ETHIOPIA BUSINESS LAW HANDBOOK. International Business Publications, USA Washington, DC, USA - Ethiopia
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1 ETHIOPIA BUSINESS LAW HANDBOOK International Business Publications, USA Washington, DC, USA - Ethiopia
2 -3- ETHIOPIA BUSINESS LAW HANDBOOK TABLE OF CONTENTS STRATEGIC AND DEVELOPMENT PROFILES 10 STRATEGIC PROFILE 10 Geography 10 People 12 Government 13 Economy 75 Communications 17 Transportation 18 Military 19 Transnational Issues 19 IMPORTANT INFORMATION FOR UNDERSTANDING THE COUNTRY 20 GEOGRAPHY 20 Physical Setting 20 Boundaries: International and Administrative 20 Topography and Drainage 20 Climate 22 NARCOTICS CONTROL STRATEGY 23 Status of Country 23 Country Actions Against Drugs in 1999.' 23 U.S. Policy Initiatives 24 HISTORY 25 The Aksumite State 26 Ethiopia and the Early Islamic Period 28 The Zagwe Dynasty 29 The "Restoration" of the "Solomonic" Line 30 Amhara Ascendancy 31 The Trials of the Christian Kingdom and the Decline of Imperial Power 32 Growth of Regional Muslim States 32 Oromo Migrations and Their Impact 34 Contact with European Christendom 35 The Gonder State and the Ascendancy of the Nobility 36 From Tewodros II to Menelik II, Haile Selassie: The Prewar Period, Italian Rule and World War II. 45 The Postwar Period, : Reform and Opposition 48 Growth of Secessionist Threats 51
3 -4- Revolution and Military Government 55 Ethiopia's Road to Socialism 60 Ethiopia in Crisis: Famine and Its Aftermath, POPULATION 68 Size, Distribution, and Growth 68 Ethnic Groups, Ethnicity, and Language 69 Ethio-Semitic Language Groups 70 Cushitic Language Groups 72 Omotic Language Groups 75 Nilo-Saharan Language Groups 75 Occupational Castes 76 Ethnic and Social Relations 76 Inter ethnic Relations..76 Social Relations 78 RELIGION 80 Demography and Geography of Religious Affiliation 57 Ethiopian Orthodox Christianity 81 Organization of the Church and the Clergy 81 Faith and Practice 83 Islam 84 CULTURE & TRADITIONS 87 Traditions 87 Clothing 87 Holidays & Festivals 88 Enkutatash New Year 88 Maskal, the Finding of the True Cross 89 Timket 89 Kullubi.FeastofSt. Gabriel 90 Sheik Hussein 91 POLITICAL AND GOVERNMENT SYSTEM 92 ADMINISTRATIVE DIVISION 92 Afar National Regional State 92 Amhara National Regional State 94 Benishangul/Gumuz National Regional State 96 Gambella National Regional State 98 Harari National Regional State 99 Oromiya National Regional State 707 Somali National Regional State 705 Southern Nations, Nationalities and Peoples' Regional State 108 Tigray National Regional State 770 CONSTITUTION OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA 112 The Making of the Constitution 772 The Completing of the Draft Constitution 773 A Constitution is Born 113 Women's Symposium held. 773 Cultural Impediments to Women's Rights 114 THE MUSLIM PERSPECTIVE 114 The Women's Recommendations 774
4 -5- Elders' Conference held 775 The Views of the Ethiopian Diaspora 775 ISSUES SUPPORTED BY THE PUBLIC INCLUDED 116 THE EXECUTIVE POWER 116 President of the Ethiopian Federal Democratic Republic (FDRE) 116 Dr. Negaso Gidada 116 Prime Minister and the Council of Ministers 777 LEGISLATURE 117 THE JUDICIARY 118 Structure And Independence 118 Protection Of Rights And Freedoms 119 Training 779 Civil Service College 720 Fight Against Corruption 720 FOREIGN RELATIONS 121 U.S.-Ethiopia Relations 727 NATIONAL FLAG OF ETHIOPIA 122 DEMOCRAY AND HUMAN RIGHTS.'. 123 BASIC SITUATION 723 RESPECT FOR HUMAN RIGHTS 726 Respect for Civil Liberties 134 Respect for Political Rights 742 Discrimination Based on Race, Sex, Religion, Disability, Language, or Social Status 145 Worker rights 757 STRATEGIC INFORMATION FOR BUSINESS AND INVESTMENT ACTIVITY 156 BUISNESS CLIMATE AND CONDITIONS Current income divided by sales 158 ECONOMY 160 Major Trends 767 Principal Growth Sectors 762 Government Role in the Economy ḷ 763 Balance of Payments Situation 164 Infrastructure 164 INTERNATIONAL ASSISTANCE MTO ETHIOPIA 165 US ASSISTANCE 165 The Development Challenge 766 Other Donors 767 FY2000 Program ; 767 INVESTMENT AND BUSINESS CLIMATE 168 Economic Reform 769 Getting Prices Right 769 Privatisation and Foreign Investment 769 Financial reforms 770 Economic Performance; Growth with Stability 777 Inflation 777 Balance of Payments 772 Foreign Exchange 772 Efficiency and Resource Allocation 772
5 -6- Export Promotion 772 Infrastructure 773 The Foreign Investment Regime 773 OPENNESS TO FOREIGN INVESTMENT: 775 INVESTMENT CODE 776 PRIVATIZATION PROCESS 777 CONVERSION AND TRANSFER POLICIES: 777 EXPROPRIATION AND COMPENSATION: 178 DISPUTE SETTLEMENT: 178 PERFORMANCE REQUIREMENT/INCENTIVES: 779 RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT: 180 PROTECTION OF PROPERTY RIGHTS: 750 THE LAND ISSUE 750 TRANSPARENCY OF THE REGULATORY SYSTEM: 757 EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT: 757 POLITICAL VIOLENCE: 757 CORRUPTION: 757 BILATERAL INVESTMENT AGREEMENTS: 752 OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS: 752 LABOR 752 FOREIGN TRADE ZONES/FREE PORTS: 753 FOREIGN DIRECT INVESTMENT STATISTICS: 753 INVESTMENT CONDITIONS 184 Ethiopia's Political Environment 184 Business Climate and Attitudes to Investment 184 Economy 755 Investment Track Record 757 Limitations on Foreign Investment 759 Export Markets 759 Labour Issues 797 Labour availability and quality 797 Property Issues 194 Industrial Development Zones 194 Financial Sector 795 Utilities 795 Taxation and Incentives 799 Losses carried forward 207 Business Associations 202 ORGANIZING A PRIVATE BUSINESS INVESTMENT 202 Approval Procedures 203 Approval Time 204 Fees and Expenses 204 Building and Construction Permits 204 Areas Reserved for Domestic investors 204 Operational Characteristics 204 Exit 205 Ownership 205 Intellectual Property 205 Investment Protection 205
6 -7- Exchanging and Remitting Funds 206 The Future 206 PRACTICAL AND LEGAL INFORMATION FOR CONDUCTING BUSINESS 206 LEGAL FRAMEWORK FOR BUSINESS OPERATION 206 Forms of Business Operation in Ethiopia 206 Branch and Representative Office 277 PRACTICAL INFORMATION FOR INVESTING 212 Guideline for the Preparation of Project Profile 272 Market Study and Capacity Planning 273 Investment Areas Eligible for Incentives 276 Investment Activities Eligible for Duty-free Privilege Only 277 Incentives 275 (IN YEARS) 219 LOSS CARRY FORWARD 218 CONDITIONS FOR APPROVAL OF INVESTMENT AND INCENTIVES 227 Investment And Investor Forms Of Business Organizations Foreign National Taken For Domestic Investor AREAS OF INVESTMENT Investment Permit Investment Incentives Transfer of Investment Permit and Incentives Registration of Foreign Investment Capital Appeal Procedure Investment Guarantee and Settlement of Disputes One-Stop Shop Service Principal Registration 242 Clients' Complaints Presentation procedure 247 INVESTMENT OPPORTUNITIES '. 248 Privatisation 249 Agriculture 249 Mining 257 Infrastructure 257 TRADE REGULATIONS 253 TRADE BARRIERS: 253 CUSTOMS REGULATIONS: 253 TARIFF RATES: 254 IMPORT TAXES: 254 IMPORT LICENSES: 254 TEMPORARY ENTRY: 254 SPECIAL IMPORT/EXPORT REQUIREMENTS AND CERTIFICA TIONS: 254 LABELING, MARKING REQUIREMENTS: 254 PROHIBITED IMPORTS: 254 WARRANTY AND NON-WARRANTY REPAIRS 254 EXPORT CONTROLS: 255 STANDARDS: 255 FREE TRADE ZONES: 255
7 -8- MEMBERSHIP IN FREE TRADE ARRANGEMENTS: 255 CUSTOMS CONTACT INFORMATION. 255 LEADING SECTORS FOR BUSINESS AND INVESTMENTS 255 BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES: 255 BEST PROSPECTS FOR AGRICULTURAL GOODS AND SERVICES: 257 MARKETING PRODUCTS AND SERVICES 257 DISTRIBUTION AND SALES CHANNELS 257 USE OF AGENTS AND DISTRIBUTORS; FINDING A PARTNER: 257 FRANCHISING: 255 DIRECT MARKETING 255 JOINT VENTURES/LICENSING: 255 ESTABLISHING AN OFFICE: 255 SELLING FACTORS/TECHNIQUES: 255 ADVERTISING AND TRADE PROMOTION: 255 PRICING PRODUCTS: 259 SALES SERVICE/CUSTOMER SUPPORT: 259 SELLING TO THE GOVERNMENT:..260 PROTECTING PRODUCTS FROMIPR INFRINGEMENT 260 NEED FOR A LOCAL ATTORNEY 260 PERFORMING DUE DILIGENCE 260 TRADE AND PROJECT FINANCING 260 BANKING SYSTEM: 260 FOREIGN EXCHANGE CONTROLS: 267 GENERAL AVAILABILITY OF FINANCING: 267 HOW TO FINANCE EXPORTS/METHODS OF PAYMENT: 267 TYPES OF AVAILABLE EXPORT FINANCING 267 AVAILABILITY OF PROJECT FINANCING 267 TYPES OF PROJECTS: 262 BANKS WITH CORRESPONDENT U. S. BANKING ARRANGEMENTS: 262 STARTING BUSINESS 263 BASIC INFORMATION. 263 Regulations governing foreign investment 265 Legal forms 265 Procedures for investment 266 Labour considerations 266 Taxes 266 Investment incentives 266 Contacts FOR BUSINESS 267 IMPORTANT LAWS AND REGULATIONS 269 CONSTITITION OF ETHIOPIA 269 Preamble 269 CHAPTER ONE GENERAL PROVISIONS 269 CHAPTER TWO FUNDAMENTAL PRINCIPLES OF THE CONSTITUTION 270 CHAPTER THREE FUNDAMENTAL RIGHTS AND FREEDOMS 277 PART ONE HUMAN RIGHTS. 272 PART TWO DEMOCRATIC RIGHTS 276 CHAPTER FOUR STATE STRUCTURE 284 CHAPTER FIVE THE STRUCTURE AND DIVISION OF POWERS. 256
8 -9- CHAPTER SIX THE FEDERAL HOUSES 255 PART TWO THE HOUSE OF THE FEDERATION 292 CHAPTER SEVEN THE PRESIDENT OF THE REPUBLIC 294 CHAPTER EIGHT THE EXECUTIVE 295 CHAPTER NINE STRUCTURE AND POWERS OF THE COURTS 297 CHAPTER TEN NA TIONAL POLICY PRINCIPLES AND OBJECTIVES 307 CHAPTER ELEVEN MISCELLANEOUS PROVISIONS 304 TRAVELING TO ETHIOPIA 310 US STATE DEPARTMENT SUGGESTIONS 310 GETTING THERE 314 GETTING AROUND 314 ACCOMMODATION : 315 MONEY 316 ATTRACTIONS 316 SUPPLEMENT 320 US AND COUNTRY CONTACTS : Ethiopian Federal Government agencies: Country Trade Associations: Country Market Research Firms: 322 G. Washington-based U.S. Government Contacts: 323 LIST OF FOREIGN FIRMS IN ETHIOPIA 324 AREAS OF INVESTMENT RESERVED FOR DOMESTIC INVESTORS 328 SELECTED GOVERNMENTAL ORGANIZATIONS 329 Other Organizations 330 UNCTAD-ICC Project on Investment Guides and Capacity-building for Least Developed Countries 330
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