The Legal Framework Governing Investment Areas and Incentives in Ethiopia: A Critical Appraisal

Abstract

This research sought to explore the legal framework governing investment areas and incentives under the investment law of Ethiopia. In particular, the main emphasis of the research is to investigate whether the legal framework governing investment areas and incentives could be used for the promotion of investment and overall economic growth. The research employed doctrinal legal research approach and the investment law of the country were discussed in detail. The study found that the government publicized desire to facilitate the expansion of investment and stimulate the growth of the economy by opening up the investment areas for the private sector and providing incentives for potential investors, particularly to attract foreign investment. The researchers suggested that, if open admission is not allowed, residual reservation should be allowed and the government should not be included under the definition of domestic investors. So, the discrepancy against investment areas reserved for domestic investors should be avoided.