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Investment (Amendment) Proclamation No. 116-1998

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OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA 4 Year No . 42 ADDIS ABABA - 11 June , 1998 CONTENTS Proclamation No . 116 / 1998 Investment ( Amendment ) Proclamation . . . . . . . . . . . . . . . . . Page 752 PROCLAMATION NO . 116 / 1998 A PROCLAMATION TO AMEND THE INVESTMENT PROCLAMATION WHEREAS , it has become necessary to amend the Investment Proclamation ; NOW , THEREFORE , in accordance with Article 55 ( 1 ) of the Constitution of the Federal Democratic Republic of Ethiopia , it is hereby proclaimed as follows : 1 . Short Title This Proclamation may be cited as the " Investment ( Amendment ) Prociamation No . 116 / 1998 . " 2 . Amendment The Investment Proclamation No . 3111296 is hercuy amended as follows : 1 ) Sub - Article ( 5 ) of Article 2 of the Proclamation is hereby deleted and replaced by the following new sub - Article ( 5 ) : “ 5 . Domestic Investor ” means an Ethiopian or a foreign national permanently residing in Ethiopia having made an investment and in cludes the Government , public enterprises as well as a foreign national , Ethiopian by birth , and desiring to be considered as a domestic investor , " ? wmit rideantqwArchive . com * * * The African Law Archive * * * www . AfricanLaNegàrivG . P . O . Box 80 , 001 2 ) Article 5 of the Proclamation is hereby deleted and replaced by the following new Article 5 : " 5 . Areas of Investment Reserved for the Govern 1 ) The following investment areas are exclusively reserved for the Government : ( a ) excluding generation of electricity from hydropower ; generation and supply of electricity above an installed capacity of 25 megawatts as well as transmission and supply of electrical energy through the Integrated National Grid System ; ( b ) air transport services using aircraft with a seating capacity of more nan 20 passen gers or with a cargo capacity of more than 2 , 700 kg - ; ( c ) rail transport services ; ( d ) postal services with the exception of courier services . 2 ) Investors shall be allowed to invest in the following areas only in partnership with the Government : ( a ) defence industries ; ( b ) telecommunication services . " replaced by the following new Article 6 : “ 6 . Areas of Investment Reserved for Domestic Investors 1 ) The following investment areas are ex clusively reserved for Ethiopian Nationals : ( a ) banking and insurance business ; ( b ) excluding generation of electricity from hydropower ; generation and supply of electrical energy up to 25 megawatts ; air transport services using aircraft with a seating capacity of up to 20 passengers or with a cargo capacity of _ up to 2 , 700 kg ; forwarding and shipping agency services ; provided , however , where the Government permits otherwise , same shall be open for foreign inves tors as well . 2 ) The investment areas exclusively reserved for domestic investors shall be determined by Regulations issued by the Council of Ministers . 3 ) Nothing in this Article shall be construed to exclude domestic investors from inves ting in other areas of investment . " hereby deleted and replaced by the following new sub Article ( 4 ) : “ 4 ) The minimum capital required of a foreign investor investing in areas of engineering , architectural or other tech nical consultancy services ; in accounting and audit services ; in project studies or business and management consultancy services shall be 100 , 000 US Dollars . " Article 28 of the Proclamation : www . AfricanLawArchive . com * * * The African Law Archive * * * www . AfricanLawArchive . com “ 10 ) Whenever it deems it necessary , it shall decide on new or additional incentives , other than what is provided under the Investment Incentives Regulations and submit same to the Council of Ministers for approval . " 6 ) The following new sub - Article ( 3 ) is added under Article 37 of the Proclamation : “ Notwithstanding the provisions of sub - Ar ticles ( 1 ) and ( 2 ) of this Article , a foreign investor upon obtaining the prior consent of the Authority shall , without any restriction , have the right to recruit expatriate employees on top management positions of an enterprise of which he is the sole or major owner . " 7 ) The following new Article 39 is added after Article 38 of the Proclamation : “ 39 . Ownership of Immovable Property Notwithstanding the provisions of Ar ticles 390 - 393 of the Civil Code , inves tors of foreign nationality can own im movable property requisite for their investment activities . ” 8 ) Articles 39 , 40 , 41 and 42 of the Proclamation are re - numbered as Article 40 , 41 , 42 and 43 , respectively . * 9 ) The Schedule on investment areas reserved for domestic investors , attached to the • Proclamation , is hereby deleted . Effective Date This Proclamation shall come into force as of the 11th day of June , 1998 . Done at Addis Ababa , this 11th day of June , 1998 . PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA www . AfricanLawArchive . com * * * The African Law Archive * * * www . AfricanLawArchive . com

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