Overall ease of doing business:

The 2016 World Bank Index on the Ease of Doing Business ranks Ethiopia to be the 146th out of a possible 189 economies[1].

The Ministry of Industry through the Food and pharmaceutical Industry Development Institute, the Ethiopian Investment Commission and the Ministry of Health; in conjunction with the Ministry of Foreign Affairs and Overseas Diplomatic Missions though the Industrial Parks Development Corporation provide foreign investors one-stop shop services supporting their investment in Ethiopia, including 28 licensing and registration services rendered to investors in relatively short time frames, approval of duty free importation of capital goods for investors investing in the manufacturing subsector, assisting investors to acquire land, utilities, residence permit, etc.

    1)  A foreign investor can undertake investment, either as a sole proprietor; or jointly with domestic investors.

    2)  Capital requirement for foreign investors (As a sole proprietor):

           a)  USD 200,000 for a single and wholly foreign owned investment

           b)  USD 100,000 per project in areas of engineering, architecture, accounting & audit services, project studies, consultancy services

    3)  Capital requirement for investment in partnership with domestic investors:

           a)  USD 150,000 per project

           b)  USD 50,000 in areas of engineering, architecture, accounting & audit services, project studies, consultancy services

    4)  No capital requirement for an investor who reinvests his profits or dividends generating from the existing enterprise.

    5)  Land is leased out by the government.

    6)  Repatriation and remittances are granted to foreign investors to be made in convertible foreign currency at the prevailing exchange rate on the date of remittance[2].

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[1] http://www.doingbusiness.org/data/exploreeconomies/ethiopia/

[2] Health Sector Development Programme IV 2010/11 – 2014/15(Final Draft), Ministry of Health, Federal Democratic Republic of Ethiopia, October 2010, p.4.