Regulation

Key Points: Regulation to Establish the Gada Special Economic Zone Development Corporation, No. 228/2022

(From Regulation-no.228-2022.pdf)

• Establishes the Gada Special Economic Zone Development Corporation under Oromia Regional Government.
• Purpose: To develop, administer, and promote the Gada Special Economic Zone efficiently and competitively.
• Defines the Corporation’s structure: Board of Directors, General Manager, and Deputy Managers.
• Focus areas:
  • Develop infrastructure (roads, electricity, water, telecom) within the Zone.
  • Support local farmers and communities by offering project participation.
  • Facilitate investments and create a favorable environment for domestic and foreign investors.
  • Manage land allocations, build industrial, commercial, and residential facilities.
  • Set and implement standards for developers, enterprises, and investors.
• Encourages the use of local raw materials and supports technology transfer and industrialization.
• Establishes a One-Stop Service Center to assist investors and enterprises operating within the Zone.
• Aims to create employment opportunities and enhance regional economic benefits.

Learn more about the Gada Special Economic Zone and its legal framework: download to Regulation No. 228/2022.

Powerful Incentives Under Regulation No. 517/2022

The Investment Incentive Regulation No. 517/2022 provides robust legal backing for a wide array of tax and customs benefits to both foreign and domestic investors. Aligned with Ethiopia’s long-term growth vision, this regulation ensures transparency, predictability, and competitiveness in the investment environment.

Key Features for Investors:

• Full Customs Duty Exemption
  Investors receive 100% exemption on import duties for capital goods, construction materials, and spare parts used for eligible investment projects.
• Income Tax Holiday
  Qualifying investments benefit from income tax exemptions ranging from 3 to 15 years, depending on the sector and location.
• Additional Tax Privileges
  Investors may receive extended tax holidays for reinvested profits or new investment expansions.
• Duty-Free Privileges for Exporters
  Manufacturers who export at least 60% of their output can import raw materials duty-free for use in export production.
• Customs Support for Industrial Parks and SEZs
  Industrial park developers and enterprises operating in Special Economic Zones (SEZs) are eligible for enhanced exemptions and facilitation services.