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Bunna Posts Keuntungan Sehat Bunna International Bank S.C telah meraih rekor tujuh tahun laba dan laba bersih per saham. Tahun ini, keuntungannya setelah pajak melonjak menjadi 39,5pc menjadi 187 juta Br. Namun, pertumbuhan laba adalah setengah dari apa yang telah terjadi di tahun sebelumnya. Penghasilan per saham naik ke 19,6pc menjadi 343 Br untuk bank swasta berusia tujuh tahun. Itu sedikit lebih tinggi dari rata-rata di industri perbankan swasta yaitu di 333 Br. Ini tiga kali lebih tinggi dari pada 2013. Ini terjadi di tengah pengunduran diri kepala bank, Eshetu Fantaye, yang pergi karena masalah kesehatan. Pertunjukan tersebut merupakan kabar baik bagi Tadesse Chinkel, seorang Chief Operating Officer lama, sekarang bertindak sebagai CEO bank. Bank telah melihat pertumbuhan dari berbagai pendapatan termasuk pinjaman, uang muka dan obligasi NBE yang meningkat sebesar 59,3pc menjadi 491 juta Br. Bursa valas juga naik 27,2pc menjadi 48 juta Br. Ini sedikit di bawah dua persen dari apa yang diraih industri ini pada tahun 2015. Terlepas dari banyaknya prestasi bank dalam empat tahun terakhir, ia tetap berada di posisi terbawah dalam industri transaksi valuta asing. Porsi transaksi valuta asing terhadap pendapatan kotornya telah menurun dan tidak signifikan, rata-rata 9,7pc. Ldquo Ini pasti karena tren penurunan pendapatan ekspor di negara ini, rdquo seorang ahli perbankan yang ingin disebutkan namanya tidak diobservasi. Tadesse menggemakan sentimen ini, ldquoJatuhnya pendapatan ekspor dan pengiriman uang memaksa kita untuk mendapatkan lebih sedikit jumlah forex di industri ini. Tibebu Eshetu, Ketua bank, mengakui Fortune ini kelemahan bank. Kami mengerti strategi kami gagal dalam stancequot ini. Dengan demikian, dewan tersebut memerintahkan manajemen bank untuk menghasilkan strategi baru dalam meningkatkan pendapatan devisa pada bulan Desember tahun ini. Di sisi lain, para pemegang saham mengeluhkan tingkat pertumbuhan laba bank selama pertemuan pemegang saham baru-baru ini di Millenium Hall. Pertumbuhannya sangat rendah dibandingkan dengan bank sejenis seperti Brehan Bank, yang dikeluhkan oleh pemegang saham. Dua minggu yang lalu, Brehan mengejutkan para pemegang sahamnya, mengumumkan keuntungan 260 juta Br, perbandingan kenaikan 149pc dengan tahun fiskal sebelumnya. Pada saat yang sama, ia berhasil menaikkan EPSnya dengan 102 Br menjadi 399 Br. Pada tahun 2015, pendapatan Bunna meningkat 29pc dari Brehan Bank. Namun, pada 2016 yang terakhir mendapat 7pc lebih banyak. Secara keseluruhan, pertumbuhan pendapatan belum tanpa biaya. Pada tahun 2015, Bunna menghabiskan 66 sen untuk setiap birr yang diperolehnya, yang 10pc lebih tinggi daripada rata-rata industrirsquos. Angka itu sekitar 45 sen empat tahun lalu. Industri perbankan telah terpukul keras, dengan kenaikan biaya keseluruhan atas pendapatan. Tahun lalu, Debub Global Bank S.C. adalah pemboros tertinggi dengan 79 sen sedangkan pemboros terendah adalah Cooperative Bank of Oromia dengan 55 sen pengeluaran untuk setiap satu miliar pendapatan. Biaya umum dan administrasi Bunna0 meningkat sebesar 30pc menjadi 144,4 juta Br pada 2016. Pertumbuhannya 18pc lebih rendah dari tahun fiskal sebelumnya. Sebaliknya, ia mencatat penyisihan tertinggi atas pinjaman dan uang muka yang diragukan. Jumlah ini mencapai 204pc sampai 35 juta Br. Ldquo Bank perlu memasang sebuah sistem untuk menghindari terjadinya kerugian semacam itu lagi, dan seorang ahli perbankan tercermin pada Fortune. Namun, bank nampaknya optimis dengan kenaikan ketentuan. Hal ini disebabkan adanya kenaikan portofolio kreditnya, menurut Tadesse. Selama tahun fiskal berakhir, bank mencairkan pinjaman dan uang muka senilai 3,7 miliar Br, yang 97,4pc lebih tinggi dari tahun fiskal sebelumnya. Tahun lalu, industri perbankan Ethiopiarsquos mengalami peningkatan penyisihan piutang ragu-ragu. Itu naik 65pc ke Birr 302 juta. Dari jumlah tersebut, empat persen dari total itu diberikan oleh Bunna. Bank Koperasi Oromia memiliki pangsa tertinggi di atas 50pc. Selama tahun fiskal yang berakhir baru-baru ini, kredit bermasalah (NPL) Bunna adalah 3,5pc, jauh di bawah ambang peraturan 5pc. Di sisi lain, gaji dan tunjangan meningkat sebesar 50pc menjadi 130 juta Br, mewakili 69,5pc keuntungan setelah pajak. Sebelumnya di tahun fiskal ini, membuat penyesuaian gaji untuk para bankir pada tingkat rata-rata 30pc. Alasan kenaikan gaji dibenarkan untuk masalah seperti retensi staf, bank mencatat. Penyesuaian gaji tidak termasuk eksekutif bank. Tingkat likuiditas bank menunjukkan sedikit perbaikan dari tahun lalu. Sudah naik ke 18.3pc dari 17.8pc. Secara nilai, saldo kas dan bank meningkat menjadi 1,25 miliar Br dari 0,8 miliar Br tahun lalu. Selama beberapa tahun terakhir, tingkat likuiditas industri telah menurun karena rasio pinjaman dan deposito yang meningkat dan investasi di obligasi National Bank of Ethiopia039 selama lima tahun. Terlepas dari tren ini, bank menunjukkan sedikit perbaikan dari tahun lalu. Sudah naik ke 18.3pc dari 17.8pc. Secara nilai, saldo kas dan bank meningkat menjadi 1,25 miliar Br dari 0,8 miliar Br tahun lalu. Namun, ini mengejutkan, sebagai rangkaian pertama obligasi lima tahun NBErsquos yang akan dilunasi pada bulan Juni 2016. Ini adalah sumber likuiditas yang cukup besar yang diharapkan dapat disuntikkan di industri ini, di mana tingkat likuiditas sebagian besar bank Diharapkan bisa ditingkatkan. Setahun sebelumnya, penurunan likuiditas menjadi perhatian dalam industri ini. Penurunan tersebut telah diamati di semua bank. Pada tahun 2015, bank yang paling likuid adalah Terakir, dengan rasio likuiditas 16pc, sedangkan bank yang paling likuid adalah Berhan dengan rasio 30pc. Sementara itu, Bunna belum memutuskan kapan atau bagaimana ia ingin menemukan CEO tetap berikutnya.U.S. Departemen Keterbukaan NegaraRestrictions to Foreign Investment Rencana Pertumbuhan dan Transformasi Etiopiarsquos 5 tahun (GTP), yang telah disetujui oleh Parlemen Ethiopia pada bulan November 2010 dan saat ini berada di tahun ketiga, sebagian besar mendorong keterbukaan Etiopia terhadap investasi asing. GTP memproyeksikan investasi signifikan yang berkontribusi terhadap tingkat pertumbuhan Produk Domestik Bruto per tahun minimal 11. Meningkatkan kualitas layanan dan infrastruktur sosial, memastikan stabilitas makroekonomi, dan meningkatkan produktivitas di bidang pertanian dan manufaktur merupakan tujuan utama dari rencana tersebut. GTP juga memberi penekanan yang signifikan pada pengembangan produksi lokal untuk mengurangi ketergantungan Ethiopiarsquos terhadap barang impor, dan mendorong investasi di sektor tekstil tekstil, produk kulit, bunga potong, buah dan sayuran, dan pengolahan hasil pertanian berorientasi ekspor. Mengingat skala investasi publik yang dibutuhkan untuk memenuhi target GTP, Ethiopia akan membutuhkan arus masuk investasi langsung asing yang signifikan. Pertumbuhan ekonomi domestik yang kuat tercatat dalam dua tahun pertama periode rencana, dengan pemerintah Ethiopia (GOE) memperkirakan pertumbuhan rata-rata 11,2 per tahun. Perkiraan Dana Moneter Internasional (IMF) menurunkan pertumbuhan ke 7-7.5 yang masih mengesankan. Sementara pemerintah Ethiopia memproyeksikan pertumbuhannya tetap di atas 11 per tahun, IMF memperkirakan pertumbuhan tahunan akan melambat menjadi 6,5 dalam jangka menengah karena terbatasnya kesempatan bagi sektor swasta untuk memanfaatkan investasi publik yang besar, yang berada di luar sektor kredit swasta, dan mengakar Ekspektasi inflasi. Laporan Doing Business Bank Dunia untuk tahun 2013 menempatkan Ethiopia di 127 dari 185 negara, kehilangan tanah dari peringkat 125 tahun 2012. Berkontribusi pada penurunan tersebut adalah penurunan nilai untuk perlindungan investor, pembayaran pajak, penegakan kontrak, dan penyelesaian kebangkrutan. Investor asing umumnya tidak menghadapi perlakuan pajak yang tidak menguntungkan, penolakan lisensi, kebijakan impor atau ekspor yang diskriminatif, atau hambatan tarif dan non tarif yang tidak merata. Meskipun rintangan birokrasi terus mempengaruhi pelaksanaan proyek, Ethiaopian Investment Agency (EIA) telah mengusulkan sebuah layanan shopquot kuota yang dipercepat yang diharapkan akan mengurangi secara signifikan waktu dan biaya perolehan izin investasi dan bisnis, walaupun investor AS melaporkan bahwa AMDAL masih Tidak memiliki kapasitas untuk memenuhi tenggatnya sendiri yang ketat. Izin usaha dapat diperoleh dalam satu hari jika semua persyaratan terpenuhi, meskipun dalam praktiknya hal ini jarang dilakukan. Seorang investor asing yang berniat membeli perusahaan swasta yang ada atau membeli saham di perusahaan yang ada perlu mendapatkan persetujuan terlebih dahulu dari AMDAL. Proses aksesi Organisasi Perdagangan Warisan Dunia (WTO) telah dimulai sejak 2003. Ethiopia menyerahkan sebuah Memorandum Rezim Perdagangan Luar Negeri ke Sekretariat WTO pada bulan Desember 2006, mengirimkan balasan ke putaran pertama pertanyaan anggota WTO pada bulan Januari 2007, dan mengadakan pekerjaan pertamanya Pertemuan partai pada Mei 2008. Tawaran akses pasar barang etisopiarsquos diajukan pada bulan Februari 2012 dan rapat kerja pihak ketiga diadakan pada bulan Maret 2012. Pejabat pemerintah Ethiopia telah menyatakan bahwa aksesi WTO pada tahun 2014 merupakan prioritas. Pada tahun 2009, pemerintah Ethiopia memperluas fokus kebijakan pertaniannya dari peningkatan produktivitas petani kecil, menambahkan dorongan investasi swasta (baik domestik maupun asing) ke peternakan komersial berskala lebih besar sampai pada prioritas yang ada. Departemen Pertanian (MOA) membuat Direktorat Pendukung Penanaman Modal yang baru yang bertugas menegosiasikan sewa jangka panjang (semua tanah dimiliki oleh pemerintah) di atas 7 juta hektar lahan untuk peternakan komersial ini. Tujuan Direktorat adalah untuk meningkatkan produktivitas, ketenagakerjaan, transfer teknologi, dan cadangan devisa dengan menawarkan insentif kepada investor swasta. Program tersebut, bahkan pada tahap awal, telah mengalami beberapa protes dari individu dan kelompok yang mengklaim kepentingan di bidang lahan tersedia untuk investor baru. Pada tahun 2010 pemerintah membentuk Badan Transformasi Pertanian (ATA) dengan mandat untuk membantu merampingkan investasi pertanian dan secara lebih umum untuk memperbaiki lingkungan yang memungkinkan bagi pengembangan pertanian rakyat kecil dan komersial di negara ini. Menurut sejumlah penelitian, Ethiopia kaya akan sumber energi terbarukan. Sementara jumlah endowmen tenaga air diperkirakan mencapai 45.000 MW per tahun, hanya 3 dari potensi pembangkit tenaga air negara saat ini sedang dieksploitasi. Ethiopia adalah negara yang berada di ambang revolusi energi, namun membutuhkan bantuan yang signifikan untuk mewujudkan potensinya, terutama di bidang sumber daya panas bumi, angin dan matahari dan biomassa sebagai opsi jangka panjang untuk pembangkit tenaga listrik untuk industrialisasi lokal dan sebagai potensi. Sumber pendapatan FX Sesuai dengan target yang digariskan di GTP, Ethepopian Electric Power Corporation (EEPCo) telah menetapkan rencana konkret untuk mencapai 75 akses energi pada tahun 2015 dan bercita-cita untuk menjadi pengekspor listrik regional dan pusat energi hijau untuk Afrika Timur. Pembangkit listrik ditingkatkan sekitar 230 antara tahun 2008 dan 2012, dengan enam proyek pembangkit listrik tenaga air dan tenaga angin yang akan online: Tekeze (2009, pembangkit listrik tenaga air, 300 MW), Gibe II (2010, pembangkit listrik tenaga air, 420 MW), Tana Beles (2010, pembangkit listrik tenaga air, 460 MW), Amerti Nesha (2011, pembangkit listrik tenaga air, 97 MW), Ashegoda (2012, angin, 30 MW), dan Adama I (2012, angin, 51 MW). Selain itu, empat proyek lagi (Gibe III, perluasan Ashegoda, Adama II, dan Grand Renaissance Ethiopia Dam) sedang dibangun. Output gabungan mereka akan mencapai hampir 8.150 MW. Namun, sistem transmisi tenaga yang tidak memadai berarti bahwa Ethiopiarsquos meningkatkan pasokan energi belum dimanfaatkan secara efisien. Kementerian Energi dan Sumber Daya Air (MOWE) secara aktif mencari investasi tambahan di sektor energi Ethiopia, untuk memenuhi kebutuhan domestik yang tumbuh dengan cepat dan untuk memenuhi rencana ambisius untuk mengekspor listrik ke negara-negara tetangga. Pada bulan Oktober 2011, Ethiopia mulai 35 MW ekspor daya ke Djibouti diperkirakan menghasilkan USD1,5 juta per bulan dan sedang menyelesaikan rencana untuk mulai mengekspor 100 MW kekuasaan ke Sudan pada awal 2013. Pembiayaan ditujukan untuk pembangunan jaringan transmisi Ke Kenya sebagai bagian dari proyek Jalan Raya Listrik Afrika Timur yang lebih besar yang didanai oleh Bank Dunia dan Bank Pembangunan Afrika. Pengembangan sumber energi terbarukan adalah prinsip dasar kebijakan energi pemerintah dan pemerintah mencari investasi swasta untuk membantu mendorong pengembangan sumber daya terbarukan non-hidro. MOWE telah memperkenalkan peraturan tarif makan yang akan menetapkan tingkat dan kondisi bagi produsen listrik independen untuk menjual listrik ke jaringan nasional, namun RUU tersebut telah melalui beberapa revisi dan tidak jelas kapan akan menjadi undang-undang. Kode Investasi revisi tahun 1996, serta Proklamasi Investasi memberikan insentif untuk investasi terkait pembangunan, dan secara bertahap menghapus sebagian besar pembatasan sektoral pada investasi kode investasi Ethiopia melarang investasi asing di bidang perbankan, asuransi, dan layanan keuangan. Sektor-sektor yang dikendalikan negara termasuk telekomunikasi, transmisi dan distribusi tenaga listrik, dan layanan pos kecuali layanan kurir. Pembuatan senjata dan amunisi hanya bisa dilakukan sebagai usaha patungan dengan pemerintah. Bidang investasi lain yang diperuntukkan bagi warga negara Etiopia meliputi: penyiaran layanan transportasi udara jasa agen perjalanan, agen penerusan dan pengiriman perdagangan eceran dan perdagangan grosir pialang (tidak termasuk pasokan minyak bumi dan produk sampingannya serta grosir oleh investor asing dari produk mereka yang diproduksi secara lokal Produk) sebagian besar impor barang modal perdagangan penyewaan ekspor perdagangan kopi mentah, obrolan, minyak sayur, kacang, kulit dan kulit yang dibeli dari pasar daging domba, kambing dan sapi yang tidak dinaikkan atau digemukkan oleh perusahaan konstruksi investor kecuali yang ditetapkan sebagai penyamakan kelas 1 Menyembunyikan dan menguliti sampai hotel tingkat kerak (tidak termasuk restoran dan bar hotel berbintang) tidak termasuk restoran internasional dan khusus) jasa pelengkap dan penjualan tiket layanan transportasi produk roti dan kue kering untuk penggilingan pasar domestik lokakarya pakaian salon rambut (kecuali pakaian Pabrik) bangunan dan perawatan kendaraan melihat penggilingan dan kayu Jasa custom clearance produksi museum, teater dan gedung bioskop dan industri percetakan. Namun, GOE telah menunjukkan ketertarikan untuk membawa keahlian sektor swasta asing ke beberapa sektor di atas. Orang-orang Ethiopia-Amerika dapat memperoleh kartu penduduk lokal dari Kementerian Luar Negeri yang memungkinkan mereka berinvestasi di banyak sektor yang tertutup bagi orang asing. Perusahaan asing dapat memasok barang dan jasa ke perusahaan-perusahaan Etiopia di sektor-sektor yang tertutup. Amandemen 2012 terhadap pengumuman investasi Ethiopiarsquos memperkenalkan ketentuan untuk pembentukan zona pengembangan industri, baik yang dikelola negara maupun swasta, dengan insentif investasi, pajak, dan infrastruktur yang menguntungkan. Amandemen tersebut juga menaikkan persyaratan modal minimum menjadi US200.000 per proyek untuk investasi asing yang sepenuhnya dimiliki dan US150.000 untuk investasi bersama dengan investor domestik (atau US100.000US50.000 di bidang jasa teknik, arsitektural, akuntansi dan auditing , Jasa konsultasi bisnis dan manajemen, dan penerbitan). Seorang investor asing menginvestasikan kembali keuntungannya, dividen mungkin tidak diperlukan untuk mengalokasikan modal minimum. Tingkat inflasi, sementara masih tinggi, stabil selama 2012. GOE telah mengambil peran aktif dalam mengelola inflasi melalui serangkaian tindakan termasuk kebijakan moneter dan fiskal yang ketat yang membatasi pertumbuhan uang yang luas, sehingga inflasi year-on-year tetap stabil. Serangkaian periode penurunan dan stabilisasi, turun dari 39,3 di bulan November 2011 menjadi 15,6 pada bulan November 2012. GOE tetap waspada dalam memerangi inflasi, namun inefisiensi struktural seperti sistem logistik multi-modal negara yang dimonopoli dan sektor grosir oligopolistik kemungkinan akan terus berlanjut Tingkat inflasi Ethiopiarsquos dalam double digit. Ethiopia tidak memiliki persyaratan visa, tempat tinggal, atau ijin kerja yang berlebihan untuk investor asing, investor mungkin menghadapi penundaan birokrasi dalam memperoleh dokumen-dokumen ini. Peringkat Ethiopia di berbagai indeks: Kebijakan Konversi dan Transfer Semua transaksi mata uang asing harus disetujui oleh bank sentral Ethiopia, National Bank of Ethiopia (NBE). Mata uang lokal (Birr) tidak dapat ditukar dengan bebas. Perintah NBE tahun 2004 mengizinkan orang-orang Ethiopia yang bukan penduduk dan warga asing non-residen asal Ethiopia untuk mendirikan dan mengoperasikan rekening mata uang asing hingga US $ 50.000. Proklamasi Investasi Ethiopia memungkinkan semua investor asing terdaftar, apakah mereka menerima insentif atau tidak, untuk melepaskan keuntungan dan dividen secara bebas, pokok dan bunga atas pinjaman luar negeri, dan biaya yang terkait dengan transfer teknologi. Investor asing juga dapat mengirimkan hasil penjualan atau likuidasi aset, dari pengalihan saham atau kepemilikan parsial perusahaan, dan dana yang diperlukan untuk layanan hutang atau pembayaran internasional lainnya. Hak pegawai ekspatriat untuk melunasi gaji mereka diberikan sesuai dengan peraturan devisa NBE. Cadangan devisa Ethiopiarsquos turun dari tingkat rata-rata cakupan impor 3 bulan di 2010-2011 menjadi 1,8 bulan pada bulan April 2012. Cadangan valas telah terkuras habis, namun menunjukkan tanda-tanda stabil menjelang akhir 2012. Menurut IMF, penggunaan Penjualan valas sebagai alat untuk mensterilkan likuiditas mata uang lokal merupakan penyebab utama kekurangan tersebut meskipun telah diperburuk lagi oleh ekspor kopi yang lebih lemah dari perkiraan, ekspor utama Ethiopiarsquos. Birr telah terdepresiasi sekitar 100 terhadap Dolar A.S. antara November 2006 dan November 2012, melalui serangkaian langkah mundur terkendali, termasuk 20 devaluasi pada bulan September 2010. Per Desember 2012, nilai tukar sekitar 18,15 birr per dolar. Nilai tukar pasar paralel ilegal sekitar 19,06 birr per dolar, premi 5 di atas tingkat resmi. Unit Intelijen Keuangan Ethiopiarsquos memantau transfer mata uang yang mencurigakan, termasuk transaksi besar melebihi 200.000 birr (kira-kira setara dengan persyaratan pelaporan A.S. untuk transfer mata uang melebihi US10, 000). Pengambilalihan dan Kompensasi Per Desember 1996 Proklamasi Investasi dan amandemen selanjutnya, aset investor dalam negeri atau investor asing, perusahaan atau ekspansi tidak dapat dinasionalisasi seluruhnya atau sebagian, kecuali jika diminta oleh kepentingan publik dan sesuai dengan undang-undang dan dengan pembayaran kompensasi yang memadai . Aset tersebut tidak boleh disita, disita, atau dibuang kecuali di bawah perintah pengadilan. Rezim militer Derg menasionalisasi banyak properti di tahun 1970an. Posisi pemerintah saat ini adalah bahwa properti yang diambil secara pantas oleh Derg (perintah pengadilan atau proklamasi pemerintah yang diterbitkan dalam surat kabar resmi) tetap merupakan milik negara. Dalam kebanyakan kasus, properti yang disita secara lisan atau sarana informal lainnya secara bertahap dikembalikan ke pemilik sah atau ahli warisnya melalui proses birokrasi yang panjang. Penggugat diminta untuk membayar perbaikan yang dilakukan oleh pemerintah selama masa penguasaannya atas properti tersebut. Badan Pelindung Privatisasi dan Badan Pelaksana Usaha Publik (PPESA) Ethiopia berhenti menerima permintaan dari pemilik untuk mengembalikan properti yang sebelumnya diambil alih pada bulan Juli 2008. Menurut Proklamasi Investasi, perselisihan yang timbul dari investasi asing yang melibatkan investor asing atau negara dapat diselesaikan oleh Berarti menyenangkan bagi kedua belah pihak. Perselisihan yang tidak dapat diselesaikan secara damai dapat diajukan ke pengadilan Ethiopia yang kompeten atau arbitrase internasional dalam kerangka kesepakatan bilateral atau multilateral yang mana negara asal pemerintah dan pihak kontrak mengadakan kontrak. Baik investor asing maupun domestik yang terlibat dalam perselisihan telah menyatakan kurangnya kepercayaan di pengadilan untuk menilai dan menyelesaikan sengketa secara objektif. Sistem peradilan Ethiopia terbebani, kekurangan staf dan tidak berpengalaman dalam hal komersial, walaupun upaya sedang dilakukan untuk memperkuat kapasitasnya. Sementara hak properti dan kontrak diakui dan ada undang-undang komersial dan kebangkrutan, hakim seringkali kurang memahami masalah komersial dan penjadwalan kasus menderita penundaan yang berlarut-larut. Kamar Dagang Addis Ababa memiliki Pusat Arbitrasi yang didedikasikan untuk membantu mereka yang memiliki proses arbitrase. Tidak ada jaminan bahwa pemberian tribunal arbitrase internasional akan diterima sepenuhnya dan dilaksanakan oleh pihak berwenang Ethiopia. Ethiopia belum menandatangani atau meratifikasi Konvensi Pengakuan Arbitrasi Asing tahun 1958, yang umumnya dikenal sebagai Konvensi New York Convention.rdquo Ethiopiarsquos Praktik Perdagangan dan Otoritas Perlindungan Konsumen (TPCPA), bertanggung jawab kepada Kementerian Perdagangan, dan ditugaskan Dengan mempromosikan lingkungan bisnis yang kompetitif dengan mengatur praktik perdagangan yang anti persaingan, tidak etis, dan tidak adil untuk meningkatkan efisiensi ekonomi dan kesejahteraan sosial. Beberapa kekuatan Komisi meliputi: menyelidiki keluhan oleh pihak-pihak yang dirugikan yang memaksa saksi untuk hadir dan bersaksi di persidangan dan mencari tempat dari pihak-pihak yang dituduh. Sejak 2011, TPCPA telah melakukan 15 lokakarya untuk lebih dari 5000 peserta pemerintah dan sektor swasta. Namun, sejak awal, TPCPA terutama berfokus pada pengorganisasian sendiri dan pekerjaan administratif, dan sebelumnya tidak melakukan kegiatan penegakan hukum yang signifikan mulai Januari 2013. Persyaratan dan Insentif Kinerja Etiopia tidak secara formal memberlakukan persyaratan kinerja pada investor asing. Amandemen 2003 terhadap Proklamasi Investasi menguraikan insentif investasi bagi investor di wilayah tertentu. Investor baru yang bergerak di bidang manufaktur, kegiatan pengolahan agro, atau produksi produk pertanian tertentu, yang mengekspor setidaknya 50 produk mereka atau memasok setidaknya 75 produk mereka ke eksportir sebagai input produksi, dibebaskan dari pajak penghasilan selama lima tahun. . Seorang investor yang mengekspor kurang dari 50 produknya atau memasok produknya hanya ke pasar domestik adalah bebas pajak penghasilan selama dua tahun. Investor yang memperluas atau meningkatkan usaha yang ada dan mengekspor setidaknya 50 dari produksinya atau meningkatkan produksi sebesar 25 memenuhi syarat untuk pengecualian pajak penghasilan selama dua tahun. Seorang investor yang berinvestasi di daerah rdquodeveloping dari Gambella, Benishangul Gumuz, Omo Selatan, Afar atau Somalia akan berhak mendapatkan pengecualian pajak penghasilan satu tahun tambahan. Seorang investor yang mengekspor kulit dan kulit setelah diolah hanya sampai tingkat kerak tidak berhak mendapatkan insentif pajak pendapatan. Dana pinjaman khusus melalui Development Bank of Ethiopia (DBE) menyediakan lahan dengan harga sewa rendah untuk area ekspor prioritas seperti florikultura, barang kulit, tekstil dan pakaian, dan produk terkait agro-pengolahan. Seorang investor dapat meminjam hingga 70 dari biaya proyek dari dana khusus ini tanpa jaminan saat mempresentasikan rencana bisnis yang layak dan 30 ekuitas pribadi. Investor diperbolehkan untuk mengimpor barang modal bebas bea dan bahan bangunan yang diperlukan untuk pendirian perusahaan baru atau untuk perluasan perusahaan yang ada. Selain itu, suku cadang senilai 15 dari nilai barang modal bisa diimpor bebas bea. Hak istimewa ini mungkin tidak diberikan jika barang modal atau bahan konstruksi sebanding dapat diproduksi secara lokal dan memiliki harga, kualitas, dan kuantitas yang kompetitif. Barang modal bebas bea impor tidak bisa lagi digunakan sebagai jaminan pinjaman. Perjalanan agenciestour perusahaan telah meningkatkan hak bebas bea untuk impor barang seperti kendaraan, asalkan mereka hanya digunakan dalam kegiatan pariwisata. Direktorat Dukungan Investasi Pertanian Departemen Pertanian (MOA) menawarkan masa tenggang sampai tujuh tahun dengan harga sewa tanah. Direktorat saat ini fokus pada kesepakatan tanah di daerah terpencil Gambella, Benishangul Gumuz, Southern Nations, dan Afar. Hak atas Kepemilikan dan Pendirian Pribadi Entitas swasta asing dan domestik memiliki hak untuk mendirikan, mengakuisisi, memiliki dan melepaskan sebagian besar bentuk usaha perusahaan. Tidak ada hak kepemilikan pribadi atas tanah. Semua tanah itu dimiliki oleh negara dan bisa disewa hingga 99 tahun. Pada bulan November 2011, pemerintah memberlakukan proklamasi sewa lahan kontroversial perkotaan yang memungkinkan pemerintah untuk menentukan nilai tanah dalam transfer hak sewa guna usaha, dalam upaya untuk mengekang spekulasi oleh investor. Perlindungan Hak Milik Dijamin kepentingan dalam properti dilindungi dan diberlakukan, walaupun semua kepemilikan tanah tetap berada di tangan negara. Penduduk tertentu telah direlokasi (dan biasanya diberi kompensasi) ketika pemerintah memutuskan bahwa tanah tempat mereka tinggal seharusnya digunakan untuk jalan atau keperluan umum lainnya. Peraturan tata guna lahan bervariasi dalam bentuk dan praktek menurut wilayah. Hipotek jarang terjadi karena persyaratan pinjaman umumnya cukup singkat. Ethiopia belum menandatangani sejumlah perjanjian hak kekayaan intelektual internasional (HKR) utama, seperti: Konvensi Hak Cipta Paris untuk Perlindungan Properti Properti Intelektual Dunia (WIPO) perjanjian hak cipta Konvensi Berne untuk Karya Sastra dan Karya-karya Madrid Sistem Pendaftaran Tanda Internasional dan Perjanjian Kerjasama Paten. GOE telah menyatakan keinginannya untuk menyetujui konvensi Berne dan protokol Madrid pada tahun 2015. Kantor Hak Kekayaan Intelektual Etiopia (EIPO) telah ditugaskan terutama untuk melindungi bahan-bahan berhak cipta dan perangkat lunak bajakan Ethiopia. Secara umum, EIPO memiliki kapasitas yang lemah dalam hal tenaga kerja dan tidak satupun dalam hal penegakan hukum. Selain itu, sejumlah bisnis, terutama di industri pariwisata dan jasa, beroperasi di Ethiopia dengan bebas menggunakan nama atau simbol dagang terkenal tanpa izin. Transparansi Sistem Regulasi Sistem peraturan Ethiopia umumnya dianggap adil, meskipun ada beberapa kasus di mana persyaratan peraturan atau perizinan yang memberatkan mencegah penjualan ekspor A.S. ke lokal, terutama produk yang berkaitan dengan kesehatan. Kementrian pemerintah sering kali mengeluarkan keputusan dan dokumen terkait ke berbagai kementerian sebelum ada keputusan yang diselesaikan. Dalam banyak kasus, dokumen ini macet dalam satu pelayanan dan tidak ada keputusan yang dibuat. Pada tahun 2011, bank sentral mengeluarkan perintah untuk semua bank dan perusahaan asuransi untuk mematuhi International Financial Reporting Standards (IFRS). Investor asing mengeluhkan pembatalan beberapa tender pemerintah secara tiba-tiba, persepsi pilih kasih terhadap vendor yang memberikan pembiayaan konsesional, dan kurangnya transparansi dalam sistem pengadaan secara umum. Pada bulan September 2009, pemerintah mendirikan sebuah badan pengadaan barang dan properti yang baru. Badan ini merupakan organ pemerintahan yang otonom, memiliki badan kehakiman sendiri, dan bertanggung jawab kepada Kementerian Keuangan dan Pembangunan Ekonomi. Pasar Modal yang Efisien dan Investasi Portofolio Akses terhadap keuangan merupakan hambatan bagi peningkatan investasi swasta domestik Ethiopia. Sementara kredit tersedia bagi investor dengan persyaratan pasar, persyaratan agunan 100 membatasi kemampuan beberapa investor untuk memanfaatkan peluang bisnis. Selain itu, sebuah langkah April 2011 yang memaksa bank-bank pemerintah untuk menginvestasikan setara dengan 27 dari setiap pinjaman yang dibuat di obligasi National Bank of Ethiopia (NBE) telah menyebabkan kekurangan likuiditas yang telah mengurangi kemampuan bank untuk memberikan pinjaman kepada sektor swasta. Ethiopia saat ini memiliki sembilan belas bank - tiga milik negara, satu partai dimiliki, dan lima belas milik pribadi. Pada bulan September 2011, NBE menaikkan modal disetor minimum yang dibutuhkan untuk mendirikan bank baru dari Birr 75 juta sampai 500 juta yang secara efektif menghentikan masuknya sebagian besar bank baru ke pasar. Bank asing tidak diizinkan untuk menyediakan layanan keuangan di Ethiopia. Bank Umum Etiopia milik negara memobilisasi 65,1 dari total simpanan bank dan memberikan lebih dari 50 dari total pinjaman bank pada tahun fiskal 201112. Rasio kredit bermasalah perbankan komersial telah menurun menjadi kurang dari 5. Ethiopia tidak memiliki Pasar sekuritas, dan penjualan hutang sangat diatur. GOE sedang menyusun undang-undang untuk mengatur pasar over-the-counter bagi perusahaan saham swasta. NBE mengendalikan suku bunga deposito minimum bank, yang sekarang berada di posisi 5, sementara suku bunga pinjaman diperbolehkan melayang. Suku bunga riil telah negatif dalam beberapa tahun terakhir terutama karena inflasi yang tinggi. Pemerintah menawarkan sejumlah 28 hari, 3 bulan, dan 6 bulan tagihan Treasury, namun melarang tingkat bunga melebihi suku bunga deposito bank. Pemerintah mulai menawarkan tagihan Treasury satu tahun pada bulan November 2011. Hasil pada T-bills ini di bawah 2. Pasar ini tetap tidak menarik bagi sektor swasta dan lebih dari 95 T-bills dipegang oleh Bank Umum milik negara Dari Ethiopia dan perusahaan publik. Etiopia Commodity Exchange (ECX), diluncurkan pada tahun 2008, memperdagangkan komoditas seperti kopi, biji wijen, jagung, gandum, dan kacang haricot. GOE meluncurkan ECX untuk meningkatkan transparansi dalam penetapan harga komoditas, mengurangi kekurangan pangan, dan mendorong komersialisasi pertanian. Namun, kritikus menuduh bahwa kebijakan ECX dan struktur penetapan harga tidak efisien dibandingkan dengan penjualan langsung dengan tarif internasional yang berlaku. Persaingan dari Badan Usaha Milik Negara Badan Usaha Milik Negara dan Badan Usaha Milik Negara berkuasa mendominasi sektor-sektor utama perekonomian. Ada monopoli negara atau dominasi negara di sektor seperti telekomunikasi, listrik, perbankan, asuransi, transportasi udara, pengiriman, dan gula. Perusahaan pemungutan suara berpemerintah yang berkuasa memiliki kehadiran yang kuat di sektor transportasi darat, pupuk, dan tekstil. Kedua perusahaan milik negara dan perusahaan kuota saham mendominasi sektor semen. Perusahaan milik negara memiliki keuntungan yang cukup besar dibandingkan perusahaan swasta, terutama di wilayah peraturan pemerintah dan birokrasi Ethiopia, termasuk kemudahan akses terhadap kredit dan bea cukai yang lebih cepat. Pemilik bisnis lokal dan juga investor asing mengeluhkan kurangnya lapangan bermain ketika datang ke bisnis milik negara dan partai. Meskipun tidak ada laporan yang meyakinkan mengenai preferensi kredit terhadap entitas ini, ada indikasi bahwa mereka menerima insentif seperti alokasi devisa prioritas, preferensi dalam tender pemerintah, dan bantuan pemasaran. Ethiopia menerbitkan data keuangan agregat dari perusahaan milik negara, namun informasi rinci tidak termasuk dalam anggaran nasional, dan beberapa perusahaan milik negara di luar Ethiopian Airlines mengumumkan secara terbuka laporan keuangan rinci. Corporate governance of state-owned enterprises is structured and monitored by a board of directors composed of senior government officials and politically-affiliated individuals. In 2010, the Ethiopian government quotcorporatizedquot state-owned enterprise Ethiopian Telecommunications Corporation (ETC) by turning over its management to France-Telecom per a two-year contract. As part of this process, a new company, Ethio Telecom (ET), was formed to replace ETC. In January 2013, France-Telecom handed back the management of Ethio Telecom after completion of the contract. Similar to the ldquocorporatizationrdquo of ETC, a tender for the management of Ethiopian Electric Power Company (EEPCO) was advertised in 2011, though no winner has been announced. The Public-Private Dialogue Forum (PPDF), a joint consultative forum between the private sector and the government, held its second meeting in February 2012, focusing on customs, logistics and transport issues, especially those involving the inefficiency of state-owned enterprises. The private sector was represented by the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) and the government by the Ministry of Trade (MOT). Additionally, Prime Minister Hailemariam Desalegn met with representatives of the private sector in October 2012 to discuss their commercial concerns, continuing a series of direct private sector engagements started by former Prime Minister Meles Zenawi. Nearly all tenders issued by the Ethiopian government39s Privatization and Public Enterprises Supervising Agency (PPESA) are open to foreign participation. In some instances, the government prefers to engage in joint ventures with private companies rather than sell an entire entity. The government has sold over 300 public enterprises since 1994. Most of these enterprises were small enterprises in the trade and service sectors. Approximately 20 enterprises were privatized in 2011, including two major breweries, and around 60 public enterprises remain under PPESA control. Corporate Social Responsibility Some larger international companies have introduced corporate social responsibility (CSR) programs however, most local companies do not practice CSR. There is a movement to develop CSR programs by the Ministry of Industry in collaboration with the World Bank, U.S. Agency for International Development, and others. Ethiopia has been relatively stable and secure for investors. Insurgents operating in parts of the Somali Region of Ethiopia have warned investors against exploring for oil or natural gas resources in this area. Some elements of the outlawed Ogaden National Liberation Front continue to operate in parts of the Somali Region and there are reports of sporadic clashes with security forces. Beginning in 2008, the government enacted a series of laws that effectively constrained opposition parties, the media, and civil society. The Ethiopian Peoplersquos Revolutionary Democratic Front (EPRDF), which is the ruling party coalition, and its allied parties subsequently took close to 90 percent of the popular vote and won 545 out of 547 parliamentary seats in the 2010 national elections, which were judged to have lacked anything close to a level playing field. Regional-level elections (including for seats in the Addis Ababa and Dire Dawa city councils) will be held in 2013, followed by national parliamentary elections in 2015. In 2009, the Ethiopian government passed an Antiterrorism Proclamation granting executive branch-controlled security services virtually unlimited authority to take unilateral action to disrupt suspected terrorist activities. Terrorist activities are broadly defined in the legislation. As of December 31, 2012, the law has been cited in the convictions of nine journalists, five political opposition leaders, and an Ethiopian employee of the UN. Two Swedish journalists were found guilty of ldquoproviding support for terroristsrdquo and illegally entering the country in 2011 and were sentenced to eleven years in prison, but received a pardon in September 2012. Five European tourists were killed and two were kidnapped in January 2012 by the Afar Revolutionary Democratic Unit Front (ARDUF), an extremist group backed by Eritrea. In retaliation, the Ethiopian military made incursions into Eritrea in March targeting the ARDUF and the Eritrean military. An attack on a farm operated by Saudi Star Development in the Gambella Region in April left five people dead, and was blamed on the Gambella Nilotic Union. The Ethiopian government regards these incidents as terrorist attacks. In February 2012, the Ethiopian government announced that it had arrested eight al-Qaida operatives with links to Kenya, Sudan, Philippines, Saudi Arabia, and South Africa in the Bale area of Oromia Region in December 2011. Ethiopia ratified the United Nations (UN) Anticorruption Convention in 2007. The UN Investment Guide to Ethiopia (2004) asserted that routine bureaucratic corruption is virtually nonexistent in Ethiopia. The guide added that bureaucratic delays certainly exist, but are not devices by which officials seek bribes. It is a criminal offense to give or receive bribes, and bribes are not tax deductible. Transparency Internationalrsquos 2011 Corruption Perceptions Index, which measures perceived levels of public sector corruption ranked Ethiopia as 33 out of 100 (with 0 indicating ldquohighly corruptrdquo and 100 indicating ldquovery cleanrdquo). Ethiopia39s rank on the corruption perception index was 113 out of 176 countries in 2012 and 120 out of 182 rated countries in 2011. The Ministry of Justice and the Federal Ethics and Anti-Corruption Commission (FEACC) are charged with combating corruption. Since its establishment, the Commission has arrested many officials on charges of corruption, including managers of the Privatization Agency, Ethiopian Telecommunications Corporation, National Bank of Ethiopia, Ethiopian Geological Survey, the state-owned Commercial Bank of Ethiopia, and private businessmen. Bilateral Investment Agreements Ethiopia has bilateral investment and protection agreements with China, Denmark, Italy, Kuwait, Malaysia, Netherlands, Russia, Sudan, Switzerland, Tunisia, Turkey, Yemen, Spain, Algeria, Austria, UK, BelgiumLuxemburg, Libya, Egypt, Germany, Finland, India, and Equatorial Guinea and a protection of investment and property acquisition agreement with Djibouti. A Treaty of Amity and Economic Relations, which entered into force in 1953, governs economic and consular relations with the United States. Ethiopia also has avoidance of double taxation treaties with fourteen countries, including Italy, Kuwait, Romania, Russia, Tunisia, Yemen, Israel, South Africa, Sudan and the UK. There is no avoidance of double taxation treaty between the United States and Ethiopia. OPIC and Other Investment Insurance Programs The Overseas Private Investment Corporation (OPIC) has offered risk insurance and loans to U.S. investors in Ethiopia in the past, but has not originated any investment in Ethiopia in recent years. Approximately 85 of Ethiopia39s 84 million people worked in agriculture in 2011. The Ethiopian government is the most important sector of employment outside of agriculture. According to the Central Statistical Agencyrsquos urban employment and unemployment survey result, urban unemployment was estimated to be 17.5 as of 2012. (24.9 of people ages 15-24 are unemployed.) Ethiopia has ratified all eight core ILO conventions, including most recently, the Palermo Convention. The Ethiopian Penal Code outlaws work specified as hazardous by ILO conventions. The Ethiopian Parliament ratified ILO Convention 182 on the Worst Forms of Child Labor in May 2003. The U.S. Government produces an annual report on labor conditions in Ethiopia, including an assessment of child labor. According to the 2012 Index of Economic Freedom (produced by the Heritage Foundation), Ethiopia scored a 55.5 out of 100 for labor freedom, 1.6 points below the previous year and 6 points below 2010. The index rating states that ldquothe formal labor market has not been developed. Outmoded employment regulations remain a barrier to business, although enforcement is not stringent.rdquo The Confederation of Ethiopian Trade Unions has been expanding its membership and, along with the Ethiopian Employersrsquo Federation, actively supports foreign direct investment. Ethiopia generally enjoys labor peace. The right to form labor associations and engage in collective bargaining is constitutionally guaranteed for many workers, but excludes managerial employees, teachers, and civil servants. Although the constitution and law provide workers with the right to strike to protect their interests, detailed provisions make legal strike actions difficult to carry out. In practice, labor strikes are rare. Child labor is widespread in Ethiopia. While not a pressing issue in the formal economy, child labor is common in rural agrarian areas and the informal economy in urban areas. Both NGO and Ethiopian government sources concluded that goods produced (in the agricultural sector and traditional weaving industry in particular) via child labor are largely intended for domestic consumption, and not slated for export. Employers are statutorily prohibited from hiring children under the age of 14. There are strict labor laws defining what sectors may hire quotyoung workers,quot defined as workers aged 14 to 18, but these laws are infrequently enforced. Labor remains readily available and inexpensive in Ethiopia. Skilled manpower, however, is scarce in many fields. Approximately 60 of Ethiopians over the age of 15 are illiterate ( defined by UNESCO as ldquoinability to identify, understand, interpret, create, communicate and compute, using printed and written materials associated with varying contextsrdquo). There is no national minimum wage standard. Foreign Trade ZonesFree Trade Zones There are no areas designated as foreign trade zones andor free ports in Ethiopia. Because of the 1998-2000 Ethiopian-Eritrean war, Ethiopian exports and imports through the Eritrean port of Assab are prohibited. As a result, Ethiopia conducts almost all of its trade through the port of Djibouti with some trade via the Somaliland port of Berbera and Sudan39s Port Sudan. Despite Ethiopia39s efforts to clamp down on small-scale trade of contraband, unregulated exports of coffee, live animals, chat (a mildly narcotic amphetamine-like leaf), fruit and vegetables, and imports of cigarettes, alcohol, textiles, electronics and other consumer goods continues. Foreign Direct Investment Statistics Foreign direct investment (FDI) flows into Ethiopia have gradually increased in the last few years. According to estimates by the World Bank (August 2012), the annual inflow of FDI increased from US0.5 billion in 2007 to US1.2 billion in 2011. Floriculture, horticulture, textile, and leather are the sectors that have attracted the most FDI. Recently, commercial farming has attracted Indian, Saudi, European, and U.S. investors. According to the Ethiopian Investment Agency, the stock of U.S. foreign direct investment since 1993 in Ethiopia reached nearly US1.4 billion as of December 2011, which includes both projects under implementation and in operation. U.S. companies with a presence and participation in Ethiopia39s economy include (either through direct presence or licensingdistribution agreement): Boeing, Coca-Cola, Pepsi-Cola, Caterpillar, John Deere, Proctor amp Gamble, Johnson amp Johnson, Ford, Mack Trucks, General Motors, Ernst amp Young, Radisson, Sheraton, Hilton, Motorola, Microsoft, IBM, Cessna, Bell Helicopters, Perkins, Massey Ferguson, Case III, 3M, Lucent Technologies, Cisco, Federal Express, United Parcel Service, RankXerox Corporation, HP, Cargill, Navistar, Hughes Network, DuPont, Oracle, and General Electric.U.S. Department of State Ethiopia is one of the fastest growing economies in the world. It has registered impressive GDP growth for several years, ranging between 8 and 12, depending on the data source. The World Bank and IMF forecast continued average growth of 7.5 to 8.5 in 2015 and approximately 7 to 7.5 over the next three years. With a population of roughly 90 million, Ethiopia is the second most populous country in sub-Saharan Africa, after Nigeria. The government of Ethiopia follows an integrated 5-year development plan, the Growth and Transformation Plan (GTP), which aims to achieve 11.2 ndash 14.9 GDP growth annually as well as achieve the Millennium Development Goals and attain middle-class income status by 2025. To realize these goals, the government is investing heavily in large-scale social, infrastructural and energy projects. These developments are positive indicators for future private sector development, but translate into the flow of significant amounts of capital into public sector infrastructure projects, which can provide important opportunities but can also limit capital available to the private sector. World Bank estimates show that public infrastructure spending was approximately 19 of Ethiopiarsquos total GDP in fiscal year 2011-2012. Competitive labor and energy costs as well as the budding consumer markets are key pulls for foreign direct investment (FDI). Current challenges to the private sector include foreign exchange shortages and limited access to finance, long lead-times for inputs and exports due to the current logistic infrastructure and associated high land transportation costs, and bureaucratic delays. Areas closed to foreign investment are banking, insurance and accountingassurance services, retail, telecommunications and transportation. Businesses interested in entering the market should focus on aligning operations to complement the overall goals of the GTP. Key growth sectors include renewable energy, construction, healthcare, tourism, textile and apparel, leather products, telecommunication support services and products, and aviation support services and products. The government of Ethiopia is currently pursuing accession to the World Trade Organization, while maintaining their goal of attaining least-developed country status, by 2015. In 2015, Ethiopia also became a full member of the Common Market for Eastern and Southern Africa (COMESA). It is actively pursuing improving the current investment climate through adopting more efficient bureaucratic processes in the areas of registration, logistics, and tax processes. Key energy generation and distribution projects as well as transportation infrastructure projects are scheduled for completion by the end of 2015. 1. Openness To, and Restrictions Upon, Foreign Investment Attitude toward Foreign Direct Investment Ethiopiarsquos five-year Growth and Transformation Plan (GTP) ndash 2010 to 2015, which was approved by the Ethiopian Parliament in November 2010 and is currently in its fifth year, is driving Ethiopiarsquos demand for and openness to foreign investment. The GTP overarching goals are to achieve the Millennium Development Goals and middle-income status by 2025. These goals translate to a focus on improving the quantity and quality of social services and infrastructure, ensuring macro-economic stability with targeted GDP growth of 11 to 14.9, and enhancing productivity in agriculture and manufacturing. Given the scale of public investment required to support GTP targets, coupled with the current negative domestic savings rate and a World Bank estimate of 4.3 collected tax revenues as a percentage of GDP, Ethiopia requires significant inflows of foreign financial resources. While tax incentives for investment in the high priority sectors of heavy and light manufacturing, agribusiness, textiles, sugar, chemicals and pharmaceutical and mineral and metal processing underscore the governmentrsquos focus and openness to FDI, the recent credit worthiness ratings by the international rating agencies has opened up Ethiopiarsquos access to commercial foreign loans. In May 2014, Moodyrsquos rated Ethiopiarsquos credit worthiness a lsquoBrsquo, while SampP and Fitch gave a lsquoBrsquo in May 2014. The rating agencies underscored Ethiopiarsquos stable outlook and positive prospects for continued economic growth in the short and medium term. Key drivers of their ratings were the huge investments in infrastructure and power generation and their likely effect in improving trade conditions. The countryrsquos peace and stability also positively influenced the rating. The rating agencies noted however that the private sector remained weak and access to domestic credit restricted economic growth. In December 2014, Ethiopia issued its first Euro-bond offering, raising USD 1 billion at a rate of 6.625. The 10-year bond was oversubscribed indicating a continued market interest in high ndash growth sub-Saharan African markets, but did trigger the country to exceed its non-concessional borrowing threshold set by the World Bank, which could limit Ethiopiarsquos access to additional concessional lending. According to the Ministry of Finance and Economic Development, the GOE will allocate these funds for additional infrastructure investment. Other Investment Policy Reviews Over the past three years, the Ethiopian Investment Commission (EIC) has undertaken an independent review of its investor services in an effort to streamline the investment process and is in the process of developing a more efficient one-stop-shop facility for foreign direct investors. LawsRegulations of Foreign Direct Investment The government of Ethiopia is currently revising its 1960 commercial code in an effort to facilitate investment and ease of operations. Areas of focus include clarifying regulations for potential investors, standardizing appropriate accounting practices to more accurately assess tax and other operating liabilities, increasing protection for shareholders and provisions for bankruptcy filings as well as modernization of trade and registration processes. To date, the instructions for drafting the code are finalized the actual revision and drafting of the new code has not started. The revised Investment Code of 1996, as well as the Investment Proclamation, provide incentives for development-related investments and have gradually removed most of the sectorial restrictions on investment. However, the investment code does prohibit foreign investment in some sectors -- please refer to 39Limits on Foreign Control39 section. The 2012 amendment to Ethiopiarsquos investment proclamation introduced provisions for the establishment of industrial development zones, both state-run and private, with favorable investment, tax, and infrastructure incentives. The amendment raised the minimum capital requirement to USD 200,000 per project for wholly-owned foreign investments and USD 150,000 for joint investments with domestic investors (or USD 100,000USD 50,000 respectively in the areas of engineering, architectural, accounting and auditing services, business and management consultancy services and publishing). A foreign investor reinvesting profits or dividends may not be required to allocate minimum capital. Under the GTP, key priority industries include: textile and garment industry, leather and leather products, sugar and sugar-related products, cement, metal and engineering, chemical, pharmaceutical and agro-processing. Investments in this area are accompanied with additional tax and duty incentives as established in proclamation 7692012. A 2014 amendment to the investment proclamation restructured the existing regulatory investment body, the Ethiopian Investment Agency (EIA) under the Ministry of Industry, to a separate governmental body, the EIC, with the Ethiopian Prime Minister serving as Chairman of the EIC Board. The 2014 amendment also provides flexibility for the EIC to decide on appeals submitted to it by foreign and domestic investors on specific projects. In addition, the new EIC Investment Board is empowered to authorize the granting of new or additional incentives other than what is outlined under the existing regulations and authorize foreign investment in areas, otherwise exclusively reserved for domestic investors, if the exception is in the lsquonational interest.rsquo The EIC39s website, ethioinvest, outlines the GOE39s key focus sectors as well as details registration processes and provides regulatory details for investors. In alignment with GTP goals to further develop medium and large scale industries, the government established the Ethiopian Industrial Zones Corporation (EIZC) under the Ministry of Industry in 2012 to oversee the construction and regulation of the zones. Currently the EIZC is preparing the first Industrial park proclamation with the aim of decreasing environmental pollution, enhancing export of manufactured goods and ensuring sustainability. As of April 2014, Bole Lemi-I is the only operational industrial zone developed by the government. For Bole Lemi- II and Qilinto industrial zone developments, the government is in the process of design selection with the support of the World Bank financing and technical advice. Two additional industrial zones, the Eastern Industrial Zone and George Shoe Factory, are developed by Chinese and Taiwanese private businesses. There is also plan to develop industrial zones in Dire Dawa and Hawasa. Limits on Foreign Control Ethiopiarsquos investment code prohibits foreign investment in banking, insurance, and financial services. The remaining state-owned sectors include telecommunications, power transmission and distribution, and postal services with the exception of courier services. Manufacturing of weapons and ammunition can only be undertaken as joint ventures with the government. Other areas of investment reserved for Ethiopian nationals include: broadcasting air transport services travel agency services, forwarding and shipping agencies retail trade and brokerage wholesale trade (excluding supply of petroleum and its by-products as well as wholesale by foreign investors of their locally-produced products) most import trade capital goods rentals export trade of raw coffee, khat, oilseeds, pulses, hides and skins bought from the market live sheep, goats, and cattle not raised or fattened by the investor construction companies excluding those designated as grade 1 tanning of hides and skins up to crust level hotels (excluding star-designated hotels) restaurants and bars (excluding international and specialized restaurants) trade auxiliary and ticket selling services transport services bakery products and pastries for the domestic market grinding mills hair salons clothing workshops (except garment factories) building and vehicle maintenance saw milling and timber production custom clearance services museums, theaters and cinema hall operations and printing industries. However, the government of Ethiopia has indicated an interest in bringing foreign private sector expertise to some of the above sectors. Ethiopian-Americans can obtain a local resident card from the Ministry of Foreign Affairs that allows them to invest in many sectors closed to foreigners. Foreign firms can supply goods and services to Ethiopian firms in the closed sectors. The government continues to implement its privatization program for some government-owned entities, which were largely nationalized by the Derg military regime in the 1970s. The current government39s position is that property seized lawfully by the Derg (i.e. by court order or government proclamation published in the official gazette) remains the property of the state. Nearly all tenders issued by the Ethiopian government39s Privatization and Public Enterprises Supervising Agency (PPESA) are open to foreign participation. In some instances, the government prefers to engage in joint ventures with private companies rather than sell an entire entity. The government has sold 370 public enterprises since 1995. Most of these enterprises were small companies in the trade and service sectors. The agency privatized three enterprises in 2014 and currently around 27 public enterprises remain under PPESA control. With the exception of the restricted areas of investments, the regulations governing the investment registration policy is consistently referenced for foreign investors. While investors have complained about different interpretations (particularly relating to accounting for in-kind investments) from the EIC. foreign investors generally do not face undue screening of FDI, unfavorable tax treatment, denial of licenses, discriminatory import or export policies, or inequitable tariff and non-tariff barriers. The EIC is working to establish an expedited one-stop shop service that it hopes will significantly cut the time and cost of acquiring investment and business licenses. However, bureaucratic hurdles continue to affect project implementation and some U.S. investors report that the EIC still lacks capacity to meet its own stringent deadlines. A business license can be obtained in one day if all requirements are met, though in practice this is uncommon. A foreign investor intending to buy an existing private enterprise or buy shares in an existing enterprise needs to obtain prior approval from the EIC. Currently, within the sectors allowing foreign investment, there are no laws restricting competition for foreign companies or foreign-owned subsidiaries. The EIC reviews investment transactions for compliance with FDI requirements and restrictions as outlined by the investment proclamation and amendments. However, companies have complained that state-owned enterprises receive favorable treatment in the government tender process. As the public sector is heavily involved in the economic development, this translates into a sizeable portion of the open tenders on the market. Ethiopiarsquos Trade Practice and Consumers Protection Authority (TPCPA), is accountable to the Ministry of Trade, and is tasked with promoting a competitive business environment by regulating anti-competitive, unethical, and unfair trade practices to enhance economic efficiency and social welfare. Some of the Commission39s powers include: investigating complaints by aggrieved parties compelling witnesses to appear and testify at hearings and searching the premises of accused parties. Since 2011, the TPCPA has conducted 15 workshops for over 5000 government and private sector attendees. However, since its inception, the TPCPA has been primarily focused on self-organization and administrative work, and had not conducted any significant enforcement activities as of January 2013. The Federal Trade Competition and Consumer Protection Appellate Tribunal which is formed under TPCPA saw 45 consumer protection and unfair trade cases in 201314. In addition the Authority is providing market information on some goods to the public using print and electronic media. Because of its consistent GDP growth of between 8 - 12 over the past 10 years, its population of over 90 million and its stable investment climate, Ethiopia is becoming an increasing priority for foreign investment and foreign companies. Investment trends show the following two key features: Equity investment terms are usually for 8 ndash 10 years with inputs being not only capital inflows, but also capacity building and knowledge transfer. Manufacturing companies are taking advantage of the special industrial zones, skilled labor and tax incentives for initial start-up imports and export-related expenditures. While foreign exchange shortages for import of inputs and logistic costs remain high both in actual cost and lead time requirements, most manufacturing companies still identify a cost advantage on the whole due to low power, labor and customs costs. Millennium Challenge Corporation Country Scorecard The Millennium Challenge Corporation, a U.S. Government entity charged with delivering development grants to countries that have demonstrated a commitment to reform, produced scorecards for countries with a per capita gross national income (GNI) or USD 4,125 or less. A list of countrieseconomies with MCC scorecards and links to those scorecards is available here: mcc.govpagesselectionscorecards. Details on each of the MCCrsquos indicators and a guide to reading the scorecards are available here: mcc.govpagesdocsdocreport-guide-to-the-indicators-and-the-selection-process-fy-2015 . 2. Conversion and Transfer Policies All foreign currency transactions must be approved by Ethiopia39s central bank, the National Bank of Ethiopia (NBE). The local currency (Birr) is not freely convertible. A 2004 NBE directive allows non-resident Ethiopians and non-resident foreign nationals of Ethiopian origin to establish and operate foreign currency accounts up to USD 50,000. Ethiopia39s Investment Proclamation allows all registered foreign investors, whether or not they receive incentives, to remit freely profits and dividends, principal and interest on foreign loans, and fees related to technology transfer. Foreign investors may also remit proceeds from the sale or liquidation of assets, from the transfer of shares or of partial ownership of an enterprise, and funds required for debt service or other international payments. The right of expatriate employees to remit their salaries is granted in accordance with NBE foreign exchange regulations. Forex reserves were heavily depleted during 2012 and still remain at low levels. By the end of FY14, the gross reserves are estimated at USD 2.8 billion, covering approximately 1.9 months of prospective imports. According to the IMF, heavy government infrastructure investment has fueled the need for forex for the associated imports. In addition, the forex reserve decrease is further exacerbated by weaker than expected exports of coffee, Ethiopiarsquos main export crop, a trend that had begun to reverse by mid-2014 and exports actually increased by 5.5 during the 20132014 fiscal year. Still, businesses usually expect delays of foreign exchange supply of 6 weeks to 3 months and slow-downs in manufacturing due to foreign exchange shortages are common. Delays of repatriation for high USD sales amounts of up to 2 years have been reported. Localization of inputs and partnering with export-oriented partners are strategies employed by the private sector to address the foreign exchange shortage. According to data from the National Bank of Ethiopia, the birr depreciated approximately 130 against the U.S. Dollar between November 2006 and January 2015, through a series of controlled step-downs, including 20 devaluation in September 2014. As of January 2015, the exchange rate was approximately 20.14 birr per dollar. The illegal parallel market exchange rate was approximately 22.80 per dollar in January 2015, a premium of 13.2 over the official rate. Ethiopiarsquos Financial Intelligence Unit monitors suspicious currency transfers, including large transactions exceeding 200,000 birr (roughly equivalent to U.S. reporting requirements for currency transfers exceeding USD 10,000). 3. Expropriation and Compensation Per Ethiopia39s 1996 Investment Proclamation and subsequent amendments, assets of a domestic investor or a foreign investor, enterprise or expansion cannot be nationalized wholly or partly, except when required by public interest and in compliance with the laws and with payment of adequate compensation. Such assets may not be seized, impounded, or disposed of except under a court order. The Derg military regime nationalized many properties in the 1970s. The current government39s position is that property seized lawfully by the Derg (i.e. by court order or government proclamation published in the official gazette) remains the property of the state. In most cases, property seized by oral order or other informal means is gradually being returned to lawful owners or their heirs through a lengthy bureaucratic process. Claimants are required to pay for improvements made by the government during the time of its control over the property. Ethiopia39s Privatization and Public Enterprises Supervising Agency (PPESA) stopped accepting requests from owners for return of these formerly expropriated properties in July 2008. Legal System, Specialized Courts, Judicial Independence, Judgments of Foreign Courts According to the Investment Proclamation, disputes arising out of foreign investment that involve a foreign investor or the state may be settled by means agreeable to both parties. A dispute that cannot be settled amicably may be submitted to a competent Ethiopian court or to international arbitration within the framework of any bilateral or multilateral agreement to which the government and the investor39s state of origin are contracting parties. The Ethiopian Commercial Code (Book V.) does outline Bankruptcy provisions and proceedings and references that the Ethiopian court system will have jurisdiction over bankruptcy filings and proceedings subject to international conventions. The primary purpose of the law is to protect creditors, equity shareholders and other contractors and bankruptcy is not criminalized according to the law. In practice, there is currently limited application of the bankruptcy procedures due to lack of knowledge of the procedures by the private sector. The 2015 World Bank Ease of Doing Business index sub-category 39Resolving Insolvency39 outlines some average expectations for insolvency proceedings in Ethiopia doingbusiness.orgdataexploreeconomiesethiopiaresolving-insolvency . Currently, there is no data to track investment dispute trends or patterns. While disputes can be resolved in international arbitration forums at the agreement of both parties, enforcement is contingent on the Ethiopian court system. Both foreign and domestic investors involved in disputes have expressed a lack of confidence in the judiciary to objectively assess and resolve disputes. Ethiopia39s judicial system is overburdened, poorly-staffed and inexperienced in commercial matters, although efforts are underway to strengthen its capacity. While property and contractual rights are recognized and there are commercial and bankruptcy laws, judges often lack understanding of commercial matters and case scheduling suffers from extended delays. The Addis Ababa Chamber of Commerce has an Arbitration Center dedicated to assist those with the arbitration process. There is no guarantee that the award of an international arbitral tribunal will be fully accepted and implemented by Ethiopian authorities. ICSID Convention and New York Convention Since 1965, Ethiopia has been a member state to the International Centre for Settlement of Disputes (ICSID Convention) but has not ratified the convention on The Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention). Duration of Dispute Resolution Due to an overloaded court system, dispute resolution can last between several months and several years. According to the World Bank, Ease of Doing Business report, the average for Enforcing Contracts is 530 days. 5. Performance Requirements and Investment Incentives Ethiopia is currently an observer of the World Trade Organization (WTO) wto.orgenglishthewtoeaccea1ethiopiae.htm and is in the process of developing its services offer and revising its goods offer. Ethiopia currently does maintain formal measures that are inconsistent with Trade Related Investment Measure requirements. Local and Foreign investors have asserted that informal priority for foreign exchange has been given to export-oriented businesses andor those that provide a higher local input content. The 2003 amendment to the Investment Proclamation outlines investment incentives for investors in specific areas. New investors engaged in manufacturing, agro-processing activities, or the production of certain agricultural products, who export at least 50 of their products or supply at least 75 of their product to an exporter as production inputs, are exempt from income tax for five years. An investor who exports less than 50 of his product or supplies his product only to the domestic market is income tax exempt for two years. Investors who expand or upgrade existing enterprises and export at least 50 of their output or increase production by 25 are eligible for income tax exemption for two years. An investor who invests in the developing regions of Gambella, Benishangul Gumuz, South Omo, Afar or Somali Region will be eligible for an additional one-year income tax exemption. An investor who exports hides and skins after processing only up to crust level will not be entitled to the income tax incentive. Research and Development The Ethiopian government does encourage technology and knowledge transfer to further develop the Ethiopian workforce via corporate-financed corporate social responsibility programs andor training programs incorporated into investment proposals. Currently, there are no government financed research and development programs however. Ethiopia does not formally impose performance requirements on foreign investors. There is currently no forced localization or data storage requirements for private investors. However, in the case of joint ventures with SOE39s, investors have reported requirements of up to 30 domestic content in goods andor technology. 6. Right to Private Ownership and Establishment Both foreign and domestic private entities have the right to establish, acquire, own and dispose of most forms of business enterprises. There is no right of private ownership of land. All land is owned by the state and can be leased for up to 99 years. Small scale rural landholders have an indefinite period of use rights, but cannot lease out whole holding for a longer period of time, except in Amhara Region. In November 2011, the government enacted a controversial urban land lease proclamation that allows the government to determine the value of land in transfers of leasehold rights, in an attempt to curb speculation by investors. 7. Protection of Property Rights Secured interests in property are protected and enforced, although all land ownership remains in the hands of the state with use rights to landholders. Certain residents have been relocated (and usually compensated for properties on land) when the government decides that the land they are living on should be used for a road or other public use. Land leasehold regulations vary in form and practice by region. As land is a public property, the law doesnrsquot allow mortgaging land. Intellectual Property Rights Ethiopia has yet to sign a number of major international intellectual property rights (IPR) treaties, such as: the Paris Convention for the Protection of Industrial Property the World Intellectual Property Organization (WIPO) copyright treaty the Berne Convention for Literary and Artistic Works the Madrid System for the International Registration of Marks and the Patent Cooperation Treaty. The GOE has expressed its intention to accede to the Berne convention and Madrid protocol by 2015. The Ethiopian Intellectual Property Rights Office (EIPO) has been tasked primarily to protect Ethiopian copyrighted materials and pirated software. Generally, EIPO has weak capacity in terms of manpower and none in terms of law enforcement. In addition, a number of businesses, particularly in the tourism and service industries, operate in Ethiopia freely using well-known trademarked names or symbols without permission. The government does not publicly track counterfeit goods seizures, and no estimates are available. Resources for Rights Holders The Ethiopian Intellectual Property Office (EIPO) oversees the administration and advises on IPR issues. Contact and office information is available at eipo.gov.et For additional information about treaty obligations and points of contact at local IP offices, please see WIPOrsquos country profiles at wipo.intdirectoryen . Embassy POC: Economic Officer, Helena Schrader, SchraderHPstate.gov 8. Transparency of the Regulatory System Ethiopia39s regulatory system is generally considered fair, though there are instances in which burdensome regulatory or licensing requirements have prevented the local sale of U.S. exports, particularly health-related products. Investment decisions can involve multiple government ministries lengthening the registration and investment process. In 2011, the central bank issued a directive for all banks and insurance companies to adhere to International Financial Reporting Standards (IFRS). Foreign investors have complained about the abrupt cancellation of some government tenders, a perception of favoritism toward vendors who provide concessional financing, and a general lack of transparency in the procurement system. In September 2009, the government established a new public procurement and property administration agency. This agency is an autonomous government organ, has its own judicial arm, and is accountable to the Ministry of Finance and Economic Development. Ethiopia is a member of UNCTADrsquos international network of transparent investment procedures ethiopia.eregulations.org. Foreign and national investors can find detailed information on administrative procedures applicable to investment and income generating operations including the number of steps, name and contact details of the entities and persons in charge of procedures, required documents and conditions, costs, processing time and legal bases justifying the procedures. 9. Efficient Capital Markets and Portfolio Investment Access to finance is an impediment to increased Ethiopian domestic private investment. While credit is available to investors on market terms, a 100 collateral requirement limits the ability of some investors to take advantage of business opportunities. Additionally, an April 2011 measure forcing non-government banks to invest the equivalent of 27 of each loan made in National Bank of Ethiopia (NBE) bonds has contributed to liquidity shortages that have reduced the ability of banks to lend to the private sector. Ethiopia currently has nineteen banks--three state-owned, and sixteen privately-owned. In September 2011, the NBE raised the minimum paid up capital required to establish a new bank from Birr 75 million to 500 million which effectively stopped the entry of most new banks into the market. Foreign banks are not permitted to provide financial services in Ethiopia. The state-owned Commercial Bank of Ethiopia mobilized 65.1 of the total bank deposits and provided more than 50.4 of total bank loans in the fiscal year 201213. Ethiopia does not have a securities market, and salespurchases of debt are heavily regulated. The GOE is drafting legislation to regulate the over-the-counter market for private share companies. In addition, Moodyrsquos rated Ethiopiarsquos credit worthiness a lsquoBrsquo, while SampP and Fitch gave it a lsquoBrsquo. The NBE controls the bank minimum deposit rate, which now stands at 5, while loan interest rates are allowed to float. Real interest rates have been negative in recent years mainly due to high inflation. The government offers a limited number of 28 days, 3-month, and 6-month Treasury bills, but prohibits the interest rate from exceeding the bank deposit rate. The government began to offer a one year Treasury bill in November 2011. The yields on these T-bills are below 2. This market remains unattractive to the private sector and over 95 of the T-bills are held by the state-owned Commercial Bank of Ethiopia and public enterprises. The Ethiopia Commodity Exchange (ECX), launched in 2008, trades commodities such as coffee, sesame seeds, maize, wheat, and haricot beans. The GOE launched ECX to increase transparency in commodity pricing, alleviate food shortages, and encourage the commercialization of agriculture. However, critics allege that ECX policies and pricing structures are inefficient compared to direct sales at prevailing international rates. Money and Banking System, Hostile Takeovers Ethiopia currently has nineteen banks--three state-owned, and sixteen privately-owned. In September 2011, the NBE raised the minimum paid up capital required to establish a new bank from Birr 75 million to 500 million which effectively stopped the entry of most new banks into the market. Foreign banks are not permitted to provide financial services in Ethiopia. Based on the most recently available data, the state-owned Commercial Bank of Ethiopia typically mobilizes about two-thirds of total bank deposits and half of total bank loans. Ethiopia does not have a securities market, and salespurchases of debt are heavily regulated. The GOE is drafting legislation to regulate the over-the-counter market for private share companies. In addition, Moodyrsquos rated Ethiopiarsquos credit worthiness a B, while SampP and Fitch gave it a B. The NBE controls the bank minimum deposit rate, which now stands at 5, while loan interest rates are allowed to float. Real interest rates have been negative in recent years mainly due to high inflation. The government offers a limited number of 28 days, 3-month, and 6-month Treasury bills, but prohibits the interest rate from exceeding the bank deposit rate. The government began to offer a one year Treasury bill in November 2011. The yields on these T-bills are below 2. This market remains unattractive to the private sector and over 95 of the T-bills are held by the state-owned Commercial Bank of Ethiopia and public enterprises. Currently, there are no restrictions for foreigners to own a local bank account. 10. Competition from State-Owned Enterprises State-owned enterprises and ruling party-owned entities dominate major sectors of the economy. There is state monopoly or state dominance in sectors such as telecommunications, power, banking, insurance, air transport, shipping, and sugar. Ruling party-affiliated endowment companies have a strong presence in the ground transport, fertilizer, and textile sectors. Both state-owned enterprises and endowment companies dominate the cement sector. State-owned enterprises have considerable advantages over private firms, particularly in the realm of Ethiopia39s regulatory and bureaucratic environment, including ease of access to credit and speedier customs clearance. Local business owners as well as foreign investors complain of the lack of a level playing field when it comes to state-owned and party-owned businesses. While there are no conclusive reports of credit preference for these entities, there are indications that they receive incentives such as priority foreign exchange allocation, preferences in government tenders, and marketing assistance. Ethiopia publishes aggregate financial data of state-owned enterprises, but detailed information is not included in the national budget, and few state-owned enterprises outside of Ethiopian Airlines publicly release detailed financial statements. In 2010, the Ethiopian government corporatized state-owned enterprise Ethiopian Telecommunications Corporation (ETC) by turning over its management to France-Telecom per a two-year contract. As part of this process, a new company, Ethio Telecom (ET), was formed to replace ETC. In January 2013, France-Telecom handed back the management of Ethio Telecom after completion of the contract. Similar to the corporatization of ETC, a tender for the management of Ethiopian Electric Power Company (EEPCO) was advertised in 2011. After splitting the power corporation into two entities, the management contract of the Ethiopian Electric Utility has been given to an Indian company for two years contract beginning December 2013. The Public-Private Dialogue Forum (PPDF), a joint consultative forum between the private sector and the government, has held six workshops to date focusing on various business issues such as company registration, business licensing, legal structures, access to finance, procurement, manufacturing, and protecting property rights. The private sector was represented by the Ethiopian Chamber of Commerce and Sectorial Associations (ECCSA) and the government by the Ministry of Trade (MOT). Additionally, Prime Minister Hailemariam Desalegn, together with the full Council of Ministers, meets with representatives of the private sector annually to discuss their commercial concerns. Nearly all tenders issued by the Ethiopian government39s Privatization and Public Enterprises Supervising Agency (PPESA) are open to foreign participation. In some instances, the government prefers to engage in joint ventures with private companies rather than sell an entire entity. The government has sold over 300 public enterprises since 1994. Most of these enterprises were small enterprises in the trade and service sectors. The agency privatized 3 Enterprises in 2014 and currently around 27 public enterprises remain under PPESA control. OECD Guidelines on Corporate Governance of SOEs Currently, Ethiopia is not a member to the Organization for Economic Cooperation and Development (OECD). They also do not adhere to the guidelines on corporate governance of SOEs. Corporate governance of state-owned enterprises is structured and monitored by a board of directors composed of senior government officials and politically-affiliated individuals. Sovereign Wealth Funds Ethiopia has no Sovereign Wealth Funds. 11. Corporate Social Responsibility Some larger international companies have introduced corporate social responsibility (CSR) programs however, most local companies do not practice CSR. There is a movement to develop CSR programs by the Ministry of Industry in collaboration with the World Bank, U.S. Agency for International Development, and others. CSR programs supporting workforce capacity-building and services, community-building and infrastructure investment programs by foreign corporation can serve to further align company objectives with the government of Ethiopiarsquos overall GTP development goals. OECD Guidelines for Multinational Enterprises The host government does encourage CSR programs for both local and foreign direct investors but does not maintain specific guidelines for these programs. In early 2015, the Ethiopian Chamber of Commerce amp Sectorial Associations published a 39Model Code of Ethics for Ethiopian Businessesrsquo that was endorsed by the GOE39s President Mulatu Teshomme as the model for the business community. Ethiopia has been relatively stable and secure for investors. Insurgents operating in parts of the Somali Region of Ethiopia have warned investors against exploring for oil or natural gas resources in this area. Some elements of the outlawed Ogaden National Liberation Front continue to operate in parts of the Somali Region and there are reports of sporadic clashes with security forces. Beginning in 2008, the government enacted a series of laws that effectively constrained opposition parties, the media, and civil society. The Ethiopian Peoplersquos Revolutionary Democratic Front (EPRDF), which is the ruling party coalition, and its allied parties subsequently took close to 90 percent of the popular vote and won 545 out of 547 parliamentary seats in the 2010 national elections, which were judged to have lacked a level playing field. Regional-level elections (including for seats in the Addis Ababa and Dire Dawa city councils) were held in 2013 and national parliamentary elections are scheduled in May 2015. In 2009, the Ethiopian government passed the Anti-terrorism Proclamation (ATP), granting executive branch-controlled security services virtually unlimited authority to take unilateral action to disrupt suspected terrorist activities. Terrorist activities are broadly defined in the legislation. The law has been cited in the convictions of twelve Ethiopian journalists, political opposition leaders, and activists, and an Ethiopian employee of the UN. Two Swedish journalists were found guilty of providing support for terrorists and illegally entering the country in 2011 and were sentenced to eleven years in prison, but received a pardon in September 2012. In the lead up to the May 2015 national elections, several opposition party leaders have been detained and charged under the ATP. Five European tourists were killed and two were kidnapped in January 2012 by the Afar Revolutionary Democratic Unit Front (ARDUF), an extremist group backed by Eritrea. In retaliation, the Ethiopian military made incursions into Eritrea in March 2012 targeting the ARDUF and the Eritrean military. An attack on a farm operated by Saudi Star Development in the Gambella Region in April 2013 left five people dead, and was blamed on the Gambella Nilotic Union. The Ethiopian government regards these incidents as terrorist attacks. In February 2012, the Ethiopian government announced that it had arrested al-Qaida operatives with links to Kenya, Sudan, the Philippines, Saudi Arabia, and South Africa in the Bale area of Oromia Region in December 2011. In October 2013, in Addis Ababa, two suspected al-Shabbab operatives died in an explosion described as a failed terrorist attack and were thought to have been targeting a crowded sports event occurring near the explosion. Isolated protests broke out on several university campuses in Ethiopiarsquos Oromia region in late April 2014, resulting in at least eleven deaths, following reports that a draft development plan for Addis Ababa would expand the capitalrsquos territory into the Oromia region. Ethnic conflict, including among university students, occurs at times and occasionally becomes violent. The campaign season in the run-up to the May 2015 general parliamentary elections has been generally peaceful. Although there have been some small-scale clashes between protestors and security officials and, generally, when opposition parties proceed with unauthorized protests, they usually resulted in minor injuries and temporary detentions. Ethiopia ratified the United Nations (UN) Anticorruption Convention in 2007. The UN Investment Guide to Ethiopia (2004) asserted that routine bureaucratic corruption is virtually nonexistent in Ethiopia. The guide added that bureaucratic delays certainly exist, but are not devices by which officials seek bribes. It is a criminal offense to give or receive bribes, and bribes are not tax deductible. Transparency Internationalrsquos 2014 Corruption Perceptions Index, which measures perceived levels of public sector corruption, ranked Ethiopia as 33 (with 0 indicating highly corrupt and 100 indicating very clean). Ethiopia39s rank on the corruption perception index was 110 out of 175 countries in 2014 and 111 out of 175 rated countries in 2013. The Ministry of Justice and the Federal Ethics and Anti-Corruption Commission (FEACC) are charged with combating corruption. Since its establishment, the Commission has arrested dozens of officials on charges of corruption, including managers of the Privatization Agency, Ethiopian Telecommunications Corporation, National Bank of Ethiopia, Ethiopian Geological Survey, the state-owned Commercial Bank of Ethiopia, Ethiopian Revenue and Customs Authority, and private businessmen. UN Anticorruption Convention, OECD Convention on Combatting Bribery In 2003, Ethiopia signed the UN Anticorruption Convention which was later ratified in November 2007. Ethiopia is currently not party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Resources to Report Corruption The Ministry of Justice has primary responsibility for combating corruption, largely through the Federal Ethics and Anticorruption Commission (FEACC) that handles reports of corruption feac.gov.et. 14. Bilateral Investment Agreements Ethiopia has bilateral investment and protection agreements with China, Denmark, Italy, Kuwait, Malaysia, Netherlands, Russia, Sudan, Switzerland, Tunisia, Turkey, Yemen, Spain, Algeria, Austria, UK, BelgiumLuxemburg, Libya, Egypt, Germany, Finland, India, and Equatorial Guinea and a protection of investment and property acquisition agreement with Djibouti. A Treaty of Amity and Economic Relations, which entered into force in 1953, governs economic and consular relations with the United States. Ethiopia also has avoidance of double taxation treaties with fourteen countries, including Italy, Kuwait, Romania, Russia, Tunisia, Yemen, Israel, South Africa, Sudan and the UK. Bilateral Taxation Treaties There is no avoidance of double taxation treaty between the United States and Ethiopia. 15. OPIC and Other Investment Insurance Programs The Overseas Private Investment Corporation (OPIC) has offered risk insurance and loans to U.S. investors in Ethiopia in the past. In past years, it has not originated any investment in Ethiopia however, recently, has begun to initial reviews for qualifying investment opportunities. Approximately 85 of Ethiopia39s 90 million people work in agriculture. The Ethiopian government is the most important sector of employment outside of agriculture. According to the Central Statistical Agencyrsquos urban employment and unemployment survey results, urban unemployment was estimated to be 17.5 as of 2012. (24.9 of people between the ages of 15-24 are unemployed.) Ethiopia has ratified all eight core ILO conventions. The Ethiopian Penal Code outlaws work specified as hazardous by ILO conventions. The Ethiopian Parliament ratified ILO Convention 182 on the Worst Forms of Child Labor in May 2003. The U.S. Government produces an annual report on labor conditions in Ethiopia, including an assessment of child labor. The constitution and law provide workers, except for civil servants and certain categories of workers primarily in the public sector, with the right to form and join unions, conduct legal strikes, and bargain collectively. Other laws and regulations that explicitly or potentially infringe upon workersrsquo rights to associate freely and to organize include the CSO law, Council of Ministers Regulation No. 1682009 on Charities and Societies to reinforce the CSO law, and Proclamation No. 6522009 on Antiterrorism. Such laws and detailed requirements make legal strike actions difficult to carry out. In practice, labor strikes are rare. Labor unions, organized under the umbrella Confederation of Ethiopian Trade Unions (CETU), are formed as enterprise-based units and not around specific sectors. There is no formal requirement for unions to join the CETU, however. Child labor is widespread in Ethiopia, and the Ethiopian Government in collaboration with the international community has established programs to combat the worst forms of child labor, particularly in the southern regions. While not a pressing issue in the formal economy, child labor is common in rural agrarian areas and the informal economy in urban areas. Ethiopian traditional woven textiles are included on the U.S. government39s Executive Order 13126 list of goods that have been known to be produced by forced or indentured child labor. Both NGO and Ethiopian government sources concluded that goods produced (in the agricultural sector and traditional weaving industry in particular) via child labor are largely intended for domestic consumption, and not slated for export. Employers are statutorily prohibited from hiring children under the age of 14. In 2013, Ethiopia produced a list of Activities Prohibited for Young Workers and launched its National Action Plan (NAP) on the Elimination of the Worst Forms of Child Labor. The laws defining what sectors may hire young workers, defined as workers aged 14 to 18, are infrequently enforced due to the lack of capacity of labor inspectors within the country. Labor remains readily available and inexpensive in Ethiopia. Skilled manpower, however, is scarce in many fields. Approximately 60 of Ethiopians over the age of 15 are illiterate (defined by UNESCO as ldquoinability to identify, understand, interpret, create, communicate and compute, using printed and written materials associated with varying contextsrdquo). There is no national minimum wage standard. To increase the skilled labor force, the government of Ethiopia has undertaken a rapid expansion of the university system in the last 8 years, increasing the number of higher education institution from one to 33. It has also adopted an education policy that 70 of the annual student intake in Public Universities must focus on science, engineering and technology. 17. Foreign Trade ZonesFree PortsTrade Facilitation There are no areas designated as foreign trade zones andor free ports in Ethiopia. Because of the 1998-2000 Ethiopian-Eritrean war, Ethiopian exports and imports through the Eritrean port of Assab are prohibited. As a result, Ethiopia conducts almost all of its trade through the port of Djibouti with some trade via the Somaliland port of Berbera and Sudan39s Port Sudan. Despite Ethiopia39s efforts to clamp down on small-scale trade of contraband, unregulated exports of coffee, live animals, khat (a mildly narcotic amphetamine-like leaf), fruit and vegetables, and imports of cigarettes, alcohol, textiles, electronics and other consumer goods continues. 18. Foreign Direct Investment and Foreign Portfolio Investment Statistics Table 2: Key Macroeconomic Data, U.S. FDI in Host CountryEconomy Source: Ethiopian Investment Commission Table 4: Sources of Portfolio Investment Currently, data regarding the equitydebt breakdown of portfolio investment assets is not available for Ethiopia via the IMF39s Coordinated Portfolio Investment Survey (CPIS) and is not available for external publication by the GOE. 19. Contact for More Information Addis Ababa Economic Section: EthiopiaInvestmentClimatestate.gov U.S. Embassy main number is 251 011 130 6000. Senior Foreign Commercial Service Officer, Tanya Cole, Tanya.Coletrade.gov Economic Officer, Helena Schrader, SchraderHPstate.gov Trade and Investment Specialist, Abdulkader Hussen, HussenAMstate.gov
Trading-system-building
Jual-stock-options-for-a-living