End of the road for 1,178 investment companies in Ethiopia’s capital city, Addis Ababa. The Addis Ababa City Administration Investment Commission has put an end to their licenses for failure to execute their projects, six months since the companies were in operation.
Here Is All You Need To Know
- The investment law of Ethiopia requires that if an investment project has failed to start implementation, the license will be void.
- According to Abdulfeta Yesuf, Commissioner of Addis Ababa Investment commission, if all the new 1,598 new investment projects were implemented, they would create 10,000 jobs.
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- It is estimated that over the past six months 2.9 billion birr ($91 million) was invested on different projects in the city of Addis Ababa, while 959 investment projects are allowed to import capital goods duty free.
- In addition, many investment projects have been able to import 166 vehicles and spare parts for their machines duty free. He also stated that support is extended by the Commission for 19 investment projects to acquire land and implement their investment projects.
- The major challenges new investors faced in Addis Ababa include shortage of hard currency, electricity and land, according to the Commissioner.
- It could be recalled that after Dr. Abiy Ahmed became Prime Minister, the Addis Ababa City Administration led by Deputy Mayor Eng. Takele Umma has been taking back land from investors who failed to commence implementing their investment projects. Most of the land the Administration took from the investors has been turned into parking spaces creating jobs for hundreds of unemployed youth in the city.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world