Ethiopian Legal Updates & Analysis

1. What Is Transfer Pricing and Why Does It Matter? When companies do business with related entities (like a parent company and its subsidiary), they set prices for goods or services exchanged between them. This is called transfer pricing. Ethiopia&r…

Introduction Ethiopia's recent Foreign Exchange Directive No. FXD/01/2024 aims to modernize the country's foreign exchange market, making it more competitive, transparent, and attractive to foreign investors. The directive outlines the requireme…

Navigating the investment landscape in Ethiopia requires a clear understanding of the step-by-step process for obtaining the necessary licenses and registrations. This guide provides a precise overview of the procedures involved, from initial company…

Ethiopia has historically limited foreign participation in its banking sector to protect local institutions and manage macroeconomic risks. However, with the 2019 launch of the Homegrown Economic Reform Program and a 2022 policy announcement by Prime…

The Ethiopian Ministry of Finance recently issued a new directive clarifying the application of Capital Gains Tax under Article 58 of the Federal Income Tax Proclamation No. 979/2016. This update provides crucial guidance for both local and foreign i…