ETHIOPIA
Since September 2020
Since April 2020
Since April 2021
Since April 2020
Since April 2021
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Investment Regulation No. 474/2020
Investment Proclamation No. 1180/2020
Media Proclamation No. 1238/2021
Investment Proclamation No. 1180/2020
Media Proclamation No. 1238/2021
The Investment Regulation No. 474/2020, implementing the Investment Proclamation No. 1180/2020, reserves some areas of investment just for domestic investors. Art. 4.22 exclusively reserves investment in media services for domestic investors only. Complementary to the investment regulation, the Media Proclamation No. 1238/2021, under Art. 22 .1 reserves investment in the media sector for Ethiopian nationals only. The Media Proclamation defines media as "news agencies and all organs established to provide news or programs or news and programs to the public via periodicals, broadcasting service, and online media".
Coverage Media sector
Sources
- https://investethiopia.gov.et/images/pdf/Investment-Regulation-No.-4742020_09-08-2020_0001-2.pdf
- https://www.hopr.gov.et/documents/20181/233477/1238_2013+%E1%8B%A8%E1%88%98%E1%8C%88%E1%8A%93%E1%8A%9B+%E1%89%A5%E1%8B%99%E1%88%83%E1%8A%95+%E1%8A%A0%E1%8B%8B%E1%8C%85.pdf/c3748f16-0ab9-32cb-cbd0-e914...
- https://www.state.gov/reports/2021-investment-climate-statements/ethiopia/
- Show more...
ETHIOPIA
Since September 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Investment Regulation No. 474/2020
According to Art. 5(1/f/) and 5.2 of the Investment Regulation No. 474/2020, foreign share capital in audiovisual services, including film/music production and distribution, is capped at 49%. It is not clear whether this restriction also applies online.
Coverage Audiovisual Services
ETHIOPIA
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Ethiopia a is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA) nor does it have observer status.
Coverage Horizontal
ETHIOPIA
Since August 2019
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Communications Service Proclamation No. 1148/2019
In August 2019, Proclamation No. 1148/2019 came into force which, for the first time, liberalizes the telecom sector in the country. Art. 19 of the Proclamation declares that telecommunications services, including ownership of a telecommunications operator or a telecommunications network, is open without limitation to private domestic and foreign investors.
Proclamation No. 1148/2019 repealed the Telecommunication Proclamation No. 49/1996 and 281/2002 (amendment) and Regulation No. 47/1996 which previously regulated the telecommunications sector. Under these laws, Ethio telecom, the state-owned telecom monopoly, was made the sole telecommunication service provider in Ethiopia. Further, Investment Proclamation No. 769/2012 (repealed by Investment Proclamation No. 1180/2020) had reserved telecommunication service provision as a sector reserved only for joint-venture with the government.
During 2021, it is reported that the Government of Ethiopia awarded a spectrum license to a private telecom operator, and took initial steps toward privatization of the telecom sector.
Proclamation No. 1148/2019 repealed the Telecommunication Proclamation No. 49/1996 and 281/2002 (amendment) and Regulation No. 47/1996 which previously regulated the telecommunications sector. Under these laws, Ethio telecom, the state-owned telecom monopoly, was made the sole telecommunication service provider in Ethiopia. Further, Investment Proclamation No. 769/2012 (repealed by Investment Proclamation No. 1180/2020) had reserved telecommunication service provision as a sector reserved only for joint-venture with the government.
During 2021, it is reported that the Government of Ethiopia awarded a spectrum license to a private telecom operator, and took initial steps toward privatization of the telecom sector.
Coverage Telecommunications sector
Sources
- https://chilot.me/wp-content/uploads/2021/03/Communications-Service-Proclamation-No.-1148.pdf
- https://www.mofed.gov.et/media/filer_public/7c/78/7c781a5b-1c06-4f6d-9128-6fa116cf71e8/communicationsserviceproclamationno1148-2019.pdf
- https://investin.et/document-repository/telecommunication-proclamation-no-49-1996/
- https://www.lawethiopia.com/images/federal_proclamation/proclamations_by_number/281.pdf
- https://www.itu.int/ITU-D/treg/Legislation/Ethiopia/PROC-47-99.htm
- https://www.fao.org/faolex/results/details/en/c/LEX-FAOC195385
- https://www.mtalawoffice.com/legal-updates/entry/on-liberalization-of-telecommunication-services
- https://www.ethiotelecom.et/history/#
- Show more...
ETHIOPIA
Since September 2009
Since June 2020
Since June 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Ethiopian Federal Government Procurement and Property Administration Proclamation No. 649/2009
Federal Government Public Procurement Directive of June 2020
Federal Government Public Procurement Directive of June 2020
The Law No. 649/2009 gives some preferential treatment to domestic goods or services suppliers over foreign suppliers in some cases. Art. 25 states that some preference margin can be granted for works carried out by Ethiopian nationals and for consultancy services rendered by Ethiopian nationals. The preferences can also be extended to SMEs that are established in accordance with Small and Micro-Enterprises Proclamation. The Law mandates the Minister to issue directives determining the preference margin.
According to the Federal Government Public Procurement Directive of June 2020, preference margins are prescribed in Art. 16.20.2 as follows:
- For procurement of medical equipment: 25%;
- For procurement of other products: 15%;
- For construction and consultancy services: 7.5%.
For SMEs, these margins in Art. 16.20.2 only apply in International Competitive bidding as per Art. 16.20.5 of the Directive, in contrast to 3% margin when competing with local suppliers in national competitive bidding. The provision of preferences granted to medical equipment or other products is subject to an additional requirement of not less than 35% of the production occurring in Ethiopia, certified by a competent auditor as per Art. 16.20.3 of the Directive.
According to the Federal Government Public Procurement Directive of June 2020, preference margins are prescribed in Art. 16.20.2 as follows:
- For procurement of medical equipment: 25%;
- For procurement of other products: 15%;
- For construction and consultancy services: 7.5%.
For SMEs, these margins in Art. 16.20.2 only apply in International Competitive bidding as per Art. 16.20.5 of the Directive, in contrast to 3% margin when competing with local suppliers in national competitive bidding. The provision of preferences granted to medical equipment or other products is subject to an additional requirement of not less than 35% of the production occurring in Ethiopia, certified by a competent auditor as per Art. 16.20.3 of the Directive.
Coverage Horizontal
ETHIOPIA
Reported in 2022
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Lack of transparency in public procurement
It ss reported that major procurements do not go through a transparent tendering process. Obstacles to foreign participation in government procurement tenders include complicated and inadequately established procedures, capacity gaps on the part of procurement agencies, delays in decision-making, lack of public information, and the need for personal connections to effectively compete. According to the report, at least one large company has had its multi-million-dollar contract with the government abruptly modified with little explanation and no apparent due process.
Coverage Horizontal
ETHIOPIA
N/A
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in Information Technology Agreement (ITA) and in ITA Expansion Agreement (ITA II)
Ethiopia is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).
Coverage ICT goods
ETHIOPIA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Effective tariff rate to ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
13.45%
Coverage rate of zero-tariffs on ICT goods (%)
7.99%
Coverage: Digital goods
ESWATINI
Since 2022
Pillar Online sales and transactions |
Sub-pillar Adoption of UNCITRAL Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Eswatini has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
ESWATINI
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of UNCITRAL Model Law on Electronic Signature
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Eswatini has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
ESWATINI
N/A
Pillar Online sales and transactions |
Sub-pillar Framework for consumer protection applicable to online commerce
Lack of comprehensive consumer protection law applicable to online commerce
Eswatini does not have a legal framework that applies consumer protection to online transactions.
Coverage Horizontal
ESWATINI
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the UN Convention of Electronic Communications
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Eswatini has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
ESWATINI
N/A
Pillar Online sales and transactions |
Sub-pillar Threshold for ‘De Minimis’ rule
Lack of de minimis threshold
Eswatini does not implement any de minimis threshold, which is the minimum value of goods below which customs do not charge duties.
Coverage Horizontal
ESWATINI
Since August 2016
Pillar Online sales and transactions |
Sub-pillar Restrictions on domain names
Electronic Communications (Domain Name Administration) Regulations, 2016
According to Section 13 of the Domain Name Administration Regulations, the registration of a .sz domain name is only available to persons domiciled or corporate bodies registered in the Kingdom of Swaziland. The two-letter abbreviation refers to Swaziland, the country's former name from 1968 to 2018.
Coverage Horizontal
ESWATINI
N/A
Pillar Technical standards applied to ICT goods, products and online services |
Sub-pillar Self-certification for product safety
Supplier Declaration of Conformity allowed for foreign businesses
Eswatini does not have a national self-certification programme, but relies on the certificates of conformity supplied by exporting countries. The Eswatini Standards Authority is a member of the International Electrotechnical Commission (IEC) Affiliate Country Programme, which allows developing countries to participate in the IEC standardization activities and conformity assessments as well adopting IEC standards and gazette them as Eswatini national standards.
Coverage Electrical products