Investment (Amendment) Proclamation No. 849/2014

f h.+V-A- .f t.�t.'\'f Jl'l°ht.c\J''f tT.Ut\h d..'-./r.l\ �.:J&T .:JrL"I F�DERAL NEGARIT GAZETTE · OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA' · '"la>-� CONTENTS h'P� cil1'C if!7fi/liti 'J.9° Proclamation No. 849/2014 Investment(Amendment) Proclamation ......... fh.'Ji1/l-l•t10'),}• /"'17i7if/ h'P� ........................1,r iiUD ••••••••••••••••••••••••• •••••••••••••••••••• ••••••• Page 7450 h'P)!. -k'l'C :f,D/fili PROCLAMATION No. 849/2014 A PROCLAMATION TO AMEND THE rh.1nta+t101+ h'P�1 ll"'l?i?iA fa>"I bfg INVESTMENT PROCLAMATION /lfin.'Hill•)•oo'}·r fa>"lo>-'J n'P1: +.'l'C WHEREAS it has become necessary to amend the Investment Proclamation No 769/2012; i,�·fi!t'ir.9. "'11i7it\ nilt..1\1. lf'.0 00011,1: i NOW, THEREFORE, in accordance nn.·l·r-A-J' &ul.6-1\'l! �.'l°h6-ll..f'l! �T1lt\.h with Article 55(1) of the Constitution of the m1 oo'J'1t»·r n'Jcf>�· :lt(li) oowt..:t· ftnt.h·t'fia>- Federal Democratic Republic of Ethiopia, it is hereby ·proclaimed as follows: n�C C6il 1. Short Title .. .eu n'P1: "fn.·>1111,l-�1-l.. ("'17i7i!) n'P� This Proclamation may be cited as the +.'l'C :r,fl/lili" +111r t\.m+il .e"fl\A:: "Investment (Amendment) Proclamation No. 849/2014". "'l?i?if 2. Amendment f n.'11ill·)·oo·J .-}· n'P'1: cf?'l'C 1,f�iil!OUi The Investment Proclamation No. 769/2012 n')1."'1.h·l'fiffl' ·t·7i7i')..A :- is hereby amended as follows: ?i/ f1,'P1; n'J+� I 10--il 1,·>+1(':f· (I!l): I/ sub-articles ( 14), ( 15) and ( 17) of Article (I�) n'i (It) ,,-.wct1a>- 0'"1.h·t'�·l· 2 of the Proclamation are deleted and 1,P,.11 ·>0-11 n'Jcf>1(":f (Ii!P (Ili) n'i replaced by the following new sub­ articles (14), (15) and (17):. (!I) ,,.,,.h,f''f>A:- l..f.lr/1\ ).:>&.:'f- .:>n.n1 411'C JI mV"I\.. 1� +1 llU 'J.r Federal -Negiiiit Gaz.ette No. 52 22nd July, 2014 .... page 7451 "...... -Uj _/ "J.4/'Commission' means the Ethiopian n,,). �'Hl fDYt.**'I° fn.rf-Wf Investment Commission to be established by regulation of the n.'}i'ill·'roo'},}• J10Yf.7i"> 'IOJ· ! Council of Ministers; 'n. ·),i{lr)•oo'}•'r nc 1:' "'111-l.. 15 /'Investment Board' means the Ethiopian O"'I. '1.h,).. c»r 9°hC O.·)· �'Hl Investment Board to be established by f"t**'I° fn.·l·r-w f n.'Hiil·'roo1:,.. regulation of the Council of Ministers; flCY: ',(I)·! 'fn.1�h·l·t l\"'IT <l>mt;' "'IIIT 17 / 'industrial development zone' means an r n.·>�h,)·t 'h�·1·l··>: . rnti'ln� area with distinct boundary designated by flh/1·}· ,,..t)'i oo+'lh'} 'he; fh·t-'l°r the appropriate org� · to develop 'hY:7T'} O},c},Y:'i" flP'C'l-l· identical, similar or interrelated industries rnor�-l· qo.e,·'r 'lt\"'IJD:Y.'> r.rtt together or to develop multifaceted lf'r" 'he}> 1:·> oowl,)· n1:c1 'h'>� industries, based on a planned fulfillment oo·n,:: fn.t\h·'rth ')f,(.\: (1)-'/t; of infrastructures and various services fooc'H\/1- nilt..1\1. UolPl,,.. t!\"'1-f.rt; · such as road, electric power and water, f·f /If� n7A a,f\o.Y.1· ·t-°l ,f-(J)-/1:,,. {!\ and having special incentive schemes, 'ht; (.\� r"'lnl:r� 0:,,1: cre·r =. with a broad view to achieving, planned n'}j.>: 'lf,'r} (l)f,'/° ,J-ool\l\f, OJf,'I° and systematic, development of •t-oo;; ;Jfl . .,,.,. ft\r(l)- industries, .mitigation of the. impacts of n:}�h-l·tJDr'} nh11h11 ll"'IA"'l·l . environmental pollution and development 01.e,r· 1r11111 n:>�h:,..tp,"f·> of urban cep.ters, and includes special ll"'lt!\"'I·)· f"t�*?° Y:'}flC economic zones, industrial parks, f·t-o:e:11-l- na,'111 fl/1(1)- ntit!\ technology parks, export processing . f,,..(lfoo f,,..(1)(1', n:r (\lf'} {!\·� . zones, free trade zones and the likes fn.Jl'r"t +Mt;'}: fh'>�hTt designated by the Investment Board;" ;I'Ch'}: f1;hc;>"°�· ;I'Ch'}: f n.hhTc:,.. "'l<l>'l'lfltf +m'i"'> = a,q f'}a,J,>: +mt;'} 'ht; On.")1ih-roo'}T .. flCJ.>:

11i Z7Uif!ll I..U,,I\ �;,t+ ;,,a.n1 •1'r. YI t1>r11. XF. +l Ill.I ,.,. Federal Negarit Gazette No. S2 22nd July, 2014 .... page 74S2 II fln'P,; m-,vr O"'l<;:fm-9" P�&- "h.t'Jf\" 2/ any reference to the "Agency" appearing r"'l.flm- hfOIJ. ,,-.wcti "'1"'1.?i'}" O"'l.flm- anywhere in the Proclamation is deleted ,,.,,.h;J:t,\:: and replaced by the "Commission" ; I:/ rn'P� tt·>+,t ii ,,.wcti 001/.h·,..flm- n.\h 31 Article 27 of the Proclamation is deleted n'}cJ»,t g"j .,-..,-.h:tA:- and replaced by the following new Article 27: "�-- p?,. "27.Investment Administration Organs The organs of investment rn:>fifl·}·oo'}•).. flC1:'} t '1"'1.?i�'} 'h<; administration shall comprise the OhAA m11· r01J.mt1� rhAA Investment Board, the Commission and n.'}fi(l,}•oo'}•}• ntJI\•)•'} fmJ»t,\l\t,\: :" regional investment organs to be defined by the laws of the respective regions." o/ rn'P� n'}cJ»,t fi'tl 10.ri n'}+l<"f (�) i (I) 'h<; 4/ sub-articles (5), (6) and (7) of Article 29 of (l) •f'tPCtt<D- O"'l.hrf-�T n.\fl '}(J.{l n'}cJ»l(°;f the Proclamation are deleted and replaced (�): (?;) n'i (l) rf'rf-h·f''Pt,\:- by the following new sub-articles (5), (6) and (7): "�/ te"'l.7i� 001/.flmo>· 0>·1\'L �c f·t-fl1- "5/ decide on appeals submitted to it by 'lt'\U1l.Y.1· fl"'l.f +CU. :f m- �°1'17/"1· I\� investors against decisions of the l,O>h<;t,\ ! Commission; 6/ where, necessary, authorize the granting ODLJJ(.T h"'I.LcJ»f..<J>- frf'(\f of new or additional incentives other rf'Q;l.01/& . rlf� 01/0l.;t-;f than what is provided for under the f,L�J4t,\! existing regulations; 7/ where necess.ary, and without prejudice � nhL"i If� f\1�c; o�v n'P� n1+,t i f,,.,.. �110>· h 'H�..,.mo+ lf'i. = "" m-h'l' 1c to the provisions of Article 6 of this Proclamation, authorize the opening of 'lt'\U 1l.Y.1· 11:f f•f'ht'\fr fP'&- ooflta:i:. investment areas for foreign investors, l\£D-6Jl» 'll\U1l.Y•l·9" h�·l" n1.\lf� otherwise exclusively reserved for �/,. � J4t,\::" domestic investors." I

1ft Z7iJiUr. 4fl.trA �.:.it•l- .:.itt."I •1'c !lit ,M"f\. Xf. +1 fitl 'i.9" Federal -Negarit Gazette No. 52 22 nd July, 2014 .... page 7453 '(;/ fn'P:( n')cf>?i" '!Jr ')O-il n')cf>>t (I) ·f'wctt --5/ sub-article (2) of Article 33 of the 001'.J.h·f'"(J)- n-'lil ')O-il n')cf>>t (I) -1'-f'h:l;A:.:. Proclamation is deleted and replaced by the following new sub-article (2): I "f!./ nttu n'P'f: n'>cf>>t i f·l'.f.'111())- "2/ Without prejudice to the provisions of 1,·>.e.-l'mn«1> tr'i fn:>�il:,· & cf>m<; AOT/·l· Article 6 of this Proclamation, fOT/.'1 '1..e.(1)- O&...e.t.A oo')°/ 1-»·l· a>?,'I° industrial zone development shall be nill/\'1, 'I� o,;roo'>fl·l· floo')°/1-»·l·<; fl°/A undertaken by the federal government 'l"U,fl·r n:,.·>'f:·l· a>?,'/° fl°/A 'l"U1l.Y.l· or, where deemed necessary, by joint ?, l.f''iA::" investment of the government and a private investor or by private investors." 11 r.n'P)t n'>cf>>t '!Jfi ''>O-il n'>cf>�".f (ii) 1,c; (ff) 6/ sub-articles (1) and (2) of Article 34 of the ,,-.wctt(J)- fl'"l.h·f'tr-r n.ctil ·10-il n'>cf>�1· (?i) Proclamation are deleted and replaced by "n<; (I) ,,-.,,-.h-f''Pl\:- the following new sub-articles (1) and (2): "�/ rn:Hiil·l·oo·>·l· nc,: rn.·>�il·l·& cf>m'iP''f "1/ The Investment Board shall oversee nil·l'�.e.c·>c; cf?'l''l'C1 00'\?,'l-r ?,out.A:: the administration and supervision of industrial development zones. 11 fn.1fiil-roo1-r nc,: nttu n'P'f:<; On'P:( 2/ The Investment Board shall, m OD IP l. :,. 001'.J. a>l1J(J)- .e,.'),fl (J)-il'f f,f'cf>OD� conformity with the procedures 1-»'l-1-»C«¼.Y.1,·> = ro.e.+. rn1&�·1 provided for under this Proclamation fn.1fiil-roo'),r tJ:,.Ar 1,<; il'l°'l°'I.Y.1· and regulations issued hereunder and flooh-f'A OT/'i':fa>·'I° fn.1�il-l·& .AOT/-l· the approved investment plans and cf>m<; 1''>�.m,o a>?,'I° "n'>.cto4. OT/1:l.°I�) agreements of the country, decide the· ?,mil<;A::" reduction or expansion of the boundaries of industrial development zones."

/ J...�M:\ 'l.:M•l- :>H."I 41'1'C :l!l m1"1\. U'; •n fi'i.l 'UI" Federal Negarit Gazette No. 52 22nd J�ly, 2014 .... page 7454 ?,/ fln'P� n'}cf>K" @q '}(r{l n'}cf>K" (r) oo'f.ootf 7/ The phrase "Where the recommendation 'lf, "Ott.u n'}crK" '}lrfl n'}cr�· (ft}r·f'ooflh1'0r specified under sub-article (2) of this Article is approved a leasehold land within fOJ·t\'1. 'I t\11 (\.��� Ot,:}�fl·l·t AO'C/1· or adjacent to industrial development crm<;P1l· (J)-fl"r nt\.11 r,,. ftt'} m.er ot,'Pt\� zones may be possessed by negotiation or n:r 1i.e r"'l:1�'} oo&.:r·" f"'i.fl<D- thl...,, ,,. wctt decision for the purpose of:" appearing at the beginning of sub-article (3) of Article "fn:}�fl·l·t A"'i·l. crm'i' }t'}�.m·fl m.er 34 of the Proclamation is deleted and h'}�(\� oo�l°I 011.u n'>+K"" '}Cri'I n'>+K"" (t) replaced by the new phrase "Where the ODlPl·), (\.a>(\'} Ot,.1�{},}·t A"'i·l· .,.ffi'1°(1)- reduction or expansion of the boundary of 0r{l"r Ot\.11 r·f'ftt'> m.er On'Pt\� n:r l\f, an industrial zone is decided pursuant to r"'i/1�·} oo�·l .. =" o"'i.A n�.fl thl...,, ·r·t-n:tA:: sub-article (2) of this Article, a leasehold land within or adjacent to industrial development zones.,. may be possessed by negotiation or decision for the purpose of:" 8/ sub-articles (2) and (3) of Article 35 of the ti fn'P� n'}.,.K" '!Ji '}Crfl n·>+K"" (�) }t<; (f:) Proclamation are deleted and replaced bv ·f'LJJCl1a>- O"'i.h·I. �·}· n�.fl '}(rfl n'}cf>jf:f· (ff) the following new sub-articles (2) and (3): }t<; (E) ·f'·,.h·t-'PA:- "2/ Measures concernmg designation, "1/ rn:}�{l·}·t Alff/·}· 4>m'1P11· flfl"'i.(\foo,fl,}.. allocation standard and boundary nlJJ�C: fl(\"'i.oo�{l·fl·}· . ·. ODP't.C-f•:r.: delimitation of industrial flt\�'}fl�:far nmt\(l''} = fl4'm'1P11· arfl"r development zones, the ri�hts and flt\"'i.lP"'it;. 'lf\U1l1'•:f 001):•},«; °/S!o;r.91:f: duties of investors engaged therein, hoo'}°/ P'T "'i°/1·), flt\"'i.?'Ff m- A� the services expected · from the n?A°/t\0.Y.:f nt.��'1°'1 f<J?"r"rC · nLP�C: government and supervision thereon, i'"'i.fh'i'<D-S: rm· °/'}'l;rf'J·:;. flfl"'i.t.�oo-.O·l·'i' execution ?f construction activities +."r"rC flfloY/.�l°l'lrm- u-'l.;r.91:f = mtu and supervision thereon, incentives n'P1: h"'i.f1�·l· n·t-6Q."'IC,-l· r.1toi(\�rm­ other than those granted under this Ol/Ol:r:rP1":f· 'h<; 011.U h�A a>·ll"r f� Proclamation and the �'} ;J1.P1-:,-. "} flOl/ flL 'A 'I° n flt.I\1. flfl lf � implementation of the provisions of "'i'i'rOJ·'I° 1-�f'-1· fllt.'Hlfl·l·oo·):,.. ncY: this Part, shall be determined .by O"'i.OJfff oooot,f .eroo'i' �:: directives of the Investment Board.

l...t./.·A �.:>�·l- ;,11.n1 <111'C: Yl .+.?"t\. .i:t; •n fit l •u•• Federal Negarit Gazette No. 52 22..i July, 2014 .... page 14SS r/ mtu h<i�t\ 1:·>;,1.P'l·c; mtu t,·>+� 'Jo-rt 3/ Without prejudice to exceptions made by h')'f'� (I) UDlPl.·)· 00f/.OJ'1}(& the provisions of this Part and fh:>rU1 ·)·UD'J·l· nc,: {TD{TDtf ,H..l\f directives of the Investment Board h'J.:l') f•,..UDl\h·�•)• '-').(•f'ffl04? lf'/CJJ­ issued pursuant to sub•article (2) of ftt.U h'P,: 1\,/rl· Y:');J1.P'l·<; . h'f>)t') this Article, other provisions of this l\fft/llL1''l°rmm· Y.')nl· Oh.'J�rt·}·t Proclamation and regulations issued t\tn/·}· +mc;P'l· l\f, ·t·L1-tn/. f,lfc;I\.. ::" hereunder shall be applicable to industrial development zones." tt'P��c;n+_ itt. 3. Effective Date ,l',U h'P:e:· Oto�t..t\ 'I ;Jt·}· ;Jtt."l ;J--·}·'1° This Proclamation shall enter into force on fim"lo·l· +·> :e:rc: r11c; Y,lfc;t\:: the date of publication in the Federal Negarit Gazette. Done at Addis Ababa, this 22nd day of July, 2014 AIC 00.f\,f: -ti'iOD MULATO TESHOME (DR.) rn.Tf-W f &o�&.f\'l! �'l°h&.ll.f'l! tT111\.h PRESIDENT OF THE FEDERAL 1�tt.&:1+ DEMOCRATIC REPUBLIC OF ETHIOPIA '