RECOGNIZING that increasing the role of private sector investment in all sectors of the economy including in productive and enabling sectors has become necessary to accelerate the economic development of the country, ensure its sustainability, strengthen domestic production capacity and thereby improve the living standards of its people;

WHEREAS it has become necessary to create an economic framework that fast-tracks the global competitiveness of the National economy, increases export performance, generates more and better employment opportunities, and facilitates sustainable and entwined linkage among various economic sectors;

WHEREAS it has become necessary to further increase and diversify foreign investment inflow to accelerate inward transfer and diffusion of knowledge, skill, and technology;

RECOGNIZING that it has become necessary to maximize linkages between foreign and domestic investments, promote equitable distribution of investments among regions, and leverage foreign capital to promote the competitiveness of domestic investors;

RECOGNIZING that it has become essential to put in place a system of monitoring and supervision to ensure that investments deliver on promised potentials stated in National Investment Objectives and are operated in accordance with the law;

WHEREAS the investment administration system has to be transparent, predictable, and efficient to increase investment attraction, retention, and expansion;

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 follows: