The Perks of Investing in Ethiopia’s 13 Industrial Parks

Ethiopia’s Industrial Parks Development Corporation (IPDC), in its endeavor to invite investors (both domestic and foreign) to invest in any of the 13 state-owned industrial parks, has laid out a couple of the fiscal and non-financial incentives that await all who venture to do so.

These perks include tax exemptions, an export credit guarantee scheme, franco valuta imports, and much more.


  • An investor who enters into a contract to work in an industrial park is eligible for an average of ten years of income tax exemption, whereas intellectual property developers are eligible for ten to fifteen years.
  • If an investor suffers a loss during the income tax exemption period, he or she may carry the loss forward for half of the period after it expires.
  • Investors have the right to be exempt from excise taxes on their exports, as well as the right to import duty-free goods for use as inputs in the manufacture of exported goods.

Exports and Imports

  • There is no export price control imposed on investors.
  • Exporters can benefit from the export credit guarantee scheme, which is currently in place to ensure that an exporter receives payment for goods shipped overseas in the event that the customer defaults, lowering the risk of the exporter’s business and allowing it to maintain its price competitiveness.
  • Raw material imports in franco valuta are permitted for export processing enterprises.
  • Ethiopia is a member of the World Bank’s multilateral investment guarantee organization and has signed a number of international investment protection and guarantee agreements. Investment resources may not be taken or inherited unless they are for the benefit of the public and in accordance with the law.

Foreign Investment:

  • A foreign investor may freely repatriate profits and dividends in convertible foreign currency, principal and interest payments on external loans, proceeds from the sale or liquidation of a venture, and compensation paid.
  • Foreign investors have the right to own a dwelling house and other immovable property required for the investment.

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