By Luwam Chalachew, Legal Assistant at DMLO
Introduction
Transitional justice is a process or mechanism in which countries emerging from conflicts respond to massive human right violations that the normal procedures become insufficient to address the atrocities. At a period of transition, the need to address past violations would arise. This need is addressed through what is usually referred to as transitional justice.
Transitional justice’s main aim is in order to ensure accountability, serve justice and achieve reconciliation. Transitional justice consists of both judicial and non-judicial measures implemented in order to redress human right abuses.
Objective of Transitional Justice
The main objective of transitional justice is to end human right violence and ensure human right protection. The primary objectives are establishing the truth, providing victims a public platform, holding perpetrators accountable, strengthening the rule of law, providing victims with compensation, effectuating institutional reform, promoting reconciliation, and promoting national consultation.
Society During Transitional Period
Transitional justice has to address the needs of societies in transition. The main needs that arise in societies in transition are the following:
Modalities of Transitional Justice
There are different modalities of transitional justice which are utilized in different stages.
Conclusion
Generally transitional justice is an essential part of the peace rebuilding process, as the need to obtain justice for victims of conflict has been the main idea for keeping the country stable.
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The Ethiopian Federal Advocates Association has been established by law under Federal Advocacy Service Licencing and Administration Proclamation No 1249/2021. The Association made its first General Meeting on 23 January 2022. The General Meeting has chosen its Executive Committee, President and Vice-President. The General Meeting followed the procedure enshrined under Directive 32/2022. The Directive is issued by Ministry of Justice. The Directive is issued for the objective of choosing the organs of the Ethiopian Federal Advocates Association. As a result the first elected Executive Committee members are Hirut Melese, Filipos Aynalem, Liku Worku, Yosef Aemiro, Hossana Negash, Tideneqialesh Tesfa and Solomon Emiru. W/ro Sinidu Alemu became The President of the Association and Ato Tewodros Getachew became the Vice-President. DMLO wishes for the members of the Executive Committee, the President and Vice President of the Association a prosperous, successful and fruitful working tenure.
By Luwam Chalachew, Legal Assistant at DMLO
Introduction
Investment incentives are special rights granted for certain categories of investors in order to promote and facilitate private investors to play their role in investing and accelerating the country’s economic growth. In Ethiopia according to Investment Proclamation No. 1180/2020, investment areas eligible for incentives as well as the amount of incentive shall be determined by regulation to be enacted by the Council of Ministers. Accordingly, the Investment Regulation No.474/2020 Article 21 relating to investment incentives affirms that the Council of Ministers Regulation No.270/2012 will remain valid and applicable. Thus, the investment incentives granted to investors engaged in areas eligible for investment incentives will be discussed herein under.
Income Tax Exemption for New Enterprises
According to Article 5 of Regulation No.270/2012, any investors who establish a new enterprise in the following states;
shall be entitled to an income tax deduction of 30% for three consecutive years.
Income Tax Exemption for Expansion or Upgrading of an Existing Enterprise
Any investor expanding or upgrading his existing enterprise with respect to the additional income generated by the expansion or upgrading shall be entitled to income tax exemption for a period of time to be specified taking in to consideration the specific activity and location of the investor.
Income Tax Exemption for Investors Exporting Products and Services
Any investor who exports products and services shall be entitled to income tax exemption for two years. Not only an exporter but also any person who supplies products or services input at least 60% of his product to an exporter shall be also entitled to the same kind of exemption. In addition to that Ethiopian products and services destined for export are exempted from payment of any export tax subject to few exceptions.
Exemption from Customs Duty
Exemption from payment of customs duty is granted to investors to import all investment capital goods. This includes plant machinery and equipment, construction materials as well as spare parts worth up to 15% of the total value of the capital goods with in five years from the date of commissioning of the project.However an exception here is that such goods are not produced locally in comparable quantity, quality and price. Exemptions from customs duties or other taxes levied on imports are also granted for raw materials necessary for the production of goods.
An investor granted with customs duty exemption who buys capital goods or construction materials from local manufacturing industries shall be refunded the customs duty paid for raw materials or components used as inputs for the production of such goods.
Loss Carry Forward
An enterprise that suffers losses during the income tax exemption period can carry forward such losses, following the expiration of the income tax exemption period for half of the tax exemption period. Any loss incurred during the income tax exemption period is not allowed to carry forward for more than five income tax periods.
Conclusion
Generally income tax exemption and exemptions from customs duty are granted for both domestic and foreign investors. This is to encourage private investment in all corners of Ethiopia and promote the inflow of foreign capital and technology..
By Mahlet Mesganaw, Partner at DMLO
Foreign nationals of Ethiopian origin shall be granted a special identification card. The procedure and eligibility requirements for the special identification card are specified under Proclamation No. 270/2002 and Regulation No. 101/2004. The identification card is issued with the aim of executing the rights, privileges and responsibilities of those foreign nationals of Ethiopian origin.
Who Issues the Identification Cards
The Ministry of Foreign Affairs and the Immigration, Nationality and Vital Events Agency are tasked with the authority to issue the identification cards. MoFA will issue the identification cards through its embassies all over the world when the request comes outside of Ethiopia. When the request for the identification card is made in Ethiopia, the Agency shall be the authority to issue the identification cards.
Who is Eligible
A person who has been an Ethiopian national before acquiring a foreign nationality is eligible. Moreover, if the foreign national has at least one of his parents or grandparents or great grandparents who were an Ethiopian national, then he is eligible for the identification card. One exception here is that an Eritrean who forfeited Ethiopian nationality for Eritrean nationality is not eligible.
The spouse, who holds a foreign nationality but is married with a foreign national of Ethiopian origin is also eligible to apply for the identification card. Here spouses who are Eritrean nationals are accommodated.
Minors, who are children of holders of the foreign national Ethiopian origin identification card, are eligible to enjoy the rights and privileges granted to the foreign national of Ethiopian origin. The names of the minors shall be mentioned in their parent(s) identification card. This will enable the minors to enjoy the corresponding rights and privileges without a separate identification card. Nevertheless, the minor can request for a separate identification card from his parent(s). Considering the law on minors and the circumstances for the request, a separate identification card may be issued to the minor.
Some foreign nationals who reside in Ethiopia but who are not Ethiopians by origin may be eligible for the identification card. When the MoFA and the Agency jointly find it appropriate, a foreign national residing in Ethiopia may be eligible to acquire foreign national of Ethiopian origin identification card.
Document Requirements
The application shall be in a prescribed form. The form shall be accompanied by four recent passport size photographs. In addition to that there will be documentary evidence showing the applicant is a foreign national of Ethiopian origin. Valid passport or travel document and marriage certificate and birth certificates of his children under the age of 18, if applicable, shall also be produced.
Rights and Privileges of Having the Identification Card
The foreign nationals of Ethiopian origin are not required to have an entry visa or residence permit to live in Ethiopia. They can be employed in Ethiopia without a work permit requirement. Enjoy pension schemes under the relevant pension law. Own immovable property. They will be considered as domestic investors to invest in Ethiopia under the investment law. In general, enjoy the economic, social and administrative services without any restrictions as imposed on foreign nationals.
Validity Period and Renewals
The validity period of the identification card shall be five years since the date of issuance. Renewal shall be conducted after ascertaining the fact that grounds for cancellation are non-existence. The Ethiopian mission shall conduct the renewal when the request is abroad and the Agency when the request is in-country.
Service Fee
The amount of fee payable to obtain the identification card is US$ 500(Five Hundred Dollars) or for renewal USD$ 200(Two Hundred Dollars) or for lost identification USD$ 300(Three Hundred Dollars) or their equivalent in local currency where it is requested or in ETB if the applicant is residing in Ethiopia.
Return of the Identification Card
Without any reason whatsoever and at any time, a holder of the identification card may return the identification card to the issuing authority. However, if there are obligations the identification card holder entered during the validity period of his identification card, he shall be obliged to discharge his obligations.
Cancellation of the Identification Card
If the identification is obtained by means of fraud, false representation or concealment of any material fact, the identification card may be canceled. If the holder of the identification card is convicted for crimes of terrorism or smuggling of narcotics or armament, the identification card will be cancelled. The identification card will be canceled, if the holder is a citizen of a country at war with Ethiopia or is willingly helping such country. If the holder of the identification card proved to have served in the regular army or intelligence of another country, the identification card will be canceled. Finally the identification card will be canceled if holding the identification card is contrary to public and national interest. The cancellation decision shall be passed by a joint session of the MoFA and the Agency.
Therefore, the procedure for issuance of the identification card till the return or cancellation of the identification card are listed by law. Enjoyment of the rights and privileges are believed to strengthen the ties of foreign nationals of Ethiopian origin to their country of origin and contribute to the development and prosperity of Ethiopia.
By Dagnachew Tesfaye, Partner DMLO
On December 29,2021, the FDRE House of People’s Representative has approved into legislation by a majority vote the establishment of National Dialogue Commission by Proclamation No.1265/2021. The Commission is tasked with implementing inclusive dialogue on national issues for the creation of national consensus and establishment of common grounds.
By Mahlet Mesganaw, Partner at DMLO
Foreign Nationals of Ethiopian Origin(Diasporas) are believed to contribute to the development and prosperity of Ethiopia. Lifting legal restrictions were done starting from 2002. Some of the laws lifting restrictions on the diaspora will be discussed briefly here below.
Foreign Nationals of Ethiopian Origin are defined to include those foreign nationals who had at least one parent or grandparent or great grandparent being an Ethiopian national. In addition to that, those who had been Ethiopian nationals before acquiring a foreign national fall under foreign nationals of Ethiopian origin definition. One exception here is that an Eritrean who forfeited Ethiopian nationality for Eritrean nationality cannot be considered foreign national of Ethiopian origin. Spouses and minor of the person who holds a foreign national of Ethiopian origin identification card are also eligible to apply for the identification card. Some foreign nationals who reside in Ethiopia but who are not Ethiopians by origin may be eligible for the identification card.
To enjoy the rights and privileges, the diaspora has to apply and acquire foreign national of Ethiopian origin identification card. However, a holder of such an identification card still cannot be employed on a regular basis in the national defense force, security apparatus, foreign affairs and other political establishments. More so, the holder of the identification card shall have no right to vote or be elected to any office of any level of government.
Some of the privileges are mentioned under the proclamation namely Providing Foreign Nationals of Ethiopian Origin with Certain Rights to be Exercised in their Country of Origin Proclamation No. 270/2002. The foreign nationals of Ethiopian origin are not required to have an entry visa or residence permit to live in Ethiopia. They can be employed in Ethiopia without a work permit requirement. Enjoy pension schemes under the relevant pension law. Own immovable property. They will be considered as domestic investors to invest in Ethiopia under the investment law. In general, enjoy the economic, social and administrative services without any restrictions as imposed on foreign nationals.
Under Banking (Amendment) Proclamation No 1159/2019 and Insurance Business(Amendment) Proclamation No.1163/2019, a foreign national of Ethiopian origin is allowed to form and operate a bank or an insurance company or buy shares in a bank or insurance company. He can do so individually or through a company fully owned by foreign nationals of Ethiopian origin or jointly by foreign nationals of Ethiopian origin and Ethiopian nationals. His share purchase shall be in acceptable foreign currency. However when earning a dividend or transfer of those shares in any form, the payments shall be in local currency.
Investment Proclamation No.1180/2020 defines domestic investors to include those foreign nationals considered by relevant law of Ethiopia as domestic investors. As seen above under Proclamation No 270/2002, foreign nationals of Ethiopian origin are treated as domestic investors. Minimum capital requirement for investment will not apply to foreign nationals of Ethiopian origin. Foreign nationals of Ethiopian origin can engage in any businesses including those that are reserved for domestic investors. To see the list of businesses, you may click the following link: https://dmethiolawyers.com/investment-businesses-open-for-foreign-investors-in-ethiopia/
Family law wise, adoption of Ethiopian children is still made available. The Federal Supreme Court Cassation Bench on File No 189201 on March 11,2020 on Volume 24, allowed by interpretation foreign nationals of Ethiopian origins to adopt Ethiopian children. Adoption can be relative adoption or adoption from orphanages.
Advocacy license permits for only Ethiopian nationals were lifted. Under Federal Advocacy Service Licencing and Administration Proclamation No. 1249/2021, not only Ethiopians but also foreign nationals of Ethiopian origin are allowed to request and acquire the federal advocacy license.
To sum up, lifting legal restrictions on foreign nationals of Ethiopian origin will enable their engagement in the economic and social development of their country of origin. Lifting legal restrictions will pave the way for a significant number of foreign nationals of Ethiopian origin to pour their finance, know-how and technology to the development and prosperity of Ethiopia.
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By Luwam Chalachew,, Legal Assistant at DMLO
Introduction
Foreign national or an enterprise irrespective of where it is incorporated in which a foreign national has an ownership stake is considered a foreign investor. An enterprise incorporated outside of Ethiopia by any investor is also considered a foreign investor. An Ethiopian permanently residing abroad who opts for a foreign investor treatment under the law is also considered a foreign investor. The above list constitute foreign investor under the Investment Proclamation No 1180/2020..
Any foreign investor who can allocate a minimum capital of USD $200,000 can engage in investment in Ethiopia. A foreigner investing together with a domestic investor is required to come up with a minimum capital of USD $150,000. Fulfilling the minimum capital requirement, a foreign investor can invest in all businesses of investment except those reserved exclusively for domestic investors.
Businesses of Investment Open for Foreign Investment
According to Article 6(3) of the Proclamation, one investment sector open to foreign investors is joint investment with the government of Ethiopia. Another businesses sector that is open for foreign investor is joint investment with domestic investors. All businesses outside the reserved businesses for domestic investors are also open for foreign businesses to engage in. In other words, foreign investors are not allowed to engage in the areas of investment which are exclusively reserved for domestic investors. Outside of the later, foreign investors are allowed either to invest alone or jointly on selected sectors with government and domestic investors.
Business Types Reserved for Join Investment with Government
Businesses Exclusively Reserved for Domestic Investors
Businesses Exclusively Reserved for Join Investment with Domestic and Foreign Investors
A foreign investors investing jointly with domestic investors in the businesses specified above are not allowed to hold more than 49% of the share capital of the investment enterprise.
Conclusion
Generally all business sectors are open for foreign investors except those reserved for domestic investors exclusively. For that matter, joint investment on selected businesses with the government or with a domestic investor, are indirectly businesses open for foreign investors to engage in Ethiopia. Jointly or alone, a foreign investor can do investment business in Ethiopia in multitude of business sectors.
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