Ethiopia has recently enacted a new Proclamation facilitating Public Private Partnerships (PPP), recognising that the private sector is essential to support the country's economic growth ...

Ethiopia has enacted Council of Ministers Regulation No. 586/2026 (published in the Federal Negarit Gazette No. 17, 23 February 2026) to implement a refreshed regime of tax and customs incentives for holders of investment licenses under the Investment Proclamation.

Ethiopia’s post-July 2024 foreign exchange (FX) reforms—anchored in the National Bank of Ethiopia’s Foreign Exchange Directive No. FXD/01/2024—represent a structural shift from administratively constrained FX allocation toward a more market-based exchange rate and broader authorization of current-account FX transactions through the banking system.

Ethiopia’s “homegrown” reform agenda has recently moved from policy statements to legally operative market institutions. The post-2020 investment regime (Investment Proclamation No. 1180/2020 and implementing regulations) is now paired with a functioning capital market architecture (Capital Market Proclamation No. 1248/2021, implementing directives, and the Ethiopian Securities Exchange (ESX)).

Ethiopia stands out as one of Africa's fastest-growing economies and a key gateway for investment in East Africa. In recent years, the Ethiopian government has modernized its business laws - notably with the Commercial Code Proclamation No. 1243/2021 - to make registering a company more transparent and investor-friendly. For foreign investors, this means clearer rules and a defined process for entering the market.