~1-t.IA 'I ;JtT ;JtLlll FEDERAL NEGARIT GAZETTE

OF THE FEDF:RAL DEMOCRATIC REPUBLIC OF l<.:THIOPIA

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Proclamation No . 886/20 I 5

Industrial Park Proclamation . .. .. . .. . ...... ... . . . .. . page 8205

PROCLAMATION NO. 886/2 015

A PROCLAMATION ON INDUSTRIAL PARKS

WHEREAS, it is necessary to acce lerate the

economic transformation and dcvelopm~.:nt or the country

through the establishment of Industri al Parks in strategic

locations to promote and attract productive domestic and

foreign direct investment thereby upgrading industries and

generate employment opportunity;

RECOGNIZING, the need to enhance export

promotion, protection of environment and human

wellbeing, economicJI land use and estab li shing and

expanding planned urban centers~

RECOGNIZING, the paramount imponance of

legislation in respt.:ct or establishment. development.

operati on, management. and regulation of 1 nd us tria 1 Parks;

NOW, THEREFORE, in accordance with Article 55

(I) ol' the Constitution of the Federal Denwcratic Republic

of Ethiopia , it is hcrL:by proc laimed as follow s:

.,_'!( ... ,. : 111. 111 7' "1 .•1•. ·iii'((! Negorit G. P.O. Box 80001

11\ ~1UU ~1./.·A 'l.'~·'t .'11.111 <tl'l'C: @I '"t.ftlJ' A +1 17ll ~ .9" Federal Negarit Gazette No. 39 .91h April, 20\5 ..... ...... .... .. . page 8206

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mtl\1\

1. Short Tjtle

PART ONE

GENERAL

~u h'P~ "rh.J~ll-l·~ ;rctl1· h'P"!: <h'l'C This Proclamation may be cited as the "Industrial Parks

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~1\0'1 \'1'(\f on D'l1~a>-~ oo&,·)· ~OJ- i

Proclamation No.886/2015".

2. Defipjtjop

ln this Proclamation, unless the context otherwise

requires:

1/ "Industrial Park" means an area with distinct

boundary designated by the appropriate organ to

develop comprehensive, integrated, multiple or

selected functions of industries, based on a planned

fulfillment of infrastructure and various services

such as road, electric power and water,one stop

shop and have special incentive schemes, with a

broad view to achieving planned and systematic,

development of industries, mitigation of impacts of

pollution on environment and human being and

development of urban centers, and includes special

economic zones, technology parks, export

processing zones, agro-processing zone, free trade

zones and the like designated by the Investment

Board;

2/ "asset'' means any movable or immovable

property as well as intangible property rights and

interests relating to Industrial Park owned by

public, public -private or private entities;

3/ "land" means any land designated for Industrial

Park;

:l'i.lfi l..f.&·A ~?&-l- ?11."1 •'l'C ~ii "t.ftL.f ll i'1 17'i.l 1.r Federal Negarit Gazette No. 39 ,9on April, 2015 ............ .. .... page 8207

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t)fll¥11ai· r ~. 1~il·l·6 ;J'Ch 00{.,·)· ·~C(l

41 "developed land" means land furnished with

infrastructures such as road, water, power,

telephone, dray and liquid sewerage discharging

facilities, air pollution mitigation facilities and

other important infrastructures;

51 "lease" means a system of land tenure by which

the right of use of industrial park land is acquired

under a contract of a definite period;

61 "commencement of development" means:

a) in the case of industrial park developer, the

construction of the foundation works of

infrastructures such as road, water, power,

telephone, dray and liquid sewerage treatment

facilities and other important infrastructures as

well as foundation works of buildings;

b) in the case of industrial park enterprise, the

construction of at least the foundation or

erection of re-enforcement bars to cast columns

of the permitted construction or building on

the industrial park land ;

7 I "sub-lease" means a transfer of parcel of

developed industrial park land to industrial park

enterprise by the industrial park developer or

industrial park operator which has been possessed

through allocation or lease;

L~~-t\ 'I;M·l- ;.m.n1 .,.-rc c!Jil ""t.f'll .• l' li of>') li'i.i 'l.r Federal Negarit Gazette No. 39 ,9u' April, 2015 ...... .... .. ... ... page 8208

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nn:H'ill·l·oo1-l· n<J>:~· 'he; nn.1i'ill·l·oo1·l·

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c'l.lf1 nCTt.7i~·1 ,e(J;).SJ"t-AI

8/ "investment" means expenditure of capital in cash

or in kind or in both ·by an industrial park

developer, industrial park operator or industrial

park enterprise, as the case may be, to establish a

new or to expand or upgrade industrial park,

industrial park operation and industrial park

enterprises within the industry park in accordance

with the permit issued or agreements concluded;

•

91 "corporation" means the Industrial Park

Development Corporation established under

Council of Ministers Regulation 326/2014;

1 0/"industrial park developer" means any profit

making public, public-private or private developer

including the Corporation engaged in designing,

constructing or developing industrial parks in

accordance with Investment Proclamation and

Investment Regulations. industrial park developer

permit and industrial park developer agreement;

11/"industrial park operator" means any profit

making enterprise that operates, maintains or

promotes industrial park in accordance with the

Investment Proclamation and Investment

Regulation, the industrial park operator pennit

and industrial park operator agreement and,

includes the Corporation;

1..1./..A ~:>~+ ;>ILtrr •'I'C iiJD -t.f'H.J' 6 +'J 17tl ~.r Federal Negarit Gazette No. 39 .9th April, 2015 .................. page 8209

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lf(t/l'lt~ ('h 1~·H'i7il'lm-) 'lm- I

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oot)ht:\ fh. 1"'-il-l·t ;rctn l{tjt, ')

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on.·>~hi·~ ;ret. w-il'f fl.fto'f

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12/"industrial park enterprise" means ·a public.

private or public-private enterprise owned by

Ethiopians, foreigners or jointly and possess

developed land under the industrial park through

sub-lease or by renting or building a factory

within the industrial park to engage in

manufacturing activity or in service provision for

profit making in accordance with Investment

Proclamation and Investment Regulation,

industrial park enterprise permit and industrial

park enterprise agreement;

13/"Investment Proclamation~' and "Investment

Regulation" means the Investment Proclamation

No.769/2012 (as amended) and Investment

Incentives and Investment Areas Reserved for

Domestic Investors Council of Ministers

Regulations No. 270/2012 (as amended);

14/"agreement" means, as the case may be, an

agreement concluded between:

a) the Commission and industrial park

developer to design, construct, develop or

to provide other services within the

industry park;

b) the industrial park developer and

industrial park operator to operate,

maintain, promote or provide other

specialized support services within the

industrial park;

,,. ~7tlf! /..f.. I,.~ 'r.7~+ .711."1 .,..,.C c!lll -t.fll.f' 6 +'t 171.1 'U"' Federal Negarit Gazette 'No. 39 ,9111 April, 20 IS .. .... .. .... ...... page 8210

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c) the industrial park developer or industrial park

operator and industrial park enterprise;

15/ "industrial park resident" means a natural

person granted a certificate of industrial park

residence by the Commission in order to reside

within the residential area of the industrial park;

16/ "Government" means the Government of the

Federal Democratic Republic of Ethiopia or

Regional government;

17 I "region" means any state referred to under

Article 47 (1) of the Constitution of the Federal

Democratic Republic of Ethiopia and includes

Addis Ababa and Dire Dawa City

administrations;

18/ "Board" and "Commission" means the Board

or the Commission established under the

Ethiopian Investment Board or the Ethiopian

Investment Commission Establishment Council

of Ministers Regulation No. 313/2014,

respectively;

19/ "competent authority" means any federal,

regional or city administration government

organ having regulatory powers and duties over

particular subject matters or geographic areas in

respect of Industrial Parks;

,,..

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Federal Negarit Gazette No. 39 ,9"' April, 20 IS .................. page 8211

20/ "investment permit'' means a permit issued by

the Commission for Industrial Park Developer,

Industrial Park Operator or Industrial Park

Enterprise to carry out industrial park

development related activities as an investor;

21/ "customs territory" means the territory of

Ethiopia in which the conventional customs

laws relevant to the Industry Park of the

country are applicable;

22/ "industrial park customs controlled area" means

an area that is part of the industrial park where

customs has the power to control but deemed to

fall outside the customs territory;

23/ "applicable law" means any proclamation,

regulations or directives applicable within

Industrial Park supplementing or being

interpreted in light of this Proclamation and the

Industrial Park Regulation;

24/ "Regulation'' means the Regulations issued by

the Council of Ministers to implement this

Proclamation;

25/ "tripartite modality" means the arrangement by

which the Ministry of Labor and Social Affairs,

Employers of Industrial Park Developer,

Industrial Park Operator or Industrial Park

Enterprise and employees' representatives

address labor issues through constructive

consultations;

/.,.1../.·A '1;.»6-l- ;.»rt.nl .,..,.c •!Jji ...,.f'fl.P li +'l tii.l •u• Federal Negarit Gazette No. 39 .9111 April, 201S ... . .... .. ... . . ... page 8212

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26/ " basic utilities" means industrial park related

utility such as water, electric power, telephone,

gas and other similar utilities specified in the

regulation;

27/ "person" means any natural or juridical person;

t;~l '"i'J~m-r nan~· P :r f·1"1"6a>- 28/ any expression in the masculine gender

f(l.i·'}SJO P:J' ,f.(J;l.SJO~·A::

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includes the feminine .

3. Sc;ope of applintjop

The provisions of this Proclamation shall, uniformly in

the territory of Ethiopia, apply to the federal industrial

park activities or activities undertaken in connection

with them as well as to any person conducting any

activity in the federal industrial park.

4. Objectjyes

This Proclamation shall have the following objectives:

1/ regulating the designation, development and

operation of Industrial Park;

2/ contributing towards the development of the

country' s technological and industrial infrastructure;

3/ encouraging private sector participation m

manufacturing industries and related investments;

4/ enhancing the competitiveness of the country's

economic development; and

51 creating ample job opportunities, and achieve

sustainable economic development.

~~t',.A );:16-l- ;Jt&."' '*"'C oJJ/J -tJ'II.J' li +') 17tl 't.,. Federal Negarit Gazette No. 39,9111 April, 2015 ........... .. ..... page 8213

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PARI TWO

RIGHTS AND OBI~IGATIONS OF INDUSTRIAL PARK DEVELOPER AND INDUSTRIAL PARK

OPERATOR

S.Rjgbts of ap lpdustrjal Park Deyeloper

D111~£D-9"' fh. 1~/li·t .TCh ~Aatt. Any Industrial Park Developer shall have the right to:

lit rn.·>~il:h~ ;rcto "ll1.e'1 re¥?1:l"':

fDIIAD~~i· i fou?")fli•J foum.,.rCJb?A"'tri·

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ft "'1 il,_ ~.P.C 'i ft liWI {),_ 'P CD 'I> ')()-il-fl. lf

il~~~i· fDII,_·l'?l

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ilrr~i· oot.t.i· Dllil,_Ji,_C: oo1hllh11 . I

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t1.1"f oocl>mc i

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he; 1\.tt-'f b"'/'111~-l· '11\fCD- m1'f

.,.l\t1'£D- ODll..,.oo'r ~(\~C oulPt.i·

ffi~C t f1'Jtt1l 'Pil-l·c;c; t\ft-l· f'1'Jtt1l

r1""''f1 tt~P~'11-l· n4.f..CJ'Jil 1nr 1\.e foul\1'~ i

11 design, construct, develop, exploit industrial park and

provide services;

2/ sub-lease developed industrial park land;

3/ rent or sell to industrial park enterprises his

immovable assets, buildings and rooms built within

the industrial parks in accordance with the proportion

specified in the regulation for manufacturing, office,

residential and other services· ,

4/ enter into sub-lease agreement for the development,

operation and promotion of industrial park land;

51 operate, maintain and promote industrial park in

accordance with industrial park development

agreement;

6/ employ Ethiopian citizens and foreigners in

accordance with the regulation;

7 I participate in financial markets in order to obtain

loan, fund guarantees and other financial resources in

the manner provided for in the Regulations issued

pursuant to this Proclamation and other applicable

laws;

1:7tlfl!l .Y-t.·A '1?6-l- ;JH."l .,..,.C oj}ji -,,ru.,f' li +'t ffi.l•u• Federal Negarit Oautte No. 39 ,9th April, 2015 .... ... ......... .. page 8214

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ool\t.-l· rh"'·'i:ft- 1\17'1.1\l"'m- n. "}~f'li·t

;ret~ h1Jtu-r l'fl'Jij#(J)or f"'-.f81il

'?9o:J'fll'f i ft)T:J'A'I f?1H1l ofl~C f'l.H.

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f;/ nili"IPIIPI, f'l1Hil 9"165lf(J)o futoot\h-l·

ooL)C fiY'I:t»Lil!

8/ provide service to industrial park enterprises engaged

within the industrial parks, in accordance. with the

commission agreements reached with the utility

suppliers, collect charges and fees; the details shall

be specified in the regulation:

91 enjoy tax and customs duty exemptions and other

incentives granted under applicable laws.

6. Obligatjops of ap lpdustrjal Park Deyeloper

Any industrial park developer shall have the

obligation to:

1/ construct immovable property with the industrial

park, on-site infrastructure, office space and other

facilities for the Commission's one-stop shop use

and for the Revenues and Customs Authority as

may be required by the permit and the Industrial

Park Developer or Industrial Park Operator

Agreement;

2/ facilitate conditions necessary for the

participation of domestic training institutions in

the design works of industrial park development;

3/ commence development within the period

specified in the industrial park development

agreement;

4/ adhere to the performance requirements for the

phased development of the Industrial Park as well

as any fmancial obligations and time schedule for

capital and debt fmancing, specified in the permit;

51 produce document envisaging their financial

source trustworthiness;

,.. aft.IUC 41.4-A -.:¥+ .7&"1 • .,.c ...,i -u'll..t"i .,.l lltl 't.r Fedenl Negarit Gazene No. 39 ,9"' April, 201S .................. page 8215

IIIM"Y

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6/ shall not transfer the un-developed industrial

park land in any manner to third party;

7/ comply with any other obligations specified in

this Proclamation, the Regulation, environmental .

protection legislation and other applicable laws.

and the pennit;

8/ replace expatriate personnel or professional by

Ethiopian nationals by transferring required

knowledge and skills through specialized ·.

trainings .

I. l'b.'M:itt4 XOJ blt+W eOf'f 7. Rjphts ofap lpdustrial Park Operator

.,.,....,. fh. ")4/a-l·t ;rch hll.,.JIJit Any Industrial Park Operator in the Industrial Park

i/ fh. 14h-l·& ;TCh1 ft\"'1 ~~~~~-l·'l

,.,,.,.,. ... .,. ..... 1-nt.,.'f1 h.14ll-l·t ;rch

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r1 n.t'tn- ouUJt.-l· >..-l·r-A·f(J)o/'J'l rm-1-"

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ft.fte'f (h')'f f.,.+oom-~·") oo-flof.'f

room.,.r::

shall have the right to:

1/ transfer on sub-lease developed industrial park land

and let or sub-let immovable assets, provide utilities

and other services, on behalf of the industrial park

developer, provide basic service and other service

with charge;

2/ operate, manage, maintain and promote the Industrial

Park in accordance with the industrial park

operator)' s agreement;

3/ employ both Ethiopian and foreign nationals in

accordance with the Regulation;

4/ use such other rights provided for in this

Proclamation, regulation and other applicable laws.

1~- ~i\!i.V: ~ ~Y./.-A ~;M·l- ;Ju.nl •ll'l'C <!Iii "t,,fll .• f li ,,.., ln.i 'l.ll" Federal Negarit Gazette No. 39 ,9'h April, 2015 ................. page 8216

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8.0blieatiops of ap lpdustrjal Park Operator

Any Industrial Park Operator in the Industrial Park shall

have the obligation to:

1/ adhere to this Proclamation, the Regulations,and the

permit terms;

2/ in accordance with industrial park permit, operate,

maintain and promote the industrial park and keep

its assets and utilities in operational condition ;

3/ maintain readily available office space and

facilities for one-stop shop and customs service;

4/ refrain from transferring the un-developed

industrial park land in any manner to third party,

with the exception of the Corporation's transfer of

industrial land to other industrial park developer;

51 link domestic manufacturing enterprises with

industrial park enterprises in order to develop their

technological capacities and to benefit them from

international market;

6/ comply with the social and environmental as well

as any other obligations as provided for in this

Proclamation, the Regulation, applicable laws, its

permit or agreement;

7 I replace expatriate persoru1el or professional by

Ethiopian nationals by transferring required

knowledge and skills through specialized trainings.

4 ,.__._A 'r.:>~-l- .:>rt.tiJ ..,.,.C 'Ail .,_.f'll • .f' ~ .,.., l?tl '4.r Federal Negarit Gazette No. 39 ,9th April ; 20 IS ... . ............ . . page 8217

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OJohiJ' rooi'iiJ' oo1l·}· ~'1°/.'Pt!\::

PART THREE

INDUSTRIAL PARK ENTERPRISE AND INvESTMENT

9. Riehts of lpdustrjal Park Epterprjse Any Industrial Park Enterprise shall have the right to :

I I may obtain Industrial Park Permit in order to carry out

investment activities within Industrial Park. The

manner of submission of application for Permit, the

requirements thereof and the making of decision

thereon shall be specified in the Regulation;

2/ obtain tax, customs duty and other incentives as

provided in applicable laws, upon obtaining the permit

indicated in sub-article 1 of this Article

3/ freely exercise investment activities in accordance the

terms and conditions of the permit, excluding those

endangering public order, moral, safety and security

as well as human and animal health and plant life; the

details shall be defined in the Regulations;

4/ acquire land on a sub-lease basis and possess, sell own

buildings, rent .other immovable assets, export out of

the Country, import into any industrial parks, sell in

the industrial park customs controlled area goods and

services pursuant to customs treatment specified in

this Proclamation and other applicable laws.

,,.. ~7tlf1~ #...'-I:•A. 'r.:J6+ ;Jtt."l .,..,.C <!Jil .,_J'II..f' li + 't 17tl ~. II" Federal Negarit Gazette No. 39 ,9111 April, 201 S ..... . ..... . ...... page 8218

!. fb,J+Ot4 ;reb ,g-egt 7&:t:P'T 10. OhUeatjogs of the Ipdustrjal Park Epterprjse

O'f1~CD-9"' fh.1.&\.l'l..,·t ;ret. Y:e1:·l· Any Industrial Park Enterprise shall have the obligation

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(Do{) "J' f (Do "t" t1. ') T U I&- rf' 7f' ';f (J) ~. 9"

flftoo-ffP"f

CT<If:l.'?==

IIi. Ob.l+Ot& :reb bA-JS Ob.l+Ot& ;reb bO±M& 0"7.LS~ IJ'(lf=J ,,. I1C.If: 00"7.0JMaJo bOtJI&&='f: Z,ct:;tl

61 fh.1~il~·t :ret. hAtnt ro~r fh.1~l'l~·t

flooi'"/\~ fh')~{l·}·& ,TCh oot,..'J·1

ft(ll'l·,..~ CD?C:"f fil·,..l\ftl... ~-)~lf~ (lC~

fllT7 . .frofllc& ooootf ODI.J' l. :,. hil·,..~~&-'1!

"C9"){ .eft~.:\::

to:

11 commence development within the period

specified in the industrial park enterprise permit

and agreement;

2/ carry out the investment activities specified in the

permit;

3/ allow entrepreneurship trainings of the technical

and vocational education and trainings,

collaboration trainings and that of higher

education;

4/ comply with its obligations set forth in this

Proclamation and the Regulation in general and the

environmental, social and employeer obligations in

particular contained therein and in other applicable

laws;

51 replace expatriate personnel or professional by

Ethiopian nationals by transferring required

knowledge and skills through specialized trainings.

ll.Admjpjstratjye Measures of the Board aeajpst Speculatjog

II In the event that an Industrial Park Developer or

an Industrial Park Operator transfers on lease or

sub-lease basis the land it acquired in violation of

the terms of the respective Industrial Park permits

and the agreements or Proclamation and the

Regulation without the prior approval of the

Board administrative measure, shall be taken in

accordance with directives issued by the Board.

'11>' ?>i'i.!L(Hi 4..Y.?·A ~.:J?T .:~tt.nl "'"'c i.!)ii '"'l..f'll.f' I) +'t litl 'l .r Federal Negarit Gazette. No. 39 ,9°' April, 2015 ........ . ......... page 8219

ff.l fi1.U n1<f>t) 10·{1 n1<f>t) (ii) ~·1:n.

rn:>~fl·h~ ;rctJ nt\U?.m· m~rr

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oo&.·l·1 O')O·fl (\. .,., ~n:>~ra·l·~ ;ret~

t.:c:~·l· ·~Ct' f01J.flt·t-"l\t..m··> n~uo(lh.'f·r::

1~1 ~H.u ~·1:n. nt.'1fJ9" nc~ rn:>~fl·l·~

;rch1 ruot.·l· ~.11 O,uo;t'if f10f 'P ;n

Of1.tlm· ,e.uoW'Jfll\::

11. f17&- 9"'111l1Ci oullcf.Cf:r

lit rn.1~lt..,·t :rcn ftl\"'1.: rn:>~lt·h~

:rcn ntH·~~t m~cr rn:>~ra·l·~ .ret~

~·c:e: .. l· tlooooflt.·l· m~r fl"'lfluolf'lfl

f""'l./..l\ "'} "'11~:m-9"' (\(D· fcPJ.h·f'(\··}·1

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u) n~·c~:··~ ~"/.· aJ~lfO nmh.A n·l·hnA

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fl) n "?'lfl 'lflm· ·l·hhfl~., ;r:Fm· r·t-t...?1m

fuouo{tl.~ IJU·~'l fuo·f'.';~tf ~')fll

{h) ~·C'}6bllh hlf~ hoofllO·}· U'IC 'he;:,.

~·cJi:·l· uouolf?O·'}'l m..?if ttm·~.'f·

tPi"'/7·~1 f"'l.fl...?"'lm· (l~fl.:f· ::

fl. I 1111. u n ')<f>IJ 1o·ra n ')<f>t) (?i) ootJ-J t. ·l·

9"111'l Yt-t'l..~ rn:>~-lt·l·t .rcn nAUif. i

f h ')~fl-l·t ;TCtJ J.'..·Cl!-·l· lh?Cf (l(J}o'rl·

f'1'1 l\::

El nH.u ncp~· r··f·mtfJfl··l· rn.1~lt·l·t :rch r·><>J ~- 9"'H'I'l'l ·t- f f~r'rl· f"rm· fnflt·C tPii.;J16lil.?J"flJ &..:PA'f·: tTCr)·

f"'l~·t.<>J "'/ ~ .. ;r fD:l~ i ?"Coot-fD:f:

hllt-'1 '}111.·)· tryrrlt-·l·') f·t-uoflh·~

r n·t-'1'lllC'l r nw t-c 11c11c U·'l.;t- fD:r.

n~ 111 ~mtt c; h-::

2/ The provision of sub-article ( 1) of this Article

shall have no implication with respect to sub­

lease agreement reached between industrial park

enterprise and the industrial park developer or

industrial park operator on developed parcel of

land. within the industrial park development site.

3/ For the purpose of implementing this provision,

the Board shall keep track of the annual fair

market lease value of all Industrial Park land.

12.Busjpess Reejstratjop apd Compliance

11 Any prospective Industrial Park Developer, Industrial

Park Operator or Industri<!.l Park Enterprise shall

submit the following documents to the Commission in

relation to its establishment and registration :

a) an application form duly signed by the owner or

agent of the prospective Industrial Park related

investor;

b) notarized memorandum and Articles of

associations;

c) if a branch, documents ascertaining the

registration and legal personality of the parent

company in the country of origin.

2/ The industrial park J~;:v~;:loper, industrial park

operator or industrial park enterprise registered

pursuant to sub-articles (l) of this Article sha11

acquire legal personality.

31 The details pertaining to Industrial Park business

registration and related operating approvals and

licensing, reporting, inspections, bankruptcy and

liquidation envisaged under this Proclamation shall

be specified in the Regulation.

17• Xi'i.ltt71 ~f.t'.·A ~.:Jt.+ .:111."1 •ll'l'C ~~~ii "'7..1'11 .. 1' li <l>'t li'i.~ 'U" Federal Negarit Gazette No. 39 ,91h April, 2015 .... ............. page 8220

h~A h&-+

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rn:>~{lr}·~ .Ten ~Cf:r}• Ohfi:·f·~

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flTII.?O·O·)··) i'l•P rn.1~ll·l·t ;rctJ

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f n.9'"7 ~ 7i')'l ftl. "'/"I-)· ']·~.e cpc; nor /,f'l fLPir·l'~'l lTIIUOir'f ?·~f. "'l. 'z.ll·I;C

non·t-tlnC fl?6- f.(\6-t'\·::

PART FOUR

INDUSTRIAL PARK WORK PERMITS AND

RESIDENCE

13 .lndustrjal Park Expatrjate Eptry. Work Permits apd Resjdepcy

1/ Any industrial park developer, industrial park

operator or industrial park enterprise may hire

expatriate personnel for its top management,

supervisory, training or other technical functions .

2/ The entry, work permit and certificate of residency of

expatriate personnel and their dependents shall be

expedited through a coordinated function of the

Commission as part of one-stop shop or Department

for Immigration and Nationality Affairs and the

Ministry of Labor and Social Affairs ; the modalities of

which shall be specified in the Regulations.

Ill. fb.1+0-l'-? ;J"Ch f"ITt'lt frilhC OJltt 14. Elieibility for a Certificate of lpdustrjal Park

0"771t 11<1! f"'l.ft.C't V=\;J=PJ'f Residency

~~ ffll')~(J)-9" r n.·l·r-~· f m~vo f(J)-6f.b u1c

11..? f·hVPC' (\(})- .f. 10· I\~ fat:tcf>oom·-)·1

ooll.tCf·l- O.ftTIJ."l fb. 1~ll·l·~

~tpt 0.1!1 .el-1\t!\::

;rctJ

f./ fb. '}~(l.'f·~ ;rch rooc;~y /..~~ 'he;

r ~» tr t.. :P ~: ,.. ta _e.,.(})- r '"'· ll m-n ·l· u· '1. ;r nt. 111 ,emf\ c; A: :

11 Any natural person, whether an Ethiopian or foreign

national, may become an industrial park resident

subject to meeting the requirements as specified in

the Regulation.

2/ The classification and issuance of industrial park

residence permit and work permit shall be specified

in the regulation.

tJ..f..t.·A 'r?t·l- ?ll."l -ll'J'C illi! "'t.I'IL.f' ?i 'i'"J IIi.~ <J.II" Federal Negarit Gazette No. 39 ,9'h April, 2015 .... . ... · . . .. ·.·. page 8221

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rn 1,r;;.r.-l·t :rctt ~Pt rOtJ.h·tt'\--l· '? ~:r 50~· ~c:'<.:t-1:\:-

lil Ott.u nlfJ!· 01\." n'J.1.1 tiA·t'.,uom

n ,....,.. .,c f1 OtJ.f h1CJ f m- n11 c; f m·sro tJ :1> JD f

n"?CJ1l~i· Yl\:fm· f7-S"'~h +t.~:

:rt~: '?1lc 'he; t\.tr1· n'?CJ-o ft\fm··)

h~fJD1-1 rooti&.A l

11 n'?CJ1l~·l· CJ'\fm· m1r ouiJ.'t.·l· r1n.

'?11C1 'hCJ 1\.lr'f '?11C''f1 fouh&.t.\ l

rt ot\.tr'f n'?CJ1l flt\fm- m1r r-t.,uom­

., ~;t P'':F1 f'"ihOC l

15. lpgustrjal Park Resjdept Riehts

An industrial park resident shall have the right to:

1/ live and reside in the area designated for the duration

specified in the Certificate of Residency;

2/ import personal effects free from customs duties, and

other charges while staying in industrial park; the

details of which shall be specified in the Regulation;

3/ establish community committees for better

understanding of Industrial Park Developer and

Industrial Park Operator in respect of facilities and

services;

4/ transfer his personal effects to the other industrial park

residents; the details of which shall be specified in the

Regulation;

51 enjoy such other rights to be specified m the

Regulation .

16. lpdystrjal Park Resjdept ObUeatjops

An industrial park resident has the obligation to:

l I unless otherwise provided under this Proclamation,

pay all applicable customs duties, tariffs, taxes and

other appropriate charges for any imported goods;

2/ pijy personal income tax and other taxes in accordance

with applicable laws;

3/ respect obligation provided in other laws .

'11;' ;i;QHt)!i J..f./.·A ~.:>~ ·l- .:111."1 4t'l'C: @! "t.f'll . .l' ii •/'") li'i.i ~ . 9" Federal Negarit Gazette . No. 39 .9"' April , 2015 .. ........ ..... .. page 8222

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o:,. Y.·tYCJ • .f' rj <f>CJ·l· r~ v-~ "''fam'><~'<t:.f'

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P"'Cl:}.Y. ".)'·'} O·,..flf.?" f' ou(ttYCJ·)· oo·fl·~1

hmO<f>ft·l· 0),1\ flOTf.h·f·l\ .. )· ?"h'} .f'.Y. :-,·.

rn:)~{l.'f·t :rcn ~'Pt~·l· rrllnc £vl+·l·'> n.l\cu ,r.:r·l\t\;

v) rn:}~fa-l·t ;:rch ~crtm· mt.u nlf'~:· :

O.('}O·: nn.·>~ra-l·t ;rch rnv't-C

y_·>n:.r.c:; P"''I-P"'C n·r:·r·: on:>.v,.ra·l·~ ;rch

r~'Pt~·l· rrranc ml·l'·l· m.e.r n'?Cl-n

lll\~~m- fbtt-·:.t- rit'l'·":t·· r·t·oofth·l:·l·'}

., ~ .-f' P' ··r· n:} Y.· flo· 1\. ·1 ~ ; m .e yo

17. Speculation by lndustrjal Park Resjdepts Admjnjstratjye Measures of the Commjssjop

In the event an industrial park resident transfers its

industrial park immoveable property to a third party in

violation of the terms of the Certificate of Industrial Park

Residency, this Proclamation or the Regulation, the

Commission may take the following administrative

measures:

1 I revoke the certificate of Industrial Park Residency;

2/ cause return of assets which have been received

from industrial park developer or industrial park

operator while he was resident;

3/ impose on the industrial park resident the payment

of rents on such assets, for a period of up to 30

days.

18. Reyocatiop of Certificate of lpdustrja! Park

Resjdepcy

11 The Commission may, subject to providing 90 days

prior notice ·and due process safeguards, especially

after administrative hearing, revoke certificate of

Industrial Park Residency for the following reasons:

a) if the industrial park resident fails to meet the

requirements of this Proclamation, the

Regulation, operating rules and procedures,

certificate of Industrial Park Residency or any

other applicable law;or

11.' ;t7i.!t.~~~~ l...f.&·A ~,;Jt•l- . ;m,nl <#l'l'C o!Ji! "7..1'11 •• 1' li <t>') 17i.l 'l .ll" Federal Negarit Gazette No. 39 .91h April, 20 I 5 ..... .... ........ . page 8223

fl) rn. 'J~h-l·~ ;rch .,,~cv- rn.·)~h-l·~

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hAart. CD~tr hh. "J~il-l·t ;ret~

h (l T -"-"~ 1t '}.f. V·-, :"CD-

fot ')4'1\4'(\· (J)~IJ"

f CDl\-" T m-1

f"'l ~'}4'1\4'(\-

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CD/.4>-l• fTf\l.HO.)· CD~9" fart.ft:,O (\CD­

f'?A oo1A1fP'~1 h'?ll'O .fft(J)o"J

f'1·9"?h 4'/.'l''l ;t-tlil h~l'r oo7i1'

~'Tf\(A::

9.1 n~ 'JO· n·,.oofth·,.m- ooiP t.·l· tJatt. 7i'l~

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h'i'A bpaOt

Ob.l.\.O:}:t ;reb aJoOT 00"1.(t(J): tfOt'iiiJT t

TOI"f''f5 blh:()t)O.P'f 111. Z,h=A Z.lh:fllJO. r.rt-,1t oo11t

Ot\.frol· h"7111l 111\:fm- f V1~'1: m'l""T m-h'r

hflm-"L'" h1C h. 'Jliil·,.C'l· f·,. .f. '111CD­

"11.rm0., lf~ f'(J)o~ h1C h'H'iil·N!''f

0"71\:fcv- CD~?" hh.·l·f'"A•.f'f!f') .?C o~·)~·l·

Ooolf") Oh. "J~(l.)·t .TCh hA l7'1. ~:,.:

Oh. ")~il-l·t ,TCh hil·,."'"'t '1.)· CD~9"

on. 1~il-l·~ ;rctl t:c~-l· f PJtr tTPilh oof\,.~

~l-1\ft-::

b) if the certificate of industrial park residency is

obtained through misrepresentation or by

provided false information or declaration;

2/ The revocation certificate of industrial park

residency entails cessation of entitlement to any

rights by the Resident; and the ceased immovable

property shall revert to the Industrial Park

Developer or Industrial Park Operator as the case

maybe.

3/ The resident whose industrial park resident

certificate has been revoked or who leaves the park

may sell his personal effects upon payment of

customs duties and taxes.

4/ The Commission may also impose further

administrative measures as specified in the

Regulation.

PARI FIYE

GUARANTEES AND PROTECTION. AND

NATIONAL TREATMENT

19. Natjopal Treatment

Without prejudice to the provisions of other applicable

laws of the country with respect to a foreign investor,

any foreign investor individually or jointly with

Ethiopian may participate as Industrial Park Developer,

Industrial Park Operator or Industrial Park Enterprise.

1~ ~1tlff)Q 41.M\ '1.76-l- -'"'"' 41'l'C 0U .,_,,~.f li of'') 17tl 't.v- Federal Negarit Gazette No. 39,9111 April , 2015.. ................ page 8224

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20. Guarantee apd Protectjop 11 No Industrial Park investments may be expropriated

unless otherwise required for public purpose, and

subject to prompt payment of adequate

compensation .

2/ The compensation shall be paid in any convertible

currency in the international financial markets if the

investor is foreign investor.

3/ Any unlawful expropriation shall entitle the

Industrial Park Developer, Industrial Park Operator

or Industrial Park Enterprise to the restitution of its

assets or investment together with reasonable interest

rate calculated as of the . time the unlawful

expropriation until restitution of such property.

4/ The provisions of appropriate law shall be applicable

with respect to manner of expropriation and what

constitutes unlawful expropriation, compensation and

restitution.

21. Applicable Forei20 Excham~e Rules Any Industrial Park Developer or Industrial Park

Operator or Industrial Park Enterprise subject to the laws

of the country, shall:

1/ be entitled to borrow funds from banks abroad and

domestic financial institutions;

2/ be allowed to list its stocks, bonds and other

securities on foreign security markets;

3/ have the right to make remittances, in accordance

with paragraph (a) to (g) of sub-article (1) of Article

26 of the Investment Proclamation No. 769/2012, in

a convertible foreign currency at the prevailing rate

of exchange on the date of remittance; details of

-·i'l """"' • ' 1!.&·~ ~ ·•6·l- .".JII."' 4o-rC <!Jll "'Y..PII •• P ji .,..J li'l.?; 'l .ll"' Federal Negarit Gazette No. 39 ,9"' April, 20 IS . ................. page 8225 ,,.. ~ ·"-'·flli - "'

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which shall be specified in the regulation

PART SIX

ACCESS TO LAND AND ENYJRONMENTAL

PROTECTION

22. Acqujsjtjop of lpdustrjal Park Lapd Moyeahle and

lmmoyeab!e Asset

11 The industrial park developer may possess industrial

park land through lease system and transfer

developed industrial park land through sub-lease.

2/ The industrial park operator may possess and

administer, upon approval by the Board, the

industrial park land which he has acquired through

agreement from industrial park developer.

3/ The industrial park enterprise may possess land

within the industrial park land which he has obtained

through agreement from industrial park developer or

industrial park operator upon approval and issuance

of investment permit by the Commission.

4/ The restrictions in terms and tenure of land and use

of urban or rural land and bidding system shall not

apply on industrial park land.

51 The details regarding industrial park land site

registration, plot leasing, sub-leasing, site

development, construction, safety and supply of

utilities shall be specified in the Regulation.

6/ Any Industrial Park Developer, Industrial Park

Operator or Industrial Park Enterprise has the right to

mortgage its developed land, other immovable or

movable asset, which commensurate to the

/.../!..&·~ 'I.:M+ ;JH."I <#a-rC <!Iii ""!..f'll..l" i 4''J 17i.l 't.ll" Federal Ncgarit Gazette No. 39 ,9"' April, 2015 ..... .. ..... .. .... page 8226

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development invested on the land, in order to obtain

loan from financial institutions; the details of which

shall be specified in the Regulations.

7 I The industrial park developer or industrial park

operator may not, except to an industrial park

enterprise, transfer a leased and developed industrial

park land to third parties without a written

permission of the Board.

23. Buildjpe Norms

Notwithstanding the provisions of other laws, norms or

standards in respect of development of Industrial Park

land, infrastructure and the construction of Industrial

Park building and structures, shall be specified in the

Regulations in order to ensure proper project design,

planning, construction, management of Industrial Park,

land development, management and related project

supervision and quality control.

24. Epylropmeptal Reeulatiops

1 I The federal and regional environmental legislations

shall apply within industrial parks .

21 The Ministry of Environment and Forest shall

establish an office within industrial parks for the

application, supervision, protection and enforcement

of environmental norms, standards, safeguards,

management and mitigation plans within the

Industrial Parks;

3/ The details regarding environmental obligations of an

Industrial Park shall be specified in the Regulation.

1,.. ~7Uffi 41.t.A ~..7~+ ..71&."1 411'C i!)ii -t.fiU' li +"J 171.1 •u• Federal Negarit Gazette No. 39 ,9"' April, 20 I 5 .................. page 8227

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25. lpdustrjal Park Desi2natiop apd Modjficatjop

1 I An industrial park shall be designated by the Board.

2/ The Board in designating the Industrial Parka shall

consider:

a) the nature ofthe proposed project;

b) the intended size and perimeter of the proposed

Industrial Parks;

c) clearance from encumbrance, proximity to

industrial inputs and infrastructure '

conduciveness to become population center and

the nature of project including availability of

medical and recreational center.

d) compatibility with master plan, land use and the

like.

3/ the details of designation procedures shall be

specified in the Regulations;

4/ any modification to and revocation of an Industrial

Park shall be determined by the Board.

26 .Requjremepts for Selectjop of lpdustrjal Park Deyeloper

The selection of industrial park developer shall be

effected in accordance with the regulation.

27 .Ope-Stop Shop

1/ The services provided by competent authorities in any

Industrial Park shall be offered through One-Stop

Shop in an efficient and streamlined manner.

2/ The Commission shall provide one-stop shop service

within the industrial parks; bring into line other

competent organs and co-ordinate their day-to-day

functions .

1Pi g?tr~n~ 1..1./.·A ~;Jt+ ;JH."' •'l'c rJJil ~.tiL.f I) +'J 17\.1 't.r Federal Negarit Gazette No. 39 ,9th April, 201S .............. ... . page 82211

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3/The competent authorities shall maintain their

mandates in the course of discharging their specific

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ftnt.oul\h·l: liCliC 1·-4f-l· 01.. ')ofl ~.ro(ac; (\·:: specified in the Regulation.

~~.IP&=t'i'l f"'L,..Oh1: .,..,t'f 28. Labor Affairs

61 f>-t(ltc; w&-·1'~ >-t'P~ ~'l'C i:~G-~IIJ!ni 11 Labor Proclamation No 377/2003 (as amended) shall

(~1~,.7i7ifl) ODll'}~c&~ f>-t.1~il1·t ;rch be applicable in any Industrial Park;

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2 /Without prejudice to sub-article ( 1) of this Article

labor contract may be negotiated between the

employer and employee taking into account the

Industrial Park' s peculiar feature;

3/The Ministry of Labor and Social Affairs shall

establish the rules and procedures on labor issues in

consultation with the Ministry of Industry on the basis

of tripartite modality the details of which shall be

specified in the Regulation;

4/The Ministry of Industry shall organize technical and

vocational training program in collaboration with the

concerned government entities and Industrial Park

Developer (operator) whenever necessary;

5/The Ministry of Industry shall facilitate technology

transfer and skills development in general and

domestic manufacturing sector Gapacity building in

particular mainly through clustering and other best

practice approaches.

1JI.· ;Wi.lf?lU l...f./.•1\ 'I;J6·l- ;Jrt.nl '111'C i!}il "t..fll,,f /i +"t 11i.i ~.r Federal Negarit Gazette No. 39 ,9m April, 2015 ................. page 8229

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PARISEYEN

REGULATORY ORGANS AND GRIEYANCE

PROCEDURE

29. Reeulatoty Oceans

1 I The Board shall designate and oversee the

administration and supervision of Industrial Parks.

2/ The Board shall decide on complaints submitted by

any Industrial Park Developer, Industrial Park

Operator or Industrial ~ark Enterprise challenging

decision given by the Commission.

3/ The manner in which the Board exercises its

regulatory mandate shall be specified in the

Regulation.

4/ The Ministry of Industry shall ensure and supervise

that the industrial park enterprise are provided with

assistance such as extension services, technology,

inputs and marketing and method of manufacturing.

51 The Commission, in addition to exercising its

mandates under Investment Proclamation No.

769/2012 (as amended), shall issue permits to

Industrial Park Developer, Industrial Park Operator

or Industrial Park Enterprise; conclude agreements

with industrial park developer and industrial park

operator.

61 The detail functions of the Board and the

Commission provided for in this Article shall be

specified in the Regulation.

4'-<'-·A 'l.:.t:-l- .:m,nJ 4t'J'C: tJ)il .,_,I'II,,C' li +'t li'i.l •u• Federal Negarit Gazette No. 39 .9111 April, 20 IS ...... ............ page 8230

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30.Issuapce of Reprimapd. Suspepsjop apd Reyocatjop of

Permit

I /The Board shall:

a) issue reprimand to industrial park developer or

industrial park operator, so as to take

rectification measure within the time limit

specified in the regulations, if he violates the

conditions set out in the permit, the regulations

or directives issued for the implementation of

this Proclamation or any other applicable law;

b) suspend the industrial park developer or

industrial park rperator pursuant to the time

limit specified in the regulations, until the

rectification measure is taken, if he fails to take

rectification measure pursuant to paragraph (a)

ofthis Article.

2/ Where an industrial park developer or industrial park

operator fails to take rectification measure pursuant

to paragraph (b) of sub-article (I) of this Article and

if one of the following causes materialized, the Board

may revoke the permit:

a) declared bankrupt;

b) ptovided that permit is given on the basis of

false information or misrepresentation;

c) fails to develop the land or to administer the

industrial park, as the case may be, in

accordance with agreement;

d) notifies to an appropriate organ termination of its

activities.

3/ Upon revocation of the permit, the land possessed by

such permit holder shall be reverted to the entity that

leased the same.

~~t .. A 'r;M-1- :m.nr •-rc o!Jil -?..fll •• f' li 'f"1 11ll 'J.r Federal Negarit Gazette No. 39 ,9tto April, 2015 ... ..... .......... page 8231

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4/ The revocation of the permit shall entail termination

of the industrial park development or industrial .park

operation agreement.

51 The Commission may:

a) issue reprimand to industrial. park enterprise, so

as to take rectification measure within the time

limit specified in the regulations, if he violates

the conditions set out in the permit, the

regulations or directives issued for the

implementation of this Proclamation or any

other applicable law;

b) suspend the industrial park enterprise in

accordance the time limit specified in the

regulations, until the rectification measure is

taken, if he fails to take rectification measure

pursuant to paragraph (a) of this Article.

61 Where an industrial park enterprise fails to take

rectification measure pursuant to paragraph (b) of

sub-article (5) of this Article and if one of the

following causes materialized, the Commission may

revoke the permit:

a) declared bankrupt;

b) proved that permit is given on the basis of

false information or misrepresentation;

c) fails to develop the land in accordance with the

agreement;

d) voluntarily notifies to appropriat~ organ the

termination of its activities.

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7 I The revocation under this Article shall deprive the

permit holder from the rights provided under this

Proclamation.

31. Complajpt HapdHoe

1/ Any industrial park developer, industrial park

operator, industrial park enterprise or industrial park

resident shall have the right to lodge complaints to

the Commission against measures taken by any

competent authority.

2/ Any such complaint may be lodged with the

Commission within 30 days of the taking of the

measure in question.

3/ The Commission shall deliver its decision on the

complaint submitted to it within 30 days.

4/ The Board shall entertain complaint lodged against

the decision of the Commission if it is lodged within

30 days and shall give its decision within 30 days.

51 An aggrieved party by the decision of the Board

may appeal within 30 days of receipt of the decision

to a court having jurisdiction.

61 Details regarding the manner of lodging of

complaints and rendering of decision shall be

specified in the Regulation.

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PART EIGHT

MISCELI,ANEOUS PROVISIONS

32. Powers to Issue Regulatjop apd Djrectjye

1/ The Council of Ministers may issue regulation with

respect to incentive package applicable to industrial

parks and other regulations necessary .

2/ The Board may issue directives necessary for the

implementation of this Proclamation and the

regulation issued pursuant to sub-article ( 1) of this

Article.

33. Tragsjtory Proyjsjop

1 I Any existing industrial zone or information

technology park, shall be presumed as industrial park

upon entry into force of this Proclamation provided

they meet the designation criteria and be governed by

this Proclamation.

2/ The prior:

a) agreements entered into by the Government with

the industrial zone, industrial park developer or

with the industry park operator;

b) incentives given by the Government to the

industry zone, industry park developer, industry

park operator or industry park enterprise;

shall continue to be applied .

3/ Any prior application in respect of the development

and operation of industrial development zones or

industrial parks shall be deemed pending before the

Commission pursuant to this . Proclamation and

regulations issued hereunder.

l.f.t·A ~;Jt·l- ;Jtt."l 4l'l'C ijjii '"'t.Pil.f' j) 4' 't 17i.i 'HI" Federal Negarit Gazette No. 39 ,9lh April , 20 15 ... .. ... .. ........ page 8234

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4/ The Industrial Parks Development Corporation shall

be presumed as established pursuant to this

Proclamation .

~!l.tL,""l..)T llt\dii&S".t.T(J)o m1?f 34. Ipapp!icable laws

.eu·n ~'P'f: foYJ.:Pl. ') oYJ')~ro·?n ntJ>~· : No proclamation, regulation, directive or customary

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f h.. +r-k, ~1..&-f\'l! -'l 'P'h&-l\.f'l!

tTill\.h T &.11.~1~

practice, inconsistent with this Proclamation shall have

force and effect, in respect of matters provided for in this

Proclamation,

35. Effectjye Date

This Proclamation shall enter into force on the date of

Publication in the Federal Negarit Gazette.

Done at Addis Ababa, this 91h day of April, 20 15 .

MULATU TESHOME (Dr.)

PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA