Ethiopian Revenues & Customs Authority's (ERCA) findings show that the government has provided incentives to the tune of 191 billion Br to encourage investments in the past five years. The government offers duty free imports of various goods and five-year tax holidays to investors that are expected to contribute to the economic growth of the country.
Sixty billion Birr has been offered in the form of incentives in the 12 months leading up to September 2015, said Moges Balcha, deputy director general of Customs Programme & Development Office at ERCA. He added that the incentives have witnessed growth of 31pc each year.
However, some investors are taking advantage of the incentives by using fake documents to import goods and substandard equipment, among others. To prevent this, the Authority has prepared a new arrangement in partnership with institutions which grant duty free privilege: the Investment Commission, Ministry of Mines, Cooperative Agency, Charities & Societies Agency and Ministry of Foreign Affairs. The new system is expected to be implemented by the end of this fiscal year.