Thursday, June 20, 2024
BusinessDraft proclamation opens new doors for foreign investors

Draft proclamation opens new doors for foreign investors

Investment Council to be established under PM’s supervision

A new draft bill, intending to amend the existing investment proclamation has been tabled before the House of Peoples’ Representatives (HPR). The latest bill proposes amending provisions that would offer more opportunities for foreign investors, who seek to jump into local investment areas including the ones preserved to local investors.

The draft bill proposes the establishment of an all-powerful new Investment Council to be established, to be chaired by the Prime Minister, which will be empowered to make decisions to open up investment sectors which remains closed to foreign capital, thus far, with the exception of banking, telecom, energy and aviation.    

Tabled on Thursday, the bill is said to update the existing proclamation in a manner that fits prevailing economic reforms.

In its preamble, the draft bill proclaims that it has become necessary to create an economic framework that fast-tracks the global competitiveness of the national economy, increase export performance, generate more and better employment opportunities, and facilitate a sustainable and entwined linkage among various economic sectors.

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In addition, it states that it has become necessary to increase and diversify foreign investment inflow, accelerate inward transfer and diffusion of knowledge, skill, and technology.

In a bid to resolve investment challenges, the bill introduces the establishment of the Council that will be chaired by the Prime Minister and Deputy Prime Minister of Ethiopia, granting it jurisdiction over investments policies and projects having national significance.

Furthermore, according to the draft, the Ethiopian Civil Aviation Authority, the Ethiopian Energy Authority, the Ethiopian Communications Authority, and the National Bank of Ethiopia are required to carry-out functions delegated to them in accordance with the proclamation, regulations and directives issued by it. However, they may adopt necessary implementation directives in consultation with the Commission. In addition, the stated organizations shall also submit to the Commission, a quarterly report regarding services they have rendered through their delegated powers.

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