---------------------------------------------------------------------------------------------------------------------1-

Table of Content
S/N
1

TITLE

PAGE

Introduction

Part1: Cost of Land

1

1

Urban Land1

1.1

Lease Holding

1

1.2

Minimum Lease Price3

1.3

Rental Holding

13

2

Rural Land

14

2.1

Oromia National Regional State

14

2.2

Tigray National Regional State

15

2.3

Amhara National Regional State

16

2.4

Gambella National Regional State

16

2.5

SNNPRS

17

2.6

Somali National Regional State

17

3

Incentives related to land

18

3.1

Addis Ababa City Administration

18

3.2

Oromia National Regional State

18

3.3

Amhara National Regional State

19

3.4

Tigray National Regional State

19

3.5

SNNPRS20

3.6

Gambella National Regional State

20

Part 2: Labor Cost
Part 3: Building Cost

21
23---------------------------------------------------------------------2

S/N

Title

Page

Part 4: Tariffs

25

4.1

Electricity Tariff

25

4.2

Water Tariff

26

4.3

Telecommunication tariff Rates

28

Part 5: Taxes

34

5.1

Custom Duty

34

5.2

Value Added Tax

35

5.3

Excise Tax

36

5.4

Taxable Business Income

37

5.5

Rental Income Tax

37

5.6

Royalty Payment

38

5.7

Mining Income Tax

38

5.8

Dividend Income Tax

38

5.9

Export Tax

38

5.10

Employment Income Tax

38

5.11

Capital Gain Tax

39

5.12

Stamp Duty

39

Part 6: Transport Cost

41

6.1

Road Transport

41

6.1.1

Dry Cargo Rates

41

6.1.2

Passenger Rates

41

6.1.3

Liquid Cargo Rates

43

6.2

Sea transport

44---------------------------------------------------------------------3

S/N

Title

Page

6.3

Air Transport

46

6.4

Rail Transport

49

Part 7: Fuel Prices

51

Part 8: Hotel Room and Housing Rent Rates

52

8.1

Hotel Room Rates

52

8.2

Housing Rent Rates

52

Part 9: Cost Of Advertising

53

9.1

Advertising on Television

53

9.2

Advertising by Radio

54

9.3

Advertising in Newspapers

55

Part 10: Postage Rates

56

10.1

Inland Postal Service

56

10.2

International Postal Service

58

Part 11: Inspection and Marking Fees

61

Part 12: Investment License

62

12.1

Investment Certificate fees

62

12.2

Trade Registration and Licensing Service Fees

63

Part 13:BANKING CHARGES

64

13.1

Domestic Banking Charge

64

13.2

Foreign Banking Charge

65

13.3

Interest Rates

67

13.4

Exchange Rates

67

Part 14: INSURANCE PREMIUM RATES

69---------------------------------------------------------------------4

Part 1:COST OF LAND

Under the constitution of the Federal Democratic Republic of Ethiopia land is the property of
the State and the people of Ethiopia. Both urban and rural land is available for investment
on leasehold, rental basis or freely depending on the type of investment which isundertaken on it.

1. Urban Land
1.1 Lease Holding
In conformity with plan guidelines of a city

1.1.3

an urban land shall be permitted to be

Performance of payment

held by lease on auction or negotiation.

Lease price payment may be made totally at

Minimum price shall be determined forthe signing of the lease contract orurban land to be permitted on auction or

periodically with bank compound interest on

through negotiation. Lease-hold title deed

the unpaid portion.

shall be conferred on a person to whom
an urban land is permitted.

A person, to whom lease hold of urban
land is permitted:

1.1.1

Period of lease•

Must make advance payment not

According to Proclamation No. 272/2002

less than 5 percent out of the(Re-Enactment

total lease payment

of

Urban

Lands

Lease
•

Holding Proclamation), the period of lease

Shall make payment every year,

shall vary depending on the level of urban

anddevelopment

amount to the average price ofandsector

or

type

of

the

yearlytheby lease. The ceiling period of lease isdivided over the period payment.
•

Shall

pay

lease

shall

development activity on which land is heldshown in Table 1.1 below.

remaining

payment

interest

payment
overtheremaining payment as per the

1.1.2

rate of interest on loan offered by

Rights of lease holdingbank

Any lease hold possessor may transfer, or

The modality of lease payment is shown in

undertake a surety on his rights of lease

Table 1.2 below.

hold, and he may also use it as a capital

1.1.4 Use of urban land
Any person, to whom lease hold of urban

contribution to the amount of the lease
payment he has made.

land is permitted, must begin to use the---------------------------------------------------------------------5

land for the prescribed activity or service
within the period of time set byregulations.

1.1.5

reached, unless the urban land is wanted
for public interest. Where the lease period
is not renewed upon termination on
account of the land being wanted for
public interest however, compensation
shall not be paid to the lease holdpossessor.

Renewal of period of lease

Period of lease may, upon the termination
thereof, be renewed for the lease holdpossessor as per the agreement to be_____________________________________________________________________________
Table 1.1 Period of Lease holdName of
City/Region
Addis AbabaCity
Administrationand other
towns
designated as
Addis Ababa
City
Other towns
which is notdesignated asof grade of
Addis Ababa
AmharaNational
Regional State(Bahir Dar,
Gonder, Dessie)

OromiyaNational
Regional StateSNNPRS

Dire Dawa
Tigray National
Regional Stat

•
•
•
•
•
•
•
•

Sector of development or type ofServices
Housing(Personal & Leasable)
Science, technology, research & study
Government offices
Non-profit making philanthropist
organization
Religious institution
Industry
Commerce
Others
Education Health, culture, sports, etc
Industry
Commerce
Others

•
•
•
•
•
•
•
•

Housing (personal and leasable )Education, Health, Culture, Sport
Industry
Trade and commerce
Urban Agriculture
OthersPrivate dwelling houses
Rental dwelling houses

•
•
•
•

• Industrial activities• Educational, Scientific, Technological,
Cultural, Health and Sporting activities• Others
•
•
•
•
•
•
•
•
•
•
•

Housing (personal and leasable )Education, Health, Culture, Sport
Industrial activities
Trade and commerce
Urban Agriculture
OthersPrivate Dwelling house
Industry
Trade
Social Services
Urban Agriculture

Period of lease
Up to 99 Years
Up to 90 years
Up to 60 years
Up to 50 years
Up to 50 years
Up to 99 years
Up to 80 years
Up to 70 years
Up to 70 years
Up to 99 years
Up to 99 years
Up to 80 years
Up to 70 years
Up to 15 years
Up to 70 years
Up to 99 years
Up to 60 to 99 years based on
the grade of towns
Up to70 to 95 years based on
grade of towns
Up to 95 years
Up to 60 to 99 years based on
the grade of towns
Up to 99 years
Up to 80 years
Up to 70 years
Up to 15 years
Up to 70 years
Up to 99 years
Up to 80 years
Up to 70 years
Up to 99 years
Up to 15 years---------------------------------------------------------------------6

Table 1.2 Performance of payment of lease holdName of City/Region
Addis Ababa City
Administration

AmharaRegional State(BahirDar,
Gonder)National
Dessie,Sector of development or typeof Services• Private dwelling houses• Industry• Business• Culture, Sport and education• Rental Dwelling houses• Private dwelling house• Private housing through auction
or negotiation• Social development and cultural
undertakings (Health, Education..)• Industry• Commerce• House for rent
• land with 15 years lease period

Oromiya National
Regional State
Tigray National Regional
State

Period of payment
Within 99 years
Within 30 years
Within 15 years
Within 20 years
Within 30 years
Within 99 years
Within 50 years
Within 40 years
Within 40 years
Within 30 years
Within 40 years
Within 10 years
Within 30 years for holding periods ofless than 40 years and within 40 years
for holding periods for 40 years andabove
15 to 99 years depending on the
sector of development

1.2 Minimum Lease price.
Minimum price shall be determined for urban land to be possessed on auction or throughnegotiation. The minimum lease price for regions is shown below.
1.2.1 Addis Ababa City Administrative
The Addis Ababa city administration has graded lease land and allocated initial prices asfollows:
Table 1.3

Minimum Lease Price in Addis Ababa City Administration

Zone

Grade of
Lease Land

Minimum price inBirr /M2

CentralBusiness Zone

1
2
3
4
5
1
2
3
4
5
1
2
3
4

1297
1181
1018
835
688
796
719
622
525
427
273
230
167
147

Transitional
Business Zone

Expansion
Zone

Negotiation Price
Excluding the added value
Including the addedof production
value of production
2204.902480.51
2007.70
2258.66
1730.60
1946.931419.50
1596.94
1169.60
1315.801353.201522.35
1222.30
1375.091057.40
1189.58
892.501004.06
725.90816.64464.10522.11391.00439.88283.90319.39249.90281.14

Source: Addis Ababa Trade, Industry and Development Bureau.

---------------------------------------------------------------------7

1.2.2

Tigray National Regional StateIn the regional State industrial zones are established in five towns, namely Mekele, Adigrat,
Adwa, Axum and Endaselasse. The Regional State has set lease prices for the industrial zones
and real estate. The price for industrial zones varies from 0.30 to 0.75 Birr/M2 /Year, while theprice for real estate varies from 0.35 to 2.00 Birr/M2 /Year. The following table depicts the initiallease price for both the industrial zones and real estate development:
Table 1.4 Minimum Lease price in Tigray

Industrial
Town
MekeleAdigrat
Axum
Endaselasse
Adwa

Industrial
Zones
0.75
0.35
0.35
0.30
0.35

Lease Price in Birr/M2/Year
Real Estatestnd
1 Grade land 2 Grade land 3rd Grade land
2.00
1.50
1.00
1.10
0.75
0.35
1.10
0.75
0.35
1.10
0.75
0.35
-

To encourage Real Estate development in the region, the following discount is applicable on theinitial lease price.
a.

10 and above housing units

Housing Unit
10-25 Houses
26-40 Houses
41-50 Houses

1st Grade Town
MekeleG+1
G+1
G+12nd Grade Town
(Out side Mekele)
Villa
Villa
Villa

Lease Price
Discount in %/M2
10
20
30

b. G +2 and above buildings

1.2.3

1st Grade land
Mekele

2nd Grade Town
Out side Mekele

G+2
G+3
G+4
G+5
G+6
G+7
G+8
G+9
G+10

G+2
G+2
G+3
G+4
G+5
G+6
G+7
G+8
G+9

Lease Price
Discount in % /M2
Apartments Others
7
5
10
7
15
10
20
15
25
20
30
25
35
30
40
35
45
40

Oromiya National Regional StateIn the regional state cities/towns has been classified into different grades as follows:---------------------------------------------------------------------8

Town Grading in the Oromiya Region
Grade
of
Towns

East Shewa

West
Shewa

Grade 1Adama

SebetaBusheftu

Alemgen

North
Shewa

Arsi

Bale

Zones
BorenaWest
Wellega

East
Wellega

Jimma

Illubabor

East
Harerge

West
Harerge

Metu

Haromaya

Chiro

Gore

FunganbiraBedessa

Yayu

Deder

Gelemso

Toba

KombolichaChelenko

Mechara

Jimma

a
Dukem

BurayuModjo
Shashamene
Grade 2

Ziway

Ambo

Fiche

Asela

Wonji gefersa
Metehara

WelisoGinchiSendafa
Gerba

Dera

Robe

MoyaleNekemite

Gimbi

Agaro

DembidoloBedeleGurachaHolotaTulu Bolo
Grade 3

Meki

Bako

Chancho

Robe

Goba

NegeleShambu

Nejo

BorenaWelenchiti

Guder

Debre Tsige Abomsa

Arsi Negele

Addis Alem Sheno

BulbulaEjaji

Muke Turi

Limu
Genet

Adaba

HagereMariamSibusire

Huruta

Ginir

Arjo

Bokoji

DodolaKibre
Menginst
Yabelo

Mendi

Choea

----------------------------------------------------------------------------------------------------------------------9-

Messo

Gradeof
Towns

East Shewa

West
Shewa

Noth
Shewa

Alem Tena

Gedo

Bako

Awash
Melkasa

Grade 4

Adami Tulu
Koka
Kuyera
Ajje

Arsi

Bale

KofeleZones
BorenaWest
Wellega

East
Wellega

Jimma

ShekisoIllubabor

East
Hararghe

HurumuWest
Harerge

Hirna

Eteya

Ameya
Taji

Gohatsion
AlidoroEjere
Hambiso

Asasa
Kore
DiksisSegureGobaa
Awash
Melkasa
Ticho
Borujawi
MereroAgulteSeltena
Chole
Arbouejaji

AgarfaDinshoGeseraJara
Golelc
ha
Mana

Mega

Gore

Bale

Fincha
Obora
Jare
Gori

Mugi
GidamiBira
Kake

Chacha
Yebu
Saka
Sheki
(Dedo)

GelilaGulisoSarbo

HaretoAyana

EnangoGudatu
Godo
Bube

Shabe
SekeruAlemteferi

Asenda
bo

Adele
Karsa
Kore

---------------------------------------------------------------------10

Kumbabe
Dembi
Gachi

BedenoHarawacha
Giraw
Kersa
Fedis(Boko)

AsebotSubject to the size and location of the land in each specific town or area, the minimum annual
lease charge ranges from Birr 0.37 to Birr 2.33 per square meter. Specific land sites in eachtown are categorized up to 3 grades, depending on the location and development level.
The following table indicates the minimum land Lease Prices for the first and second grade
towns:
Minimum price in Birr/M2/year
Grade of
town

Commerce andrelated services

Industry,
Storage,
Education,
Culture, Sportand others

up to 500

2.85

0.98

1.68

501-750

3.45

1.14

2.03

751-1000

3.66

1.21

2.17

1001-1250

3.89

1.26

2.43

1251-1500

3.92

1.28

2.49

More than 1500

4.01-4.08

1.35-1.42

Grade of land Land size in M2

First grade

up to 500

1st

Second grade

1.98

Residential
Houses

2.54-2.59

0.74

0.89

501-750

2.45

0.93

1.05

751-1000

2.89

1.14

1.31

1001-1250

2.98

1.19

1.42

1251-1500

3.01

1.21

1.47

More than 1500

3.10-3.17

1.24-1.35

up to 500

1.33

0.70

0.77

501-750

1.42

0.81

0.86

751-1000

1.72

0.88

1.05

1001-1250

2.07

1.02

1.21

1251-1500

2.10

1.10

1.28

2.19-2.26

1.19-1.23

1.30-1.40

1.49-1.59

Third grade

More than 1500

Grade of

Grade of land Land size in M2

Minimum price in Birr/M2/year---------------------------------------------------------------------------------------------------------------------- 11 -

town
Commerce andrelated services

Industry,
Storage,
Education,
Culture, Sportand others

Residential
Housesup to 500

2.12

0.86

0.84

501-750

2.45

0.93

1.05

751-1000

2.89

1.14

1.31

1001-1250

2.94

1.17

1.40

1251-1500

2.96

1.19

1.45

More than 1500

3.01-3.08

1.24-1.26

1.49-1.54

up to 500

1.33

0.74

0.77

501-750

1.45

0.81

0.84

751-1000

1.68

0.86

1.02

1001-1250

1.93

1.07

1.17

1251-1500

1.93

1.10

1.31

More than 1500

2.05-2.14

1.16-1.23

1.45-1.47

up to 500

0.68

0.65

0.68

501-750

0.74

0.70

0.74

751-1000

0.74

0.70

0.81

1001-1250

0.79

0.77

0.88

1251-1500

0.84

0.81

0.96

More than 1500

0.93-1.17

0.89-1.05

1.03-1.30

First grade

2ndSecond grade

Third grade

1.2.4

Amhara National Regional StateIn the Amhara National Region State land is available for investment on leasehold or rental
basis. The towns to which urban land lease-holding system currently applies are Bahir Dar,
Dessie, and Gonder
The towns in the region are classified into 5 grades and the grade of land in each classification
is divided from 3 to 5 grades.

---------------------------------------------------------------------12

Grade of Town

Number of Grade ofLand
1 to 5
1 to 5
1 to 5
1 to 3
1 to 34 ( Highest of all)32
1-A
1-B (Lowest of all)The list of towns from grade 4 to 1-A is presented below, while the rest towns notincluded here are grade 1- B.
Zone

Town

Grade of Town

Bahir Dar

Bahir Dar

4

North Gonder

Gonder

4

South Wello

Dessie4

East Gojam

Debre Markos

3

North Shewa
South Wello

Debre Birhan
Combolcha

33South Gonder

Debre Tabor

2

North Wello

Woldiya2

East Gojam

Mota

2

Awi

Dangla2West Gojam
Awi

Finote Selam
Chagni2
2

North Wello
North Shewa

Kobo
Shewa Robit

1-A
1-A

North Shewa

Mehal Meda

1-A

North Shewa

Debre Sina

1-A

South Gonder
South Gonder

Addis Zemen
Woreta

1-A
1-A

North Gonder

Debarik

1-A

North GonderWest Gojam

Dabat
Bure

1-A
1-A

West Gojam

Jiga

1-A

East Gojam
East Gojam

Dejen
Bichena

1-A
1-A

Oromiya

Bati

1-A

South Wello

Hayik

1-A

---------------------------------------------------------------------13

The initial lease prices of land obtained through auction are presented below:
Grade of
Town

Grade of
land

4

1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
1
2
3

3

2

1-A

1-B

Initial Lease Price by Type of Activity/M2/LeaseYear
Commerce
Industry
Cooperatives/
Residence
Service
80.0
60.0
40.0
20.0
68.56
51.42
34.28
17.14
45.70
34.28
22.85
11.42
22.85
17.14
11.42
5.71
11.42
8.57
5.71
2.85
72.6
54.45
36.30
18.15
62.22
46.67
31.11
15.55
41.48
31.11
20.74
10.36
20.74
15.55
10.37
5.18
10.37
7.77
5.18
2.59
63.81
47.86
31.90
15.95
54.69
41.02
28.03
13.67
36.64
27.34
18.68
9.11
18.32
13.67
9.34
4.55
9.16
6.83
4.67
2.27
36.80
27.61
18.40
9.20
26.53
19.90
13.26
6.63
22.24
16.69
11.12
5.03
33.73
25.31
16.85
8.43
24.31
18.24
12.14
8.07
20.39
15.29
10.18
5.08

1.2.5 Southern Nations, Nationalities and Peoples Regional State(SNNPRS)In the region, the lease holding price applied for industrial zones in 18 towns is presented below:
Name of Town
Awassa ( First Grade)
Arba Minich ( Second Grade)
Dilla, Hossana and Wolaiyta Sodo (Third Grade)
Yirga Chefe, Yirga Alem and Alaba
Wolkite, Butajira
Jinika, Mizan Teferri, Sawula, Teppi, Araka,
Bonga, Boditi, Durame,

Price in
Birr/M2/Year
0.80
0.70
0.35
0.20
0.15
0.10

---------------------------------------------------------------------14

The lease holding price for different activities is also classified as follows:
Grade of
Town

Activity

Price in Birr/M2/Year by Grade of Land

1

Commerce

1st
1.50

2nd

Industry and others
Commerce

1.00
1.25

0.80
1.00

0.60
0.75

0.40
0.50

0.20
0.25

3rd

Industry and others
Commerce

0.80
1.00

0.60
0.75

0.40
0.50

0.20
0.25

0.10
-

4th

Industry and others
Commerce

0.60
0.75

0.40
0.50

0.20
0.25

0.10
-

-

Industry and others

0.40

0.20

0.10

-

-

st

2nd
1.25

3rd
1.00

4th
0.75

5th
0.50

The lease price based on the size of lease hold is shown below
Grade of
Town
st

1

2nd

3rd

4th

Price in Birr/M2/Yearby grade of land

Land Size in metersquareUp to 500
501 – 1000
1001 – 1500
1501 - 2000
Over 2000
Up to 500

1st
0.18
0.21
0.25
0.29
0.32
0.14

2nd
0.14
0.18
0.21
0.25
0.28
0.11

3rd
0.11
0.14
0.18
0.21
0.25
0.07

4th
0.07
0.11
0.14
0.18
0.21
0.04

5th
0.04
0.07
0.11
0.14
0.18
0.02

501 – 1000
1001 – 1500
1501 - 2000
Over 2000
Up to 500
501 – 1000
1001 – 1500
1501 - 2000
Over 2000
Up to 500
501 – 1000
1001 – 1500
1501 - 2000
Over 2000

0.18
0.21
0.25
0.28
0.11
0.14
0.18
0.21
0.25
0.07
0.11
0.14
0.18
0.21

0.14
0.18
0.21
0.25
0.07
0.11
0.14
0.18
0.21
0.04
0.07
0.11
0.14
0.18

0.11
0.14
0.18
0.21
0.04
0.07
0.11
0.14
0.18
0.02
0.04
0.07
0.11
0.14

0.07
0.11
0.14
0.18
0.02
0.04
0.07
0.11
0.14
-

0.04
0.07
0.11
0.14
-

---------------------------------------------------------------------15

1.2.6

Dire Dawa City Council

According to the city council’s lease regulation, land is provided through auction, negotiation,and freely depending on the investment activity. Incentives are also given for agriculture,industry, mining, social development activities and real estate.

Minimum Lease Price in Birr
Grade of
Lease Land

1st

2nd

Zone

Lease
price/M2

HousesCompensation
price/M2

Leased Landand Houses
Compensation price

Central Business Zone 1(CBD 1)

52.31

47.09

99.4

Central Business Zone 2(CBD 2)

38.59

34.79

73.38

Central Business Zone 3(CBD 3)

33.74

31.01

64.75

Transition Zone 1
Transition Zone 2

17.09
12.45

26.8
22.87

43.89
35.32

Transition Zone 3

2.85

5.37

8.22

Industry

Industry Zone Spot
Industry Zone
surrounding

9.78
5.57

0.46

9.78
6.03

OthersExpansion Zone 1
Expansion Zone 2

1.64
0.5

1.81
0.46

3.45
0.96

1.2.7

Gambella Regional State

Urban land price in the region depends on type of activity and the grade of land. The price of land
for industry is shown below.

Grade of Town

Activity

Price in Birr/M2/Yearby Grade of Land

1st

Industry

0.03 to 0.07

nd

Industry

0.022---------------------------------------------------------------------16

1.3 Rental Holding.
The rental price for regions where rental land holding is applicable is shown below:
1.3.1 Oromiya National Regional StateIn the region, urban land is also available on rental bases. The period of rental
holding ranges from 20 to 45 years and payment are made annually throughout
the contract period.

Minimum Rental price in the region is shown as follows:
Minimum price in Birr/M2/Year
Grade of Town

1st

2nd

3rd

4th

1st

Commerceandrelatedservices
0.20-0.36

2nd

0.16-0.32

0.12-0.28

0.16-0.36

3rd

0.12-0.28

0.08-0.24

0.12-0.32

1st

0.16-0.32

0.12-0.28

0.16-0.36

2nd

0.12-0.28

0.08-0.24

0.12-0.32

3rd

0.08-0.24

0.04-0.20

0.08-0.28

1st

0.12-0.28

0.08-0.24

0.12-0.32

2nd

0.08-0.24

0.04-0.20

0.08-0.28

3rd

0.04-0.20

0.02-0.16

0.04-0.24

1st

0.08-0.24

0.04-0.20

0.08-0.28

2nd

0.04-0.20

0.02-0.16

0.04-0.24

3rd

0.02-0.16

0.01-0.12

0.02-0.20

Grade ofLand

Industry, storage,
education, culture,
sport and others

Residential
Houses

0.16-0.32

0.20-0.40---------------------------------------------------------------------17

1.3.2 Amhara National Regional StateIn the region urban land is also available on rental basis. Rental land holding isapplicable in those towns where lease holding is not applicable.

Urban Land Rent in Birr for those towns administered on rental basis is presented below:
Grade of
town
4

3

2

1-A

1-B

Type of Activity

Price in Birr/Year by Grade of
Land
1
2
3
4
5

Commerce

0.25

0.18

0.12

0.10

0.08

Industry

0.20

0.15

0.11

0.08

0.05

Social Service

0.18

0.13

0.09

0.05

0.03

Urban Agriculture

0.15

0.10

0.08

0.05

0.04

Commerce
Industry

0.20
0.15

0.15
0.13

0.12
0.10

0.09
0.07

0.06
0.04

Social Service

0.14

0.12

0.08

0.04

0.03

Urban Agriculture

0.10

0.06

0.04

0.02

0.01

Commerce
Industry

0.18
0.12

0.14
0.11

0.10
0.09

0.08
0.06

0.05
0.03

Social Service

0.11

0.10

0.07

0.03

0.02

Urban Agriculture

0.08

0.05

0.03

0.01

0.01

Commerce

0.15

0.12

0.09

-

-

Industry

0.10

0.09

0.08

-

-

Social Service

0.09

0.08

0.06

-

-

Urban Agriculture

0.05

0.03

0.02

Commerce

0.12

0.10

0.08

-

-

Industry

0.09

0.08

0.07

-

-

Social Service

0.08

0.07

0.05

-

-

Urban Agriculture

0.04

0.02

0.01

---------------------------------------------------------------------18

1.3.3 Benishangul Gumz National Regional State
Grade of
town

1st

2nd

3rd

Land Size in meter square1

Price in Birr/Year by Grade of Land23
4
5

Up to 500

0.07

0.06

0.05

0.04

0.03

501-1000
1001-1500
1501-2000

0.08
0.09
0.10

0.07
0.08
0.09

0.06
0.07
0.08

0.05
0.06
0.07

0.04
0.05
0.06

Above 2000

0.11

0.10

0.09

0.08

0.07

Up to 500

0.06

0.05

0.04

0.03

0.02

501-1000
1001-1500
1501-2000
Above 2000
Up to 500

0.07
0.08
0.09
0.10
0.04

0.06
0.07
0.08
0.09
0.03

0.05
0.06
0.07
0.08
0.02

0.04
0.05
0.06
0.07
0.01

0.03
0.04
0.05
0.06
0.009

501-1000
1001-1500
1501-2000

0.05
0.06
0.07

0.04
0.05
0.06

0.03
0.04
0.05

0.02
0.03
0.04

0.01
0.02
0.03

Above 2000

0.08

0.07

0.06

0.05

---------------------------------------------------------------------19

2. Rural Land
Generally, the rental value and the lease period of rural land are determined and fixed by land
use regulation of each region. Accordingly, the prices of rural land for selected regions areindicated below.

2.1 Oromiya National Regional State
Rural land can be held on rental basis from 20 – 45 years based on the type, magnitude, andlocation of project.
The rental price of rural land for agricultural purpose has been set based on the developmentlevel of the zones and distances from all weather roads. Accordingly, the minimum andmaximum annual charges for one hectare of rural land in the region are Birr 70.40 – 135.00
respectively.

Location/zone

Distance from main road in kms andprice in Birr/Hectare /yearLessthan 10
135

11-25

26-40

41-55

Above 55129

124.42

119.44114.66

Jimma, North Shewa andEast Harerge

114.75110.16105.75101.52

97.46

East Wellega, West
Harerge,and Bale

97.45

93.64

89.89

86.29

82.83

Illubabor, Borena, Guji
and West Wellega

82.91

79.59

76.41

73.35

70.40

East Shewa,West Shewa,
South-West Shewa andArsi

Any farmer can also rent out up to 50% of his/her holding to another farmer for a period of
three years or to a private investor for about 15 years where the price will largely depend on
the agreement of both parties, but not less than the floor rate set by the state.

---------------------------------------------------------------------20

The rental price of rural Land by activity

Industry

Price in Birr/M2/Year
0.10

Tourism
Forestry
Coffee, tea, and other permanent crops

0.10 – 2.00
Free
Free for the first 4 years

Activity

Note: Land in East Shewa Zone located within 5 km. radius from main asphalt roads may be offered for industry at afloor rental charge of Birr 0.34 per square meter per year.

2.2 Tigray National Regional StateThe rental price of land for agricultural investment in the rural area is Birr 30-40 per hectare
per year and this value is not changed up to 10 years. Depending on conditions it can berevised every 5 years, and the increment should not be more than 20%.
Location/Woreda

Price in
Birr/Hectare/Year

Kafita Humera

30

Wolikayit

30

TsegedeTahitay Adiyabo, Laelay Adiyabo

30
35

Others40

2.3 Amhara National Regional StateIn the region, rural land is administered by Environmental Protection and Land Administrationand Use Authority. Land is provided through rental basis and the prices set are presented
below:
Location/Zone/
North Gonder

Price in Birr/Hectare/Year
14.21-72.75

South Gonder

40.97-69.50

North Wello

49.00-73.57

Wag-Hemra

36.53-46.53

South Wello

48.22-75.75

Oromiya45.46-57.37

North Shewa

22.50-76.12

East Gojam

49.26-79.37

Awi

51.65-68.98

West Gojam

50.99-75.94---------------------------------------------------------------------21

2.4 Gambella Regional StateLand in the region is graded into two grades and the rental period is 50 years. The price of rent per
hectare is presented below.
Grade
1st Grade

2nd GradePrice in Birr per
Hectare/year30

Place/Location
GodereAlwero Openo

30

Gillo

30

Dimma

30

Alwero Openo
Jikawo

20
20

Akobo

20

Gambella zuria

20

2.5 Southern Nations, Nationalities and Peoples' Region (SNNPR)
SNNPR regional state leases rural land for more than 40 years. Based on the type of the project the
yearly charge ranges from 30 – 117 Birr per hectare.
Rural Land Rent for Agricultural Investment is presented below:
Price in Birr/Hectar/Year

Location/Zone/

First grade land

Second grade land

Sidama117

71

Gurage and Silte

105

64

Hadiya103

62

Kenbata-Tenbaro

100

61

Alaba

100

31

Gedio

86

52

Gammo Gofa and Wolayita

78

47

Yem

76

46

Sheka , Kefa and Dirashe

63

38

Amaro

59

36

Burji

58

36

52

36

49

30

Konso
Dawuro, South Omo, Bench
Konta and Basketo

Maji,---------------------------------------------------------------------22

2.6 Somali National Regional StateThe rental price of land in the region varies from zones to zones. The following table shows therental price of land in the region.
Zone
Liben
Jigjiga
SheneleGode
Degehabur
Afder
KoraheFik
WarderRental price in Birr per hectare/ year
First Grade Land
Second Grade Land
45
27
45
28
39
24
38
23
27
17
25
15
23
14
23
14
19
12

3. Incentives Related to Land
To encourage investment in selected development activities and services, there are different
types of incentive schemes related to land. The incentive schemes include percentage
discount on initial lease prices, provision of grace period of payment, tax exemption, provisionof land for free, etc. The type of incentive scheme varies from region/city to region/city

3.1 Addis Ababa City Administration
As part of promoting investment in the city, significant reduction in lease prices are made forinvestments in some social infrastructures in the City.
Amount to be paid outof lease priceType of investment
General hospital
Health center
Maternity and pediatrics hospitalSpecial hospital

15%
5%
5%
30%

Kindergarten
Grade 1 - 8 school
Kindergarten - grade 12 school
Grade 1-12 school
Grade 9 - 12 school
Technical and vocational school
College level education

35%
20%
15.65%
13.5%
7%
Free
Free

Physical fitness, sport & culture

0-50%

3.2 Oromiya National Regional State---------------------------------------------------------------------23

Land is provided freely for short period of time depending on the type of investment.
Activity
Coffee, tea, sugarcane, or any other perennial crops on an areaof more than 100 hectares
Cereals, pulses and oil seeds under rain fed on a land left
fallow or virgin for a period of more than 5 years
Cereals, pulses and oil seeds under rain fed on a landpreviously developed but left for at least five years
Fruits, vegetables, and produces food crops or oil seeds underirrigation scheme
Producing flowers, herbs and spices
Producing improved seeds

3.3

Period of freerent in years
4
2-3
1-2
2-4

3
3

Amhara Regional State

List of Investment activities in which land is provided freely as an investment incentive
includes:3.3.1 Industry•

Producing more than 50% for export.

•

Agro-Processing Industries•

Fertilizer, and Pesticides Manufacturing•

Pharmaceuticals and related equipments•

Agricultural equipments•

Metal production•

Manufacturing of cooking ranges•

Electrical and electronics materials production•

Non-metallic construction materials production

3.3.2 Health•Higher health center•

Primary general hospital•

Medium general hospital•

Higher general hospital

3.3.3 Education•

Kindergarten---------------------------------------------------------------------24

•Elementary school•

Secondary school•

Technical and vocational school

3.3.4 Non-profit making Humanitarian organization

Investment activities in which land is provided with initial(without auction) leaseprice:•

Ginnery•

Tannery•

Starch Production•

Soft drinks and mineral water production

Investment activities in which land is provided with initial lease price and grace
period:•Residential and Commercial housing development•

Star Hotels•

Tourist Lodges

3.4 Tigray Regional State
List of Investment Projects in which land is provided freely as an investment incentive includes :•Production of nursery•

Production of rubber and balsam•

Production of incense and resin•

Production of commercial forest•

Livestock production, processing and preserving of meat, and meat products•

Dairy farming and processing•

Poultry farming and processing•

Manufacture of pesticides and other agro-chemicals and products (must include
bulk preparation)•

Manufacture of pharmaceuticals, medicinal chemicals, and botanical products•

Manufacture of glass and glass products•

Production, processing and preserving of fruits and vegetables•

Manufacturing of prepared animal feed•

Manufacturing of wines•

Tanning and dressing of leather•

Processing and preserving of fruits and vegetables---------------------------------------------------------------------25

•Distilling, rectifying, blending of spirits, ethyl alcohol production from fermented
materials•

Manufacture of wearing apparel except fur apparel•

Manufacture of leather products and articles•

Manufacture of leather footwear•

Technical and vocational training, engineering colleges and higher hospitals•

Low cost housing•

Manufacture of electric motors, generators and transformers•

Manufacture of electricity distributions and control apparatus•

Manufacture of electronic valves and tubes and other electronic components

3.5 Southern Nations, Nationalities and Peoples Regional State (SNNPRS)•

Depending on the type of the project, urban land is provided freely or withnegotiation.

•

There is a grace period of 3 – 20 years for long term crops.

3.6 Gambella National Regional State
List of Investment Projects in which land is provided freely:•

Higher Education•

Kindergarten•

Health•Real Estate•Star Hotels---------------------------------------------------------------------26

Part 2:LABOR COST

Generally Wages and salaries vary depending on the size of the enterprise, type of profession
and level of skill required. They are determined by the agreement between the employer andthe employee. A study commissioned by the Confederation of Ethiopian Trade Unions on
minimum wage for Ethiopia was undertaken by the Economics Department of the Addis Ababa
University over the period May – October 2003. From this study, occupational and sectoral
Wage indicators are presented below:

Average Wages by Occupation of Workers in the Sample for Cost of Living Survey
Occupation

Average
Wage/Birr/Month

Sales Worker

356.67

Supervisor/Foreman

646.40Equipment Maintenance
Unskilled Production Worker

515.25471.77

Other Support Service

551.87

Domestic Skills/Cooking

257.73

Clerical

751.95

Daily Laborer

557.11

Security/Guard

391.71

Loading and Unloading

437.49Messenger/Office Boy/Girl
Janitor355.43355.87

Gardening

324.82

Packing

564.75Store keeping

661.00Source: Minimum Wages for Ethiopia, A Report for the Confederation of Ethiopian Trade Unions by Economics
Department of Addis Ababa University, June 2004 (page 99)

Sectoral wage from the Sample for the Cost of Living Survey (Wages Birr/Month)---------------------------------------------------------------------27

SectorMean Wage

Agriculture, Forestry, Fishing
Mining and Quarrying

293.21513.61

Manufacturing of Food

490.00Beverages/Tobacco

562.24

Textiles/Leather

390.04

Wood/ Wood Products

420.82Paper and Printing

486.20Chemicals and Rubber

374.31Fabricated Metals/ Equipment/ Machinery
Electricity/ Gas/ Water

514.91415.66

Construction

312.54Wholesale/ Retail Trade, Catering

412.97

Transport/ Storage/ Communications

630.34

Finance/ Insurance/ Banking

610.00Social/ Cultural/ Recreational/ Educational

332.78Others440.14

Source: Minimum Wages for Ethiopia, A Report for the Confederation of Ethiopian Trade Unions by Economics
Department of Addis Ababa University, June 2004 (page 103)

The government of Ethiopia also set minimum wage for civil service employees, which is Birr 320
per month for low skilled labor. The base salary scale for the civil service employees is shown
below.
Range of Base
Salary320-841

Job Classification
Custody and Manual
Trade and Crafts

357-1935

Clerical and finance357-2527

Semi Professional395-2886

Administrative

801-3752

Professional Science

1068-4801

Source: Federal Civil Service Agency---------------------------------------------------------------------28

Part 3:

BUILDING COST

3.1 Cost of Building
Cost of building generally defers by type of the construction materials used, the type offoundation, wall height, and location. The following table shows current building costs in Addis
Ababa:
Price in Birr per M2

Building type
Simple storage building

1500-2500

Apartment building up to four stories

2500-3800

Tower building with elevator facilities

2800-4500

Residential G+1 building (Normal)

2400-2800

Residential villa type building (bricks)

2500-3000

Residential villa type building (HCB)

2000-2600

Source: Construction and Business Bank---------------------------------------------------------------------29

Cost of buying
Price List of Apartment

Floor

Ground

1st Floor

2

nd

House
Name

No. ofBed

Total Area

Rooms

in m2

Total Cost
House Cost

15% VAT( with VAT)

B1 -- G--1

2

84.56

423,020.56

63,453.08

486,473.65

B1 -- G--2

1

56.36

281,947.01

42,292.05

324,239.06

B1 -- G--3

2

89.40

447,233.19

67,084.98

514,318.16

B1 -- G--4Studio18.98

94,949.51

14,242.43

109,191.93

B1 -- 1--1

2

84.56

407,008.82

61,051.32

468,060.14

B1 -- 1--2

1

56.36

271,275.04

40,691.26

311,966.29

B1 -- 1--3

2

88.56

426,261.84

63,939.28

490,201.12

B1 -- 1--4

Studio30.84

148,440.78

22,266.12

170,706.89

B1 --2--1

2

84.56

392,297.66

58,844.65

451,142.31

B1 --2--2

1

56.36

261,469.92

39,220.49

300,690.40

B1 --2--3

2

88.56

410,854.79

61,628.22

472,483.00

B1 --2--4

Studio30.84

143,075.45

21,461.32

164,536.76

B1 --3--1

2

84.56

377,586.50

56,637.97

434,224.47

B1 --3--2

1

56.36

251,664.79

37,749.72

289,414.51

B1 --3--3

2

88.56

395,447.73

59,317.16

454,764.89

B1 --3--4

Studio30.84

137,710.12

20,656.52

158,366.64

B1 --4--1

2

84.56

362,875.33

54,431.30

417,306.64

B1 --4--2

1

56.36

241,859.67

36,278.95

278,138.62

B1 --4--3

2

88.56

380,040.68

57,006.10

437,046.78

B1 --4--4

Studio30.84

132,344.79

19,851.72

152,196.51

Floor

3 rd Floor

4th Floor---------------------------------------------------------------------30

Price Lists of New Villas
House Type
250-A
250-E
250-F

Area/m2
270
250
250

House Cost
2,128,106.24
1,583,704.99
1,715,840.59

VAT 15%319,215.94
237,555.75
257,376.09

Total Price
2,447,322.18
1,821,260.74
1,973,216.68

Price Lists of Villas to be Constructed in the 2nd Phase

Plot Area

House TypeHouse Cost

15% VAT

Total Price

500
500
500
500
500

A
B
C
D
E

1,566,744.60
1,542,007.51
1,594,947.12
2,131,730.00
2,467,250.46

235,011.69
231,301.13
239,242.07
319,759.50
370,087.57

1,801,756.29
1,773,308.64
1,834,189.19
2,451,489.50
2,837,338.03

Plot Area
250
250
250
250
250

House Type
A
B
C
D
E

House Cost
1,533,286.04
1,140,037.62
1,271,421.35
1,361,882.60
1,230,099.85

15% VAT
229,992.91
171,005.64
190,713.20
204,282.39
184,514.98

Total Price
1,763,278.95
1,311,043.26
1,462,134.55
1,566,164.99
1,414,614.83

Source: Sunshine Construction PLC (www.sunshinecon.com).

---------------------------------------------------------------------31

Part 4: TARIFFS
4.1

Electricity Tariff

4.1.1

Energy Tariff

The price of electricity varies according to different categories of users. There are also different
tariff categories and blocks within each user category. The "domestic" tariff category includes
dwelling houses, government schools, health institutions, religious places, libraries, research
centers and water service centers. The "general" category includes government offices, private
offices, international organizations, embassies, and most business sectors excluding industries.
Industries are included in the third, fourth and fifth categories. The current tariffs for different
categories and blocks are indicated below:
S/N
1

Tariff category & block ID.

Monthly consumption (kwh)

Domestic
Equivalent flat rate

0.4735st

0-50

0.2730nd

51-1000.3564rd

101-200

0.4993th

201-300

0.5500th

301-400

0.5666th

401-500

0.5880th

Above 500

0.6943

1 Block
2 Block
3 Block
4 Block
5 Block
6 Block
7 Block
2

GeneralEquivalent flat rate

0.6723st0.6088nd

0.6943

1 block
2 Block3

4

5

Fee (Birr/kwh)

Low Voltage Time of Day Industry
Equivalent flat rate

0.5778Peak0.7426

Off-Peak

0.5453High Voltage Industry @ 15 KV
Equivalent flat rate

0.4086Peak

0.5085

Off-Peak

0.3933High Voltage Industry @ 132 KV
Equivalent flat rate

0.3805Peak

0.4736

Off-PeakStreet Light tariff

0.3664Equivalent flat rate

0.4843---------------------------------------------------------------------32

4.1.2Service Charge Rates

There is also a service charge that a customer pays together with the energy price for theservices provided by the Corporation. Service charge rates also vary according to thecategories and blocks of users as indicated below:
Tariff Name

Birr/Month

1. Domestic Sector
Single phase: Kwh/month0 – 2526 – 50
51 – 105
106 – 300
Above 300

1.40
3.404
6.820
10.23613.65217.05637.564Single phase
Three phase
Active/Reactive
3. Low voltage Time-of-Day Industry Tariff
Three phase
4. High voltage Time-of-Day Industry Tariff (15 kv)
Three phase
5. High voltage Time-of-Day Industry Tariff (132 kv)
Three phase
6. Street light tariff
Single phase
Three phase
Active/Reactive

14.49422.55835.258Three phase
Active/Reactive
2. General Sector

54.00954.00954.00914.49422.55835.258Source: Ethiopian Electric Power Corporation (EEPCO).

4.2

WATER RATESIn Addis Ababa, water charges vary depending on the tariffs set for different consumption
brackets. In addition to water charge, a fixed amount of counter (meter) rent is also regularly
payable.
The Addis Ababa Water and Sewerage Authority has a five years tariff schedule plan. The five
year consumption charges, meter rent and deposits payable by a new customer are indicated in thefollowing tables:---------------------------------------------------------------------33

5 Years Tariff for Water Supply charges
Tariff/m3(in Birr)
First Year
TariffJuly 8, 2002
To
July 7,2003

Block

Public Foundation

Second Year
TariffJuly 8, 2003
To
July 7, 2004

Third Year
TariffJuly 8, 2004
To
July 7, 2005

Fourth Year
TariffJuly 8, 2005
To
July 7, 2006

Fifth Year
TariffJuly 8, 2006 To
July 7, 2007

1.15

1.30

1.45

1.60

1.75

0-7
7 – 20

1.15
1.60

1.30
1.85

1.45
2.10

1.60
2.35

1.75
3.15

above 20

2.30

2.60

2.95

3.25

3.80

2.30

2.60

2.95

3.25

3.80

Domestic Customers(Monthly Water
Consumption in m3)

Non-Domestic
customers

Note: Non-Domestic Customers are Manufacturing Industries and others.

Monthly Water Rent

Size of the water
meter (in inches)

Rent
Birr

½
¾
1
1¼
1½
2
2½
3
4
5
6

1
1
2
2
4
6
7
9
9
14

Cents
35
50
25
85
05
25
65
05
65
02

---------------------------------------------------------------------34

Deposit Payable by new Customer
Size of the water
meter (in inches)Amount of Deposit(in Birr)

½
¾
1
1¼
1½
2
2½
3
4
5
6

120
133
196
251
355
551
673
795
853
945
1037

Source: Addis Ababa Water and Sewerage Authority

4.3

TELECOMMUNICATION TARIFF RATESThe construction, operation, maintenance and expansion of telecommunication services are
performed by the Ethiopian Telecommunication Corporation (ETC). The Corporation also
provides domestic and international telephone, telex, internet, mobile and other communication
services and broadband multimedia services. The rates for different telecommunication services
are indicated below.
4.3.1

National Telephone Service

Access Fee
For ordinary telephone line: Birr 305
For each main line connected to a PABX: Birr 305
Initial and monthly charge for a PABX varies with the capacity
Installation charge for extension line: Birr 75

Monthly rental
For each ordinary telephone line:
Residence: Birr 8.00
Business: Birr 17.00
For each main line connected to a PABX: Birr 17.00
For each extension line connected to PABX: Birr 9.00---------------------------------------------------------------------35

4.3.1.1 Fixed National Telephone Charges
Telephone Service
Urban Calls
Private users
Public telephone

Normal Charge

Reduced Charge

Birr 0.20/6 minutes-

Birr 0.20/3 minutes

Calls between same tariff zones

Birr 0.40/1minute

Birr 0.25/1 minuteCalls between different tariff zones

Birr 1.20/1 minute

Birr 1.00/1 minuteNote: The tariffs do not include 15%VAT
Reduced charges apply from 8 p.m. – 8 a.m., on Sundays and Public Holidays.

Resale Service
Telephone Service

Normal Charge

Reduced Charge

Calls with in the same city

Birr 0.40/3minutes-

Calls between same tariff zones

Birr 0.76/1minutes

Birr 0.59/minuteCalls between different tariff zones

Birr 1.68/1minute

Birr 1.45/minuteNote: The tariffs for resale service include 15%VAT plus profit for re-sale.
Reduced charges apply from 8 p.m. – 8 a.m., on Sundays and Public Holidays.

4.3.1.2 Mobile Telephone Service
It is a service with which you can access both the fixed and mobile networks when you arewithin the coverage area of the GSM network. It gives you access for social, business andemergency calls virtually 24 hours a day.

Mobile Telephone Rates
Call Type

Mobile to Mobile
Normalcharge(Birr/Minute)
0.72

Reducedcharge(Birr/Minute)
0.30

Calls between same tariff
zones
Calls between different
1.50
1.25
tariff zones
Note: The above payments do not include 15% Value added tax (VAT)

Mobile to Fixed Telephone orFixed to Mobile Call Rate
Normalcharge(Birr/Minute)
0.72

Reducedcharge(Birr/Minute)
0.30

1.50

1.25

Resale Mobile Service---------------------------------------------------------------------36

Call Type

Normal charge(Birr/Minute)
1.08
1.98

Calls between same tariff zones
Calls between different tariff zones

Reduced charge(Birr/Minute)
0.60
1.69

Note: The above tariffs do not include 15% Value Added Tax (VAT)

Mobile Value Added Services (MVAS)
Ethio-Mobile Value Added Services
include:Call diverting
Call waiting
Call barring
Roaming

Short Messaging Service(SMS)
Voice Mail
Others...

Tariff for the different mobile value added services
Servicetype

PostPaid
Service

Pre-paid
Service

Other
Services

4.3.2

DescriptionPrice

For personal category

Birr 858.90

For private & public business enterprises

Birr 1,132.90

For government organizations & non-profit making organizations

Birr 944.90

For Embassies, international organizations & foreign nationals:•

Free of tax payment•

For tax payers

Birr 1,484.0

Birr 1,577.90

For non- tax payers

Birr 399.00

For tax payers

Birr 458.10

Call Waiting

Birr 21.85

Call Diverting

Birr 21.85

Voice mailBirr 34.50

Deactivation fee

Birr 21.85

Reactivation fee

Birr 21.85

Bill Investigation

Birr 23.00

International Service

4.3.2.1 International Roaming---------------------------------------------------------------------37

Currently, ETC is providing international roaming service to its customers in different
continents and countries through roaming agreements with 60 operators.
Activation Fee for International Roaming is: Equivalent of USD 500
Lists of International Roaming Partners of ETC are presented at the end of this bulletin.
4.3.2.2 International Call Charges for Fixed Telephone
Birr 7 per minute for calls to Djibouti
Birr 10 per minute for calls to other countries
Operator Assisted International Calls: Birr 33.00/period (3 minutes) and Birr10 for
additional 1 minute.
4.3.2.3 Telegraph
Ordinary: Birr 0.10 per word
Urgent: Birr 0.20 per word
4.3.2.4 Fax
Access charge
Fax machine Supplied by ETC
Initial charge
Fax machine with installation:
For direct line:

Birr 6,940.00
Birr 305.00

Monthly Rental
Maintenance and other cost:
Rental for direct line:

Birr 43.00
Birr 17.00

Fax machine Supplied by subscriber(To be installed and maintained by ETC)
Initial charge
Installation:
Birr 195.00
Direct line:

Birr 305.00

Monthly Rental
Maintenance and other costs: Birr 43.00
For direct line:
Birr 17.00
4.3.2.5 Internet Service
Tariffs for Dial up Internet and Dedicated Internet Services---------------------------------------------------------------------38

For Dial up Service
Installation fee

Birr 156.00

Monthly fee rent (inclusive of 900 minutes
free service)

Birr 60.00

Service fee (Over 900 minutes of service)

Birr 0.04 per minute (including 6 p.m in the evening up to
8 a.m in the morning, working days, holidays, Saturdays
and Sundays)
Birr 0.07 per minute (including 8 a.m in the morning up to
6 p.m in the evening and working days)

For Leased-Line Internet Service including Broadband Multimedia (64Kbs)
Installation fee

Birr 4,608.00

Monthly service fee

Birr 1,986.00

For Internet service fee of "Shared DSL" including Broadband Multimedia
128 Kbs
Installation fee

Birr 1,835.00

Monthly service fee

Birr 545.00

256 Kbs
Installation fee

Birr 2,528.00

Monthly service fee

Birr 905.00---------------------------------------------------------------------39

Tariff for web designing, web hosting, and domain name registration.

No.

Content typePrice (birr)

1

Graphic scanning, scanning a photograph or printed graphic andconversion in to web readable form includes image enhancement
and optimization.

50 birr/image

2

A page containing more than 10 links to a different location or link toyour e-mail address includes verifying links

2 birr per link

3

Counters, counts visits to WebPages

100 birr

4

Tables layout per file

50 birr /file5

Lay out per table element

2 birr6

Image map lay out

150/image7

Custom forms lay out

70 birr

8

Custom forms lay out per field

5 birr9

Sound, for 1 hr real media video production

40 birr per hr

10Video for 1 hr real media video production

50 birr per hr

11

Custom logo design

80 birr/image

12

Multimedia authorizing, shock wave file, MID file, quick time movies
and PDF files

150 birr/file

13

Interactive page designing using CGI, Java, Java script and others

200 birr/page

14

Database development

80 birr/hr

15Consulting

Free

16

Banner Advertisement hosting (pages with animation)

400
birr/month

17

Graphic designing

100 birr/file

Hard disk rent for:
18

19



HTML files

17 birr/MB

Audio/Video and data base file

42 birr/MB

http://www.telecom.net.et/~yourName

25 birr/file

http://www.yourdomain.et
20

21



Domain Name Registration fee (rent for a year)

Setup fee

Uploading fee (Optional)

500
birr/year
418 birr
25 birr/file

The maximum number of email address to be provided for internet
leased line customers and/or .et domain name subscribers on freebasis is recommended to be 10 and 5 e-mail boxes respectively.

500 birr/year---------------------------------------------------------------------40

Digital Data Network (DDN)Type of DDN

Subscription
Charge(in Birr)

Monthly
RentalPoint- to- Point Digital Leased line Circuit (<64 kb/s)

6,923

1,826

Point- to- Point Digital Leased line Circuit (128 kb/s)

9,385

3,989

Point- to- Point Digital Leased line Circuit (256 kb/s)

9,385

7,837

Point- to- Point Digital Leased line Circuit (512 kb/s)

9,385

15,533

Point- to- Point Digital Leased line Circuit (>512 kb/s)

9,385

Charge for
64kbps x n x0.75 wheren>9

Point- to- Point Digital Leased line Circuit (1mb/s)

9,385

23,229Point- to- Point Digital Leased line Circuit (2mb/s)

9,385

46,317For bodies that do not have their own access to Internet, Cyber Café Services are also available.
Note:
Source:

The above payments do not include 15% Value added tax (VAT)
Ethiopian Telecommunication Corporation (ETC).

---------------------------------------------------------------------41

Part 5: TAXESThe principal types of taxes are value added tax /VAT/, excise tax, customs duty, profit tax on
business, income tax from employment, income tax from dividends and royalty tax.

5.1 Custom Duty
Custom duties, which currently range from 0-35%, are payable on imports by all persons andentities which have no duty-free privileges. According to Tariff Regulation 2002 Items areclassified according to a schedule of 97 chapters, based on the Harmonized system of tariffs
classification code.
Custom duty rates of some selected goods are indicated below:
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

20
21
22
23
24

Items
Live animals and products
Vegetables, fruits and cereals
Prepared food products
Beverages
Pharmaceuticals
Organic chemicals
Wood and articles of woodTanning or dyeing extracts, dyes, pigments and other coloringmaterials, paints and varnishes, putty and other mastics, inks
Primary cells and primary batteries
Leather and leather articles
Plastic and articles thereof
Articles of apparel and clothing accessories, knitted or crocheted
Footwear, gaiters and the like
Articles of stone, plaster, cement, asbestos, mica or similarmaterials
Ceramic products
Glass and glass ware
Optical, photographic, medical or surgical instruments andapparatus, parts there ofIron and steel and articles thereof
Wire, rods, tubes, plates, electrodes and similar products of basemetal or of metal carbides used for soldering, brazing, welding ordeposition of metal or metal carbides, wire and rods of agglomerated
base metal powder used for metal spraying
Boilers, machinery and mechanical appliances, parts thereofElectrical machinery, equipment, parts thereof
Motor vehicles for the transport of ten or more persons including thedriver and motor vehicles for the transport of goods not exceeding
1,500 kg.
Paper and printed materials
Fertilizers

Custom duty
(%)
5-30
5-30
5-35
30-35
5-10
5-20
0-35
5-35
20
35
5-35
35
10-35
5-35
5-30
5-35
5-35
5-35
5

5-30
5-30
35
5-20
Free of tax---------------------------------------------------------------------42

5.2 Value Added Tax /VAT
In the Value Added Tax Proclamation No.285/2002, it is indicated that sales tax is replaced by
Value Added Tax to enhance economic growth and improve the ratio relationship between Gross
Domestic Product and Government Revenue. The Value added tax is paid at a rate of 15% of thevalue of every taxable transaction by a registered person and all imports of goods and services
other than those exempted.

Exemptions and zero-ratings
Exempted Items
The following types of supplies of goods (other than by way of export) or rendering of services are
exempt from payment of VAT to the extent provided by regulation:• The sale of transfer of used dwelling, or its lease;• Financial services;• The supply or import of national or foreign currency;• Import of gold to be transferred to the National Bank of Ethiopia;• The rendering of religious or church related services by religious organizations;• Import of prescription drugs specified in the directives issued by the Ministry of Health and therendering of medical services;• The rendering of educational services by educational institutions, as well as import of goods
transferred to state agencies and public organizations for the purpose of rehabilitation after
natural disasters, industrial accidents and catastrophes;• The supply of Electricity, kerosene, and water;• Goods imported by the government or by organizations, institutions or projects exempted fromduties and other import taxes;• Supplies by the post office authorized under the Ethiopian Postal Service Proclamation, otherthan services rendered for a fee of commission;• The provision of transport;• The issuing of permits and licenses;• The issuing of permits and licenses;• The supply of goods or services by a workshop 60% of whose employees are disabledindividuals;• The import or supply of books and other printed materials to the extent provided in regulations.

Zero-rated items
The following transactions shall be charged with tax at a rate of 0 %:• The export of goods or services to the extent provided in regulations;•

The rendering of transport or other services directly connected with international transportof goods or passengers, as well as the supply of lubricants and other consumable technicalsupplies taken on board for consumption during international flights;---------------------------------------------------------------------43

•The supply of gold to the National Bank of Ethiopia;•

The supply by a registered person to another person in a single transaction of substantiallyall of the assets of a taxable activity or an independent functioning part of a taxable activity
as a going concern, provided a notice in writing signed by the transferor and transferee isfurnished to the Inland Revenue Authority within 21 days after the supply takes place andsuch notice includes the details of the supply;•

Goods and services supplied to or imported by accredited diplomats.

5.3 Excise Tax
Excise Tax Proclamation No. 286/2002 indicates that, excise tax is levied on selected items when
produced locally or imported. The tax rate ranges from 10% to 100% depending on the nature of
the goods. List of all goods currently liable to excise tax along with their tax rates is indicatedbelow:
No.
1
2

3
4

5
6
7
8

9

10
11

Items
Any type of sugar excluding molasses
Drinks
2.1 Mineral water
2.2 All types of soft drinks except fruit juices
2.3 Powder soft drinks
2.4 Alcoholic Drinks
2.4.1 All types of beer and stout
2.4.2 All types of wine
2.4.3 Other Alcoholic drinks
Pure alcohol
Tobacco and Tobacco Products
4.1 Tobacco leaf
4.2 Cigarettes, cigar, cigarillos, pipe tobacco, snuff and otherproducts
Salt
Fuel-Super Benzene, Regular Benzene, Petrol, Gasoline andother Motor Spirit
Perfumes
Leather
8.1 All types of tanned or dressed leather
8.2 All types of fur skin, tanned or dressed
Textile9.1 Textile fabrics, knitted or woven of naturalsilk, rayon, wool or other similarmaterials
9.2 Textile of any type partly or wholly madefrom cotton, which is gray, white, dyed orprinted, in pieces of any length or with(except "Abudgedid") and including blankets,
bed-sheets, counterpanes, towels, table
clothes and similar articles
Various types of personal adornment of any origin
Dish washing machines for domestic use

Excise tax (%)
33
40
40
40
50
50
50
100
20
75
30
30
100
20
50
10
10

60
80

---------------------------------------------------------------------44

12
No.

Washing machine of a kind used for domestic purposes
Items

13
14

Video decks, television or video cameras
Television broadcast receiver whether or not combined withgramophone, radio, or sound receivers and reproducers
Motor passenger cars, Station Wagons, utility cars, and similarvehicles (including motorized caravans), whether assembled,
together with their appropriate initial equipment:
15.1 Up to 1,300 c.c.
15.2 From 1,301 c.c. To 1,800 c.c.
15.3 Above 1,800 c.c.
Land rovers, Jeeps and other four-wheel drives
Goods made of plastic
Carpets
Asbestos and asbestos products
Clocks and Watches
Dolls and Toys

15

16
17
18
19
20
21

30
Excise tax (%)
40
10

30
60
100
100
20
30
20
20
20

5.4 Taxable Business Income
In the Proclamation No.286/2002 it is indicated that taxable business income shall be determined
per tax period on the basis of the profit and loss account or income statement which shall be drawn
in compliance with the Generally Accepted Accounting standards, subject to the provisions of thisproclamation and the directives issued by the Tax Authority.
5.4.1

Income Tax by Individual Entities /Unincorporated business/

Income Tax Proclamation No. 286/2002 indicates that taxable business income of other taxpayers
shall be taxed in accordance with the following table:
Annual taxable income (in Birr)
Up to 1,800
1,801 – 7,800
7,801 - 16,800
16,801 – 28,200
28,201 - 42,600
42,601 – 60,000
Over 60,000

5.4.2

Income Tax Payable (%)
Exempt
10
15
20
25
30
35

Corporate Income Tax

As indicated in the Income Tax Proclamation No. 286/2002 (Amendment), organizations orcompanies pay 30% of their taxable income as profit tax or business income tax.

---------------------------------------------------------------------45

5.5

Rental Income Tax

As indicated in the Income Tax Amendment Proclamation No.286/2002, tax on income derived
from rent of houses or office buildings, manufacturing plants, materials and goods, etc. is payable
as indicated below. The tax is computed on the basis of annual rent income after deducting
depreciation and allowable expenses.
Annual Taxable Income (in Birr)

Tax rate on every additional income (%)

Up to 1,800

Exempt1801 – 7,800

10

7,801 – 16,800

15

16,801 – 28,200

20

28,201 – 42,600

25

42,601 – 60,000

30Over 60,000

35

5.6

Royalty Payments

Income Tax Amendment Proclamation No.286/2002 indicates that a tax of 5% is paid on income
derived from technology and intellectual property rights.

5.7

Mining Income Tax

As per Mining Tax Proclamation No. 23/1996 (Amendment), a holder of a large scale or small
scale mining license shall pay 35% income tax on the taxable income.

5.8

Dividend Income Tax

The Income Tax Proclamation No. 286/2002 indicates that every person deriving income from
dividends from a share company or withdrawals of profits from private limited company shall be
subject to tax at the rate of 10%.

5.9

Export Tax

There are no taxes on export products.

5.10

Employment Income Tax

The Income Tax Proclamation No. 286/2002 (Amendment) indicates that income tax from
employment is payable as per the following table. The tax rate is progressive for all income.

---------------------------------------------------------------------46

Taxable Monthly Income (in Birr)

5.11

Tax rate (%)

The first 150

Exempt151 – 65010651 - 1,400

15

1,401 - 2,350

20

2,351 - 3,550

25

3,551 – 5,000

30Over 5,00035Capital Gains Tax

The Capital Gains Tax Proclamation No.286/2002 demands that Income Tax shall be payable on
gains obtained from this tax is paid up on the sale of shares and bonds or urban houses. As
indicated in the Proclamation, 15/% of the gains realized is paid as a capital gains tax. Annual
gains not exceeding Birr 10,000 is exempted from this tax.
5. 12

Stamp Duty

The stamp duty rates are either fixed or depend on the values of the right or obligation executed bymeans of the instrument. The list of instruments liable to stamp duty and their corresponding rates
are presented below.
No. Instruments Chargeable with Stamp Duty
1

2

Stamp Duty Rates

Memorandum and Articles of Association of
any business organization or any association(a) Upon first execution(b) Upon any subsequent execution

Birr 350
Birr 100

Memorandum and Articles of cooperatives(a) Upon first execution(b) Upon subsequent execution

Birr 35
Birr 103Award(a) With determinable value 1 %(b) With undeterminable value Birr 35

4

Bonds

1 % of value

5

Warehouse Bond

1 % of value

6

Contracts and agreements and memoranda
thereof

Birr 5

7

Security Deeds

1 % of value---------------------------------------------------------------------47

No. Instruments Chargeable with Stamp Duty
8

Stamp Duty Rates

Collective Agreement(a) On first execution(b) On any subsequent execution

Birr 350
Birr 100

9Contract of Employment

1 % of salary

10

Lease including sub-lease and transfer thereof 0.5% of value

11

Notarial Act

Birr 5

12

Power of Attorney

Birr 35

13

Register title to property

2 % of value

Special Customs Tariff Rates Applicable to Goods Produced in and Imported from
COMESA Member Countries
No.
Regular Customs Tariff Rate (%)
COMESA Tariff Rates
1
5
4.5
2
10
9
3
15
13.5
4
20
18
5
30
27
6
40
36
Source: Ministry of Finance and Economic Development and Proclamation No.286/2002.

---------------------------------------------------------------------48

Part 6:
6.1

Road Transport Costs

6.1.1

Dry Cargo Rates

TRANSPORT COSTS

The tariffs vary from place to place and are revised every 3 months according to market changes.
The following are the freight rates for selected routes for the months of July, August, andSeptember 2004.
Freight Transport Tariff Rate
OriginDestination

Addis Ababa

Awasa
Bale Robe
Debre
MarkosDesse
Djibouti
Diredawa
GonderJimma
MekeleMetu
NekemtAddis Ababa

Km

273
442
299

401
925
515
738
346
783
600
327
Awasa
273
Bale Robe
442
DebreMarkos
299
Desse
401
Djibouti
925
DireDawa
515
Gonder
738
Jimma
346
Mekele783
Metu
600
Nekemt327
Note: The rate is revised every three months.
Source: Road Transport Authority.

6.1.2

Tariff (Cents/Quintal/Km)
July 2006
AugustSeptember
2006
2006
2.88692.93042.93043.28053.28053.28054.68234.68234.68233.80981.3382
3.52825.42014.9133
5.09814.75003.97552.56412.37564.01342.49383.65113.30103.72633.75723.5121
3.58332.9052

4.11471.28653.59225.42014.91335.74714.75003.97552.56412.37564.01342.49383.76223.30103.72633.75723.5121
3.58332.9052

4.11471.07203.59225.42014.91335.74714.75003.97552.56412.37564.01342.49383.64073.30103.72633.75723.5121
3.58332.9052Passengers Rate

The following are passenger’s price in Birr for some selected towns. The price per person perkilometer for asphalt roads is Birr 0.11264, while for gravel road is Birr 0.13812.

---------------------------------------------------------------------49

Town
Departure
Addis Ababa

Distance in Km.

Tariff per person(in Birr)

927
55
898
1006
20
507
126
505
670
326
175
675
273
1024
563
411
504
40
376
841
130
299
47
229
401
359
515
37
789
156
89
427
738
625
467
526
285
991
628
346
15
471
447

106.405.60
101.20118.30
2.25
57.10
14.20
56.90
77.60
36.70
19.70
77.35
30.80
118.6
64.50
47.40
59.30
4.10
42.40
98.50
14.60
34.80
5.30
26.90
45.20
40.40
58.00
4.20
100.60
17.60
9.05
54.50
84.20
72.70
52.60
59.20
43.50
126.30
73.30
39.00
1.55
56.90
51.40

ArrivalAdarkay
Addis Alem
Adigrate
Adwa
Akaki
AlmayaAmbo
Arba Minch
AsayitaAsebe Teferi
AssalaAssosaAwassaAxum
Bahir Dar
Bure
ChagniChanchoCombolcha
Debarik
Debre Birihan
Debre Markos
Debre Zeit
Dejen
Desse
Dilla
Dire Dawa
Dukem
Gambella
Gebre Guracha
Ginchi
Goba
GonderGore
Hagere Mariam
Harar
Hossana
HumeraJijigga
Jimma
Kaliti
Kibre Mengist
Kosso Bere
Kulibi
LalibellaLanganoMekele

464
701
212
783

52.30
83.50
21.60
88.20

---------------------------------------------------------------------50

Town

Distance in Km.

Departure
Addis Ababa

ArrivalMetehara
MetemaMetu
Mili
Mizan Teferri
Mojo
MoyaleNazereth
Nekemite
Robe
SemeraShakiso
Shashemene
Sodo
Woldiya
Wondo
Zal Anbessa
Ziway
Source: Road Transport Authority.

6.1.3

193
954
600
531
561
73
771
98
328
412
588
495
251
383
521
337
933
163

Tariff per person(in Birr)
21.70
114.40
70.40
39.80
68.20
8.20
86.80
11.00
36.90
52.40
66.20
60.20
28.60
43.10
58.70
38.40
105.1018.40

Liquid Cargo Rates

The current indicative rate obtained from Shell Ethiopia, one of the companies engaged in fuelimport and distribution, is presented below.
Description

White products
Fuel Oil(Cents/ Liter/ Km) (Cents/ Liter/ Km)

Paved Road (Asphalt):
Truck with trailer
Single trailer

0.0371090.0801554

0.040449
0.087369

Gravel Road:
Truck with trailer
Single trailer
Town Delivery
From Djibouti to Dire Dawa

0.04488648
0.0927354
0.00900.048903
0.101082
0.0090

Based on theabove criteria

Based on the above
criteria

Note: White products are Benzene, Kerosene and Gas oil.
Source: Shell Ethiopia Share Company.

---------------------------------------------------------------------51

6.2

Sea Transport Costs

Generally, freight rates are subject to market changes, nature of goods transported and currency
adjustment factors.
The following are current freight rates for containerized and conventional cargoes of exported andimported goods for some trade routes. For all routes, the ports indicated are destinations in case ofimports and origins in case of exports.

Route

Item

South East &far East Asian
Trade Route

ImportExportNorth Europe&
Mediterranean
Trade Route

ImportType of Cargo

Freight Rates (USD)
Pre-Paid
Collect

Containerized
20 feet40 feetGulf and Red
Sea Trade
Route

Import60-19570-18060-19570-1801000
1650-1750

1000
1650-1750

Containerized
20 feet40 feet1275-2200
2300-3550

1275-2200
2300-3550

Break Bulk

85-14386-90

VehicleNorth Europe

65-82

65-82

440-875/ LM

440-875/ LM

900-100

900-100

40 feetContainerized
20 feet1400-1450

1400-1450

1050-1300

1050-1300

40 feet1900-2500

1900-2500

40-45

40-45

Vehicle550-1200

550-1200

Containerized
20 feet40 feet550
450-950550
450-950

Containerized
20 feetBreak Bulk

Export1300-2250
2400-4400

Break Bulk
VehicleContainerized
20 feet40 feetMediterranean
Export1300-2250
2400-4400---------------------------------------------------------------------52

RouteItem

Indian Sub
Continent
Trade Route

ImportType of Cargo

Freight Rates (USD)
Pre-Paid
Collect

Containerized
20 feet1150-1400

1150-1400

40 feet2100-2600

2100-2600

38-45

38-45

Vehicle550-1200

550-1200

Containerized
20 feet550-850

550-850

1150

1150

Break Bulk

Export40 feetNoteThe above rates reflect basic freight tariff excluding surcharges like Bunker Adjustment Factor for PrePaid and Bunker Adjustment Factor and Currency Adjustment Factor for collect which are to be leviedas per prevailing situations and as may be applicable.



The Freight ranges reflect variations between main and off-line ports



Detail freight rate information can be obtained from Ethiopian Shipping Lines S.C.

Source: Ethiopian Shipping Lines.

Clearance and Delivery Costs
Estimates of The Maritime & Transit Services Enterprise consolidated port and inland import andexport cargos and handling and clearing transit charges are indicated below.
Import Cargoes

Birr 6000/20 feet container
Birr 10131/40 feet container
General Cargo
Birr 200/ton
Export Cargoes
Birr 3300/20 feet container
Birr 6600/40 feet container
Note: Imports are from Djibouti to Addis Ababa and Exports are from Addis Ababa to Djibouti
Source: Maritime & Transit Services Enterprise.

6.3

Air Transport Costs

Freight rates are subject to nature of goods transported and market changes. The following tables
are the freight rates for international flights.

---------------------------------------------------------------------53

International Freight Rates
EuropeExport Item
Food stuff
Leather and Leather
Products

FlowerFruits and Vegetables

Handicrafts
CoffeeTraditional Products
InjeraChat

Weight in
Kg
+100
+250
+45/+100
+300
+500
+100
+200
+500
+1000
+45
+200
+500
+1000
+500
+500
+500
+45
+200
+100

Region and Price per Kg (USD)
ParisFrankfurt
Rome
1.45
1.80
2.60 – 3.00 2.60/2.00
2.60/2.
00
1.50
1.80
1.70
1.59
1.46
1.05
1.05
0.98
0.98
0.90
Stockholm
1.50

Khartoum
General cargoBrazzaville
Meat
Fruits and Vegetables
Johannesburg
Handicrafts
FlowerRoasted Coffee
Kinshasa
Sanitary Napkin
Pharmaceuticals
NairobiPharmaceuticals
Dare Selam
Pharmaceuticals
Lunda
Pharmaceuticals

2.60

1.85

2.20
1.05
0.90
1.75
1.80

1.05
0.80
1.50
1.50
1.45

AfricaRegionLondonWeight in Kg

Price per Kg (in
USD)

+100
+500

0.55
0.65

+1000
+300

1.10
1.00

+45
+250
+100

1.30
1.10
2.75

+1000
+500

1.00
1.50

+100

0.60

+100

1.00

+100

1.45

---------------------------------------------------------------------54

1.85
1.85
2.20
1.10
2.20

Middle East
RegionDubai
Meat
InjeraFlowerJeddahMeat
Fish
FlowerFood stuff
Honey
Amsterdam
FlowerFruits and Vegetables
Washington
Traditional Products
Textile Products
InjeraLeather Products
HangZhou
Leather Products
XiamenLeather Products
Shanghai
Leather Products
ManilaLeather Products
Colombo
Leather Products
Jakarta
Leather Products
Seoul
Leather Products
Hongkong
Leather Products
Bangkok
Leather Products
Beijing
Leather Products
Mumbai
General Cargo
Sanna
General Cargo

BeirutFlowerFruits and Vegetables

Weight in Kg

Price per Kg (in USD)

+1000
+300
+500
+100

0.60
1.00
0.65
0.70

+1000
+1000
+45
+1000
+1000

0.63
0.55
0.80
0.60
0.70

+200
+500
+200
+1000

1.15
0.98
1.10
0.85

+300
+500
+45
+45/100

3.25
2.50
2.20
5.00/4.00+45/100

5.00/4.00+45/100

5.00/4.00+45/100

5.00/4.00+45/100

5.00/4.00+45/100

5.00/4.00+45/100

5.00/4.00
5.00/4.00+45/100

5.00/4.00+45/100

5.00/4.00+45/100

5.00/4.00

+45

1.75

+45
+250
+500

0.60
0.50
0.40

+500
+500

1.00
0.70

Note: All rates above exclude all other charges (fuel and insurance surcharges, and Air way Bill Charges.
Source: Ethiopian Air Lines---------------------------------------------------------------------55

6.4 Rail Transport Costs
The rail transport costs including tax and port dues for some selected items are as follows:
Activity

Item

OriginDestination

Price in Birr/ton

Fertilizer

DjiboutiPort

Dire Dawa
Nazareth
Addis Ababa
Methara122.55245.45278.30211.85

Cereals andFlour

DjiboutiPort

Dire Dawa
ChinileNazareth195.75
195.75295.80Fuel OilGas Oil
Kerosene
KeroseneGas OilFuel Oil
Food Items

Djibouti
Port

Containerized
Cargo

DjiboutiPort

Dire Dawa
Dire Dawa
Dire Dawa
Addis Ababa
Addis Ababa
Addis Ababa
Dire Dawa
Nazareth
Addis Ababa
Addis Ababa (20 feet)
Addis Ababa (40 feet)
Dire Dawa (20 feet)
Dire Dawa (40 feet)
Nazareth (20 feet)
Nazareth (40 feet)

87.60
105.45108.05273.10266.55221.35
197.75410.4
470.056000 Birr/Container
12000 Birr/Container
2373.90 Birr/Container
4747.75 Birr/Container
5208.70 Birr/Container
10417.40 Birr/Container

Packing Cases(Returned)
MetalsDjiboutiPort
DjiboutiPort
DjiboutiPort

Dire Dawa

183.05Akaki

300.00MetharaNazareth
Dire Dawa
Addis Ababa
Addis Ababa
Nazareth
Methara316.25368.00178.55418.90516.95452.8
388.25

DjiboutiPort
Djibouti
Port

ImportSpare parts for
Industry or
vehiclesElectricmaterials

Djibouti
Port

Tyres

DjiboutiPort

Nazareth
Methara452.80388.25Dangerous
Chemical
Products

DjiboutiPort

Nazareth
Methara452.80388.25---------------------------------------------------------------------56

Activity

Item
Non dangerous
Chemical
Products
Vehicles *OriginDestination

Price in Birr/ton

DjiboutiPort

Nazareth
Methara368.00316.25

DjiboutiPort

Dire Dawa
Addis Ababa
MetharaNazareth962.652083.35
1301.76
1537.48

Various Items

DjiboutiPort

Nazareth
Methara702.90596.75

CoffeeAddis
Ababa
Nazareth
Dire Dawa
Addis
Ababa
Nazareth
MetharaDire Dawa
MetharaDjibouti Port

194.15

Djibouti Port
Djibouti Port
Djibouti Port

169.15151.20194.15

Djibouti Port
Djibouti Port
Djibouti Port
Djibouti Port

169.15160.15147.40250.00

Djibouti Port
Djibouti Port
Djibouti Port

194.15169.15151.20

Fruits andVegetables
ExportMolasses
CattleAddis
Ababa
Nazareth
Dire Dawa

Birr 99.50 added for vehicles less than 10 tons and Birr 9.95/ton added for vehicles over 10 tons
In addition, domestic tariffs/ton for all types of commodities (except vehicles) are as follows:a) From Addis Ababa to Dire Dawa:
Birr 192.40b) From Addis Ababa to Awash:
Birr 132.75c) From Addis Ababa to Nazareth:
Birr 91.00
d) From Nazareth to Dire Dawa:
Birr 168.90e) From Awash to Dire Dawa:
Birr 170.70
Source: Ethio-Djibouti Rail Transport.

---------------------------------------------------------------------57

Part 7: FUEL PRICESThe government revises fuel prices (except butane) every three months in accordance withthe price changes in the world market. Fuel price in Addis Ababa Starting from December 11,
2006 is as follows:

Items

Price in Birr/Liter

Benzene (regular)

7.77

Automobile diesel oil

5.44

Industrial light fuel oil

4.19

Industrial heavy fuel oil

4.11

Kerosene

4.12

Air Plane Fuel Oil

5.16

Fuel prices for localities outside Addis Ababa slightly vary depending on their distances from the seaport.
Source: Ministry of Trade and Industry.

---------------------------------------------------------------------58

Part 8: HOTEL ROOM AND HOUSING RENT RATES
Hotel rooms are usually negotiable and visitors who stay long may benefit from special discounts.
Some Hotels (Like Addis Ababa Hilton) have special discount for Investors. The following are
price ranges for Luxury Collection, five, four and three star hotels.

8.1 Hotel Room Rates
S/n
1

2
3

4

Type of Hotel
Luxury collection

Five Star Hotel
Four Star Hotel

Three Star hotel

Type of room

Price in USD

Single occupancy club room265

Double occupancy club room313

Single occupancy Executive room334

Double occupancy executive room363

Classic suite363Junior Suite

636



Deluxe suite

3817



Villa

3817



Single bed room87

Double bed room102Single bed room

44-67



Double bed room

54-76



Suite

88-89



Single bed room

28-45



Double bed room

37-66



Suite

60-90

Note: The Room rates are subject to 10% service charge and 15% VAT. Charges are as of December, 2006.

8.2 Housing Rent Rates
The government and private sector undertake renting houses for dwelling or office. Prices mayvary significantly from location to location or from building to building depending on the qualityof the building and distance from the center of the town. The minimum bid prices set by the
Administration for Rented Houses are as follows:
1st grade houses:

Birr 65/M2

2nd grade houses:

Birr 55.25/M2

3rd grade houses:

Birr 45.50/M2

Source: Agency for the Administration of Rented Houses.

---------------------------------------------------------------------59

Part 9:9.1

COSTS OF ADVERTISING

Advertising on Television

Commercial
Amharic and English
Type

PT1
PT2
NT1
NT2
SR

Local Products
Birr Per
Birr for 30
Sec.
Seconds (With
VAT)
46.66
1,610.00
38.33
1,322.50
33.33
1,150.00
25.00
862.5066.66
2,300.00

Foreign Products (Cost in Birr)
Birr Per
Birr for 30
Sec.
Seconds (With
VAT)
70.83
2,443.75
62.50
2,156.25
56.66
1,955.00
50.00
1,725.00
83.33
2,875.00

Tigrigna and Oromgna
Type
PT
NT

Birr Per
Sec.
16.66
11.66

Birr for 30” (WithVAT)
575.00402.50PT Prime Time (After News)NT Normal TimePT1 Evening Between and After Amharic News and first Amharic program
PT2 Evening between and after the second and third Amharic program.
Day Sunday “120” Program
NT1 Evening After the Third and Between the Fourth Amharic program
NT2 Evening Between & After the last Amharic program and after English NewsDay Week day & Week end day program and ETV MusicSR Holiday Special rate

Frequency DiscountNumber of spots
1---1516---30
31---50
51---8081 and Above

Discount
No
5%
10%
15%
20%

---------------------------------------------------------------------60

Production Rate
Type of Production
Vision and Audio Insertion
Editing
Vision and Audio
CameraScriptStudioFull Production

Amount862.501,322.50805.00575.00287.50230.001,897.50

9.2 Advertising by Radio
National Service
Amharic

Commercial

From MondayFriday
Saturday and
SundayBest Wish

Local Products
Normal Time (NT)Prime Time (PT)
Birr/
Birr for 30
Birr/
Birr for 30
Sec.
Seconds
Sec.
Seconds(With VAT)
(With VAT)

Foreign Products
Birr/
Sec.

Birr for 30
Seconds(With VAT)

15.00

517.5025.00

862.5016.50

948.7516.50

569.2527.50

948.7530.25

1,043.62

32.50

1,121.25

32.50

1,121.25

Other Languages

Commercial

From MondayFriday
Saturday and
SundayLocal Products
Normal Time (NT)Prime Time (PT)
Birr/
Birr for 30
Birr/
Birr for 30
Sec.
Seconds
Sec.
Seconds(With VAT)
(With VAT)

Foreign Products
Birr/
Sec.

5.00

172.5010345.0011.00

Birr for 30
Seconds(With
VAT)
379.505.50

189.75

11379.5012.10

417.45---------------------------------------------------------------------61

FM Addis 97.1
Amharic

Commercial

From Monday-Friday
Saturday and Sunday
Best Wish

Local Products
Normal Time
Prime Time (PT)
(NT)
Birr/
Birr for
Birr/
Birr for 30
Sec.
30
Sec.
Seconds
Seconds
(With
(With
VAT)
VAT)
11.50
396.5015.00
517.5018.34
632.73

Studio Services for 15 Seconds:
Voice Fee for 30 Seconds:

9.3

Foreign Products

Birr/
Sec.

Birr for 30
Seconds(With VAT)

15.00
-

517.50-

Birr 172.50
Birr 103.50

Advertising in Newspapers

Advertising cost in a newspaper may vary from newspaper to newspaper depending on whether
it is owned by the government or the private sector. The size of a newspaper also matters on thecost of advertising.
The advertising cost rate in the government-owned Ethiopian Herald and Addis Zemen isindicated as follows:
Size of Page
Full Page
Half Page
Quarter Page

Cost in Birr (With VAT)
NormalUrgent10,626.00
13,282.50
5,409.60
6,762.00
2,704.80
3,381.00

The advertising cost rate in the private press particularly Fortune News Paper is presented below:
Space
Size (h x w) in Cm
Ear Front
5x6
Quarter Inside
17 x 13.5
Half Inside
17 x 26
Half Back17 x 26
Box Front
7.5 x 5.9
Box Inside
8.5 x 6.5
Quarter Back17 x 13.5
Full Inside
34 x 26
Full Back34 x 26
Box Back
6.5 x 8.5
Ear Back
5x6
Note: The rate decreases for repeated advertising.

Cost in Birr
750-1000
450 – 600
750 – 1000
1125 – 1500
450 – 540
297 – 400
600 – 800
1500 – 2000
2400 – 3000
375 – 450
364 – 450---------------------------------------------------------------------62

Part 10: POSTAGE RATES
Postal services are operated, mainly by a government institution – the Ethiopian Postal Service.
A few private companies also operate courier services. The postage rate is indicated below:

10.1

Inland Postal Service

Ordinary Rates
Item

Letters

Weight in gm

Up to 20
Over 20 but not exceeding 50
Over 50 but not exceeding 100
Over 100 but not exceeding 250
Over 250 but not exceeding 500
Over 500 but not exceeding 1000
Over 1000 but not exceeding 2000

Post Card
Printed Papers Up to 20
Over 20 but not exceeding 100
Over 100 but not exceeding 250
Over 250 but not exceeding 500
Over 500 but not exceeding 1000
Over 1000 but not exceeding 2000
for each additional 1000 gm
Up to 100
Small packets
Over 100 but not exceeding 250
Over 250 but not exceeding 500
Over 500 but not exceeding 1000
Over 1000 but not exceeding 2000
Up to 1000
Over 1000 but not exceeding 3000
Over 3000 but not exceeding 5000
Over 5000 but not exceeding 10000
Postal Parcel
Over 10000 but not exceeding 15000
Over 15000 but not exceeding 20000
Over 20000 but not exceeding 25000
Over 25000 but not exceeding 30000
Aerogrammes-

Domestic
Price in
Birr
0.40
0.50
0.65
1.20
1.40
1.70
2.45
0.40
0.40
0.50
0.60
0.90
1.40
2.45
0.80
0.70
1.20
1.40
1.70
2.45
4.55
6.60
9.40
15.70
22.65
29.55
38.70
45.30
1.00

---------------------------------------------------------------------63

Charges for special services
Inland postal Service Charges for Money Orders
Up to Birr 300:
Over 300 but not exceeding 500:
Over 500 but not exceeding 1000:

Birr 4.20
Birr 6.95
Birr 7.90

Charges for Other Services in connection with Domestic postal items
Services
Registration charge (per item)
Express charge (per item)
Charges for advice of delivery
Charges for withdrawal of letter post item or alterationof address
For insured postal parcel (per parcel):
Highest insurance value
Free for power of attorney for collection of mailInquiry charge
Request of redirection
Charge for unpaid or underpaid ordinary letter post item
Indemnity for a registered letter
Fragile or cumbersome postal parcel
Returned or redirected postal parcel

Charge (in Birr)
1.05
3.00
1.30
2.10
165.00800.00
10.00
Free
Free
Double the amount ofdeficiency in postage
25.00
The charge of ordinary
ones plus 10%
increase
The amount of charge
paid shall be paidagain

A parcel when requested to be returned from the delivery area will be charged theoriginal amount plus the transport charge.

---------------------------------------------------------------------64

10.2International Postal Service

Item

Letters

Weight in gm

Up to 20
Over 20 but not exceeding 50
Over 50 but not exceeding 100
Over 100 but not exceeding 250
Over 250 but not exceeding 500
Over 500 but not exceeding 1000
Over 1000 but not exceeding 2000

Post Card
PrintedPapersUp to 20

Air MailSurface
Mail
International Zones
Zone 1 Zone 2
Zone 3
Price in Price in Price in Birr Price in
Birr
Birr
Birr
1.95
2.45
3.45
1.45
2.90
4.15
6.65
1.65
4.50
7.00
12.00
2.00
9.40
15.65
28.15
3.15
17.45
29.95
54.95
4.95
33.65
58.65
108.658.65
66.10
116.10216.10
16.10
1.90
1.90
1.90
1.45
1.95
2.45
2.45
1.45

Over 20 but not exceeding 50
Over 50 but not exceeding 100
Over 100 but not exceeding 250
Over 250 but not exceeding 500
Over 500 but not exceeding 1000
Over 1000 but not exceeding 2000
For each additional 1000 gm
Small packets Up to 100
Over 100 but not exceeding 250
Over 250 but not exceeding 500

2.90
4.50
9.40
17.45
33.65
66.10
32.45
5.65
10.35
18.10

4.15
7.00
15.65
19.95
58.65
116.10
57.45
8.15
16.60
30.60

6.65
12.00
28.15
54.95
108.65216.10107.45
13.15
29.10
55.60

Over 500 but not exceeding 1000
Over 1000 but not exceeding 2000

33.35
63.90

58.35
113.90108.35213.90

1.45

1.45

1.45

Aerogrammes Note:
Zone 1: Africa
Zone 2: Middle East & Europe
Zone 3: America, Far East and others---------------------------------------------------------------------65

1.65
2.00
3.15
4.95
8.65
16.10
7.45
3.15
4.10
5.60
8.35
13.90
-

Charges for Other Services in connection with International postal items
Services
Registration charge (per item)
Express charge (per item)
Charges for advice of delivery
Inquiry charge
Additional charge for an item handed over after the latest
time of postage
Charge for delivery of a small packet exceeding 500gm at
the post office counter
Storage of a letter post and M Bag exceeding 500gm foreach day
Delivery of parcel post
For Insured postal parcel (per Parcel) Birr 165 and highest
insurance value
Under paid items
Fragile or cumbersome postal parcel

Charge (in Birr)
4.50
4.50
2.25
Free
0.50
2.25
0.50
5.00
800.002.25
The charge of ordinary
ones plus 50%
increase

Tariff for Parcel/Packet
Price in Birr
WeightInternational

Domestic

Zone A Zone B Zone C Zone D Zone E
For the first ½ kg

142

160

185

205

220

20

For each additional 1/2
kg.

45

55

75

85

85

5

International Tariff for Documents
Price in Birr
WeightZone A Zone B

Zone C

Zone DFor the first ½ kg

105.00125.00150.00160.00170.00For each additional 1/2 kg.

40.00

40.00

45.00

50.00

55.00

Zone E

Note:
Zone A - Africa
Zone B - Middle East, European countries not included in D below, and India.
Zone C - U.S.A, Latin America, South Africa, and most Asian countries.
Zone D - Austria, France, Germany, Italy, The Netherlands, and Sweden.
Zone E – Canada---------------------------------------------------------------------66

10.3

EMS Postal Service

Among the services you can send by EMS are: Tender documents, Business papers,
Samples, Goods, Spare Parts, etc. The types of services provided by EMS Ethiopia include
Public services, On-Demand services and Contract services.
10.3.1

International Tariff for Parcel/Package
Tariff in Birr

Quantity
For the first ½ kg
For each Additional ½ kg

10.3.2

Zone A
142

Zone B
160

Zone C
185

Zone D
205

Zone E
220

45

55

75

85

85

International Tariffs for documents
Tariff in Birr

Quantity
For the first ½ kg
For each Additional ½ kg

Zone A
105

Zone B
125

Zone C
150

Zone D
160

Zone E
170

40

40

45

50

55

Note:

Zone A includes Djibouti, Fugi, Finland, Gabon, Gambia, Japan, Italy, Kenya, etc.
Zone B includes Congo, Cuba, Iran, Poland, Mexico, Mali, Liberia, Zambia, etc.
Zone C includes Cote Divore, Elsalvador, S.Africa, Ukraine, Tanzania, Romania, etc
Zone D includes Sychelles, Nicaragua, Israel, Jordan.
Zone E includes France,

10.3.3

Domestic tariff for documents and parcels
Quantity

10.3.4

Tariff in Birr

For the first ½ kg

20

For each Additional ½ kg

5Charges for Other Mail Services
Rent of small size box: Birr 18 per year
Rent of medium size box: Birr 48 per year
Rent of large size box: Birr 96 per year
Charge for modification of lock: Birr 10
Key deposit: Birr 3

Source: Ethiopian Postal Service.

---------------------------------------------------------------------67

Part 11: INSPECTION AND MARKING FEES OFETHIOPIAN STANDARDSThe Quality and Standards Authority of Ethiopia (QSAE) is a government organ that is
responsible for certifying and assuring the quality, safety and durability of products and services
in accordance with the published and valid Ethiopian standards. The unit inspection and marking
fees for some selected goods are shown below:
No.

Title

Unit inspection and marking fee(% of products unit selling price)1

Oil seeds

0.2

2

Pulses0.2

3

Edible Oil

0.2

4Green coffee beans

0.05

5

Non alcoholic beverages

0.3 – 0.4

6

Polymeric products

0.5

7

Leather and leather products

0.2

8Soap and detergents

0.2

9

Cement and cement products

0.4 – 0.5

10

Safety matches

0.02

11

Iron sheet products

0.5 – 0.8

12

Paper

0.8

13

Fertilizer

0.2

14

Beer

0.2

15

Natural Wine

0.4

16

Citrus Squash

0.3

17

Edible salt

0.2

18

Cotton Yarn

0.2

19

Industrial safety Eye Protector

0.5

20

Filing Articles

0.8

Source: Quality and Standards Authority of Ethiopia.

---------------------------------------------------------------------68

Part 12INVESTMENT PERMIT, PRINCIPAL REGISTRATION,
BUSINESS LICENCE & WORK-PERMIT FEES

12.1

Investment Certificate Fees

An investor who will take investment certificate pays investment certificate fee upon receiving
the investment certificate. The permit is expected to be renewed every year until the proposed
investment is implemented. Renewal fee is, therefore, effected up on renewing the permit.
Delivery time and fees for different types of payments is presented below:
Reason for Payment

Deliverytime

Fee(in Birr)

Issuance of Investment permit
New Investment
Expansion Investment

6 hours
6 hours

600
300

Renewal of Investment permit
New Investment
Expansion Investment

1 hour
1 hour200
100

Substitution of lost/damaged Investment permit
Issuance of trade registration certificate
Principal Registration
Summary Registration

1 hour100

6 hours
6 hours8010Issuance of business license
Issuance of work permit
Registration of technology transfer agreement
Renewal of technology transfer agreement
Registration of non equity foreign enterprisecollaboration

6 hours
1 hour2 hour
1 hour
1 hour

80
600
200
50
100

Renewal of non equity foreign enterprise collaboration

1 hour50

Issuance of domestic status certificate to a foreign
national permanently residing in Ethiopia taken fordomestic investor

1 hour100---------------------------------------------------------------------69

12.2

Trade Registration and License Service Fees
Reason for Payment
Principal Registration
Issuance of Principal Registration

Amount ofFee(in Birr)
80

Summary Registration
Principal Registration Alteration, Additional Registration,
Cancellation, Substitute and extract for an entry in
Principal Registration or for certificate of no entry

1050Issuance of Trade Name Registration

80

Trade Name Registration Substitute, Upgrading,
Replacement, and Cancellation

50

Registration of Commercial Representation

80

Trade License
Issuance of Business License

80

Substitute Business License

50

Temporary, Expansion, or Upgrading Business License
Business License Renewal

200
80

Business License for Commercial Representation
Business License Renewal for Commercial Representation

200
200

Substitute Business License for Commercial
Representation50---------------------------------------------------------------------70

Part 13: BANKING CHARGESThe National Bank of Ethiopia serves as the central bank while the government owned
Commercial Bank of Ethiopia, Construction and Business Bank, Development Bank of Ethiopia
and several other private banks perform commercial banking services.

13.1

Domestic Banking Charges
Services
Transfer of funds (MT, TT, DD)

CPO’s and certified checks

Charges(in Birr)½ per mille, minimum 1.00 for areas
within the radius of 150k.m.
1 per mille minimum 1.00 for areas
exceeding a radius of 150 k.m

Flat 5.00 for account holders
Flat 10.00 for non account holders

Replacement of lost saving passbook
Stop payment orders
Re-transfer of funds
Cancellation and/or amendment ontransfers
Standing instructions within samebranch and same customer (interaccount), and for loan repayment
purposeStanding instructions for transfers
between branches within same
location(city)

Flat 10.00
Flat 10.00
Flat 10.00
Flat 10.00

Cancellation and/or refunding of
demand draft lost
Cancellation and/or refunding of CPO
lostOpening and closing an accountSource: Commercial Bank of Ethiopia

Flat 50.00

Free

Flat 5.00 up to Birr 1,000
Flat 10.00 above Birr 1,000

Flat 50.00
Free---------------------------------------------------------------------71

13.2

Foreign Banking Charges

Service Category

Export Letter ofCreditServices

Charges(Birr)

Advising Commission

Flat 20

Extension Commission

Flat 20

Amendment

Flat 20

Confirmation Commission
Negotiation Commission•
0.5 % for values up to Birr 1 million• 0.45% for values over 1 million• Minimum 30•
0.25 % for values up to Birr 1
million• 0.245% for values over 1 million• Minimum 50

Opening Commission

•
•
•
•

Confirmation Commission

Import Letter ofCreditService Charge

Per quarter or part there of:•0.50 % for values up to Birr
4,000,000• 0.45% for values 4,000,00110,000,000• 0.425% Over 10,000,000• Minimum 50
Per quarter or part there of:•
•
•
•

•

0.50 % for values up to Birr
1,000,000
0.495% for values 1,000,0014,000,000
0.490% Over 4,000,000
Minimum 100

Extension Commission

0.50 % for values up to
Birr1,000,000
0.495% for values 1,000,0014,000,000
0.490% Over 4,000,000
Minimum 100

Per quarter or part there of:••••0.25 % for values up to
Birr1,000,000
0.245% for values 1,000,0014,000,000
0.240% Over 4,000,000
Minimum 30---------------------------------------------------------------------72

Service Category

Inward Bills Received
for Collection (IBC)

Cheque & Foreign
Transfer

Services

Charges(Birr)

Amendment

Flat 30

Cancellation

Flat 30

Service Charge
Documents released free of
payments

1% Minimum 20
Flat 10

Outgoing transfer
Traveler’s Cheque

1% Minimum 10
1%

Service Charge
Commission

Minimum 5
1%

Incoming Transfer•
0.25 % for values up to
Birr150,000• 0.225% for values 150,0011,000,000• 0.20% Over 1,000,000• Minimum 3

Cheques negotiatedService Charge
Type A• Up to USD 200,000• USD 200,001 – 400,000• USD 400,001 – 600,000• Over 600,001 USD
Amendment• Extension• Other terms ofguarantee

0.5% Minimum 5•••

0.5% for 3 months of part there of
0.333% for 3 months of part thereof
0.25% for 3 months or part thereof
0.20% for 3 months or part there of••

0.20% for 3 months or part there of
USD 10•

USD 10 per bond•

0.125% for 3 months or part thereof minimum 20 USD
0.5 for 3 months or part there ofminimum 20 USD•

Type B
Guarantee• Bid bond passed by us
with our authentication
Type C
Indirect foreign bid bondat request of local
customer•

Against 100% deposit•

With credit facilities•

Source: Commercial Bank of Ethiopia---------------------------------------------------------------------73

13.3

13.4

Lending Rate

The development Bank of Ethiopia charges 8.5% interest on projects not
generating foreign exchanges. However, the interest rate to be charged is 7.5% onexport oriented and/or foreign exchange earning projects.
The lending rate for other banks ranges from 7% to 14% which is 10.50% on the
average (June 2007).

Interest Rate
Saving Deposit:
Birr 3.08
Time Deposit
Up to 1 Year:
Birr 3.637993
1 – 2 Year:
Birr 4.114377
Over 2 Year:
Birr 4.495206
Demand Deposit
Birr 0.06510

Note:
The above figures are average of all Banks as of June 2007.
Source: National Bank of Ethiopia

Exchange Rates in the Inter-bank Foreign Exchange Market
PeriodAverage Weighted Rates in Birr per USD

2001/02*First Quarter(July, AugustandSeptember)-

Second Quarter(October,November andDecember)
8.5525

Third Quarter(July, AugustandSeptember)
8.5605

Fourth Quarter(July, AugustandSeptember)
8.5643YearlyAverage
8.5425

2002/038.56978.57688.58458.59278.58092003/048.60578.61668.62448.63228.6197

2004/058.64088.64838.65548.66258.6518

2005/2006

8.6702

8.67768.68478.69148.68102006/2007

8.69868.71978.83158.92728.7943*Daily inter-bank foreign exchange market operation began in October 2001.
Note: The lists of private banks operating in Ethiopia are presented at the end of this publication.
Source: National Bank of Ethiopia.

13.3

EXCHANGE RATESThe wholesale exchange rate is determined through auction in which the National Bank ofEthiopia (NBE) sales foreign currency to private and government commercial banks andinvestors intending to import goods for investment and to effect invisible payments.
Commercial Bank of Ethiopia, a government owned bank and other private commercial
Banks participate in the selling and buying of foreign currency. In the Inter-bank foreignexchange market there is a slight variation of exchange rate between banks.

---------------------------------------------------------------------74

Major Currencies Against Birr (Applicable On 27-12-2006 ) is presented below:1

CASH
CURRENCY

CODE

TRANSACTION

BUYINGSELLINGBUYINGSELLING

US DOLLAR

USD

8.77558.95108.77558.9510

POUND STERLING

GBP

17.1824

17.5260

17.1824

17.5260

EURO

EUR

11.522211.7526

11.522211.7526

SWISS FRANK

CHF

7.19077.33457.19077.3273

SWEDISH KRONER

SEK

1.27771.3033

1.27771.3020NORWEGIAN KRONER

NOK

1.40531.43341.40531.4320DANISH KRONER

DKK

1.5453

1.5762

1.5453

1.5747

DJIBOUTI FRANC

DJF

0.05020.05120.05020.0512

JAPANESE YEN

JPY

0.07390.07540.07390.0754

CANADIAN DOLLAR

CAD

7.55147.70247.5514

7.6949SAUDI RIYAL

SAR

2.33982.3866

-----

-----

UAE DIRHAM

AED

2.38902.4368

-----

-----

CFA

XAF

0.01200.0122-----

INDIAN RUPEE

INR

-----

-----

0.19780.2016KENYAN SHILLING

KES

-----

-----

0.12640.1288AUSTRALIAN DOLLAR

AUD

-----

-----

6.88887.0197

SPECIAL DRAWING RIGHT

SDR

-----

-----

13.213972

13.465037

SOUTH AFRICAN RAND

ZAR

-----

-----

1.2412

1.2648For the latest of its kind please visit www.combanketh.com
Source: Commercial Bank of Ethiopia.

---------------------------------------------------------------------75-----

Part 14: INSURANCE PREMIUM RATESThe Ethiopian Insurance Corporation (EIC)
is a public enterprise that provides various
classes of insurance services. Several privatecompanies are also engaged in the insurance
business fostering a competitive businessenvironment.

0.55% of insured value
0.175% of insured value forIndustrial risk:

0.50% of insured

value for other goods
Fire Risk

1.25%
1.0%

Buses & tankers: 1.75%

Private dwellings:
insured value

0.10% - 0.90 ofCommercial risk:of insured value

0.15% - 0.1275%

Industrial risk:
value

0.3% of insured

OthersService business: 3.0%

Marine cargo:
0.75% of the insured value
Workmen's compensation:
1.50% of annual salaryGroup personal accident:
1.62% of agreed value

Agricultural vehicles: 1.0%
Plants and Machinery of Construction• Construction erection works:
0.5% of insured value per annum.
•

Commercial risk:

machinery

VehiclesGenerally, the rates for motor
comprehensive cover vary according to thecategory, value and horse power of vehicles.
The average annual premium rates for new
vehicles as a percentage of insured value
are:

Trucks:0.25% of insured value

Industrial risk:

Regarding insurance service prices of EIC
products, indicative premium rates forselected categories are presented below.

Private cars:

Private dwellings:

Construction machinery:
1.5% of insured value per annum

Burglary and House Breaking________________________________
Note: All indicative data are as of January 2005

Source: Ethiopian Insurance Corporation.

The names and addresses of operational private insurance companies in Ethiopia are presented at
the end of this publication.

---------------------------------------------------------------------76

List of International Roaming Partners of Ethiopian
Telecommunication Corporation (ETC)
No.

Operators

Country

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.

Base
Belgium
MascomBotswana
TelcelBurundiMTN
Cameroon
SonfonDenmark
TDC
Denmark
Telia Sonera
Denmark
SoneraFinland
Orang
FranceSFR
FranceLiberties
Gabon
AfricellGambiaMobitel
Ghana
Scancom
Ghana
Hexacom
India
Spice
India
Partner (Orange) Israel
TIM
Italy
Vodafone
Italy
Kencell
Kenya
Safaricom
Kenya
P&T
Luxembourg
CeltelMalawimCel
Mozambique
MTC
NambiaT-Mobile
Netherlands
Globacom
Nigeria
NetComNorwayPTK Central
PolandSTC
Saudi Arabia

No.

Operators

Country

31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.

OrangeSlovakia
CellC
South Africa
MTN
South Africa
VodacomSouth Africa
TME
Spain
MobitelSudan
Telia Sonera
SwedenOrangeSwitzerland
Syriatel
Syria
CeltelTanzania
Aria
TurkeyCeltelUganda3G
UK
VodafonUK
Sabafon
Yemen
Spacetel
Yemen
StarHub
Singapore
ImpulsRussiaCellcom
IsraelEmtel
Mauritius
TurkcellTurkeyOrangeCote D’ivoire
OrangeNetherlands
WestelHungary
Mobilkom
Liechtenstein
BPL.
India
Optus
Australia
Wind
Italy
CeltelCongo (DRC)--------------------------------------------------------------------------------------------------------------------- 77 -

LIST OF GOVERNMENT AND PRIVATE BANKS
National Bank of Ethiopia
Tel: (251-011) 551 74 30
Fax: (251-011) 551 45 88
Construction and Business Bank
Tel: (251-011) 551 23 00
Fax: (251-011) 551 51 03
Abyssinia Bank S. C.
Tel: (251-011) 551 41 30
Fax: (251-011) 551 15 75
Awash International Bank S. C.
Tel: (251-011) 661 44 82 /83
Fax: (251-011) 661 44 77

Commercial Bank of Ethiopia
Tel: (251-011) 551 50 04
Fax: (251-011) 551 45 22
Development Bank of Ethiopia
Tel: (251-011) 551 11 88
Fax: (251-011) 551 16 06
United Bank S. C.
Tel: (251-011) 465 52 22 / 65 52 43
Fax: (251-011) 465 52 43
Wegagen Bank S. C.
Tel: (251-011) 552 38 00
Fax: (251-011) 552 35 20/21

Dashen Bank S. C.
Tel: (251-011) 466 13 80
Fax: (251-011) 465 30 37

Nib International Bank S. C.
Tel: (251-011) 550 32 88
Fax: (251-011) 550 43 49

LIST OF PRIVATE INSURANCE COMPANIES
Africa Insurance Company S.C.
Tel: (251-011) 663 77 16
Fax: (251-011) 662 38 86

National Insurance Company of
Ethiopia
Tel.: (251-011) 466 11 29
Fax: (251-011) 465 05 60

Awash Insurance S.C.
Tel: (251-011) 552 60 59
Fax: (251-011) 552 60 91

National Insurance Company of
Ethiopia
Tel.: (251-011) 466 11 29
Fax: (251-011) 465 05 60

Global Insurance Company S.C.
Tel: (251-011) 156 74 00
Fax: (251-011) 156 62 00

United Insurance Company S.C.
Tel: (251-011) 467 56 56
Fax: (251-011) 467 32 58

Nile Insurance Company S. C.
Tel: (251-011) 551 49 99
Fax: (251-011) 551 45 92

Nib Insurance Company S.C.
Tel: (251-011) 552 81 95/96
Fax: (251-011) 552 81 93

Source: Ethiopian Insurance Corporation---------------------------------------------------------------------78

FOR FURTHER INFORMATION
Further information and /or any subsequent amendments to the information in this booklet may
be obtained from the relevant office through the following addresses.
Ethiopian Investment Agency,
P.O.Box 2313, Addis Ababa
Tel: (251-011) 5510033/5537286
Fax: (251-011) 5514396
E-Mail: ethiopian.invest@ethionet.et
Ministry of Trade and Industry,
P.O.Box 704, Addis Ababa
Tel: (251-011) 5518025
Fax: (251-011) 5515411
E-Mail: moti@ethionet.etRoad Transport Authority
P.O.Box 2504, Addis Ababa
Tel: (251-011) 5510244
Fax: (251-011) 5510715
Shell Ethiopia Limited
P.O.Box 3174, Addis Ababa
Tel: (251-011) 4404040
Fax: (251-011) 4423017
E-Mail: shellethiopia@ethionet.etAmhara Region Investment Office,
P.O.Box 439, Bahr Dar
Tel: (251-058) 2200640
Fax: (251-058) 2202033
E-Mail: amhara.invest@ethionet.etSouthern Nations, Nationalities and Peoples’
Region Investment Office, P.O.Box 328,
Awassa, Tel: (251-046) 2203300/2210367-69
Fax: (251-046) 2203265
E-Mail: snnpinv@ethionet.etTigray Region Investment Office,
P.O.Box 947, Mekelle
Tel: (251-034) 4408522/4402042
Fax: (251-034) 4408403
E-Mail: invest@ethionet.et
Oromiya Region Investment Agency,
P.O.Box 8776, Addis Ababa
Tel: (251-011) 5531525/531885
Fax: (251-011) 5531520
Ethiopian Electric Power Corporation
P.O.Box 1233, Addis Ababa
Tel: (251-011) 1550811
Fax: (251-011) 1551324
Ethiopian Postal Service
P.O.Box 1629, Addis Ababa
Tel: (251-011) 5515011
Fax: (251-011) 5512999
Ethiopian Telecommunication Corporation
P.O.Box 1047 Addis Ababa
Tel: (251-011) 5510500
Fax: (251-011) 5515777
E-Mail: etc.commun@ethionet.et
Web Site www.ethionet.et

Ethiopian Insurance Corporation
P.O.Box 2545, Addis Ababa
Tel: (251-011) 5512400
Fax: (251-011) 5517499
E-Mail: eic.mdxvs@ethionet.etQuality and Standards Authority of Ethiopia
P.O.Box 2310, Addis Ababa
Tel: (251-011) 6460111
Fax: (251-011) 6460880(81)E-Mail: qsae@ethionet.et
Ethio-Djibouti Rail Transport Organization
P.O.Box 1051, Addis Ababa
Tel: (251-011) 5154057
Fax: (251-011) 5513833
Maritime and Transit Services Enterprise
P.O.Box 1186, Addis Ababa
Tel: (251-011) 5517564/5510666
Fax: (251-011) 5514097/5515197/5518139
Ministry of Finance and Economic Development,
P.O.Box 1037, Addis Ababa
Tel: (251-011) 1560002/1552800
Fax: (251-011) 1550118/1556844
E-Mail: medac2@ethionet.et
Addis Ababa Water and Sewerage Authority
P.O.Box 1505, Addis Ababa
Tel: (251-011) 1124440
Fax: (251-011) 1553793
Transport Design S.C.
P.O.Box: 41726
Tel: (251-011) 5513586/5515888
Fax: (251-011) 5514231---------------------------------------------------------------------79