The post Ethiopia Immigration Service Passport Fees Increase first appeared on Ethio Legal Shield (ELS).

The reform package, which is based on the nation’s Home-Grown Economic Reform Plan (HGER 2.0), intends to guarantee sustainable, inclusive, and broad-based growth as well as to restore macroeconomic stability and stimulate private sector activity.

The reforms are a comprehensive package of policies intended to promote Ethiopia’s existing development trajectory and growing global integration. These changes align with the government’s long-standing aspirations, as stated in important policy documents, which acknowledged that as Ethiopia’s economy develops and becomes more complicated over time, it should eventually transition to a market-based foreign exchange system. The following areas will see substantial new policy changes as a result of this foreign exchange directive

• The end of surrender requirements to the NBE: permitting exporters and commercial banks to hold onto foreign exchange, significantly increasing the amount of FX supplied to the private sector.
• A shift to a market-based exchange regime: wherein banks will now be able to buy and sell foreign currencies at freely negotiated rates, both to and from their clients and among themselves. The NBE will only make limited interventions to support the market in its early stages and if necessary due to disruptive market conditions.
• The improvement of retention rules: enabling exporters to keep 50% of their foreign exchange earnings instead of 40% as was previously the case.
• The removal of import restrictions that previously prohibited 38 product categories:  the broader liberalization of the foreign exchange market for the imports of goods and services, while capital account outflows remain restricted as before.
• The introduction of non-bank foreign exchange bureaus: which are hereby authorized to purchase and sell foreign currency cash notes at market prices. 
• The allowance for residents to open foreign currency accounts: predicated on the capacity to use such foreign currency accounts for payments for foreign services, as well as remittance inflows, transfers from overseas, FX-based salary or rental income, and other specific instances.
• The opening of Ethiopia’s securities market to foreign investors, with the terms and conditions to be specified further in the near future.
• Freedom on the amount of cash for travelers: The relaxation of various rules on the amount of foreign currency cash notes travelers may carry when travelling into or out of Ethiopia.

The FX reforms that have been outlined above constitute a complete package of policies that would facilitate Ethiopia’s continued development and growing involvement with the global community. These changes align with long-standing government goals stated in important policy documents, which acknowledged that as Ethiopia’s economy develops and becomes more complicated over time, it should eventually transition to a market-based foreign exchange system.

The post THE NATIONAL BANK OF ETHIOPIA INTRODUCES ETHIOPIAN FOREIGN EXCHANGE DIRECTIVE NO. FXD/01/2024 first appeared on Ethio Legal Shield (ELS).

On Friday, July 12, 2016, during the 21st Ethiopian Economic International Conference, Brook Taye (Dr.), Director General of Capital Markets, announced the directive. This directive, which has received approval from the National Bank, banks, and insurance companies, aims to facilitate the establishment of investment banks.

Dr. Brook explained that the directive includes certain restrictions on banks and insurance companies setting up investment banks. The Ethiopian Capital Market, which was recently established, will be responsible for licensing and regulating these entities. This marks the first time the investment bank establishment license will be implemented in the country.

The directive specifically outlines that banks can engage in other investments, such as establishing an investment bank in the capital market. However, they are restricted from holding more than a ten percent share in business activities outside the banking sector.

Source: The Reporter

The post            Ethiopian National Bank Approves New Directive first appeared on Ethio Legal Shield (ELS).

The post Rent Control and Administration Proclamation NO 1320/2024 first appeared on Ethio Legal Shield (ELS).

The post Ethiopia is preparing a Legal Framework to Protect Domestic Workers’ Rights first appeared on Ethio Legal Shield (ELS).

The directive give emphasis to the importance of proper affixing and control of excise marks on excise goods in order to maintain transparency, accountability and adherence to excise declarations. According to the draft ordinance, excise stamps are required for alcoholic beverages, tobacco, bottled water, alcoholic and non-alcoholic beverages, cigarettes and cigarillos. The Ministry reserves the right to add additional points. The directive specifies that an excise mark can be a paper mark, a digital mark or any approved mark for affixing or printing on excise goods. The exact type, content and method of approval of trademarks are decided by the tax authority.

The ministry must also appoint a company to be responsible for the development and installation of the excise stamp system and the printing and delivery of excise stamps and related systems. According to the proposed directive, excise stamps for locally produced products must be affixed at the place of production immediately after packaging. Imported goods must be stamped at the customs office or at the place designated by the Tax Board within five days after customs clearance

Moreover, this directive also permits applying of excise stamps on imported excisable goods at the production site of the exporting nation, with certain restrictions imposed by the Tax Authority.

                                                                                Source: Capital Newspaper           

The post A DRAFT EXCISE TAX DIRECTIVE EXPECTED TO CURB ILLEGAL ACTIVITIES IN THE BEVERAGE SECTOR first appeared on Ethio Legal Shield (ELS).

Current Legal Framework

Ethiopia has a legal framework in place to combat corruption. The Criminal Code of the Federal Democratic Republic of Ethiopia criminalizes corruption-related offenses, including:

Article 414: Concealing or Transferring Proceeds of Corruption

Any person who conceals or transfers proceeds of corruption, with the intent to evade taxation or conceal the source of the funds, shall be punishable with imprisonment from 5 to 10 years.

Article 415: Acquiring or Possessing Proceeds of Corruption

Any person who acquires or possesses proceeds of corruption, knowing that the funds are proceeds of corruption, shall be punishable with imprisonment from 5 to 10 years.

Article 416: Transferring or Concealing Proceeds of Corruption Across Borders

Any person who transfers or conceals proceeds of corruption across borders, with the intent to evade taxation or conceal the source of the funds, shall be punishable with imprisonment from 10 to 15 years.

Article 417: Money Laundering

Any person who engages in money laundering, including the concealment, transformation, or transfer of proceeds of corruption, shall be punishable with imprisonment from 10 to 15 years.

Article 418: Embezzlement

Any person who embezzles public funds or property, shall be punishable with imprisonment from 5 to 10 years.

Article 419: Bribery

Any person who offers, gives, receives, or solicits a bribe, shall be punishable with imprisonment from 5 to 10 years.

The Criminal Code also provides for the forfeiture of assets and properties acquired through corruption, and the restitution of damages to the state or individuals affected by corruption.

Another domestic law that regulates transfer of proceeds of corruption across borders is the “Financial Anti-Money Laundering and Countering the Financing of Terrorism Compliance Directives Number 01/2014”. This directive emphasizes the importance of sound know-your-customer policies and procedures to prevent financial institutions from being exposed to risks associated with money laundering and terrorist financing. It mandates customer due diligence, identification, and verification processes to ensure that new and existing customers are properly identified, and their activities are monitored to detect any potential illicit financial activities.

Ethiopia also has established the Federal Ethics and Anti-Corruption Commission (FEACC) to investigate and prosecute corruption cases.

In addition to its domestic laws, Ethiopia has also ratified international conventions, including:

The United Nations Convention Against Corruption (UNCAC), which requires countries to establish laws and regulations to prevent and combat corruption and The African Union Convention on Preventing and Combating Corruption (AUCPCC), which aims to promote transparency, accountability, and good governance in Africa

Key Provisions

The UNCAC requires countries to:

Establish laws to prevent money laundering and the concealment of proceeds of corruption (Article 14)

Prevent the transfer of proceeds of corruption across borders (Article 31)

Promote international cooperation to recover and return assets stolen through corruption (Article 52)

Establish laws to prevent the use of proceeds of corruption to fund political campaigns or influence public officials (Article 53)

The AUCPCC requires State Parties to:

Establish criminal offenses for corruption-related crimes, including money laundering and concealment of proceeds (Article 4)

Establish laws and regulations to prevent money laundering and the concealment of proceeds of corruption (Article 7)

Cooperate with each other in the investigation, prosecution, and punishment of corruption-related crimes (Article 12)

Recover and return proceeds of corruption to their country of origin (Article 16)

Impact of the Proclamation

The proclamation is expected to have a significant impact on the fight against corruption in Ethiopia, including:

1. Deterrence: The proclamation will serve as a deterrent to individuals who engage in corrupt activities, knowing that they will face punishment if caught.
2. Prevention: The proclamation will help prevent corruption by making it more difficult for individuals to engage in corrupt activities.
3. Recovery: The proclamation will enable the government to recover assets stolen through corruption, which will help to restore public trust and confidence in the government.
4. International cooperation: The proclamation will facilitate international cooperation in the fight against corruption, as Ethiopia will be able to work with other countries to recover and return assets stolen through corruption.

Its Challenges

While the proclamation is a significant step in the fight against corruption, there are challenges that need to be addressed, including:

1. Implementation: The proclamation will require effective implementation, including the establishment of a robust institutional framework and the allocation of sufficient resources.
2. Enforcement: The proclamation will require effective enforcement, including the investigation and prosecution of corruption cases.
3. Public awareness: The proclamation will require public awareness and education to ensure that individuals understand the laws and regulations related to corruption.
4. Political will: The proclamation will require political will and commitment from the government and other stakeholders to ensure its successful implementation.

Conclusion

The preparation of the proclamation to punish individuals who evade wealth is a significant step in Ethiopia’s fight against corruption and illegal financial flows. The country’s legal framework and international commitments provide a solid foundation for combating corruption, and the government’s efforts to prevent money laundering and terrorist financing are crucial in this fight. The successful implementation of the proclamation will require a concerted effort from all stakeholders, including the government, civil society, and the private sector.

Written By: Samson Yoseph

The post A Proclamation is being prepared that Punishes Individuals Who Evade Wealth first appeared on Ethio Legal Shield (ELS).

Under the new rules, chambers of manufacturing industries and sectoral associations will be allowed to form at the district and city levels. This departure from the traditional approach will separate trade businesses from manufacturing industries, giving them their own dedicated chambers.

Additionally, the legislation will introduce a system where manufacturing industries can “graduate” in size once a year, provided they meet specific requirements. A small manufacturing industry can achieve medium status by increasing its capital to a minimum of 10 million birr, employing at least 51 people, and having at least 40 percent of its assets in permanent property.

To be eligible for graduation, annual transactions of the manufacturing industry must exceed 10 million birr, with a net profit of at least 21 percent. Moreover, industries seeking to graduate will also need to meet capacity utilization and domestic input sourcing requirements.

Source: Reporter, May 4, 2024

The post Legislation Proposing Dedicated Chambers of Commerce and Criteria for Manufacturing Industry Expansion first appeared on Ethio Legal Shield (ELS).

International Labor Day, observed annually on May 1st, marks a day of recognition for the tireless efforts and sacrifices of workers globally. It’s a commemoration of the labor movement’s achievements and a reflection on the ongoing struggles to secure equitable rights for all employees. Over decades, persistent advocacy and activism have culminated in the establishment of fundamental labor rights that aim to ensure dignity, safety, and fairness in the workplace. Here, we highlight the key rights that have been a focal point of labor movements around the world and that are recognized under the Ethiopian labor law.

1. Freedom of Association and the Right to Collective Bargaining

The right to freely associate and the power to negotiate collectively are cornerstones of the labor movement. Workers have fought to form and join organizations of their own choosing without interference. This right enables workers to negotiate their wages, benefits, and working conditions through collective bargaining, ensuring that their voices are heard and respected in the workplace. Unionization has been recognized by the Ethiopian labor law.

2. Elimination of All Forms of Forced or Compulsory Labor

A core achievement of the labor rights movement is the strict prohibition of forced or compulsory labor. This right is fundamental to protecting individual freedom and dignity, ensuring that all work is performed voluntarily and under fair conditions. The struggle against forced labor continues, emphasizing the need for constant vigilance and enforcement of these protections.

3. Effective Abolition of Child Labor

Child labor has been a focus of international concern, leading to significant reforms to protect children from exploitation. The abolition of child labor ensures that children are not deprived of their education and are protected from work that can be harmful to their physical and mental development. Advocacy efforts continue to focus on enforcing laws against child labor and promoting education and welfare measures to support this vulnerable group.

4. Elimination of Discrimination in Employment and Occupation

Discrimination in the workplace has been a pervasive issue, and labor movements have worked hard to eliminate discrimination based on gender, race, ethnicity, religion, disability and other statuses. Ensuring equality in hiring, remuneration, training, promotion, and job security is essential for fostering inclusive work environments where everyone has the opportunity to succeed.

5. A Safe and Healthy Working Environment

The right to a safe and healthy working environment is crucial for protecting workers from occupational hazards and ensuring their well-being. This includes the implementation of safety standards, provision of appropriate equipment, and regular health assessments to prevent accidents and illnesses. Labor movements continue to push for stricter enforcement of occupational health and safety regulations to safeguard these rights.

The post Key Labor Rights Recognized under Ethiopian Law first appeared on Ethio Legal Shield (ELS).

The post Commenatry of Laws of contracts first appeared on Ethio Legal Shield (ELS).