No.3 Xiu Shui Nan Jie
Jan Guo Men Wai
P. R. China
GOVERNMENT SUPPORT & POLICY
1. CAPITAL REQUIREMENTS
A foreign investor may invest as a sole proprietor with full equity ownership or jointly with
domestic/foreign private or public enterprises. Minimum capital requirements for wholly owned
* US$200,000 for a single investment project in cash and /or in kind,
* US$100,000 in cash/ or in kind per project in areas of engineering works or
architectural or related technical consultancy services, technical testing and analysis or
The minimum capital requirement for investments made in partnership with the domestic
* US$150,000 in cash and/ or in kind per project;
* US$50,000 in cash/ or in kind per project in areas of engineering works or architectural
or related technical consultancy services, technical testing and analysis or publishing.
No floor-capital requirement for an investor who reinvest the profit or dividend generated from
his existing enterprise.
2. SUPPLY OF CHEAP LABOUR, ENERGY & UTILITIES
* Average monthly wages in light manufacturing sectors: USD 77-131 for skilled labour
and USD 35-53 for unskilled labour.
* Power tariff: USD 0.05 per KWH.
* Water tariff: 5-50m3 costs USD 0.072 -0.15
* Telephone tariffs: local call within a city costs USD 0.012 per 6 minutes; between cities
costs USD 0.023 per minute; and an international costs USD 0.57/minute.
3. INCENTIVES PACKAGE
* 100% tax exemption for import of investment capital goods (machinery, equipment
* Tax exemption of spare parts worth up to 15% of the total value of capital goods.
* 100% tax exemption for export products.
* Exemption of income tax from 1 to 9 years depending on size & area of investment.
* Income tax exemption for 2 additional years for any investor who exports or supplies to
an exporter as input at least 60% of the products or services.
* Income tax deduction of 30% for three consecutive years after the expiry of the income
tax exemption period for investment in difficult socio-economic conditions or remote
* Exporters are allowed to retain and deposit in a bank account up to 20% of their foreign
exchange export earnings for future use.
* Franco valuta import of raw materials is allowed for enterprises engaged in export
* Exporters can benefit from the export credit guarantee scheme.
* Export incentive (duty draw-back, voucher and bonded warehouse schemes)
* Making remittances out of Ethiopia in convertible foreign currency.