Ethiopia
AI Agent Legal Status: undefined · Autonomy: none
Legal Framework
Ethiopia has pursued telecom liberalization and digital identity programs (Digital Ethiopia 2025) but maintains a relatively restrictive regulatory environment. No AI-specific legislation exists. The government controls the telecom sector through Ethio Telecom, though Safaricom has recently entered the market.
Key Laws & Regulations
- ◆Commercial Code 2021 (revised)
- ◆Investment Proclamation No. 1180/2020
- ◆Computer Crime Proclamation No. 958/2016
- ◆Electronic Transactions Proclamation
Business Formation
Private Limited Company (PLC) and Share Company under the revised 2021 Commercial Code. Foreign ownership restrictions apply in several sectors including telecom, banking, and financial services.
Tax Implications
Corporate tax rate of 30%. Various tax incentives for priority sectors and industrial parks. VAT at 15%.
Opportunities
Massive underserved market with growing digital infrastructure. Industrial parks offer tax incentives. Telecom liberalization is gradually opening the market.
Highlights
Second-largest population in Africa (120M+) and major market potential. Government-led digital transformation and telecom liberalization signal openness to technology.
Risks & Challenges
Highly controlled regulatory environment, foreign exchange shortages, restrictions on foreign ownership in key sectors, and periodic internet shutdowns create significant operational risks.