埃塞俄比亚投资指南

AN

INVESTMENT

GUIDE

TO

ETHIOPIAEthiopia:

Land

of

opportunitiesProposed

Pictures

(Industry

park,

Ethiopian

Coffee

&

Entoto

Park)Lelise

Neme,CommissionerDear

Esteemed

Investors:We

appreciate

your

interest

to

invest

in

Ethiopia!

We

are

committedto

become

a

reliable

partner

on

your

journey.Ethiopia

is

one

ofthe

emerging

and

promising

countries

in

east

Africa.The

countryoffers

many

investment

opportunities

in

various

sectors.The

aimofthecountryis

to

becomea

manufacturing

hub

for

Africa.The

GoE

has

a

high-level

commitment

and

dedication

forinvestment

promotion

and

protection.

The

government

has

alsoassigned

an

independent

organization,

Ethiopian

InvestmentCommission

(EIC),

solely

responsible

to

promote,

facilitate

andregulate

foreign

direct

investmentsin

thecountry.Therefore,

this

guide

is

designed

to

assist

investors

byproviding

basic

and

necessary

information

about

the

investmentenvironment

and

factors

regarding

business

and

investment.Mandates

of

Ethiopian

Investment

CommissionEthiopian

Investment

Commission

(EIC)

is

an

autonomousgovernment

institution

accountable

to

the

country’s

InvestmentBoard,

which

is

chaired

by

the

Prime

Minister.

A

Commissioner,whois

also

member

oftheBoard,

headstheEIC.TheEIC

hasrestructured

itself

recently

with

a

view

to

becomingmore

effective

at

attracting

FDI

and

improving

the

servicesprovidedto

investors.The

mainservicesprovided

byEIC

include:1AnInvestmentGuidetoEthiopia•

Promoting

the

country’s

investment

opportunities

andconditionstoforeign

and

domestic

investors.•

Issuinginvestmentpermits,businesslicensesandconstructionpermits.•

Notarizing

memorandum

and

articles

of

association

andamendments.•

Issuing

commercial

registration

certificates

as

well

asrenewals,

amendments,

replacements,

orcancellations.•

Effecting

registration

of

trade

or

firm

name

and

amendment,as

well

as

replacements

orcancellations.•

Issuing

work

permits,

including

renewals,

replacements,suspensions,

orcancellations.•

Registering

technology

transfer

agreements

and

export-oriented

non-equity-based

foreign

enterprise

collaborationswithdomestic

investors.•

Negotiating

and,

upon

government

approval,

signing

bilateralinvestment

promotion

and

protection

treaties

with

othercountries;

and•

Advising

the

government

on

policy

measures

needed

tocreate

an

attractive

investment

climate

for

investors.Inaddition,

the

EICprovides

the

following

free,

confidential,

andcustomizedservicesto

investors:•

Provision,

through

our

website,

various

publications,or

through

direct

response

to

investor’s

inquiries,

ofinformation

on

sector-specific

business

opportunities,business

incorporation

procedures

and

related

regulations,employment

regulations.•

Handholding

and

supporting

the

investor

during

theacquisition

of

land

and

utilities

(water,

electrical

power,

andtelecom

services);

the

processing

of

loans

and

residencepermit

applications;

and

the

issuance

of

a

tax

identificationnumber

(TIN).2AnInvestmentGuidetoEthiopiaCONTENTS5

Ethiopiaataglance7

Why

investinEthiopiaInvestmentOpportunitiesandPriority

Areas10IndustryParkDevelopment27Incentives32InvestmentFacilitation,

ProtectionandGuarantee35373947SettingupaninvestmentRequirementstoObtainInvestmentPermitFactorsataglance53LawsandRegulations56GovernmentInstitutions’Mandates63ClientCharter65UsefulContacts3AnInvestmentGuidetoEthiopia4AnInvestmentGuidetoEthiopia1

Ethiopia

at

a

glanceEthiopiaataglanceOfficialNameFederalDemocraticRepublicofEthiopiaPoliticalSystemFederalstatewithamulti-partysystemRegions

10

regions,and

2

city

administrates

in

the

country.Addis

Ababa,

seat

of

the

African

Union

(AU)

andUnited

Nations

Economic

Commission

for

Africa(UNECA)CapitalCityHorn

of

Africa,

at

the

crossroads

between

Africa,theMiddleEastand

AsiaLocationArea1.1millionsquarekilometers2nd

most

populous

country

in

Africa

with

apopulationsizeofover100millionWorking

Federal

language

–

Amharic

&

English

iswidelyspokenPopulationLanguage5AnInvestmentGuidetoEthiopiaLeading

exports:

coffee,

oilseeds,

gold,

pulses,horticulture,

live

animals,

growing

manufacturingexport

(textile

and

apparel,

leather

and

leatherproductsetc.)ExportsClimateTemperateinthehighlands:20oC-30oC,

low

in

the

lowlands:

up

to

45oCRainfall

ranges

from

200

mm

to

2000

mm

andhighlysuitableforproductionCurrency

EthiopianBirr(ETB)CountryCode:

+251Geo-SpecificInformationTimeZone:

GMT+3GDP96.11billionUSdollars(2019)GDP

PerCapita855.9(2019)President:SahleworkZewdePrimeMinister:Dr.

AbiyAhmedHeadofGovernmentHeadofState6AnInvestmentGuidetoEthiopia2

Why

invest

in

Ethiopia?Ethiopia

has

become

a

preferred

destination

for

foreign

directinvestment

and

emerging

hub

for

manufacturing

in

Africa

duetoits:Political

commitment

from

the

government•

Improving

socio-economic

governance

with

peace

&security.•

The

government

is

always

working

hard

to

make

theinvestment

policy

beneficial

to

the

country

and

the

investors.A

new

investment

regulation

and

proclamation

has

beenenacted

in

2020

to

improve

several

issues

regardinginvestment.•

High

level

political

commitment

for

investment

promotionand

protection;

investment

policy

making

is

led

by

theEthiopianInvestmentBoardchairedbythePrimeMinister.•

Wide-ranging

incentive

packages

for

priority

sectors

andexport-orientedinvestments.•

Bold

initiative

in

the

development

of

state-of-the

art

industrialparks,

electric-powered

railway

connecting

the

capital

andothereconomiccorridorstotheportofDjibouti.Conducive

economic

factors•

Ethiopia

aims

to

reach

lower-middle-income

status

by

2025.Ethiopia’seconomyexperiencedstrong,broad-basedgrowthaveraging

9.8%

a

year

from

2008/09

to

2018/19,

Ethiopia’s7AnInvestmentGuidetoEthiopiareal

gross

domestic

product

(GDP)

growth

rebounded

to9%in2018/19.•

Stableandconducivemacroeconomicenvironment.•

FDI

inflows

to

Ethiopia

were

USD

2.5

billion

in

2019.

Intotal,

FDI

stocks

were

estimated

at

USD

25

billion

in

2019.(UNCTAD's

World

InvestmentReport2020)•

HomegrownEconomicReformProgram:

TheGovernmentof

Ethiopia

(GoE)

under

the

leadership

of

Prime

MinisterAbiy

Ahmed

-

unveiled

a

“Homegrown

Economic

ReformProgram”

aimed

at

unlocking

the

country’s

developmentpotentials

designed

to

propel

Ethiopia

into

becoming

theAfricaniconofprosperityby2030.Favorable

Market

Factors•

Africa’s

second

most

populous

nation

with

a

population

sizeofover100million.•

54

million

active

labor

force,

trainable

and

available

atcompetitivewagerate.•

Duty-free,

quota-free

access

to

the

USA

and

EU

marketsthrough

AGOA

andEBA,

respectively•

Duty-free,

quota-free

access

to

Japan,

Canada,

China,Turkey,Australia,

and

New

Zealand

–

covering

substantiallyall

export

goods

from

Ethiopia.

Preferential

market

accesstoIndia.•

Ethiopia

is

a

member

of

ACFTA

(African

Continental

FreeTrade

Area)

which

is

very

beneficial

for

investors

in

terms

oftradeactivitieswithin

Africancontinent.•

Member

of

COMESA

with

preferential

market

access

to

a8AnInvestmentGuidetoEthiopiaregionalmarketof400millionpeople.•

Strategic

location

with

proximity

to

the

Middle

East,

Europe,and

Asia.For

furtherinformationonbilateralagreements,

pleasereferEIC’swebsite;

.etImproving

infrastructure•

The

newly

built

Addis-Djibouti

electric-powered

railway

isfullyoperational.•

Ethiopian

Airlines

Group,

the

Largest

Aviation

Group

in

hassuccessfullycompletedanewpassengerterminalatitshubAddis

Ababa,

Bole

International

Airport

with

emphasis

on

BioSecurity

and

Bio

Safety

measures.

It

operates

the

youngestand

most

modern

fleet

to

127

international

passenger

andcargo

destinations

across

five

continents.

From

its

hub

atAddisAbaba,EthiopianAirlines

serves

117

international

and23domesticdestinations.•

Huge

investment

potential

in

renewable

energy

includinghydro,

wind

and

geothermal;

Grand

Ethiopian

RenaissanceDam

–

the

largest

hydroelectric

power

dam

in

Africa

–under

construction

(close

to

79%

completed),expected

togenerateadditional6,000MWelectricity.•

Expandingtelecommunicationservices.•

Expansive

road

networks

connecting

national

and

regionalmarkets.•

Nine

operational

and

six

upcoming

government

industrialparks;

Six

operational

&

one

upcoming

private

industrialparksinthepipeline.9AnInvestmentGuidetoEthiopia3

Investment

Opportunitiesand

Priority

AreasThere

are

numerous

attractive

investment

opportunities

inEthiopia.

The

government

of

Ethiopia

in

collaboration

withsupporting

stakeholders

has

identified

several

investmentopportunities

in

the

country.

Investors

are

also

rewarded

withdifferent

incentives

based

on

their

project

and

sector

theyprefer

to

engage.

The

investment

opportunities,

priority

sectorsandincentivesarepresentedasfollows:

-Before

going

deep

to

the

opportunities,

it

is

important

tomention

areas

where

investors

are

eligible

to

invest.

Foreigninvestor(s)canengageinvariousinvestmentsectorsaccordingto

the

Ethiopian

investment

regulation

No.474/2020.

Previouslyclosed

sectors

are

now

open

for

foreign

investors.

For

instance,telecommunication,

logistics

and

transportation

industry

canbe

regarded

as

examples.

(Please

refer

the

current

Ethiopianinvestment

regulation

No.

474/2020

from

Ethiopian

InvestmentCommission’swebsite:

.et.)The

seven

priority

sectors

are:

Pharmaceutical,

Agro-processing,Textile,Leather,Tourism,ICT

and

Mining

&

Energy.Manufacturing•

Vision:

To

becometheleadingmanufacturinghubin

Africa.•

Ethiopia

offers

a

remarkable

competitive

advantage

formanufacturingindustriesdueto:ü

Governmentfacilitationofefficiency-enhancinginvestment

solutions

including

industrial

parks

that

are10AnInvestmentGuidetoEthiopiareadyfor

‘plugandplay:ü

Large

pool

of

trainable

work

force

available

atcompetitivewages:ü

Cheapestenergyrateonaglobalstandard:ü

Geographic

proximity

and

preferential

access

to

keymarkets;

andü

Abundanceofhigh-qualityindustrialrawmaterials:•

Ethiopia

is

Africa’s

largest

raw

material

supplier

for

theleatherindustry.Textile

and

GarmentThe

textile

&

garment

sector

in

Ethiopia

has

been

growingin

the

past

decade.

There

is

access

to

major

markets

in

thelocal

and

international

market.USA

&

UK

are

the

major

exportdestinationsfortheEthiopiantextiles.Investment

Opportunities:

includes

commercial

cottonproduction,

spinning,

weavingandgarment.Opportunities

for

private

sector:ü

Textile

manufacturing:

Manufacturers

producing

anyclothorgoodspreparedbyweaving,

knitting,

orfelting.ü

Garment

manufacturing:

Manufactures

producing

anyarticle

of

clothing

such

as

dresses,

suits,

shirts,

trousersmadepreparedfromtextile/fabric.ü

Components

and

Trim

manufacturing:

Manufacturersproducing

materials

used

as

components

&

decorationsof

garments

such

zippers,

buttons,

plastics,

threads,elastics,

carton

boxes,

poly

bags,

hangers,

printing,etc.11AnInvestmentGuidetoEthiopiaLeather

and

leather

products

manufacturingEthiopia

has

the

largest

livestock

population

in

Africa

andranks

6th

in

the

world.

The

leather

industry

bases

itself

on

thecountry’s

livestock

resources.

Indeed,

Ethiopia

possesses

oneof

the

world

largest

livestock

populations,

60.9

million

headsof

cattle’s,31.8

million

heads

of

sheep’s

and

30.7

million

headsof

Goats.

This

enormous

population

of

livestock

providesample

opportunity

in

the

value

chain

starting

from

tanning

ofhides

and

skins

all

the

way

up

to

the

finished

leather

products.Manufacturing

companies

can

supply

major

markets

in

theworldincludingItaly,

USA,

&Germany.Opportunities

for

private

sector

includes:

-•

Tanning

ofhidesandskins•

Accessories:

soles,

syntheticsewingthread,

plasticlinen,shoelaces,

zippers,

buckle•

Chemicalinputsmanufacturingfortanneryuse.•

Footwear,

gloves,

andotherleatherproductsmanufacturingPharmaceuticalsIt

is

one

of

the

fastest

growing

industries

in

Ethiopia

with

anannual

growth

rate

of

15%.

Currently,

the

market

is

estimatedto

be

around

1Billion

USD,

of

which

more

than

80%

is

met

byimported

products

that

are

mainly

procured

by

the

Government.Ethiopia

is

one

of

the

first

African

countries

to

have

developed

astrategyfortheindustry.Favorable

Conditions

for

PharmaceuticalManufacturing

in

Ethiopia•

An

industrial

park

fully

specialized

in

pharmaceutical12AnInvestmentGuidetoEthiopiaproducts

manufacturing

and

well-equipped

with

state-of-the-artinfrastructure.•

Itisaprioritysectorforthegovernment.•

High

and

growing

domestic

and

regional

markets.

TheAfrican

pharma

market

is

valued

to

be

more

than

20BillionUSD.•

Highdiseasesburdenandexpansionofhealthcoverages•

Attractive

investment

incentives

such

as

corporate

incometax

exemptions

up

to

14

years

depending

on

product

typeandexportperformance.•

Long-termGovernmentprocurementguarantee,25%

price

preference

and

30%

advance

payment

togovernmentsuppliers.•

Trainable

workforce

with

more

than

10

pharmacy

schools.•

CompetitiveinfrastructureincludingETHIOPIANAIRLINES

and

a

railway

connecting

Kilinto

Industrial

ParktoDjiboutiport.Agro-ProcessingPotential•

Ethiopiaisacontinentalandgloballeaderintheproductionofavarietyofrawmaterialsneededforprocessing:•

5thlargestproduceroftropicalfruitsin

Africa•

3rdbiggestproducerofwheatin

Africa•

6thleadingproduceroflivestockpopulationglobally•

9thinchickenpopulationin

Africa13AnInvestmentGuidetoEthiopiaEthiopiaisthe5thlargestproduceroftropicalfruits&fruitcropin

Africa.SOURCE:Fruit

Juice§

Ethiopiahasfavorableagro-ecologicalclimatecondition.§

TheUpper

Awash

valleycaneasilyproducefruitallyear.§

Arba

Minch

and

Assossa

are

also

high

potential

areas

foryear-round.§

Most

of

the

land

available

for

growing

tropical

fruits

issuitablefororganic.§

With

basic

irrigation,

a

new

producer

can

increase

yieldsdramatically.Edible

oilü

Ethiopia

has

abundant

resources

suitable

for

oilseedproduction.

Despite

its

potential,

there

is

limited

domesticprocessing

of

edible

oil

(~4%

of

supply)

and

increasinglocaldemand,

resultinginsignificantimportsofedibleoilcovering~95%ofsupplyconsistingmainlypalmoil.ü

Ethiopiaisamongthetop20oilseedproducersinAfrica,

withmajorityofexportsstillbeinginrawform,

withnovalueaddition14AnInvestmentGuidetoEthiopiaHorticultureEthiopia

is

currently

ranked

2nd

in

floriculture

export

in

Africa

andamong

top

4

exporters

in

the

world.

Investment

opportunitiesinclude

floriculture,

fruit

and

vegetable

processing.

Roses

arethe

most

widely

produced

varieties

of

flowers.

Other

typesinclude

gyphophilia,

hypericum,

Limonium,

chrysanthemum,carnations,

static

and

pot

plants.

Ethiopia

supplies

9%

of

globalflowermarket.Herbs

and

spicesØ

Ginger,hot

pepper,fenugreek,

turmeric,

coriander,

cumin,cardamom,

andblackpepper.Ø

Close

to

122,

700

hectares

with

spice

production

reaching244,000tonsperyear.Ø

The

total

potential

for

low

land

spice

farming

is

estimatedtobe200,000ha.Bamboo

for

Green

InvestmentThe

Government

of

Ethiopia

has

accorded

a

high

priority

to

thebamboo

sector.

The

government

proclaimed

a

10year

strategyand

action

plan

for

bamboo

sector

development

(2019

–

30)and

with

the

support

of

the

International

Bamboo

and

RattanOrganization(INBAR),ü

Ethiopia

has

the

largest

resource

of

bamboo

in

Africa,with

an

estimated

1.47

million

ha

of

two

indigenousbamboos

species

namely

Oxytenanthera

abyssinica(lowland

bamboo)

and

Oldeania

alpina

syn.

Yushaniaalpinaor

Arundinariaalpina(highlandbamboo).15AnInvestmentGuidetoEthiopiaü

Bamboo

resources

are

concentrated

in

seven

regions

ofEthiopia

namely

Amhara,

Benishangul-Gumuz,

Gambela,Oromia,

Sidama,

Southern

Nations,

Nationalities,

andPeoples’and

Tigrayregionalstates.

Anestimated750,000peopledependonbamboobasedeconomicactivitiesü

Potential

investors

and

entrepreneurs

have

an

array

ofopportunities

to

become

pioneers

of

bamboo

businessinthecountry.Potential

Areas

of

Bamboo

InvestmentBamboo

hasahuge

potentialtocontribute

tothe

developmentof

Ethiopia’s

green

economy.

A

large

untapped

bambooresourcebaseisavailablethatcouldbeusedtogeneratelarge-scale

employment,

income,

and

socio-economic

development,in

addition

to

environmental

benefits.Opportunities

for

investingonbambooincludebutnotlimitedto:•Bamboo

timber

substitute

industries

(parquet

floor,

MDFand

OSB

boards,

lumber

and

panels,

mat

ply

boards,plasticcompositeproducts);•Bambooroundpoleandbendlaminatedfurniture;16AnInvestmentGuidetoEthiopia••Bamboocraftsandbio-plasticsproducts;Bamboo

stick-based

products

(curtains,

mats,

incensesticks);•••••Bamboopulpandpaper;Bamboobio-energy.Construction.Bambooeco-tourism;Bamboocarboncreditplantation.Integrated

Agro

Industrial

Parksü

The

government

has

put

in

place

integrated

agroindustrialparks(IAIP)whichareregionalagro-processingzones

developed

to

attract

investment

and

accelerate

thegrowthofagro-processingsector.ü

These

parks

include:

Bulbula

–

263

ha,

Bure

–

261

ha,Baeker–259haand

Yirgalem–214ha.ü

These

parks

employ

a

holistic

approach

for

input

supply,on-farm

production,

backward

market

linkage

and

rawmaterialsourcingtoensuresustainabilityandefficiency.Tourism•

Known

as

‘Land

of

Origins’,

Ethiopia

is

among

the

world’sbest

destination

for

tourism

with

strong

service

industrytosupportthesector.•

Ethiopia

is

a

land

of

rugged

mountains

(almost

25mountains

with

over

4000

meters

high)

broad

savannah,lakes,

andrivers.17AnInvestmentGuidetoEthiopia•

With

14

major

wildlife

reserves,

Ethiopia

provides

amicrocosmoftheentiresub-Saharanecosystem.•

The

unique

Ethiopian

Rift

Valley

(part

of

East

African

RiftValley

is

a

remarkable

region

of

volcanic

lakes,

with

theirfamous

collections

of

birdlife,

great

escarpments,

andstunningvistas.•

The

timeless

charm

of

Ethiopia’s

natural,

cultural,

andhistorical

tourist

attractions

has

been

driving

an

influx

oftouristsfromfarandwide.•

As

the

land

where

mankind,

coffee

and

the

Blue

Niletrace

their

roots,

Ethiopia

has

always

been

a

fascinatingdestinationforholidaymakers.•

As

the

Meetings,

Incentives,

Conferencing

&

Exhibitions(MICE)

tourism

blossoms

around

the

world,

Ethiopia

isalsouniquelypositionedtoreapthebenefits,

owingtoitsuniqueplaceinAfrica’s

diplomatic

landscape.Ethiopia

is

home

to

several

cultural

and

historical

heritage

sitesand

the

country

is

amongst

the

countries

that

have

registeredtheir

tangible

and

intangible

heritage

under

UNESCOs

culturalheritage

list.

According

to

Ethiopian

Ministry

of

Culture

andTourism,

UNESCO

has

recognized

four

intangible

and

ninetangible

Ethiopian

(a

total

of

13)

heritages.

The

nine

tangibleheritagesincludedinthelistofUNESCOsare:

-18AnInvestmentGuidetoEthiopiav

SemenNationalPark,Naturalsiteregisteredin1978.v

LalibelaRockHewnChurchesRegisteredin1978.v

FasilGhebbi(Castles),registeredin1979.v

LowerOmo

Valleyregisteredin1980.v

Lower

Awash

Valleyregisteredin1980.v

Aksumregisteredin1980.v

Tiya

ArchaeologicalSiteregisteredin1980.19AnInvestmentGuidetoEthiopiav

HararJugol(FortifiedCity),

registeredin2006.v

KonsoCulturalLandscaperegisteredin2011.Opportunities•

Stardesignatedhotels,

lodges,

andrestaurants.•

Eco-lodgecamp•

Boattransportation•

Hot-airballooning•

Sky-cablecar•

LakesideresortsIncentives

for

tourism•

DutyfreeprivilegesonCapitalgoodandspareparts.•

Duty

free

privileges

on

finishing

construction

materials

(iftheyaregoingtobuildthehotelthemselves).•

Duty

free

import

of

the

following

vehicles.

(source:VehicleIncentivesDirective,

2013)ü

3stationwagons(NEW)ü

A

bus

(minimum

capacity

of

30

passengers

excludingthefoldablesits)•

5

years

of

income

tax

exemption

for

those

who

invest

onthe

five

specified

regions.

(source:

Ethiopian

InvestmentBoardDirective,

2017)I.

BaleandSemenmountainnationalparksII.

Rifvalleylakes(AbyataShallaand

AbayaChamo)III.

GuraltaMountains(Wekro,

Hawzenand

Adigrat)IV.

Erta

Ale(Dalol,

Hadar,

Afderaand

Aselalakes)V.

WonchicraterlakeandafroalepineforestEntotoParkAndnetParkMining•

Ethiopia

has

a

wide

variety

of

untapped

mineralresourcesand

offers

opportunities

in

upstream

and

downstreamoperations.•

Ethiopia

is

the

only

producer

of

opal

in

Africa,

major

goldexporter,

and

emerging

country

for

oil

and

natural

gasexploration.•

Mining

potentials:

gold,

potash,

platinum,

opal,

iron,21AnInvestmentGuidetoEthiopiatantalum,

marble,

granite,

limestoneetc.•

Incentives:ü

Lowercorporateincometaxrateof25%forlarge-scalemining

projectsü

Loss

carry

forward

for

10

years.ü

Accelerated

depreciation

onstraight

line

basis

over

useful

life

offour

years.ü

Customs

duty

and

other

tax-freeimport

of

equipment,

machinery,vehicles,

and

consumables.Attractive

royalties•

7%Preciousminerals•

6%Semi-preciousminerals•

4%forindustrialminerals•

5%formetallicminerals•

7%forgold•

3%Constructionminerals•

Petroleumroyaltiesarenegotiable.22AnInvestmentGuidetoEthiopiaEnergyThe

energy

sector

is

one

of

the

priority

sectors

in

the

country.There

are

many

investment

opportunities

in

the

energy

sector.The

government

also

offers

attractive

incentives

for

investorswhowishtoengageinthissector.The

GoE

has

also

assigned

one

independent

organization,Ministryof

WaterIrrigationandElectricity(MoWIE),

tomanagethis

the

sector.

MoWIE

is

the

lead

institution

for

the

EnergySector.

Itoverseesthreesupervisedinstitutions.Ethiopian

Energy

AuthorityEthiopian

Electric

Power

(EEP)–

has

the

responsibility

togenerate,

transmitandwholesalepower.Ethiopian

Electric

Utility

(EEU)

–

has

the

responsibility

todistributeandsaleinretail.Ethiopian

Energy

Authority

(EEA)-regulatory

body

for

Energyandenergyefficiency.Investor(s)canengageinthefollowingactivities.

Generatingpowerfromthefollowingsources:

-ü

HydroPowerü

Geothermalü

Windü

SolarIncentives

for

Energy•

An

investor

engaged

in

generation

and

supply

of

electricenergy

shall

be

entitled

to

a

tax

holiday

from

4-5

yearsdepending

on

the

region

where

the

investment

will

bemade.23AnInvestmentGuidetoEthiopia60

GW+Potential

power

generationfrom

hydropower,wind

solarand

geothermal4.29

GWInstalledCapacity86%hydropower17.2

GWPlanned

total

installedcapacity

by

2019/2060%90%ElectrificationRateNationalelectrification

rateGTP

II

targets

for

2019/20The

1,870

MW

Gibe

III

hydropower

project,

which

doubledEthiopia’s

e