Ethiopia's federal government is undertaking a landmark shift in its investment incentive regime. It is moving away from broad-based tax holidays to performance-based incentives.
Ethiopia's federal government is making a landmark shift in its investment incentive regime. This change moves away from broad-based tax holidays to performance-based incentives, as reported by Addis Fortune.
The article, dated October 26, 2025, and written by Yitbarek Getachew, Fortune staff writer, highlights this transition. The shift aims to make the investment sector more effective by tying incentives to actual performance rather than blanket exemptions. Broad-based tax breaks have been a longstanding feature, but they are now being replaced to encourage better outcomes.
This reform is expected to enhance the competitiveness of Ethiopia's investment landscape. Occurring in Addis Ababa, it underscores efforts to bolster economic growth through targeted policies.