A government organization called the Ethiopian Investment Commission (EIC) was created in 1992 to promote, facilitate, and control both domestic and foreign investment in Ethiopia. The organization is in charge of fostering sustainable economic growth in the nation and creating an environment that is conducive to investment. It is governed by the Ministry of Finance and Economic Cooperation.
The Ethiopian Investment Commission (EIC) is a free-standing government agency that reports to the Prime Minister-led Investment Board of the nation. The EIC is run by a commissioner who is also a Board member.
The EIC recently underwent a restructuring to improve investor services and be more successful at luring financing.
The main functions of this firm can be broadly classified into three categories; promotion, facilitation, and regulation.
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Investment promotion
This firm is in charge of presenting Ethiopia to both domestic and international investors as a desirable financing location. To promote financing prospects in the nation, the agency collaborates with several parties, including Ethiopian embassies and consulates, trade and financing organizations, and chambers of business. To enlighten potential investors about the financing prospects, legal and regulatory frameworks, and incentives available in Ethiopia, the firm also organizes financing forums, conferences, and exhibitions.
Investment facilitation
To encourage financing in Ethiopia, the firm offers a variety of services. Some of these services include:
Investment advisory services
The firm informs investors on available investments, financing procedures, laws and regulations, and pertinent governmental organizations.
Investor aftercare services
After an investor makes financing in Ethiopia, the EIC offers support and assistance. The organization assists investors with matters involving licenses, permits, and other regulatory needs. The firm also assists investors in resolving any problems that may come up when making their financing.
One-stop-shop
The firm runs a facility that functions as a one-stop shop for investors, acting as their single point of contact. All relevant services, such as company registration, financing permit, tax registration, and other governmental permits, are offered at the facility in one location. The one-stop shop promises to speed up and lower the cost of doing business in Ethiopia while streamlining the investment process.
Investment regulation
Ethiopian investments, both domestic and international, are governed by this firm. The agency’s regulatory responsibilities include:
Investment permitting
The firm is in charge of granting permits to both domestic and foreign investors. A legal document known as a financing permit enables foreigners to conduct business in Ethiopia.
Promotion and Protection Agreement (IPPA)
To promote and safeguard investments, the firm is in charge of negotiating and signing IPPAs with other nations. IPPAs guarantee the repatriation of profits and dividends and offer investors legal protection.
Investment monitoring and evaluation
The EIC is in charge of overseeing and assessing investments to make sure they abide by Ethiopian laws and regulations. The organization also keeps tabs on how investments affect the market and society.
Additionally, the EIC offers the following complimentary, private, and tailored services to investors:
- Providing information on industry-specific business prospects, processes, related rules, and employment regulations through their sites.
- Helping investors buy land and utilities (water, electrical power, and telecom services).
Conclusion
In conclusion, the Ethiopian Investment Commission (EIC) is an indispensable institution for the promotion, facilitation, and supervision of various forms of financial activity in Ethiopia. The primary objectives of the organization are to encourage long-term economic expansion in the country and to create conditions that are beneficial to investors. By performing its roles of finance promotion, facilitation, and regulation, the EIC is assisting Ethiopia in achieving one of the most important goals for the development of the country. This is to increase the amount of both domestic and foreign investments.
