Special Economic Zone Proclamation No. 1322/2024.

The Special Economic Zone Proclamation No. 1322/2024 establishes a legal framework governing the designation, development, operation, and regulation of special economic zones in Ethiopia. Its objectives are: 1. encourage private sector participation in manufacturing, agriculture, trade, services and other productive investments; 2. attract foreign direct investment, create and promote economic clusters, create decent jobs; 3. enhance export performance, strengthen national capacity in import substitution, build backward and forward linkage, increase integration into global value chains, and generate sustainable growth; 4. provide within special economic zones a robust policy framework for experimenting deeper economic reforms that improve the efficiency and conduciveness of the investment and business environment; deploy a comprehensive special economic zone regime that strengthens Ethiopia’s capacity to effectively compete in regional and international trade and global value chains; 5. establish a regulatory framework that guides the designation, development, operation, and regulation of special economic zones, and institutes the activities, rights and obligations of special economic zone end-users. The Proclamation applies nationwide to all designated special economic zones and related activities and defines the institutional roles of the Ethiopian Investment Board and the Ethiopian Investment Commission. It sets out detailed procedures and criteria for the designation of special economic zones, including documentary requirements, spatial planning considerations, environmental and social assessments, and a minimum capital threshold. It provides for the modification, expansion, or revocation of zone designations and allows existing industrial parks to acquire special economic zone status, subject to specified conditions. The Proclamation regulates investment permits, business licensing, land allocation, sub-lease arrangements, and the operation of a mandatory one-stop service system to facilitate permits, registrations, and incentives. It establishes the rights and obligations of developers, operators, enterprises, and other end users, including requirements relating to infrastructure provision, phased development, reporting, and compliance with labour and environmental standards. The text also sets out provisions on service charges and administrative penalties.