The EU Business Forum took part in an investor engagement summit organized by the Ethiopian Investment Commission on December 11, 2020. The summit aimed at presenting the major legal reforms undertaken during the year to improve the business climate while also conferring with investors on current challenges. The summit was opened by key note addresses from HE Lelise Neme Commissioner of Investment Commission and Mr. Erik Habers, Head of Cooperation at the EU Delegation in Ethiopia. The board chairman of EUBFE, Mr. Ben Depraetere, then addressed the audience on key accomplishments and engagement of EUBFE as well as areas of collaboration that need further strengthening.

The EIC presented key reforms in the investment climate, including the new investment law and regulation. This law created negative listing of investment areas, that clearly delineate areas of investment reserved for local and joint investment, allowing FDI to participate otherwise. Moreover, the law establishes an investment board, that for the first time allows the private sector two seats.

You may click on the following link below to find out detailed changes enacted via the new investment law.

Following presentation on major legal and economic reforms as well as on investor aftercare service a panel discussion ensued. Existing challenges European Companies face, including access to forex, tax and customs were discussed. The EIC pledged to continue to support European investors and to such effect has assigned a contact person that would look after European FDI. Moreover, it was indicated that more sustained investor-enagement will be pursued in the years to come. 

The new commissioner of the Ethiopian Investment Commission (EIC) held consultative meeting with the board of the EUBFE and the EU Delegation
Hosted by HE Ambassador Johan Borgstam, head of the EU delegation to Ethiopia, the meeting was the first since HE Ms. Lelise Neme took helms at the commission
Following round of introductions and congratulatory messages on the appointment of HE Lelise from HE Ambassador Borgstam and Mr. Depraetere-Chair of EUBFE, representatives of the EU delegation and the EUBFE made power point presentations on the previous and current engagements of their respective institutions with the EIC.

On the discussion that ensued, EUBFE members indicated that despite the robust relationship established with the EIC and the tangible results registered, in particular via the public-private-dialogue (PPD) platform, a number of concerns of European FDI community remain unresolved. In addition to a more recent concern that is investment security, work permit renewal, logistical bottlenecks, foreign exchange shortage and uneven application of regulations and laws were pointed out. In response, HE Lelise pointed out that multi-regional forum, led by regional presidents and investment commissioners, has been established to oversee any concerns that might arise by investors and EIC will be happy to invite EUBFE to attend an upcoming meeting. Moreover, Commissioner Lelise promised to dedicate personnel and time to look into the challenges raised by EUBFE. In conclusion, EUBFE invited HE to an introductory meeting with members of EUBFE.

On her first trip outside Europe as head of the European Commission, Ursula von der Leyen visited Addis Ababa, on Saturday December 7 2019. On a speech she made during a reception organized by the EU Delegation to Ethiopia and the AU, Ms. Von Der Leyen underlined the important strategic alliance with Africa her leadership will pursue. She also congratulated the Ethiopian leadership for the reform they are engaged in and in particular the Prime Minister for winning this year's nobel peace prize EUBFE was represented by its co-chair Mr Timklienebenne (pictured with Von der Leyen) and its executive director Mr. Nahom F. Abraham at the evening reception.

The end of the year and the fourth  thematic networking event of EUBF took place on December 10, 2019 at the Golden Tulip Hotel. The theme of the evening was EUBFE-2020. On behalf of the board members of EUBFE, the executive director Mr. Nahom F. Abraham presented the key strategic directions EUBFE would follow in the year 2020 along three focus areas; expanding membership base, expanding services to members and strengthening engagement with the public sector. Following the presentation, board members conferred one-on-one with members to garner more information and perspectives on strengthening EUBFE's services further. The information gathered at the event will be used to enrich the plans of activities of EUBFE for the year 2020.

A memorandum of understanding was signed between EUBFE, AmCham Ethiopia and the Ministry of Trade and Industry (MoTI) on the occasion of thematic networking event held on October 24th 2019. The MoU was signed by Ato Tekay Gebre Yesus, State Minister of MoTI, Mr. Ben Depraetere-Chairman of EUBFE and Mrs. Serena Capelleti-President of AmCham Ethiopia.

The signing of the MoU marks the onset of a constructive and sustained dialogue between MoTI and member companies of the respective associations. In the opening remarks of both Ato Teka and Ben, it was highlighted that it is indeed high time the private sector and the public one to work closely together and feed off each other experiences and expertise. Following the signing ceremony, a presentation on the major mandates, various services and directorates of the MoTI was made by guests from the ministry. Question and answer session followed the presentation, where participants raised queries and concerns.

EU Business Forum in Ethiopia (EUBFE) in collaboration with the Ministry of Revenue (MoR) organized a training workshop for finance staff of member companies on October 17-2019 at the premises of MoR. The goal of the workshop was to equip participants with knowledge and skills in identifying fraudulent receipts. It is common knowledge that fraudulent receipts are causing considerable damage in the economy with some EU companies falling victim to such fraud. The training workshop was led by Ato Sisay Gezu, the director of the Intelligence and Investigation Directorate at MoR. During the lively discussion that followed the presentation, participants shared their experiences in combating illegal practices of such kind in addition to providing recommendations that would assist MoR.

This workshop is the one of the outcomes of the regular steering committee meeting held quarterly between the EUBFE and the MoR, as stipulated in the MoU signed between the two organizations.

 

Introduction to the electronic customs management system (E-CMS) was the theme of the event. The E-CMS is a new system that has been implemented for the Ethiopian Customs Commission for over a year, with funding from the European Union. Its goal is to improve and digitize the entire customs shipment mechanism and meet the dire need of fast and efficient movement of goods in Ethiopia.

HE Ambassador Johan Borgstam, in his opening remark, appreciated EUBFE for organizing such an event that would enable EU businesses to understand new developments that could improve their operations. Chairman of EUBFE also highlighted major achievements and challenges EUBFE face on the back of existing economic reforms. Subsequently, the country manager of the host of the evening Total-Ethiopia, Mr. Thibault Lesueur, extended his warm welcome to guests.

A presentation on the new customs management system was made by the representative of Webb Fontaine, the company that deployed the system. Details of the power point presentation are found on our downloads page.

On Saturday, July 6, 2019, following an invitation from the Ethiopian Investment Commission (EIC), a consultative workshop was held on the draf of the Ethiopian Investment law. Some 200 companies, embassies and other development partners were invited to this meeting.
Representatives of the task force of 17 professionals set up to oversee the drafting of the law presented their findings followed by a question and answer session chaired by HE Abebe Abebayehu, commissioner of the EIC.
The presentation started with an outline of the method the task force applied in its review of the investment code.
Following this the working group presented some seven key policy implications for "Investment Policy White Paper". These are rethinking of long held assumptions on investments; revising goals for investment promotion in line with changing context; holistic approach to investment (both attraction and retention thereof); consider both foreign direct investment and domestic investment as one policy area; comparing a sector-specific approach to the general promotion of (foreign) investments; incentive schemes for investments and investment administration. This white paper has been prepared based on an analysis of current laws, a comparison with relevant other markets and based on various consultations. The white paper serves as the basis for the committee's final advice.
The subsequent presentation included the history of investment legislation and the international comparison about openness vs closedness of the market. Ethiopia currently has investment legislation in which some sectors are open to foreign investors, which often causes confusion regarding definition and definition. The committee's recommendation was that Ethiopia would benefit restrictive listing approach, where negative list would be outlined. Any sector that is not enumerated in the negative list is considered open for FDI, clarifying any potential confusion. In this connection, the committee recommended three components to sector specific listing; .
1. areas of investment for Joint Ventures with the government (such as weapons manufacturing, the entire electricity sector, postal services);
2. areas of investment reserved for domestic investors (such as banking and insurance, retail, import trade (excl. LPG and bitumen), wholesale, export trade (of raw coffee, chat oil seeds), bakeries.....,) and
3. areas of investment reserved for joint venture with domestic investors with equity cap (such as forwarding and shipping agency services, advertising, market research, audio-visual services, domestic transport services, accounting, mass media service, land public transport, making indigenous medicine..).
All sectors not mentioned in the list, which would become public shorty according to the presenters, will be fully open to foreign investors.
The third presentation dealt with the proposals on the legal and organizational duties of the Ethiopian Investment Commission. Several recommendations were made, some of which are; coordination between the Ethiopian Aviation Authority, the Ethiopian Energy Authority and the EIC in developing sector specific studies with a view to attracting foreign investors; setting clear and minimal grounds for revoking or suspending the investment licenses; expand one-stop-shop (OSS) service provided by the EIC to include post-investment full scope service as well as the creation of comprehensive grievance management system.
Moreover, a nine member Ethiopian Investment Board is also recommended to be established under the leadership of the PM and representatives of all relevant Ministries and one none-voting seat reserved for the private sector.
A question and answer session chaired by the Commissioner of the EIC followed, in which several questions and comments were raised by participants. The commissioner acknowledged the suggestions as important input into the draft law. The draft law will be publicly available once such comments have been incorporated, he also added.
Board members of EUBFE in collaboration with AmCham counterparts lodged a brief reflection on the consultative session to the management of the EIC. The brief recommendation is believed to be enriched once the draft investment law becomes public.