1. The new Investment Incentive Regulation introduces an exit penalty that prevents investors who close businesses from reclaiming previously granted tax incentives. 

2. Tax holidays previously enjoyed by exiting investors are now linked to future eligibility, effectively barring tax incentive refunds once a project is closed. 

3. The regulation tightens accounting and reporting requirements, likely increasing compliance obligations relative to prior rules. 

4. Transfers of duty-free imported goods are restricted under the new rules, limiting how investors can redeploy such assets after closure. 

5. Startups, green projects, and Special Economic Zone (SEZ) developers remain eligible for preferential tax treatment, marking a targeted retention of incentives. 

   
   

   Implications for foreign investors:

   • Higher exit cost: Investors who shut down projects lose the right to reclaim tax holidays and duty-free incentives, raising downside risk.

   • Lower flexibility: Assets imported duty-free face transfer restrictions after closure, limiting capital recovery.

   • Stricter compliance: Tighter reporting and post-exit scrutiny increase administrative and legal exposure.

   • Longer commitment bias: The policy favors long-term operations over short or speculative investments.

   • Selective attractiveness: Incentives remain stronger for startups, green projects, and SEZs, but weaker for general investors.

1. Oromia Regional State has imposed a 5% levy on coffee beans sold for export. 

2. The 5% fee applies to every kilogram of coffee bought from farmers for export. 

3. The levy affects over 4,000 coffee producers in the region. 

4. Oromia accounts for nearly 79% of Ethiopia’s total coffee exports. 

5. The levy is tied to benchmark prices set by the Ethiopian Coffee & Tea Authority. 

    The implications for exporters:

• Higher costs: The new 5% levy directly raises procurement costs per kilogram.

• Margin pressure: Exporters must absorb the fee or pass it on, reducing competitiveness.

• Pricing risk: Higher export prices may weaken demand in price-sensitive markets.

• Cash-flow strain: Upfront fees increase working capital requirements.

• Supply distortion: Exporters may seek non-Oromia sources or informal channels to avoid the levy.

1. Ethiopia’s Council of Ministers approved revisions to the Customs Proclamation to modernize and align it with international trade standards. 

2. The updated customs law aims  to streamline customs procedures, support manufacturing sector growth, and provide a more predictable environment for legal trade and investment

3. The cabinet also endorsed new investment incentive and tax exemption regulations alongside the customs law updates. 

4. A national entrepreneurship development policy was also adopted to support innovation and business expansion. 

5. These reforms are part of a broader economic reform agenda to boost trade, attract investment, and support export growth. 

1. Dashen Bank reported a profit of ETB 6.6 billion for 2023/24.
   This figure reflects significant growth and positions the bank strongly among Ethiopia’s private lenders. 

2. Pre-tax profit increased by about 32% year-on-year.
   Profit rose from ETB 5.0 billion the previous year, indicating improved operational performance. 

3. Growth driven by digital banking investment.
   Expansion of mobile and internet banking boosted customer reach and service efficiency. 

4. Branch network expanded nationwide.
   A wider physical presence helped the bank access new markets and increase its customer base. 

5. Focus on financial stability and CSR.
   Strong balance sheet, risk management, and community development efforts enhanced the bank’s reputation. 

• The Ethiopian Capital Market Authority (ECMA) has introduced a new draft directive 
• The new guideline focuses on improving transparency and regulatory standards for Collective Investment Schemes (CIS), including Money Market Funds, Mutual Funds, and Real Estate Investment Funds.
• Under the directive, investment schemes must be registered as joint stock companies, private limited companies, limited partnerships, or investment companies recognized by ECMA
• A key feature of the policy is its emphasis on comprehensive information disclosure; Public funds offering units to investors are required to prepare a general promotional document approved by ECMA, which must provide clear, accurate details on the fund’s investment policy, capital structure, issued securities, dividend distribution policies, and methods for determining distributable profits.

• The Ministry of Finance has introduced a new directive that extends value added tax (VAT) registration to professional service providers with annual turnover below two million birr
• For the first time, professionals outside the Category “B” classification under the income tax law must register regardless of their turnover.
• Entities covered by the directive must complete registration within 30 days of its entry into force.

• It proposes a legal framework that enables foreign ownership of real estate while preserving citizens’ rights to land use.
• The measure is designed to attract foreign capital, stimulate the housing market, and generate employment
• The draft proclamation must be legislated by the parliament taking into effect. 

• The National Bank of Ethiopia (NBE) confirmed the repeal of the decades-old Establishment Proclamation No. 691/2000, replacing it with the more robust NBE Proclamation No. 1359/2017
• Non-commercial Franco-Valuta requests from government agencies, NGOs, and international organizations must now be vetted by Customs Operations Managers and approved only by senior Customs Office Managers
• you can check the NBE proclamation here: https://nbe.gov.et/wp-content/uploads/2025/03/National-Bank-of-Ethiopia-Proclamation-13592025.pdf

• The event, jointly organized by government institutions, the private sector, and development partners, is expected to draw over 1,000 global participants, according to the Ethiopian Ministry of Finance
• There is a Public-Private Dialogue (PPD), designed to incorporate private sector insights into policy discussions. High-level meetings with board members, ministers, and selected investors