Stay ahead of Ethiopia's policy changes
Government directives and proclamations, summarized in plain language. Built for business owners, founders, and finance professionals.
Currently tracking:
A Directive Issued for Implementing a Dressing Code for Professionals of Institutions Rendering Hotel and Related Services in the Addis Ababa City Government
This directive, number 181/2025 G.C., issued by the Addis Ababa City Government Culture, Arts and Tourism Bureau, implements a dressing code for professionals in institutions rendering hotel and related services within Addis Ababa. It aims to protect professionals from potential distress, sexual harassment, and attacks while preserving national culture and values. The directive outlines responsibilities for support, monitoring, and supervision at various administrative levels (bureau, sub-city, and woreda offices), specifies categories of institutions subject to these activities, details administrative penalty procedures, establishes a complaint handling committee, and provides for recognition of institutions that adhere to the code.
Excise Tax Control System Directive
This directive establishes the Excise Tax Control System, detailing the types of excise stamps (physical and digital), how they should be affixed to various excisable goods, and the application and affixing timelines. It also outlines requirements for manufacturers, including licensing, technological equipment, counting and measuring devices, bookkeeping, and reporting. Wholesalers and retailers are obligated to verify the presence of excise stamps and read QR codes on products.
A Directive To Provide For The Management Of Excise Markings
This directive establishes a system for the management of excise markings on various excisable goods to enhance tax collection, prevent illicit trade, and protect public health and the environment. It outlines requirements for affixing markings, fees, application procedures, exemptions, and the implementation of a management system.
Directive for the Evaluation and Granting of Licenses by Evaluating the Competency of Trademark Agents
This directive establishes procedures for evaluating the competency and licensing of trademark agents in Ethiopia, repealing the previous directive No. 2/2018. It outlines application processes, registration requirements, examination procedures, and the disciplinary measures for trademark agents.
Ethiopian Investment Board Directive on Fee Rates Payable for Services Provided by the Ethiopian Investment Commission
This directive establishes the fee rates for services provided by the Ethiopian Investment Commission, particularly within Special Economic Zones and the Dire Dawa Free Trade Zone. It details specific charges for various permits, registrations, amendments, renewals, and other related services, with fees denominated in USD.
A Market Price Data Collection and Use Directive
This directive establishes procedures for collecting and using market price data to ensure accurate tax assessments based on current market values of goods, property, services, or benefits.
Directive on Recognition and Supervision of Self-Regulatory Organizations (Directive No.1031/2024)
This directive outlines the procedures and requirements for the recognition and supervision of Self-Regulatory Organizations (SROs) in the Ethiopian Capital Market. It details the application process, recognition requirements, general obligations, powers, and responsibilities of SROs, as well as administrative measures and penalties for non-compliance. The directive aims to ensure SROs contribute to market development, investor protection, and fair competition.
Public Offering and Trading of Securities Directive No. 1030/2024
This directive establishes the regulatory framework for the public offering and trading of securities in Ethiopia. It outlines the general provisions, registration requirements for various types of securities (including shares, debt securities, and preferred rights of subscription), the process for offering securities, content requirements for prospectuses, ongoing information disclosure obligations for issuers, exemptions from registration, rules for trading in securities, and enforcement measures and penalties for non-compliance. The directive aims to ensure an orderly, fair, efficient, and transparent capital market and protect investor interests.
A Directive to Exempt Goods from Social Welfare Levy Imposed on Import of Goods (Directive No. 1023/2024)
This directive, issued by the Ministry of Finance, specifies the goods that are exempt from the Social Welfare Levy imposed on imported goods. It outlines the conditions and evidence required for these exemptions.
A Directive to Provide the Amount of Electricity and Water Consumption for Domestic Use Exempt from Value Added Tax (Directive No. 1021/2024)
This directive specifies the monthly electricity and water consumption amounts for domestic use that are exempt from Value Added Tax (VAT). It exempts up to 200 kWh of electricity and up to 15 cubic meters of water per month. However, electricity suppliers involved in generation and transmission must still collect and remit VAT on wholesale electricity supplies.
Asset Classification and Provisioning Directive No. 1013/2024
This directive establishes new guidelines for the classification and provisioning of banking assets in Ethiopia. It aims to ensure that banks accurately reflect the value of their loans and advances by setting standards for classifying non-performing exposures, determining provisioning requirements, and outlining procedures for loan review and write-offs. The directive aligns with international accounting and regulatory standards, including IFRS, to enhance financial stability and transparency.
Large Exposures to Counterparty or Group of Connected Counterparties (Directive No. 1015/2024)
This directive establishes prudential limits for large exposures banks can have to a single counterparty or a group of connected counterparties to ensure financial soundness and manage risk concentrations. It defines terms, sets exposure limits, outlines exclusions, specifies calculation methods for exposure values, details criteria for identifying connected counterparties, requires reporting, mandates internal policies and procedures, and provides a transition period for compliance. It also repeals a previous directive on credit exposures.
Exposure To Related Party Transaction (Directive No. 1017/2024)
This directive sets limits and requirements for banks in Ethiopia regarding exposure to related party transactions to prevent conflicts of interest and ensure financial soundness.
A Directive Issued to Make Adjustments to the Specific Rates of Excise Tax (Directive No. 1007/2024)
This directive amends the specific rates of excise tax on alcoholic beverages, tobacco and tobacco products, and plastic bags, by adjusting them based on inflation data from 2020 to 2023.
A Directive to Provide Goods Exempt From Value Added Tax (Directive No.1006/2016)
This directive aims to specify goods that are exempt from Value Added Tax (VAT). It supersedes previous directives that provided blanket exemptions, which were found to be ineffective and reduced government revenue. The new directive clarifies which goods, both locally produced and imported, along with certain services, will continue to be exempt from VAT, while previously exempted items will now be subject to VAT. It also lists specific items such as cereals, pulses, agricultural inputs, certain food items, capital goods under capital lease, anti-malarial nets, condoms, and water treatment chemicals as exempt.