Ethiopian Investment Commission (EIC) is an autonomous government institution established in 1992 to promote private investment, primarily foreign direct investment.

The overall activities of the Commission are supervised and followed up by an Investment Board, which is chaired by the Prime Minister. The EIC is headed by a commissioner who is also a member of the Board.

The EIC has restructured itself recently with a view to becoming more effective at attracting FDI and improving the services provided to investors.

The main services provided by EIC include:

• Promoting the country’s investment opportunities and conditions, especially to foreign investors.
• Issuing investment permits, business licenses and construction permits.
• Notarizing memorandum and articles of association and amendments.
• Issuing commercial registration certificates as well as renewals, amendments, replacements, or cancellations.
• Effecting registration of trade or firm name and amendment, as well as replacements or cancellations.
• Issuing work permits, including renewals, replacements, suspensions, or cancellations.
• Grading first grade construction contractors.
• Registering technology transfer agreements and export-oriented non-equity-based foreign enterprise collaborations with domestic investors.
• Negotiating and, upon government approval, signing bilateral investment promotion and protection treaties with other countries; and
• Advising the government on policy measures needed to create an attractive investment climate for investors.

In addition, the EIC provides the following free, confidential, and customized services to investors:

• Provision, through our website, various publications, or through direct response to investor’s inquiries, of information on sector-specific business opportunities, business incorporation procedures and related regulations, employment regulations.
• Handholding and supporting the investor during the acquisition of land and utilities (water, electrical power, and telecom services); the processing of loans and residence permit applications; and the issuance of a tax identification number (TIN).

Visit the one-stop ‘Ethiopian Investment Commission Online Portal’ https://www.invest-ethiopia.com for applying for business licenses, investment permits, investment license expansion, tax holiday incentive, duty free incentive and many more services.

Why invest in Ethiopia?

Ethiopia has now become a preferred destination for foreign direct investment in Africa. Agro-processing sector accounts for about half of Ethiopia’s GDP, more than 80% of its export revenue, and 85% of its jobs.    

The government has put in place integrated agro industrial parks (IAIPs) which are regional agro-processing zones developed to attract investment and accelerate the growth of agro-processing sector. These parks employ a holistic approach for input supply, on-farm production, backward market linkage and raw material sourcing to ensure sustainability and efficiency.

Ethiopia is a Federal Democratic Republic with ten regional states and two city administrations. With an estimated population of 115 million, the nation is the second most populous country in Africa. It is also one of the continent’s fastest growing economies.

Ethiopia’s vast land, favourable climate, and water and land resources combine to make it an incredible hub for investment. Located in the horn of Africa, Ethiopia is at the crossroads between Africa, the Middle East, and Europe. Within easy reach of the Horn’s major ports, Ethiopia is close to its traditional markets for export products – the Middle East and Europe.

This geographical proximity provides major exporters in the world unparalleled access to the Ethiopian market for sugarcane, horticulture, floriculture, forestry (including rubber tree plantation, fibre crops (cotton, jute), animal husbandry, etc.

The total land area coverage is about 111.5 million ha, of which 74.3 million ha is suitable for agriculture. Eighteen major agro-ecological zones have been identified in the country, and over 3 million ha land has been made available for investment. Ethiopia offers one of the largest and most diverse agricultural investment opportunities on the continent.

Top reasons for investing in Ethiopia’s Integrated Agro-Industrial Parks (IAIPs)

1. Ethiopia has huge investment potentials in the agro-industry sector.
2. Stable and conducive macroeconomic environment and a fast growing economy.
3. The Government of Ethiopia provides broad-based support to investors.
4. Over 54 million active labour force, trainable and available at competitive age.
5. Strategic location with proximity in the Middle East, Europe and Asia.
6. Well-developed infrastructure such as Ethio-Djibouti electric powered railway and road networks.
7. Ethiopia is a continental and global leader in the production of a variety of raw materials needed for processing.
8. 5th largest producer of tropical fruits in Africa.
9. 6th leading producer of livestock population globally.
10. Wide-ranging incentive package for priority sectors including agro-industry investment area.
11. Relatively low energy, water and land costs.  
12. Bilateral investment treaties (BITs) and double taxation treaties (DTTs) with a number of countries.
13. Everything but Arms Agreement (EBA) with the European Union.
14. Member of Common Market for Eastern and Southern Africa (COMESA) with preferential market access to a regional market of 400 million people.
15. Ethiopia is a member of ACFTA (African Continental Free Trade Area) which is very beneficial for investors in terms of trade activities within African continent.