Foreigners with $10 million investment to own homes

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The new investment regulation clearly has gone on to state that if a foreign investor has a portfolio investment of 10 million USD in Ethiopia, then that investor is eligible to own a dwelling house(s).
The regulation issued by the Council of Ministers as ‘Investment Regulation no. 474/2020’ has sought to relax the joint venture (JV) investments that foreign investors shall involve themselves in, whether with the government or private sector which is quite contrary to the prior 2012 regulation.
The FDI legal consultant and Head of Dabe Investment Consulting and Conveyance PLC, Daniel Getnet, said that the latest regulation has clearly stated the percentage and areas of investment that foreign investors shall invest on joint venture.
“In the previous regulation the share percentage and areas of investments that foreign investors shall invest in the country was not specifically disclosed meanwhile the previous regulation had areas that were preserved for local investors or foreigner,” Daniel told Capital.
The regulation, article 5, indicated that foreign investors may invest only on JV with domestic investors on areas that include: Freight forwarding and shipping services, domestic air transport services, cross country public transport with a seating capacity of more than 45 passengers, urban mass transport, advertisement and promotion service, audiovisual services and accounting and auditing services.
Sub article 5.2 further stated that a foreign investor jointly investing with a domestic investor in areas listed under sub article 5.1 shall not hold more than 49 percent of the share capital of the enterprise.
“This is the main point that the new regulation mentioned and gives 49 percent share to foreign investors on the stated investments,” the legal advisor said.
He said that the other new change on the regulation is that it allows investors the ability to access license online than physical appearance as opposed to the previous regulation.
“In my view, internal directive or law shall be issued that may show why investors deny for license, which is not mentioned on the regulation, on the aim of transparency and good governance,” Daniel added.
The regulation, article 3, clearly stated that any investor cannot invest on manufacturing of weapons, ammunition and explosives used as weapon or to make weapons, import and export of electric energy, international air transport service, bus rapid transit, and postal services excluding courier services.