Both foreign and domestic private entities have the right to establish, acquire, own and dispose of most forms of business enterprises (except for a few strategic sectors). All land is owned by the State, but can be leased for up to 99 years.
Acquisition of Holdings
A majority holding interest in a local company by a foreign investor is legal in Ethiopia.
Obligation to Declare
A foreign investor intending to buy an existing private enterprise or buy shares in an existing enterprise needs to obtain prior approval from the Ethiopian Investment Commission (EIC).
Ethiopia’s Investment Code prohibits foreign investment in banking, insurance, and financial services, along with the following sectors: broadcasting, air transport services (up to 50 seats capacity), travel agency services, forwarding and shipping agencies, retail trade and brokerage, wholesale trade (with some exceptions) and most import trade.
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