Over 2,400 Investment licenses face cancellation

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The Ethiopian Investment Agency stated it will be canceling 2,497 investment licenses with an accumulative investment worth well over 60 billion birr within the next week if the listed business owners do not report and give explanations to the Agency.
The Agency posted a notice some two weeks ago listing down the names of the companies whose investment licenses would be potentially revoked, along with other information such as the sector in which they are involved together with their investment worth.
“We are currently going through documents of various companies and conducting an evaluation. We are checking to see if everything is done correctly. Accordingly we have put up a notice here asking companies who do not have the appropriate and necessary documents, come and report to our office,” a PR officer at the Agency told Capital.
Both local and international companiesare listed on the issued notice by the Agency. “If the companies listed report and provide the Agency the necessary documents that are currently missing, then there is no reason their license would be canceled,” the PR officer stated.
Some of the reasons for the licenses to be revoked include failure to renew business licenses as well as not starting the operations for which the license is issued.
“Some of the companies acquire licenses for projects but end up failing to begin operations in the specific time provided in the law. These companies will have to provide a persuasive and acceptable reason in order to keep their license,” he further added.
The companies on the list are involved in a variety of sectors such as construction, tour operation, hospitals, restaurants, many of which specialize in Chinese cuisine, consultancy firms, higher education institutions, construction machinery rentals, flower farms, hotels and more.
“We are still in the process of evaluating more documents. We will release names of more companies, if there are any, who have failed to provide full documentation shortly,” he said.
The companies have been given a window of 20 days to be able to fix the problem and stop their license from being revoked.