The Ethiopian Investment Law has been in use for the past ten years. Efforts have been produced at multiple times to amend the law through the Ethiopian Investment Board. The law is still being reformed to suit the country’s present requirements.
Recently, a workshop was held in Addis Ababa to collect Ideas from public stakeholders, private sector and development partners to promote feedback on investment law. The law should be reformed in a manner that will guarantee the ongoing development of the economy, according to workshop respondents, lawmakers and commission representatives.
The investment will continue to develop as the legal process accelerates, according to the participants. Therefore, at this moment, it is suitable that the investment law be changed. There have been some changes to the new investment law. Several new areas are covered to the fresh draft law.
The legislature, which says that while making the law a matter of practice is one thing, is another matter. They acknowledge that there is a need for an enforcement scheme to implement the law, and that the party involved should play a significant role.
According to Dr. Tilahun Ishmael, member of the Investment Law Reform Task Force of the Ethiopian Investment Commission, the investment law, like any other law, needs to be modified to comply with present circumstances. One of the legislation’s primary objectives is to boost investment by creating timely legislation.
Investment rules were updated every five years, according to Dr. Tilahun. But the present legislation has been in force for ten years, and the legislation had to be amended. Review of the task force has also recognized the fact that the law has gaps in all fields. Specifically, strengthening this is essential as the function of investment strategy and orientation is essential.
There are distinct gaps in the law when it comes to good administration, and because of the problems posed by investors at separate moments, they have been integrated into the reform law. Some sectors that were closed or open to overseas investors but had operational issues were also rectified by the draft legislation.
According to Dr. Tilahun, who advocates feedback from public stakeholders, investors, private sector and growth partners, the draft law will be amended and address investors ‘ difficulties, particularly when legislation is enacted. Not only does the law provide higher confidence between government and investors, but it also enables Ethiopia to be more accessible to foreign investors and companies and to profit from the industry.
According to Abebe Bayehu, the Ethiopian Investment Commission Commissioner, the drafting of investment law has been underway since January, with the establishment of a partnership with about 15 employees. The Task Force has involved stakeholders, partners in the public sector and growth, as well as the World Bank and the International Monetary Fund.