Discusses the legal requirements/options for joint venture/licensing in this market.

Foreign investment inflows through joint ventures especially with the Government of Ethiopia (GOE) are encouraged by the Government of Ethiopia. The following are the major criteria for GOE approval of joint venture proposals:

  • Transfer and adaptation of needed technology into the country.
  • Improvement of the country's foreign exchange position via exports.
  • Enhanced import substitution for local industries that reduce the pressure on foreign exchange demand.
  • Utilization and development of the country's resources, mainly the generation of local employment opportunities.
  • Development of forward and backward linkages, and increased added value in various economic sectors.

Many Ethiopian private sector companies welcome joint venture opportunities with U.S. companies as they seek western technologies and equity investment. In June 2018, PM Abiy announced that formerly closed sectors such as Ethiopian Airlines, Ethio Telecom, Ethiopian Shipping and Logistics Enterprise, Ethiopian Electric Power, Ethiopian Sugar Factories, Ethiopian Railways and Industrial Parks will all be floating shares to both local and foreign investors, with the government maintaining majority shares.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.

Ethiopia Business Management Legislation