By Dagnachew Tesfaye, Partner at DMLF The Alternative Child Care and Support Directive Number 976/2023 by Ministry of Women and Social Affairs, October 2023, incorporates a section namely Responding to Child Abuse and Neglect. The State is given the responsibility to respond to child abuse and neglect. The procedure of …
This article summarizes the decision of the Federal Supreme Court Cassation Division regarding who has the right to file an opposition to a judgment before execution as per Article 358 of the Civil Procedure Code. The case has been between applicant Yeka Sub-city Public Prosecutor vs. respondents Mr. Abebe Bekele et al (8 people) on Cassation file no. 190307 decided on 8/12/2021. This decision of the Cassation Division is given by seven judges. The decision is a reversal of the previous decision of the Cassation Division File No 37502 Volume 8.
Federal High Court and Federal Supreme Court
The case was first brought to the Federal High Court by the respondents against Yeka Sub-city Woreda 01 Administration Office. The respondents claim that the Yeka Sub city Woreda 01 Administration destroyed and displaced the respondents from their possession unlawfully. Hence the respondents request for compensation. The Federal High Court examined the case in the absence of the defendant. The court ordered the defendant to pay to the plaintiff the value of the different property destroyed and taken away in the amount of Birr 443,215.00 with legal interest calculated from the date the property was taken away.
The respondent i.e Yeka Sub-city Public Prosecutor Office brought an opposition claim to the judgment based on Article 358 of the Civil Procedure Code to the Federal High Court. But the court rejected the opposition to judgment stating that the main idea of Article 358 of Civil Procedure Code is in order to protect the interest of a party which was not party to a suit. The defendant was summoned to appear before the court but refused to appear. The reason that the defendant did not notify the respondent cannot be a sufficient ground to accept the opposition claim. Accordingly, the court decided that the opposition is not presented fulfilling the intention of the law on Article 358 of the Civil Procedure Code and dismissed the claim of the opponent, now applicant.
An appeal was filed to the Federal Supreme Court by the applicant. But the Federal Supreme Court confirmed the Federal High Court’s decision. Then an application for Cassation was filed in protest of the decision of the Federal High Court and Federal Supreme Court decisions.
Review by the Federal Supreme Court Cassation Bench
The applicant filed an application to the Cassation Bench stating that the applicant has the power to file opposition to any judicial organ in order to protect the rights and interests of residents. The applicant mentioned Addis Ababa City Administration Execution and Municipality Service Proclamation no.35/2004 and Proclamation no.64/2011to back up its claim. The applicant and the defendant, though found in the same administration structure, each of us represent different interests. The Cassation Bench on File No 37502 has given a similar interpretation. Therefore the applicant requested the Cassation bench to dismiss the conclusion reached by the lower courts as a basic error of law.
The three judges at the Cassation bench who heard the applicant. These judges accepted his argument and framed an issue to be seen by the seven judges. The issue is whether it is appropriate to dismiss the opposition despite the fact that the applicant is given by law the right to file opposition to protect the interest of the city administration.
The applicant’s application has been served to the respondents. The latter gave their response stating that there is no basic error of law committed by the Federal High Court and Federal Supreme courts.
The Cassation Bench examined the case after hearing both sides. The Cassation Bench started its reasoning by stating the basic purpose of the Civil Procedure Code. Courts need a system in place to examine written arguments, listen to oral arguments, weigh evidence and interpret basic rules and reach a conclusion. In order to achieve this goal, the Civil Procedure Code sets out various rules and principles which plays an important role in ensuring that the proceeding and outcome of the proceeding are fair and eliminates unnecessary constraints. In this regard one of the provisions of the Civil Procedure Code is the regulation of the participation of interested third parties who were outside the parties named as plaintiff and defendant. This is regulated under Article 40 and 41 of the Civil Procedure Code. According to these provisions any interested third party can join a proceeding before judgment either upon application of the parties or by the initiation of the court. In case a decision or judgment is rendered by a court in the absence of these parties and the interest of such a third party is at stake, the remedy is provided under Article 358 of the Civil Procedure Code.
In order to make an opposition in accordance with Article 358, the opponent should not be party to the suit either in person or through a representative. Making an opposition to a judgment before execution is possible only if the opponent didn’t know about the existence of the litigation and he/she should show that its interest is affected by a judgment that is given without its knowledge.
When one comes to the case at hand both the defendant and the applicant have the responsibility of protecting the interests of the residents of their constituency. The defendant and applicant aspire to protect the same goal. It is upto the administrative bodies to determine when receiving court summons to identify who should defend. And the Public Prosecutor could have come to court to defend the statement of claim in the first stage of the proceeding. The defendant (Yeka Sub city Woreda 1 Administration) didn’t appear before the court while it was summoned to appear. The public prosecutor who is representative of the Sub city also didn’t appear. The Public Prosecutor could have used Article 78 of the Civil Procedure Code if the summons were not duly served. So the Cassation concluded that the applicant’s right to represent and defend the interests of the Woreda has already been represented by the defendant itself. Therefore the applicant cannot be termed as a third party that was not given the chance to participate in the proceeding that led to the judgment. The judgment cannot be opposed by the applicant as per Article 358 of the Civil Procedure Code.
The previous Cassation Bench decision on File No 37502 on Volume 8 of interpretation of Article 358 has been abandoned as the interpretation does not reflect the intention contained in Article 358. The interpretation that one government body has the right to present opposition to judgment rendered without its knowledge, even if another government body under the same administration has been party to the case, has been revoked.
Conclusion
Generally, the applicant and the defendant have stood for the same interest i.e. securing the interests of their residents. The defendant has participated in the court proceedings. When a judgment disfavoring the defendant is given, the applicant cannot come to repeat the same process using Article 358 of the Civil Procedure Code. Article 358 is there to protect those parties whose interests are affected by the judgment whereby they were not parties to the case either in person or through a representative. Therefore, government bodies that represent similar interests cannot use Article 358 to oppose the judgment given against one body under their administration by another body or the public prosecutor.
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Ethiopia aspires to be the manufacturing hub of Africa by 2025. The Ethiopian government has planned to achieve this vision through industrial park development and expansion. According to Article 2(1), of the Industrial Park Proclamation No 886/2015 ‘’industrial park’’ is an area which includes, special economic zones, technology parks, export processing zones, export processing zones, agro-processing zone, free trade zones and the like designated by Investment Board.
The major laws governing industrial parks in Ethiopia are Industrial Parks Proclamation No 886/2015, Industrial Parks Regulation no.417/2017, Industrial Parks Development Corporation Establishment Regulation No 326/2014 and Ethiopian Investment Board Industrial Parks Directive No 06/2017. The Industrial Parks Proclamation No 886/2015 is the foundation of the legal regime on the subject of industrial parks. It has been issued with the objective of regulating the designation, development and operation of industrial parks. The proclamation identifies three principal players in the context of industrial parks. These are the industrial parks developer, industrial park operator and industrial parks enterprise. Ethiopia so far has constructed and put to work 20 state of the art industrial parks in different parts of the country. The key players and the government of Ethiopia’s objective in developing industrial parks will be discussed briefly herein under.
Government and Private Owned Industrial Parks
Not only the government of Ethiopia but also private entities own industrial parks. These industrial parks engage in specialized industries including textile and apparel, leather and leather products, pharmaceutical, agro-processing and mixed use. From the government owned industrial parks, Bole Lemi I Industrial Park located in Addis Ababa, Adama Industrial Park located in Oromia Region, Bahir Dar Industrial Park located in Amhara Region and Kilinto Industrial Park located in Addis Ababa can be mentioned. Three private owned industrial parks include Huajian Industrial Park that engage in textile and apparel, leather and leather production, Vogue Industrial Park that is engaged in textile and apparel production and CCECC Dire Dawa Industrial park that has mixed use services.
Industrial Park Facilities
The industrial parks are filled with possibly all sorts of required services in one place. The industry parks do accomodate power substation, waste treatment, commercial and housing facilities, health stations, fire brigade and security services. The aim is to serve the needs of the clients in the industry parks in a one-stop service. Such services include processing and issuance of permits and licenses, tax identification number, notarization of formation documents, custom clearances, and banking services.
Industrial Park Investment Incentives
Industrial Park developers and enterprises benefit from fiscal incentives that include income tax exemption for up to 8-15 years, export tax exemptions, exemption from customs duty, export credit guarantee scheme, franco valuta and loss carry forward. Guarantee against expropriation, repatriation of profits and dividends, foreign currency retention, no export price control, right to own immovable property and fast track services in licencing , permits, custom clearances and other services can be termed as non-fiscal incentives forwarded to industrial park developers and enterprises.
Industrial Park Investment Application Procedure
Any foreing or domestic investor that seeks to engage in the industrial park as a developer, operator or enterprise need to bring company profile, filled investment application, draft memorandum of association, project proposal, export or import substitution plan depending on the type of the project, declaration of financial standing and a ten-year forecast and impact assessment. The person signing and completing the application form must have an investment/business visa. Special Investment process for a developer, operator and enterprise shall be dealt here below.
Industrial Park Developer
According to Article 2(10), an industrial park developer is a profit making entity that develops a park. It could be an enterprise, public or private partnership entity. According to Article 5 the Industrial Park Proclamation, industrial park developers have the right to design, construct, develop and exploit industrial parks and provide service. It may also sell separately the different sheds and factories that it constructed; it may also participate in the financial markets to secure loans, guarantees and similar resources. Industrial park developers may provide service to industrial park enterprises engaged within the industrial park. The industrial park developer has the primary obligation to construct the park. The investment process for the industrial park developer begins with the application to Ethiopian Investment Commission(EIC) and the Board at EIC has to approve the application. Once approved, a memorandum of understanding is signed with EIC. Then the developer goes to registration and licensing.
Industrial Park Operator
According to Article 2(11) of the Industrial Park Proclamation, an industrial park operator is a profit making entity that operates and maintains a park. An industrial park operator manages and operates a park on behalf of the developer. It enters into agreement with the developer of the park and its obligation mainly emanates from the agreement. And it has the right to transfer on sub lease developed industrial park land and let or sublet immovable assets, provide utilities and other service on behalf of the industrial park developer. The investment process as an operator starts with application to EIC. The application needs to incorporate detailed declarations demonstrating the availability of professionals and possession of experience in rendering similar or related services. Then comes signing of a tripartite memorandum of understanding with the Industrial Park Developer and EIC. Once the operator registers and acquires its license from EIC, the operator can sign operations management agreement with Industrial Park Developer.
Industrial Park Enterprise
As per Article 2(12) of the Industrial Park Proclamation, an industrial park enterprise is a profit making entity that engages in manufacturing or rendering service in a building rented from the developer or erected within the industrial park. According to Article 9 of the Industrial Park Proclamation, an industrial park enterprise may obtain an industrial park permit in order to carry out investment activities within industrial parks. It will obtain tax, customs duty and other incentives. It has the mandate to carry out investment activities in compliance with the terms of the investment permit. The investment process begins with application to EIC and then signing a memorandum of understanding with EIC. Then a deposit of commitment fee of USD 200K in the industrial developers account has to be made. The commitment fee shall be considered as part of the initial capital requirement. Registration and licensing at EIC will be made. Then a shed rental or sub-lease agreement with the industrial park developer will be entered. The rented shed will be handed over to the enterprise by the developer finalizing the investment registration process.
Human Resource Management Guideline
The industrial parks will hire huge numbers of employees. Uniform guidelines to manage human resources to the standard and laws of Ethiopia is necessary. Thus the EIC has commissioned a guideline for human resource management. The guide line is founded on Ethiopian labor law and international best practices. The guideline establishes a uniform system to manage all human resources matters. The manual sets up a fair, transparent, ethical and effective recruitment and selection practices. The guideline establishes effective, legistmate, transparent and safe grievance handling procedures to address employee concerns before they lead to more serious employee relations issues.
Conclusion
Generally the operation of industrial parks is structured based on the three principal players which are industrial park developer, operator and enterprise. Industrial Parks are necessary to accelerate the economic transformation and development of the country. The establishment of Industrial Parks in strategic locations will promote and attract productive domestic and foreign direct investment. The industrial park investment will upgrade industries and generate employment opportunities. All these aspirations and practical implementations will put Ethiopia as the manufacturing hub of Africa in the near future.
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Ethiopia has a huge potential of various mineral resources which are not yet exploited. This natural resource includes but is not limited to gold, potash, gemstones, platinum, opal, iron, marble, granite, limestone and tantalum. In Ethiopia the government is the custodian of natural resources on behalf of the people and has the responsibility of ensuring that they are used for the benefit of people. In order to do that the appropriate government organ has the responsibility to approve mining activities. The governing laws in the mining area in Ethiopia are the Mining Operation Proclamation No 678/2010, the Mining Operation (amendment) Proclamation No 816/2013, the Mining Operation (amendment) Proclamation No 1213/2020 and Mining Operation Council of Ministers Regulation No 423/2018.
Requirement of License
Any person who wishes to engage in the mining operation should obtain the relevant license from the licensing authority according to Mining Operation Proclamation no. 678/2010.
Types of Mining Licenses in Ethiopia
According to the Mining Operation Proclamation No 678/2010 as well as the amendment Proclamation No 816/2013, there are different types of mining licenses. These include artisan mining license, small scale mining license, special small scale mining license and large scale mining license.
Artisanal Mining License
No financial resource or technical or professional competence is required to acquire an artisanal mining license. Artisanal mining license can be obtained from the regional state governments (at Zonal or Woreda level). Artisanal mining license provides an exclusive right to explore and mine for minerals within the license area. This type of license is valid for the period of up to two years and shall not be renewed.
Small Scale Mining;
An applicant shall be granted an exclusive small scale mining license where, the proposed work program is approved, the applicant has an access to financial resource and technical ability to conduct the proposed mining operation optimally and in a safe manner. The environmental impact assessment has to be approved and the applicant is not in contravention of any obligations of the exploration license if any.
A small scale mining license shall be valid for a period specified in the license. However such period shall not exceed 10 years. A small scale mining may be renewed for a period not exceeding 5 years in each subject.
Special Small Scale Mining License
The licensing authority shall grant an exclusive special small scale mining license where the proposed work program and environment impact assessment are approved. The applicant proves that he has financial capacity to conduct the proposed mining operation. The applicant was holder of artisanal mining license that engages in the mining of gemstones or placer gold, silver, platinum or titanium and is not in contravention of any obligations related to it.
Special small scale license shall be valid for the period specified in the license. However such period may not exceed 10 years and it may be renewed for a period not exceeding 5 years.
As per the Mining Operation Proclamation No 816/2013, the holders of special small scale and holders of artisanal mining licenses that engaged in gold or silver mining shall sell minerals produced to the National Bank of Ethiopia.
Large Scale Mining License
According to the Mining Operation Proclamation an applicant shall be granted an exclusive large scale mining license where, the work program and environmental impact assessment are approved. The applicant has an access to financial resource and technical ability to conduct the proposed mining operation optimally and in a safe manner. The applicant is not in contravention of any obligations of the exploration license if any. A large-scale mining shall be valid for a period specified in the license. However such a period shall not exceed 20 years. Large scale mining may be renewed for a period of not exceeding 10 years. In this case, the holders of the mining license shall be entitled to export free of customs duty and taxes minerals produced according to the license.
Rights and Obligations Small and Large Scale License Holders
Small and large scale mining license holders have the right to market and sell minerals produced. Both small and large scale mining license holders shall commence mining operation within one year from the date on which the license becomes effective and should comply with terms and conditions of the license.
Conclusion
The minerals and geo- energy resources of Ethiopia are yet untouched. Ethiopia has huge potential to accommodate the interest of so many investors. In order to promote and facilitate the mining sector, different types of incentives including customs duty, tax free import of equipment, machinery, vehicle, small aircraft or helicopter having seats of 6 persons for the purpose of collecting data and consumables are granted under the Regulation.
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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:
The need for justice- Victims of violations or their relatives and the society at large need to see the perpetrators of the violations brought to justice. It is thus necessary that transitional justice should provide a mechanism by which this need may be satisfied. It is generally proposed that justice shall be rendered in order for a society to break with the past & move forward.
The need to know the truth- The society in general, and victims or relatives in particular, wants to know who among its members did participate in the violations, the degree of their participation and why the violation happened. There are two arguments regarding this point. Some people argued that knowing the truth about the past is crucial to build a viable, rights-respecting & democratic society as well as to ensure that violations wouldn’t happen again. On the other side some people argued that knowing the truth is not desirable as it may lead to further suspicion & animosity between those that claim to be victims & their relatives on the one hand and alleged perpetrators.
The need for reconciliation- Society may also need to create conciliation among its members. There may be a general understanding that one group of the society are victims while others are perpetrators or vice versa. This and other factors are likely to develop among members of the society a mentality of suspicion, mistrust & even animosity. A society wishing for moving forward should therefore address this mentality. Society should have a mechanism of reconciling its divided members & building trust, confidence & mutual respect among its members. A divided society should break with the past, establish a stable system & move forward. In addition to this there might be the need for compensation for the victims in society.
Modalities of Transitional Justice
There are different modalities of transitional justice which are utilized in different stages.
Prosecution- this process involves the investigation & prosecution of alleged perpetrators, and imposition of penalty if found guilty. Thus, it involves the apprehension of perpetrators, the gathering of evidence, and the filing of criminal charges. And making judicial hearings and decisions according to the law. Prosecution is not only an alternative but also an obligation in some grave human right violation. Examples of grave violations are war crimes, the crime of genocide, and crimes against humanity. In these cases, countries have the duty under international human right laws as well as international customary laws to prosecute or extradite violators for crimes committed anywhere.
Truth and reconciliation- for this mechanism, societies may establish truth commissions or truth and reconciliation commissions. The main priority of this modality is to reveal truths about the past, create conciliation, and achieve a successful transition.
Amnesty- the term amnesty refers to an official act, usually through law, prospectively barring prosecutions of a class of persons for a particular set of actions or events. But it is questionable whether amnesties satisfy society’s needs or not.
Reparation- Reparations can include monetary compensation, medical and psychological services, health care, educational support, return of property or compensation for loss thereof, but also official public apologies, building museums and memorials, and establishing days of commemoration to the victims of conflict.
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.
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;
The State of Gambela Peoples;
The State of Benishangul Gumuz;
the State of Afar (except in areas within 15 Kilometers right and left of the Awash River);
The State of Somali;
Guji and Borena Zones of the State of Oromia; And
South Omo Zone, Segen (Derashe, Amaro, Konso and Burji) Area Peoples Zone, Bench Maji Zone, Sheka Zone, Dawro Zone, Kaffa Zone or Konta and Basketo Special Woredas of the State of Southern Nations, Nationalities and Peoples
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..
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 witha 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.
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 ofthe 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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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
Manufacturing of weapons, ammunition and explosives used as weapons or make weapons,
Import and export of electronical energy,
International air transport services,
Bus rapid transit and
Postal service excluding courier service
Businesses Exclusively Reserved for Domestic Investors
Subject to applicable laws, banking, insurance, and microfinance business excluding capital goods finance business,
Transmission and distribution of electrical energy through an integrated national grid system.
Primary and middle level health service,
Wholesale trade, petroleum, petroleum products, wholesale of own products produced in Ethiopia, excluding wholesalers of electronic commerce,
Retail trade, excluding retail of electronic commerce as provided under appropriate law of own products produced in Ethiopia,
Import trade excluding liquefied petroleum gas and bitumen,
Export trade of raw coffee, chat, oil seeds, pulses, minerals, hides and skins, products of natural forest, chicken, and livestock including pack animals brought on the market,
Construction and drilling services below grade 1,
Hotel, lodge, resort, motel, guesthouse, and pension services excluding those that are star designated,
Restaurant, tearoom, coffee shops, bars, nightclubs, and catering services excluding star designated national cuisine restaurant service,
Travel agency, travel ticket sales and trade auxiliary service,
Tour operation,
Operating lease of equipment, machineries and vehicles excluding industry specific heavy equipment, machineries, and specialized vehicles,
Transport services, excluding the following areas,
Railway transport,
Cable-car transport,
Cold-chain transport,
Freight transport having a capacity of more than 25 tones, and
Transport services reserved for join investment with government or domestic investors,
Making indigenous traditional medicines,
Producing bakery products and pastries for domestic market,
Grinding mils,
Barbershop and beauty salon services, smothery. And tailoring except by garment factories,
Maintenance and repair services including aircraft maintenance repair and overhaul (MRO), but excluding repair and maintenance of heavy industry machineries and medical equipment,
Aircraft ground handling and other related services,
Saw milling, timber manufacturing, and assembling of semi-finished wood products,
Media service,
Customs clearance service,
Brick and block manufacturing,
Quarrying,
Lottery and sports betting,
Laundry service excluding those provided on industrial scale,
Translation secretarial services,
Security services
Brokerage services,
Attorney and legal consultancy services and
Private employment agency service, excluding such services for the employment of seafarers and other similar professionals that require high expertise and international experience and network.
Businesses Exclusively Reserved for Join Investment with Domestic and Foreign Investors
Freight forwarding and shipping agency services,
Domestic air transport service,
Cross- country public transportation service using buses with a seating capacity of more than 45 passengers,
Urban mass transport service with large carrying capacity,
Advertisement and promotion services,
Audiovisual services, motion picture and video recording production and distribution and
Accounting and auditing service.
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.
For any investment questions, you may contact us at info@dmethiolawyers.com