17 Jul 2017 Five Points to Know about Doing Business in Eritrea
1. The Investment regime 投资体制
Proclamation 59/1994 (Investment Proclamation) and Proclamation 159/2007 (Foreign-Financed Special Investment Act) regulate investment in the country.
《公告第59/1994》 (投资公告)与《公告第159/2007》 (外资投资法案)，规定了于厄立特里亚(以下称厄国)投资的相关法规范。
a). All areas of investment are open to all foreign investors. However, foreign investors may invest in domestic retail and wholesale trade, and import and commission agency activities and financial services only if Eritrea has concluded a bilateral agreement of reciprocity with the country of the investor.
b). Investors engaging in certain activities must obtain a License (permit) from regulatory bodies and a business license from the Business License Office (BLO).
2. Employment of expatriates 雇用非厄国之外籍员工
A foreign company or investor may hire foreign nationals in technical and managerial positions. Although Investors may employ experts in the absence of domestic experts, they are obliged to train Eritrean nationals to eventually take the place of expatriates.
3. Tax regime 税收体制
There are numerous tax incentives to foreign investors. However, the country does not have double tax treaties in force. Administratively, there is Tax Appeal Commission, an independent tribunal, where investors can bring their grievances against the Inland Revenue department (IRD). The decision can be appealed to the High court.
4. Allocation and remittance of foreign exchange 外汇的配置与移转
Investors may open and operate foreign exchange accounts in Eritrea (Commercial bank of Eritrea (CBE) or Housing and Commerce Bank (HCB)) in accordance with the regulations of National Bank of Eritrea (The Bank) . Investors may retain 100% of their export earnings in foreign currency. They may also remit foreign exchange out of Eritrea at the existing exchange rate. Debt-servicing payments on foreign loan incurred pursuant to the Investment law and Bank regulations, technology transfer fees or royalties, proceeds from liquidation and payment received from sale or transfer of shares can all be remitted. Expatriates may also remit savings from their salaries according to the Bank regulation. In 2013, the National Bank issued a law  requiring all transactions involving foreign exchange to be conducted only through Banks or authorized financial institutions. The law also requires all investors to declare in the customs office any amount of foreign exchange more than 10,000 USD or its equivalent in other foreign currencies when bringing in or taking it out of the country.
The National Bank is the Banker of the State responsible for monitoring all transactions involving foreign exchange.
5. Guarantees 担保
The Investment Proclamation guarantees that capital and other associated foreign-owned assets will not be nationalized except for public purposes and not without due process of law. A full and fair compensation is due in cases of expropriation. To this effect, Eritrea has also signed the convention establishing Multilateral Investment Guarantee Agency (MIGA).
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We coordinate an independent Pan-African network for business law firms from 45 African jurisdictions.