The Council of Ministers, in its 52nd regular session held today, passed a series of landmark decisions aimed at modernizing the nation’s economic framework. Under the leadership of the Office of the Prime Minister, the Council greenlit significant changes to customs laws, investment incentives, and entrepreneurship policy to align with the country's evolving development goals.
The session began with an extensive deliberation on a draft proclamation to amend the long-standing Customs Proclamation. Recognizing that the existing law has been in service for many years, the Council moved to update its provisions to match the current growth of international trade and better support Ethiopia's burgeoning manufacturing industry.
The amendment is specifically designed to encourage legal trade and investment by streamlining procedures and removing outdated bureaucratic hurdles. After incorporating additional expert inputs, the Council unanimously voted to refer the draft proclamation to the House of Peoples’ Representatives for final ratification.
In a strategic move to attract high-impact capital, the Council also discussed and approved a new draft regulation regarding investment tax and duty incentives. This new framework introduces a performance-based system that prioritizes sectors contributing most significantly to national economic growth. By focusing on projects that require substantial capital investment and prioritizing results, the government aims to ensure that incentives are tied directly to measurable economic contributions. The Council decided that this regulation will become effective immediately upon its publication in the Federal Negarit Gazette.
Finally, the Council approved a comprehensive Entrepreneurship Development Policy designed to foster a national culture of innovation and value addition. This policy seeks to build a sustainable and conducive ecosystem where creative enterprises can thrive and play a pivotal role in achieving Ethiopia’s long-term development targets. By ensuring that entrepreneurial activities are supported by a clear legal and institutional framework, the government aims to drive growth through private-sector ingenuity. The Council unanimously approved the policy, declaring it effective as of today, January 20, 2026
