18 results found

Ethiopia has of late taken measures that liberalize the financial sector. The issuance of the new Banking Business Proclamation No. 1360/2025 (Banking Business Proclamation) and Capital Markets Proclamation No. 1248/2021 (Capital Market Proclamation) are salient examples.

People who control a company, be they directors, managers or controlling shareholders, may use their power to divert the company's wealth to unfairly enrich themselves or others.

Corporate criminal liability is increasingly central to business risk in Ethiopia, yet the doctrinal "trigger" is narrower and more text-dependent than...

On February 12, 2026, the National Bank of Ethiopia issued the Foreign Exchange Amendment Directive No. FXD/04/2026 revising provisions of the Foreign Exchange Directive No. FXD/01/2024.

In this edition, we present a concise overview of key legislative developments from May and June 2025 that may be of relevance or may have an impact on your business

In Ethiopia, registering a business is not optional-it is the legal doorway to operate and transact. Trading without registration and licensing exposes the owner to administrative penalties and potential criminal liability. Understanding how to legally establish a business in Ethiopia requires knowledge of three essential legal pillars: Commercial Registration, Trade Name Registration, and Business Licensing.

Over the past decade, Ethiopia has undertaken significant economic reforms intended to liberalize and modernize its financial sector. Among the most critical steps has been the promulgation of new capital market legislation, culminating in the Capital Market Proclamation No.1248/2021 (CMP).

Ethiopia's commercial landscape has undergone a profound structural transformation since the enactment of the Commercial Code of Ethiopia (Proclamation No. 1243/2021), which replaced the venerable 1960 Commercial Code that had governed business activity in the country for over six decades.

Ethiopia recently enacted the Startup Proclamation No. 1396/2025 (the "Proclamation"), introducing a long-awaited legal framework for the recognition, regulation, and support of startups...

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)).

Reasons ranging from macro-economic conditions to poor management may result in placing a business in financial distress.

The commercial relationship between the United Arab Emirates and Ethiopia has deepened considerably over the past decade, driven by geographic proximity, complementary economic profiles, and a growing web of bilateral agreements that provide the legal infrastructure for sustained investment flows. For UAE-based investors — whether Emirati nationals, family offices, sovereign-adjacent funds, or the substantial community of international entrepreneurs who operate through UAE corporate structures —

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.

Serving as a director of an Ethiopian company — whether a Share Company or a Private Limited Company — carries with it a range of legal duties and personal liabilities that many appointees, particularly those nominated by foreign parent companies, do not fully appreciate until a crisis arises.

The enactment of the Commercial Code of Ethiopia, Proclamation No. 1243/2021, represents the most significant overhaul of Ethiopian corporate law in more than sixty years.

On 12 February 2026, the National Bank of Ethiopia (NBE) issued Directive No. FXD/04/2026, amending the foundational Foreign Exchange Directive No. FXD/01/2024. The new directive, signed by NBE Governor Eyob Tekalign (PhD), represents the most significant liberalization of Ethiopia's foreign exchange regime since the landmark July 2024 reforms.