Contact Us
No.3 Xiu Shui Nan Jie
Jan Guo Men Wai
Beijing 100600
P. R. China
Tel: 0086-10-65325258
Fax:0086-10-65325591
E-mail:
[email protected]

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
foreign investment:
* 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
publishing;
The minimum capital requirement for investments made in partnership with the domestic
investor (s):
* 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
etc.)
* 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
areas.
* 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
processing.
* 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.