The Land Is Public Property In Ethiopia Case Analysis

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The land is public property in Ethiopia [Gebreselassie 2006]; both rural and urban lands are made available to the investors at a competitive price on a Lease-Hold basis. The Lease or Rental value of land and fixed assets may transfer to the third party, but not the land. Incidentally, about the capital requirement, to assist investors to decide to invest on their own or jointly with the domestic investors the minimum capital required for a single project has been apprehended. Under the Investment Proclamation No.769/2012 of Financial Statements Preparation, any foreign investor to be allowed to invest in the country in conformance to this proclamation, shall be required to allocate the minimum capital of 200,000 US$ for a single project…show more content…
Besides the consistent contribution of the socioeconomic growth and development, these two Asian countries created various opportunities for the nation and catalyzed the transformation of technology and industrialization in Ethiopia. Chinese foreign investment in Ethiopia is dominating big investment projects in the country, such as manufacturing, production of beverages and foods, shoes, leather and textile productions, leather tanning, telecommunication sectors (ZTE and Huawei as an example), metal products, chemicals, construction of hotels (including resorts, motels and lodges) and restaurants, real estate, machinery and equipment rental and consultancy service. In addition to direct investment in major activities of the investment sectors, Chinese firms are also active participants in some investment areas which exclusively reserved for the government. Comparatively, Indian firms are also actively participating in certain investment projects which are floriculture, agriculture, plastics, cotton and textiles, paper products, health care, infrastructure projects (urban and rural road constructions), telecommunication project, project consultancy and others. Furthermore, the Indian investment projects included large
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