virtually nonexistent in Ethiopia. The guide added that bureaucratic delays certainly exist, but are not devices by which officials seek bribes. It is a criminal offense to give or receive bribes, and bribes are not tax deductible. Transparency Internationalrsquos 2011 Corruption Perceptions Index, which measures perceived levels of public sector corruption ranked Ethiopia as 33 out of 100 (with 0 indicating ldquohighly corruptrdquo and 100 indicating ldquovery cleanrdquo). Ethiopia39s rank on the corruption perception index was 113 out of 176 countries in 2012 and 120 out of 182 rated countries in 2011. The Ministry of Justice and the Federal Ethics and Anti-Corruption Commission (FEACC) are charged with combating corruption. Since its establishment, the Commission has arrested many officials on charges of corruption, including managers of the Privatization Agency, Ethiopian Telecommunications Corporation, National Bank of Ethiopia, Ethiopian Geological Survey, the state-owned Commercial Bank of Ethiopia, and private businessmen. Bilateral Investment Agreements Ethiopia has bilateral investment and protection agreements with China, Denmark, Italy, Kuwait, Malaysia, Netherlands, Russia, Sudan, Switzerland, Tunisia, Turkey, Yemen, Spain, Algeria, Austria, UK, BelgiumLuxemburg, Libya, Egypt, Germany, Finland, India, and Equatorial Guinea and a protection of investment and property acquisition agreement with Djibouti. A Treaty of Amity and Economic Relations, which entered into force in 1953, governs economic and consular relations with the United States. Ethiopia also has avoidance of double taxation treaties with fourteen countries, including Italy, Kuwait, Romania, Russia, Tunisia, Yemen, Israel, South Africa, Sudan and the UK. There is no avoidance of double taxation treaty between the United States and Ethiopia. OPIC and Other Investment Insurance Programs The Overseas Private Investment Corporation (OPIC) has offered risk insurance and loans to U. S. investors in Ethiopia in the past, but has not originated any investment in Ethiopia in recent years. Approximately 85 of Ethiopia39s 84 million people worked in agriculture in 2011. The Ethiopian government is the most important sector of employment outside of agriculture. According to the Central Statistical Agencyrsquos urban employment and unemployment survey result, urban unemployment was estimated to be 17.5 as of 2012. (24.9 of people ages 15-24 are unemployed.) Ethiopia has ratified all eight core ILO conventions, including most recently, the Palermo Convention. The Ethiopian Penal Code outlaws work specified as hazardous by ILO conventions. The Ethiopian Parliament ratified ILO Convention 182 on the Worst Forms of Child Labor in May 2003. The U. S. Government produces an annual report on labor conditions in Ethiopia, including an assessment of child labor. According to the 2012 Index of Economic Freedom (produced by the Heritage Foundation), Ethiopia scored a 55.5 out of 100 for labor freedom, 1.6 points below the previous year and 6 points below 2010. The index rating states that ldquothe formal labor market has not been developed. Outmoded employment regulations remain a barrier to business, although enforcement is not stringent. rdquo The Confederation of Ethiopian Trade Unions has been expanding its membership and, along with the Ethiopian Employersrsquo Federation, actively supports foreign direct investment. Ethiopia generally enjoys labor peace. The right to form labor associations and engage in collective bargaining is constitutionally guaranteed for many workers, but excludes managerial employees, teachers, and civil servants. Although the constitution and law provide workers with the right to strike to protect their interests, detailed provisions make legal strike actions difficult to carry out. In practice, labor strikes are rare. Child labor is widespread in Ethiopia. While not a pressing issue in the formal economy, child labor is common in rural agrarian areas and the informal economy in urban areas. Both NGO and Ethiopian government sources concluded that goods produced (in the agricultural sector and traditional weaving industry in particular) via child labor are largely intended for domestic consumption, and not slated for export. Employers are statutorily prohibited from hiring children under the age of 14. There are strict labor laws defining what sectors may hire quotyoung workers, quot defined as workers aged 14 to 18, but these laws are infrequently enforced. Labor remains readily available and inexpensive in Ethiopia. Skilled manpower, however, is scarce in many fields. Approximately 60 of Ethiopians over the age of 15 are illiterate ( defined by UNESCO as ldquoinability to identify, understand, interpret, create, communicate and compute, using printed and written materials associated with varying contextsrdquo). There is no national minimum wage standard. Foreign Trade ZonesFree Trade Zones There are no areas designated as foreign trade zones andor free ports in Ethiopia. Because of the 1998-2000 Ethiopian-Eritrean war, Ethiopian exports and imports through the Eritrean port of Assab are prohibited. As a result, Ethiopia conducts almost all of its trade through the port of Djibouti with some trade via the Somaliland port of Berbera and Sudan39s Port Sudan. Despite Ethiopia39s efforts to clamp down on small-scale trade of contraband, unregulated exports of coffee, live animals, chat (a mildly narcotic amphetamine-like leaf), fruit and vegetables, and imports of cigarettes, alcohol, textiles, electronics and other consumer goods continues. Foreign Direct Investment Statistics Foreign direct investment (FDI) flows into Ethiopia have gradually increased in the last few years. According to estimates by the World Bank (August 2012), the annual inflow of FDI increased from US0.5 billion in 2007 to US1.2 billion in 2011. Floriculture, horticulture, textile, and leather are the sectors that have attracted the most FDI. Recently, commercial farming has attracted Indian, Saudi, European, and U. S. investors. According to the Ethiopian Investment Agency, the stock of U. S. foreign direct investment since 1993 in Ethiopia reached nearly US1.4 billion as of December 2011, which includes both projects under implementation and in operation. U. S. companies with a presence and participation in Ethiopia39s economy include (either through direct presence or licensingdistribution agreement): Boeing, Coca-Cola, Pepsi-Cola, Caterpillar, John Deere, Proctor amp Gamble, Johnson amp Johnson, Ford, Mack Trucks, General Motors, Ernst amp Young, Radisson, Sheraton, Hilton, Motorola, Microsoft, IBM, Cessna, Bell Helicopters, Perkins, Massey Ferguson, Case III, 3M, Lucent Technologies, Cisco, Federal Express, United Parcel Service, RankXerox Corporation, HP, Cargill, Navistar, Hughes Network, DuPont, Oracle, and General Electric. U.S. Department of State Ethiopia is one of the fastest growing economies in the world. It has registered impressive GDP growth for several years, ranging between 8 and 12, depending on the data source. The World Bank and IMF forecast continued average growth of 7.5 to 8.5 in 2015 and approximately 7 to 7.5 over the next three years. With a population of roughly 90 million, Ethiopia is the second most populous country in sub-Saharan Africa, after Nigeria. The government of Ethiopia follows an integrated 5-year development plan, the Growth and Transformation Plan (GTP), which aims to achieve 11.2 ndash 14.9 GDP growth annually as well as achieve the Millennium Development Goals and attain middle-class income status by 2025. To realize these goals, the government is investing heavily in large-scale social, infrastructural and energy projects. These developments are positive indicators for future private sector development, but translate into the flow of significant amounts of capital into public sector infrastructure projects, which can provide important opportunities but can also limit capital available to the private sector. World Bank estimates show that public infrastructure spending was approximately 19 of Ethiopiarsquos total GDP in fiscal year 2011-2012. Competitive labor and energy costs as well as the budding consumer markets are key pulls for foreign direct investment (FDI). Current challenges to the private sector include foreign exchange shortages and limited access to finance, long lead-times for inputs and exports due to the current logistic infrastructure and associated high land transportation costs, and bureaucratic delays. Areas closed to foreign investment are banking, insurance and accountingassurance services, retail, telecommunications and transportation. Businesses interested in entering the market should focus on aligning operations to complement the overall goals of the GTP. Key growth sectors include renewable energy, construction, healthcare, tourism, textile and apparel, leather products, telecommunication support services and products, and aviation support services and products. The government of Ethiopia is currently pursuing accession to the World Trade Organization, while maintaining their goal of attaining least-developed country status, by 2015. In 2015, Ethiopia also became a full member of the Common Market for Eastern and Southern Africa (COMESA). It is actively pursuing improving the current investment climate through adopting more efficient bureaucratic processes in the areas of registration, logistics, and tax processes. Key energy generation and distribution projects as well as transportation infrastructure projects are scheduled for completion by the end of 2015. 1. Openness To, and Restrictions Upon, Foreign Investment Attitude toward Foreign Direct Investment Ethiopiarsquos five-year Growth and Transformation Plan (GTP) ndash 2010 to 2015, which was approved by the Ethiopian Parliament in November 2010 and is currently in its fifth year, is driving Ethiopiarsquos demand for and openness to foreign investment. The GTP overarching goals are to achieve the Millennium Development Goals and middle-income status by 2025. These goals translate to a focus on improving the quantity and quality of social services and infrastructure, ensuring macro-economic stability with targeted GDP growth of 11 to 14.9, and enhancing productivity in agriculture and manufacturing. Given the scale of public investment required to support GTP targets, coupled with the current negative domestic savings rate and a World Bank estimate of 4.3 collected tax revenues as a percentage of GDP, Ethiopia requires significant inflows of foreign financial resources. While tax incentives for investment in the high priority sectors of heavy and light manufacturing, agribusiness, textiles, sugar, chemicals and pharmaceutical and mineral and metal processing underscore the governmentrsquos focus and openness to FDI, the recent credit worthiness ratings by the international rating agencies has opened up Ethiopiarsquos access to commercial foreign loans. In May 2014, Moodyrsquos rated Ethiopiarsquos credit worthiness a lsquoBrsquo, while SampP and Fitch gave a lsquoBrsquo in May 2014. The rating agencies underscored Ethiopiarsquos stable outlook and positive prospects for continued economic growth in the short and medium term. Key drivers of their ratings were the huge investments in infrastructure and power generation and their likely effect in improving trade conditions. The countryrsquos peace and stability also positively influenced the rating. The rating agencies noted however that the private sector remained weak and access to domestic credit restricted economic growth. In December 2014, Ethiopia issued its first Euro-bond offering, raising USD 1 billion at a rate of 6.625. The 10-year bond was oversubscribed indicating a continued market interest in high ndash growth sub-Saharan African markets, but did trigger the country to exceed its non-concessional borrowing threshold set by the World Bank, which could limit Ethiopiarsquos access to additional concessional lending. According to the Ministry of Finance and Economic Development, the GOE will allocate these funds for additional infrastructure investment. Other Investment Policy Reviews Over the past three years, the Ethiopian Investment Commission (EIC) has undertaken an independent review of its investor services in an effort to streamline the investment process and is in the process of developing a more efficient one-stop-shop facility for foreign direct investors. LawsRegulations of Foreign Direct Investment The government of Ethiopia is currently revising its 1960 commercial code in an effort to facilitate investment and ease of operations. Areas of focus include clarifying regulations for potential investors, standardizing appropriate accounting practices to more accurately assess tax and other operating liabilities, increasing protection for shareholders and provisions for bankruptcy filings as well as modernization of trade and registration processes. To date, the instructions for drafting the code are finalized the actual revision and drafting of the new code has not started. The revised Investment Code of 1996, as well as the Investment Proclamation, provide incentives for development-related investments and have gradually removed most of the sectorial restrictions on investment. However, the investment code does prohibit foreign investment in some sectors -- please refer to 39Limits on Foreign Control39 section. The 2012 amendment to Ethiopiarsquos investment proclamation introduced provisions for the establishment of industrial development zones, both state-run and private, with favorable investment, tax, and infrastructure incentives. The amendment raised the minimum capital requirement to USD 200,000 per project for wholly-owned foreign investments and USD 150,000 for joint investments with domestic investors (or USD 100,000USD 50,000 respectively in the areas of engineering, architectural, accounting and auditing services, business and management consultancy services and publishing). A foreign investor reinvesting profits or dividends may not be required to allocate minimum capital. Under the GTP, key priority industries include: textile and garment industry, leather and leather products, sugar and sugar-related products, cement, metal and engineering, chemical, pharmaceutical and agro-processing. Investments in this area are accompanied with additional tax and duty incentives as established in proclamation 7692012. A 2014 amendment to the investment proclamation restructured the existing regulatory investment body, the Ethiopian Investment Agency (EIA) under the Ministry of Industry, to a separate governmental body, the EIC, with the Ethiopian Prime Minister serving as Chairman of the EIC Board. The 2014 amendment also provides flexibility for the EIC to decide on appeals submitted to it by foreign and domestic investors on specific projects. In addition, the new EIC Investment Board is empowered to authorize the granting of new or additional incentives other than what is outlined under the existing regulations and authorize foreign investment in areas, otherwise exclusively reserved for domestic investors, if the exception is in the lsquonational interest. rsquo The EIC39s website, ethioinvest, outlines the GOE39s key focus sectors as well as details registration processes and provides regulatory details for investors. In alignment with GTP goals to further develop medium and large scale industries, the government established the Ethiopian Industrial Zones Corporation (EIZC) under the Ministry of Industry in 2012 to oversee the construction and regulation of the zones. Currently the EIZC is preparing the first Industrial park proclamation with the aim of decreasing environmental pollution, enhancing export of manufactured goods and ensuring sustainability. As of April 2014, Bole Lemi-I is the only operational industrial zone developed by the government. For Bole Lemi - II and Qilinto industrial zone developments, the government is in the process of design selection with the support of the World Bank financing and technical advice. Two additional industrial zones, the Eastern Industrial Zone and George Shoe Factory, are developed by Chinese and Taiwanese private businesses. There is also plan to develop industrial zones in Dire Dawa and Hawasa. Limits on Foreign Control Ethiopiarsquos investment code prohibits foreign investment in banking, insurance, and financial services. The remaining state-owned sectors include telecommunications, power transmission and distribution, and postal services with the exception of courier services. Manufacturing of weapons and ammunition can only be undertaken as joint ventures with the government. Other areas of investment reserved for Ethiopian nationals include: broadcasting air transport services travel agency services, forwarding and shipping agencies retail trade and brokerage wholesale trade (excluding supply of petroleum and its by-products as well as wholesale by foreign investors of their locally-produced products) most import trade capital goods rentals export trade of raw coffee, khat, oilseeds, pulses, hides and skins bought from the market live sheep, goats, and cattle not raised or fattened by the investor construction companies excluding those designated as grade 1 tanning of hides and skins up to crust level hotels (excluding star-designated hotels) restaurants and bars (excluding international and specialized restaurants) trade auxiliary and ticket selling services transport services bakery products and pastries for the domestic market grinding mills hair salons clothing workshops (except garment factories) building and vehicle maintenance saw milling and timber production custom clearance services museums, theaters and cinema hall operations and printing industries. However, the government of Ethiopia has indicated an interest in bringing foreign private sector expertise to some of the above sectors. Ethiopian-Americans can obtain a local resident card from the Ministry of Foreign Affairs that allows them to invest in many sectors closed to foreigners. Foreign firms can supply goods and services to Ethiopian firms in the closed sectors. The government continues to implement its privatization program for some government-owned entities, which were largely nationalized by the Derg military regime in the 1970s. The current government39s position is that property seized lawfully by the Derg (i. e. by court order or government proclamation published in the official gazette) remains the property of the state. Nearly all tenders issued by the Ethiopian government39s Privatization and Public Enterprises Supervising Agency (PPESA) are open to foreign participation. In some instances, the government prefers to engage in joint ventures with private companies rather than sell an entire entity. The government has sold 370 public enterprises since 1995. Most of these enterprises were small companies in the trade and service sectors. The agency privatized three enterprises in 2014 and currently around 27 public enterprises remain under PPESA control. With the exception of the restricted areas of investments, the regulations governing the investment registration policy is consistently referenced for foreign investors. While investors have complained about different interpretations (particularly relating to accounting for in-kind investments) from the EIC. foreign investors generally do not face undue screening of FDI, unfavorable tax treatment, denial of licenses, discriminatory import or export policies, or inequitable tariff and non-tariff barriers. The EIC is working to establish an expedited one-stop shop service that it hopes will significantly cut the time and cost of acquiring investment and business licenses. However, bureaucratic hurdles continue to affect project implementation and some U. S. investors report that the EIC still lacks capacity to meet its own stringent deadlines. A business license can be obtained in one day if all requirements are met, though in practice this is uncommon. A foreign investor intending to buy an existing private enterprise or buy shares in an existing enterprise needs to obtain prior approval from the EIC. Currently, within the sectors allowing foreign investment, there are no laws restricting competition for foreign companies or foreign-owned subsidiaries. The EIC reviews investment transactions for compliance with FDI requirements and restrictions as outlined by the investment proclamation and amendments. However, companies have complained that state-owned enterprises receive favorable treatment in the government tender process. As the public sector is heavily involved in the economic development, this translates into a sizeable portion of the open tenders on the market. Ethiopiarsquos Trade Practice and Consumers Protection Authority (TPCPA), is accountable to the Ministry of Trade, and is tasked with promoting a competitive business environment by regulating anti-competitive, unethical, and unfair trade practices to enhance economic efficiency and social welfare. Some of the Commission39s powers include: investigating complaints by aggrieved parties compelling witnesses to appear and testify at hearings and searching the premises of accused parties. Since 2011, the TPCPA has conducted 15 workshops for over 5000 government and private sector attendees. However, since its inception, the TPCPA has been primarily focused on self-organization and administrative work, and had not conducted any significant enforcement activities as of January 2013. The Federal Trade Competition and Consumer Protection Appellate Tribunal which is formed under TPCPA saw 45 consumer protection and unfair trade cases in 201314. In addition the Authority is providing market information on some goods to the public using print and electronic media. Because of its consistent GDP growth of between 8 - 12 over the past 10 years, its population of over 90 million and its stable investment climate, Ethiopia is becoming an increasing priority for foreign investment and foreign companies. Investment trends show the following two key features: Equity investment terms are usually for 8 ndash 10 years with inputs being not only capital inflows, but also capacity building and knowledge transfer. Manufacturing companies are taking advantage of the special industrial zones, skilled labor and tax incentives for initial start-up imports and export-related expenditures. While foreign exchange shortages for import of inputs and logistic costs remain high both in actual cost and lead time requirements, most manufacturing companies still identify a cost advantage on the whole due to low power, labor and customs costs. Millennium Challenge Corporation Country Scorecard The Millennium Challenge Corporation, a U. S. Government entity charged with delivering development grants to countries that have demonstrated a commitment to reform, produced scorecards for countries with a per capita gross national income (GNI) or USD 4,125 or less. A list of countrieseconomies with MCC scorecards and links to those scorecards is available here: mcc. govpagesselectionscorecards. Details on each of the MCCrsquos indicators and a guide to reading the scorecards are available here: mcc. govpagesdocsdocreport-guide-to-the-indicators-and-the-selection-process-fy-2015 . 2. Conversion and Transfer Policies All foreign currency transactions must be approved by Ethiopia39s central bank, the National Bank of Ethiopia (NBE). The local currency (Birr) is not freely convertible. A 2004 NBE directive allows non-resident Ethiopians and non-resident foreign nationals of Ethiopian origin to establish and operate foreign currency accounts up to USD 50,000. Ethiopia39s Investment Proclamation allows all registered foreign investors, whether or not they receive incentives, to remit freely profits and dividends, principal and interest on foreign loans, and fees related to technology transfer. Foreign investors may also remit proceeds from the sale or liquidation of assets, from the transfer of shares or of partial ownership of an enterprise, and funds required for debt service or other international payments. The right of expatriate employees to remit their salaries is granted in accordance with NBE foreign exchange regulations. Forex reserves were heavily depleted during 2012 and still remain at low levels. By the end of FY14, the gross reserves are estimated at USD 2.8 billion, covering approximately 1.9 months of prospective imports. According to the IMF, heavy government infrastructure investment has fueled the need for forex for the associated imports. In addition, the forex reserve decrease is further exacerbated by weaker than expected exports of coffee, Ethiopiarsquos main export crop, a trend that had begun to reverse by mid-2014 and exports actually increased by 5.5 during the 20132014 fiscal year. Still, businesses usually expect delays of foreign exchange supply of 6 weeks to 3 months and slow-downs in manufacturing due to foreign exchange shortages are common. Delays of repatriation for high USD sales amounts of up to 2 years have been reported. Localization of inputs and partnering with export-oriented partners are strategies employed by the private sector to address the foreign exchange shortage. According to data from the National Bank of Ethiopia, the birr depreciated approximately 130 against the U. S. Dollar between November 2006 and January 2015, through a series of controlled step-downs, including 20 devaluation in September 2014. As of January 2015, the exchange rate was approximately 20.14 birr per dollar. The illegal parallel market exchange rate was approximately 22.80 per dollar in January 2015, a premium of 13.2 over the official rate. Ethiopiarsquos Financial Intelligence Unit monitors suspicious currency transfers, including large transactions exceeding 200,000 birr (roughly equivalent to U. S. reporting requirements for currency transfers exceeding USD 10,000). 3. Expropriation and Compensation Per Ethiopia39s 1996 Investment Proclamation and subsequent amendments, assets of a domestic investor or a foreign investor, enterprise or expansion cannot be nationalized wholly or partly, except when required by public interest and in compliance with the laws and with payment of adequate compensation. Such assets may not be seized, impounded, or disposed of except under a court order. The Derg military regime nationalized many properties in the 1970s. The current government39s position is that property seized lawfully by the Derg (i. e. by court order or government proclamation published in the official gazette) remains the property of the state. In most cases, property seized by oral order or other informal means is gradually being returned to lawful owners or their heirs through a lengthy bureaucratic process. Claimants are required to pay for improvements made by the government during the time of its control over the property. Ethiopia39s Privatization and Public Enterprises Supervising Agency (PPESA) stopped accepting requests from owners for return of these formerly expropriated properties in July 2008. Legal System, Specialized Courts, Judicial Independence, Judgments of Foreign Courts According to the Investment Proclamation, disputes arising out of foreign investment that involve a foreign investor or the state may be settled by means agreeable to both parties. A dispute that cannot be settled amicably may be submitted to a competent Ethiopian court or to international arbitration within the framework of any bilateral or multilateral agreement to which the government and the investor39s state of origin are contracting parties. The Ethiopian Commercial Code (Book V.) does outline Bankruptcy provisions and proceedings and references that the Ethiopian court system will have jurisdiction over bankruptcy filings and proceedings subject to international conventions. The primary purpose of the law is to protect creditors, equity shareholders and other contractors and bankruptcy is not criminalized according to the law. In practice, there is currently limited application of the bankruptcy procedures due to lack of knowledge of the procedures by the private sector. The 2015 World Bank Ease of Doing Business index sub-category 39Resolving Insolvency39 outlines some average expectations for insolvency proceedings in Ethiopia doingbusiness. orgdataexploreeconomiesethiopiaresolving-insolvency . Currently, there is no data to track investment dispute trends or patterns. While disputes can be resolved in international arbitration forums at the agreement of both parties, enforcement is contingent on the Ethiopian court system. Both foreign and domestic investors involved in disputes have expressed a lack of confidence in the judiciary to objectively assess and resolve disputes. Ethiopia39s judicial system is overburdened, poorly-staffed and inexperienced in commercial matters, although efforts are underway to strengthen its capacity. While property and contractual rights are recognized and there are commercial and bankruptcy laws, judges often lack understanding of commercial matters and case scheduling suffers from extended delays. The Addis Ababa Chamber of Commerce has an Arbitration Center dedicated to assist those with the arbitration process. There is no guarantee that the award of an international arbitral tribunal will be fully accepted and implemented by Ethiopian authorities. ICSID Convention and New York Convention Since 1965, Ethiopia has been a member state to the International Centre for Settlement of Disputes (ICSID Convention) but has not ratified the convention on The Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention). Duration of Dispute Resolution Due to an overloaded court system, dispute resolution can last between several months and several years. According to the World Bank, Ease of Doing Business report, the average for Enforcing Contracts is 530 days. 5. Performance Requirements and Investment Incentives Ethiopia is currently an observer of the World Trade Organization (WTO) wto. orgenglishthewtoeaccea1ethiopiae. htm and is in the process of developing its services offer and revising its goods offer. Ethiopia currently does maintain formal measures that are inconsistent with Trade Related Investment Measure requirements. Local and Foreign investors have asserted that informal priority for foreign exchange has been given to export-oriented businesses andor those that provide a higher local input content. The 2003 amendment to the Investment Proclamation outlines investment incentives for investors in specific areas. New investors engaged in manufacturing, agro-processing activities, or the production of certain agricultural products, who export at least 50 of their products or supply at least 75 of their product to an exporter as production inputs, are exempt from income tax for five years. An investor who exports less than 50 of his product or supplies his product only to the domestic market is income tax exempt for two years. Investors who expand or upgrade existing enterprises and export at least 50 of their output or increase production by 25 are eligible for income tax exemption for two years. An investor who invests in the developing regions of Gambella, Benishangul Gumuz, South Omo, Afar or Somali Region will be eligible for an additional one-year income tax exemption. An investor who exports hides and skins after processing only up to crust level will not be entitled to the income tax incentive. Research and Development The Ethiopian government does encourage technology and knowledge transfer to further develop the Ethiopian workforce via corporate-financed corporate social responsibility programs andor training programs incorporated into investment proposals. Currently, there are no government financed research and development programs however. Ethiopia does not formally impose performance requirements on foreign investors. There is currently no forced localization or data storage requirements for private investors. However, in the case of joint ventures with SOE39s, investors have reported requirements of up to 30 domestic content in goods andor technology. 6. Right to Private Ownership and Establishment Both foreign and domestic private entities have the right to establish, acquire, own and dispose of most forms of business enterprises. There is no right of private ownership of land. All land is owned by the state and can be leased for up to 99 years. Small scale rural landholders have an indefinite period of use rights, but cannot lease out whole holding for a longer period of time, except in Amhara Region. In November 2011, the government enacted a controversial urban land lease proclamation that allows the government to determine the value of land in transfers of leasehold rights, in an attempt to curb speculation by investors. 7. Protection of Property Rights Secured interests in property are protected and enforced, although all land ownership remains in the hands of the state with use rights to landholders. Certain residents have been relocated (and usually compensated for properties on land) when the government decides that the land they are living on should be used for a road or other public use. Land leasehold regulations vary in form and practice by region. As land is a public property, the law doesnrsquot allow mortgaging land. Intellectual Property Rights Ethiopia has yet to sign a number of major international intellectual property rights (IPR) treaties, such as: the Paris Convention for the Protection of Industrial Property the World Intellectual Property Organization (WIPO) copyright treaty the Berne Convention for Literary and Artistic Works the Madrid System for the International Registration of Marks and the Patent Cooperation Treaty. The GOE has expressed its intention to accede to the Berne convention and Madrid protocol by 2015. The Ethiopian Intellectual Property Rights Office (EIPO) has been tasked primarily to protect Ethiopian copyrighted materials and pirated software. Generally, EIPO has weak capacity in terms of manpower and none in terms of law enforcement. In addition, a number of businesses, particularly in the tourism and service industries, operate in Ethiopia freely using well-known trademarked names or symbols without permission. The government does not publicly track counterfeit goods seizures, and no estimates are available. Resources for Rights Holders The Ethiopian Intellectual Property Office (EIPO) oversees the administration and advises on IPR issues. Contact and office information is available at eipo. gov. et For additional information about treaty obligations and points of contact at local IP offices, please see WIPOrsquos country profiles at wipo. intdirectoryen . Embassy POC: Economic Officer, Helena Schrader, SchraderHPstate. gov 8. Transparency of the Regulatory System Ethiopia39s regulatory system is generally considered fair, though there are instances in which burdensome regulatory or licensing requirements have prevented the local sale of U. S. exports, particularly health-related products. Investment decisions can involve multiple government ministries lengthening the registration and investment process. In 2011, the central bank issued a directive for all banks and insurance companies to adhere to International Financial Reporting Standards (IFRS). Foreign investors have complained about the abrupt cancellation of some government tenders, a perception of favoritism toward vendors who provide concessional financing, and a general lack of transparency in the procurement system. In September 2009, the government established a new public procurement and property administration agency. This agency is an autonomous government organ, has its own judicial arm, and is accountable to the Ministry of Finance and Economic Development. Ethiopia is a member of UNCTADrsquos international network of transparent investment procedures ethiopia. eregulations. org. Foreign and national investors can find detailed information on administrative procedures applicable to investment and income generating operations including the number of steps, name and contact details of the entities and persons in charge of procedures, required documents and conditions, costs, processing time and legal bases justifying the procedures. 9. Efficient Capital Markets and Portfolio Investment Access to finance is an impediment to increased Ethiopian domestic private investment. While credit is available to investors on market terms, a 100 collateral requirement limits the ability of some investors to take advantage of business opportunities. Additionally, an April 2011 measure forcing non-government banks to invest the equivalent of 27 of each loan made in National Bank of Ethiopia (NBE) bonds has contributed to liquidity shortages that have reduced the ability of banks to lend to the private sector. Ethiopia currently has nineteen banks--three state-owned, and sixteen privately-owned. In September 2011, the NBE raised the minimum paid up capital required to establish a new bank from Birr 75 million to 500 million which effectively stopped the entry of most new banks into the market. Foreign banks are not permitted to provide financial services in Ethiopia. The state-owned Commercial Bank of Ethiopia mobilized 65.1 of the total bank deposits and provided more than 50.4 of total bank loans in the fiscal year 201213. Ethiopia does not have a securities market, and salespurchases of debt are heavily regulated. The GOE is drafting legislation to regulate the over-the-counter market for private share companies. In addition, Moodyrsquos rated Ethiopiarsquos credit worthiness a lsquoBrsquo, while SampP and Fitch gave it a lsquoBrsquo. The NBE controls the bank minimum deposit rate, which now stands at 5, while loan interest rates are allowed to float. Real interest rates have been negative in recent years mainly due to high inflation. The government offers a limited number of 28 days, 3-month, and 6-month Treasury bills, but prohibits the interest rate from exceeding the bank deposit rate. The government began to offer a one year Treasury bill in November 2011. The yields on these T-bills are below 2. This market remains unattractive to the private sector and over 95 of the T-bills are held by the state-owned Commercial Bank of Ethiopia and public enterprises. The Ethiopia Commodity Exchange (ECX), launched in 2008, trades commodities such as coffee, sesame seeds, maize, wheat, and haricot beans. The GOE launched ECX to increase transparency in commodity pricing, alleviate food shortages, and encourage the commercialization of agriculture. However, critics allege that ECX policies and pricing structures are inefficient compared to direct sales at prevailing international rates. Money and Banking System, Hostile Takeovers Ethiopia currently has nineteen banks--three state-owned, and sixteen privately-owned. In September 2011, the NBE raised the minimum paid up capital required to establish a new bank from Birr 75 million to 500 million which effectively stopped the entry of most new banks into the market. Foreign banks are not permitted to provide financial services in Ethiopia. Based on the most recently available data, the state-owned Commercial Bank of Ethiopia typically mobilizes about two-thirds of total bank deposits and half of total bank loans. Ethiopia does not have a securities market, and salespurchases of debt are heavily regulated. The GOE is drafting legislation to regulate the over-the-counter market for private share companies. In addition, Moodyrsquos rated Ethiopiarsquos credit worthiness a B, while SampP and Fitch gave it a B. The NBE controls the bank minimum deposit rate, which now stands at 5, while loan interest rates are allowed to float. Real interest rates have been negative in recent years mainly due to high inflation. The government offers a limited number of 28 days, 3-month, and 6-month Treasury bills, but prohibits the interest rate from exceeding the bank deposit rate. The government began to offer a one year Treasury bill in November 2011. The yields on these T-bills are below 2. This market remains unattractive to the private sector and over 95 of the T-bills are held by the state-owned Commercial Bank of Ethiopia and public enterprises. Currently, there are no restrictions for foreigners to own a local bank account. 10. Competition from State-Owned Enterprises State-owned enterprises and ruling party-owned entities dominate major sectors of the economy. There is state monopoly or state dominance in sectors such as telecommunications, power, banking, insurance, air transport, shipping, and sugar. Ruling party-affiliated endowment companies have a strong presence in the ground transport, fertilizer, and textile sectors. Both state-owned enterprises and endowment companies dominate the cement sector. State-owned enterprises have considerable advantages over private firms, particularly in the realm of Ethiopia39s regulatory and bureaucratic environment, including ease of access to credit and speedier customs clearance. Local business owners as well as foreign investors complain of the lack of a level playing field when it comes to state-owned and party-owned businesses. While there are no conclusive reports of credit preference for these entities, there are indications that they receive incentives such as priority foreign exchange allocation, preferences in government tenders, and marketing assistance. Ethiopia publishes aggregate financial data of state-owned enterprises, but detailed information is not included in the national budget, and few state-owned enterprises outside of Ethiopian Airlines publicly release detailed financial statements. In 2010, the Ethiopian government corporatized state-owned enterprise Ethiopian Telecommunications Corporation (ETC) by turning over its management to France-Telecom per a two-year contract. As part of this process, a new company, Ethio Telecom (ET), was formed to replace ETC. In January 2013, France-Telecom handed back the management of Ethio Telecom after completion of the contract. Similar to the corporatization of ETC, a tender for the management of Ethiopian Electric Power Company (EEPCO) was advertised in 2011. After splitting the power corporation into two entities, the management contract of the Ethiopian Electric Utility has been given to an Indian company for two years contract beginning December 2013. The Public-Private Dialogue Forum (PPDF), a joint consultative forum between the private sector and the government, has held six workshops to date focusing on various business issues such as company registration, business licensing, legal structures, access to finance, procurement, manufacturing, and protecting property rights. The private sector was represented by the Ethiopian Chamber of Commerce and Sectorial Associations (ECCSA) and the government by the Ministry of Trade (MOT). Additionally, Prime Minister Hailemariam Desalegn, together with the full Council of Ministers, meets with representatives of the private sector annually to discuss their commercial concerns. Nearly all tenders issued by the Ethiopian government39s Privatization and Public Enterprises Supervising Agency (PPESA) are open to foreign participation. In some instances, the government prefers to engage in joint ventures with private companies rather than sell an entire entity. The government has sold over 300 public enterprises since 1994. Most of these enterprises were small enterprises in the trade and service sectors. The agency privatized 3 Enterprises in 2014 and currently around 27 public enterprises remain under PPESA control. OECD Guidelines on Corporate Governance of SOEs Currently, Ethiopia is not a member to the Organization for Economic Cooperation and Development (OECD). They also do not adhere to the guidelines on corporate governance of SOEs. Corporate governance of state-owned enterprises is structured and monitored by a board of directors composed of senior government officials and politically-affiliated individuals. Sovereign Wealth Funds Ethiopia has no Sovereign Wealth Funds. 11. Corporate Social Responsibility Some larger international companies have introduced corporate social responsibility (CSR) programs however, most local companies do not practice CSR. There is a movement to develop CSR programs by the Ministry of Industry in collaboration with the World Bank, U. S. Agency for International Development, and others. CSR programs supporting workforce capacity-building and services, community-building and infrastructure investment programs by foreign corporation can serve to further align company objectives with the government of Ethiopiarsquos overall GTP development goals. OECD Guidelines for Multinational Enterprises The host government does encourage CSR programs for both local and foreign direct investors but does not maintain specific guidelines for these programs. In early 2015, the Ethiopian Chamber of Commerce amp Sectorial Associations published a 39Model Code of Ethics for Ethiopian Businessesrsquo that was endorsed by the GOE39s President Mulatu Teshomme as the model for the business community. Ethiopia has been relatively stable and secure for investors. Insurgents operating in parts of the Somali Region of Ethiopia have warned investors against exploring for oil or natural gas resources in this area. Some elements of the outlawed Ogaden National Liberation Front continue to operate in parts of the Somali Region and there are reports of sporadic clashes with security forces. Beginning in 2008, the government enacted a series of laws that effectively constrained opposition parties, the media, and civil society. The Ethiopian Peoplersquos Revolutionary Democratic Front (EPRDF), which is the ruling party coalition, and its allied parties subsequently took close to 90 percent of the popular vote and won 545 out of 547 parliamentary seats in the 2010 national elections, which were judged to have lacked a level playing field. Regional-level elections (including for seats in the Addis Ababa and Dire Dawa city councils) were held in 2013 and national parliamentary elections are scheduled in May 2015. In 2009, the Ethiopian government passed the Anti-terrorism Proclamation (ATP), granting executive branch-controlled security services virtually unlimited authority to take unilateral action to disrupt suspected terrorist activities. Terrorist activities are broadly defined in the legislation. The law has been cited in the convictions of twelve Ethiopian journalists, political opposition leaders, and activists, and an Ethiopian employee of the UN. Two Swedish journalists were found guilty of providing support for terrorists and illegally entering the country in 2011 and were sentenced to eleven years in prison, but received a pardon in September 2012. In the lead up to the May 2015 national elections, several opposition party leaders have been detained and charged under the ATP. Five European tourists were killed and two were kidnapped in January 2012 by the Afar Revolutionary Democratic Unit Front (ARDUF), an extremist group backed by Eritrea. In retaliation, the Ethiopian military made incursions into Eritrea in March 2012 targeting the ARDUF and the Eritrean military. An attack on a farm operated by Saudi Star Development in the Gambella Region in April 2013 left five people dead, and was blamed on the Gambella Nilotic Union. The Ethiopian government regards these incidents as terrorist attacks. In February 2012, the Ethiopian government announced that it had arrested al-Qaida operatives with links to Kenya, Sudan, the Philippines, Saudi Arabia, and South Africa in the Bale area of Oromia Region in December 2011. In October 2013, in Addis Ababa, two suspected al-Shabbab operatives died in an explosion described as a failed terrorist attack and were thought to have been targeting a crowded sports event occurring near the explosion. Isolated protests broke out on several university campuses in Ethiopiarsquos Oromia region in late April 2014, resulting in at least eleven deaths, following reports that a draft development plan for Addis Ababa would expand the capitalrsquos territory into the Oromia region. Ethnic conflict, including among university students, occurs at times and occasionally becomes violent. The campaign season in the run-up to the May 2015 general parliamentary elections has been generally peaceful. Although there have been some small-scale clashes between protestors and security officials and, generally, when opposition parties proceed with unauthorized protests, they usually resulted in minor injuries and temporary detentions. Ethiopia ratified the United Nations (UN) Anticorruption Convention in 2007. The UN Investment Guide to Ethiopia (2004) asserted that routine bureaucratic corruption is virtually nonexistent in Ethiopia. The guide added that bureaucratic delays certainly exist, but are not devices by which officials seek bribes. It is a criminal offense to give or receive bribes, and bribes are not tax deductible. Transparency Internationalrsquos 2014 Corruption Perceptions Index, which measures perceived levels of public sector corruption, ranked Ethiopia as 33 (with 0 indicating highly corrupt and 100 indicating very clean). Ethiopia39s rank on the corruption perception index was 110 out of 175 countries in 2014 and 111 out of 175 rated countries in 2013. The Ministry of Justice and the Federal Ethics and Anti-Corruption Commission (FEACC) are charged with combating corruption. Since its establishment, the Commission has arrested dozens of officials on charges of corruption, including managers of the Privatization Agency, Ethiopian Telecommunications Corporation, National Bank of Ethiopia, Ethiopian Geological Survey, the state-owned Commercial Bank of Ethiopia, Ethiopian Revenue and Customs Authority, and private businessmen. UN Anticorruption Convention, OECD Convention on Combatting Bribery In 2003, Ethiopia signed the UN Anticorruption Convention which was later ratified in November 2007. Ethiopia is currently not party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Resources to Report Corruption The Ministry of Justice has primary responsibility for combating corruption, largely through the Federal Ethics and Anticorruption Commission (FEACC) that handles reports of corruption feac. gov. et. 14. Bilateral Investment Agreements Ethiopia has bilateral investment and protection agreements with China, Denmark, Italy, Kuwait, Malaysia, Netherlands, Russia, Sudan, Switzerland, Tunisia, Turkey, Yemen, Spain, Algeria, Austria, UK, BelgiumLuxemburg, Libya, Egypt, Germany, Finland, India, and Equatorial Guinea and a protection of investment and property acquisition agreement with Djibouti. A Treaty of Amity and Economic Relations, which entered into force in 1953, governs economic and consular relations with the United States. Ethiopia also has avoidance of double taxation treaties with fourteen countries, including Italy, Kuwait, Romania, Russia, Tunisia, Yemen, Israel, South Africa, Sudan and the UK. Bilateral Taxation Treaties There is no avoidance of double taxation treaty between the United States and Ethiopia. 15. OPIC and Other Investment Insurance Programs The Overseas Private Investment Corporation (OPIC) has offered risk insurance and loans to U. S. investors in Ethiopia in the past. In past years, it has not originated any investment in Ethiopia however, recently, has begun to initial reviews for qualifying investment opportunities. Approximately 85 of Ethiopia39s 90 million people work in agriculture. The Ethiopian government is the most important sector of employment outside of agriculture. According to the Central Statistical Agencyrsquos urban employment and unemployment survey results, urban unemployment was estimated to be 17.5 as of 2012. (24.9 of people between the ages of 15-24 are unemployed.) Ethiopia has ratified all eight core ILO conventions. The Ethiopian Penal Code outlaws work specified as hazardous by ILO conventions. The Ethiopian Parliament ratified ILO Convention 182 on the Worst Forms of Child Labor in May 2003. The U. S. Government produces an annual report on labor conditions in Ethiopia, including an assessment of child labor. The constitution and law provide workers, except for civil servants and certain categories of workers primarily in the public sector, with the right to form and join unions, conduct legal strikes, and bargain collectively. Other laws and regulations that explicitly or potentially infringe upon workersrsquo rights to associate freely and to organize include the CSO law, Council of Ministers Regulation No. 1682009 on Charities and Societies to reinforce the CSO law, and Proclamation No. 6522009 on Antiterrorism. Such laws and detailed requirements make legal strike actions difficult to carry out. In practice, labor strikes are rare. Labor unions, organized under the umbrella Confederation of Ethiopian Trade Unions (CETU), are formed as enterprise-based units and not around specific sectors. There is no formal requirement for unions to join the CETU, however. Child labor is widespread in Ethiopia, and the Ethiopian Government in collaboration with the international community has established programs to combat the worst forms of child labor, particularly in the southern regions. While not a pressing issue in the formal economy, child labor is common in rural agrarian areas and the informal economy in urban areas. Ethiopian traditional woven textiles are included on the U. S. government39s Executive Order 13126 list of goods that have been known to be produced by forced or indentured child labor. Both NGO and Ethiopian government sources concluded that goods produced (in the agricultural sector and traditional weaving industry in particular) via child labor are largely intended for domestic consumption, and not slated for export. Employers are statutorily prohibited from hiring children under the age of 14. In 2013, Ethiopia produced a list of Activities Prohibited for Young Workers and launched its National Action Plan (NAP) on the Elimination of the Worst Forms of Child Labor. The laws defining what sectors may hire young workers, defined as workers aged 14 to 18, are infrequently enforced due to the lack of capacity of labor inspectors within the country. Labor remains readily available and inexpensive in Ethiopia. Skilled manpower, however, is scarce in many fields. Approximately 60 of Ethiopians over the age of 15 are illiterate (defined by UNESCO as ldquoinability to identify, understand, interpret, create, communicate and compute, using printed and written materials associated with varying contextsrdquo). There is no national minimum wage standard. To increase the skilled labor force, the government of Ethiopia has undertaken a rapid expansion of the university system in the last 8 years, increasing the number of higher education institution from one to 33. It has also adopted an education policy that 70 of the annual student intake in Public Universities must focus on science, engineering and technology. 17. Foreign Trade ZonesFree PortsTrade Facilitation There are no areas designated as foreign trade zones andor free ports in Ethiopia. Because of the 1998-2000 Ethiopian-Eritrean war, Ethiopian exports and imports through the Eritrean port of Assab are prohibited. As a result, Ethiopia conducts almost all of its trade through the port of Djibouti with some trade via the Somaliland port of Berbera and Sudan39s Port Sudan. Despite Ethiopia39s efforts to clamp down on small-scale trade of contraband, unregulated exports of coffee, live animals, khat (a mildly narcotic amphetamine-like leaf), fruit and vegetables, and imports of cigarettes, alcohol, textiles, electronics and other consumer goods continues. 18. Foreign Direct Investment and Foreign Portfolio Investment Statistics Table 2: Key Macroeconomic Data, U. S. FDI in Host CountryEconomy Source: Ethiopian Investment Commission Table 4: Sources of Portfolio Investment Currently, data regarding the equitydebt breakdown of portfolio investment assets is not available for Ethiopia via the IMF39s Coordinated Portfolio Investment Survey (CPIS) and is not available for external publication by the GOE. 19. Contact for More Information Addis Ababa Economic Section: EthiopiaInvestmentClimatestate. gov U. S. Embassy main number is 251 011 130 6000. Senior Foreign Commercial Service Officer, Tanya Cole, Tanya. Coletrade. gov Economic Officer, Helena Schrader, SchraderHPstate. gov Trade and Investment Specialist, Abdulkader Hussen, HussenAMstate. gov
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