Abebe Asamere – Page 2 – Ethiopian Business Review

Key Issues to Consider While Negotiation

Because of the booming hospitality industry in Ethiopia and the ever-increasing awareness of hotel owners about management contracts, hotel management by brand-affiliated operators is fast increasing. These contracts grant operational control of a brand – in this case, an international brand hotel chain – to a management company, usually based in the country of operation, in exchange for a fee.In consideration of this fact, the government has issued a basic regulatory framework of franchising to fill the gap in the absence of a detailed franchise law.

Commercial registration and licensing is one of the legal concerns subjected to frequent changes in regulatory governance – and for good reason: It is a key legal instrument in regulating and governing the private sector. In today’s ever-shifting global economy, governments should stay abreast of the needs and desires of the business community, enacting laws that promote and regulate their activities.

Issues to Note While Amending the Income Tax Law

With some minor amendments, the Income Tax Law (proclamation no 286/2002) has been operational for the last 14 years, complemented by the proclamation regulating Ethiopia’s Value Added Tax. Both proclamations were the result of measures the government took to expand the tax base and modernise the system. The purpose was to mobilise resources to fund development projects and government expenditures from domestic sources. The results have been noticeable, as the federal tax authority was able to increase tax collection drastically, with the annual amount reaching more than ETB100 billion in the just-ended budget year.

In any country, the issue of labour is one of the policy areas that need serious regulatory attention to ensure and enhance social welfare, investment promotion and stable political economy. This is also true in Ethiopia. However, there are labour issues that need attention.

As the biggest economy in Africa, with a GDP of 419.92 billion US Dollar in 2010 according to the Global Finance, and labeled by the World Bank as one of the four upper middle income countries in Africa, South Africa is a preferred destination for refugees from poor nations in its backyard such as Mozambique, Zimbabwe, Malawi and other distant African countries like Nigeria and Ethiopia.

South Africa’s population was 51.77 mil- lion according to the 2011 census. Official evidences show that the share of immigrant population is growing fast; and Ethiopians are among the dominant.

Applying some form of regulatory measure on the activities of businesses is always one of the major concerns of every nation. This is critically important to regulate the economic, social and political life of their citizens. Among the forms of regulatory measures, licensing is the most common instrument.

Business licenses are permits, issued, inspected and revoked by government agencies, that allow individuals or companies to conduct businesses within their jurisdiction. This doesn’t, however, mean that business licensing is a standard requirement in every nation.

Businesses are legally responsible for their actions as if they were individual. This concept, known as corporate criminal liability, looks at practically every commercial or industrial organization whose existence is to make profit. As to the concept, businesses are responsible as an entity separate from their shareholders or partners.

Nonprofit and public sector organizations like charities, schools, or religious institutions are treated differently.

Hotel Management Contracts:

Key Issues to Consider While Negotiation

Key Issues in the new Commercial Registration and Licensing Proclamation

Executives’ Criminal Liability in Tax Offences

Issues to Note While Amending the Income Tax Law

Regulatory, Policy Concerns in the Labour Market

A Long Walk to Prosperity: A Story of Innovative Ethiopian Business Persons in South Africa

Business License: Major Legal Effects of Validity, Renewal and Cancellation

Corporate Criminal Liability: An Emerging Concern For Businesses In Ethiopia