PSI Research Report 34 - Chinese Investment in Ethiopia : Contribution, Challenges, Opportunities and Policy

Understanding the state of Chinese investment in Ethiopia, the fundamental challenges facing Chinese investors, and the opportunities for future engagement is of particular interest to both Chinese and Ethiopian policymakers, and Chinese businesses. [...] On the other hand, the results of the study will be useful for the Chinese firms to inform them of the investment opportunities and businesses cases in Ethiopia for their future investment and growth. [...] Involvement of Chinese Enterprises in Ethiopia In the previous sections, an overview of Chinese FDI to Africa and the various sources of FDI to Ethiopia including China is described. [...] From the interviews we conducted, the key bottlenecks in relation to tax administration include the following; (i) Ambiguity of tax rules Chinese enterprises strongly argue that much of the tax problems come from the ambiguity of the tax rules of the country. [...] The regulation allows payments for all kind of imports with the exception of goods that are supposed to be detrimental to the health of the public and security of the nation.