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The Public Private Partnership Proclamation No. 1076/2018 (“PPP Proclamation”)

Under Ethiopia’s national development program, i.e. the Growth and Transformation Plan (GTP II) (2015-2020), the country has set an ambitious target to become a middle-income country by the year 2025.   GTP II plans to execute massive manufacturing, industrial and infrastructure projects in road, railway, power, energy, telecommunication, housing and industrial parks. To date, the majority of infrastructural projects have been financed by the government through the national budget, loans and development assistance fund. In order to meet the growing demand for infrastructure and public service delivery, the government sought to mobilize finance from the private sector through public private partnerships (PPPs). Aside from introducing private sector efficiency, innovation and knowledge, PPPs are considered as key instruments to fill in gaps in infrastructure financing.

Since 2016, the Ministry of Finance and Economic Cooperation (MoFEC) has spearheaded efforts to design a PPP legal framework by drafting a national PPP policy and draft proclamation which culminated in the enactment of the PPP Proclamation No. 1076/2018. (“PPP Proclamation”).  We discuss this law in this issue of our legal update.

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National Bank of Ethiopia (NBE) Directive Amendments on Foreign Exchange (2016/2017)

The National Bank of Ethiopia (NBE) is the central agency with the mandate of regulating the financial sector and, among others, foreign exchange. The NBE formulates and implements exchange rate policies. As part of this mandate, the NBE issues regular directives and circulars with the aim of regulating the foreign exchange regime. This legal update will provide you with a short summary of the relevant directives of the NBE that amended existing directives in connection with foreign exchange regulation in Ethiopia from the period August 2016 – December 2017.

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Update on New Legislations (2016-2017)

The year 2016- 2017 saw lots of legislative activities from the Federal House of Representatives (HoPR) and the Council of Ministers (COM). A total of 114 proclamations and regulations were collectively enacted by the COM and HoPR. In this issue of our legal update, we will summarize the key legislations that were passed in this period with particular focus on commericial matters. We also have the full list of legislations available for download.

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