WHEREAS, the encouragement and expansion of investment, especially in the manufacturing sector, has become necessary so as to strengthen the domestic production capacity and thereby accelerate the economic development of the country and improve the living standards of its peoples;

WHEREAS, it has become necessary to further increase the inflow of capital and speed up the transfer of technology into the country;

WHEREAS, it has become necessary to enhance and promote the equitable distribution of investments among regions and benefit the society by ensuring competitiveness among investments made by investors;

WHEREAS, it has become essential to put in place a system of supervision to ensure that permits and incentives granted to investors are used for the intended purposes;

WHEREAS, the system of administration of investment needs to be transparent and efficient;

WHEREAS, it has been considered that the establishment of industrial development zones helps, by creating enabling and competitive condition, to interrelate manufacturing sectors based on value creation as well as to attract and expand investment;

WHEREAS, to these ends, it has become necessary to revise the existing law on investment;

NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follow