1. What is the policy related to foreign investors accessing domestic sources of capital to meet their financing needs?
As much as possible, the Government of Ethiopia recommends that foreign investors use foreign sources of capital to meet their financing needs. Foreign investors can source a portion of the capital that they require through the Development Bank of Ethiopia, but the Government of Ethiopia prefers that they do so only in the most pressing cases.
2. What is the policy related to depreciation?
The depreciation rate differs based on the type of good and the depreciation method (straight-line or declining). Details can be found in the Council of Ministers Federal Income Tax Regulations (No.410/2017), which can be accessed at this link: http://www.erca.gov.et/images/Documents/Regulation/Domestic_Tax_Regulations/Income_Tax_Regulations_compressed.pdf. (The English version starts on page 36.)
3. What is the policy related to offering dividends to foreign investors?
After payment of all applicable taxes, repatriation of dividends with convertible currency is guaranteed for all foreign investors.