Provided the foreign investor fulfils the requirements of the Ethiopian National Bank, the regulatory organ authorized to control foreign exchange in Ethiopia, the Ethiopian Investment law guarantees the foreign investor the privileged of Repatriation of capital and profits.

So Foreign investors can apply for transfer of foreign currency abroad from recognized investment if an investor earns profit or dividend from the capital put in operation (investment), or if the investor ceases operations and decides to close the firm, or If the investor decided to sell   its equity wholly or partially to a third party, or if an investor wants to pay installments agreed on loan or supplies credit.

When transferring profits and dividends a foreign investor who earn profits or dividends from recognized investments shall be entitled to remit abroad by presenting  documents such as:-

  1. Copy of the minutes of the Board of directors or an equivalent body declaring profit/ dividend and a letter duly signed by the chairman or secretary of the board to authenticate the decision
  2. Copy of the financial statements dully audited by independent audit firm.
  3. Photocopy of the NBE’s letter recognizing the foreign investment.
  4. Photocopies of tax receipts evidencing the payment of all taxes due to the government
  5. Any other document or evidence that the NBE may require.

In case of ceasing operation an investor will be required to present the following document to transfer its capital.

  1. Minutes of the decisions of owners in case of Share Company or joint ventures .and in case of sole proprietorship, letter of declaration by the owner.
  2. Liquidation report authenticated by the competent authority.
  3. Accounting documents duly audited.
  4. Copies of letters issued by NBE recognizing the investment stated.
  5. Clearance from tax office
  6. And any other document that may be required by the bank.

By presenting letter of share authenticated by independent organization, credit advice if the equity is sold to foreigner and if sold to an Ethiopian, investor will be entitled to transfer the values sold based on the original agreement and recognition letter issued by NBE foreign investor who transfers the equity holdings (shares) partially or wholly to an Ethiopian national and /or foreign investors can apply for remittance of the share value sold.

If a foreign investor who wants to pay installments on loan or suppliers credit registered loan capital by NBE letter of recognition from NBE and registration of the loan capital, repayment schedule, letter of request by the invest organization/owner and any other document as may be required.

Finally, foreign businessmen who do not have recognized foreign investment and who have sold or liquidate their business or properties belonging to them may make foreign exchange remittance on final departures upon presenting.

  1. A final and certified balance sheet and profit and loss account for the preceding 3 years , or for a longer period if the NBE requires in case of establishment firm.
  2. In case of small traders and truck owners exempted from keeping books of account by tax laws, tax office clearance and other documents required by the bank.
  3. Sales invoices of personal belongings such as vehicles, house hold goods, utensils…etc or legalizing the sales documents where an item is sold for birr 5,000 or above and any other relevant documents required by the bank must be presented.

If you have an additional question or comment please Contact us.

Any pertinent information about investment in Ethiopia, tax in Ethiopia, can be available from an Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian, Ethiopian Employment Layer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.