KEY POINTS
- The Commercial Code of Ethiopia, Proclamation No. 1243/2021, repealed Books One, Two and Three of the 1960 Commercial Code.
- Commercial registration and business licences are governed by the Commercial Registration and Business Licensing Proclamation No. 980/2016, as amended.
- Electronic transactions, personal data and arbitration each have dedicated proclamations (Nos. 1205/2020, 1321/2024 and 1237/2021).
The Commercial Code
The Commercial Code of Ethiopia Proclamation No. 1243/2021 modernised the country’s company and commercial law. Its own text repeals Books One, Two and Three of the Commercial Code Proclamation No. 166/1960. It contains rules on traders, trade and businesses, on business organizations, and on bankruptcy and reorganization.
Contracts between businesses are also governed by the general law of contract in the Civil Code (Proclamation No. 165/1960).
Registration, licensing and fair trading
Commercial registration and trade licences are dealt with by the Commercial Registration and Business Licensing Proclamation No. 980/2016 and its amendments. Competition and consumer protection are governed by the Trade Competition and Consumers Protection Proclamation (No. 813).
Digital business, data and disputes
The Electronic Transaction Proclamation No. 1205/2020 governs electronic transactions. The Personal Data Protection Proclamation No. 1321/2024 sets principles for processing personal data, the rights of data subjects and the duties of data controllers and processors.
Commercial disputes can be resolved in the courts or, where the parties agree, by arbitration or conciliation under the Arbitration and Conciliation Working Procedure Proclamation No. 1237/2021.
Frequently asked questions
What is the current Ethiopian Commercial Code?
The Commercial Code of Ethiopia Proclamation No. 1243/2021. Its text repeals Books One, Two and Three of the 1960 Commercial Code (Proclamation No. 166/1960). Check the latest amendments before relying on a provision.
Which law governs business licences in Ethiopia?
The Commercial Registration and Business Licensing Proclamation No. 980/2016, as amended, together with its implementing regulations and directives.
Does Ethiopia have a data protection law?
Yes. The Personal Data Protection Proclamation No. 1321/2024 covers the principles for processing personal data, the rights of data subjects, the duties of controllers and processors, and enforcement.
Can commercial disputes in Ethiopia go to arbitration?
Yes, where the parties agree. Arbitration and conciliation are governed by the Arbitration and Conciliation Working Procedure Proclamation No. 1237/2021.
This page is general legal information about Ethiopian law, prepared from the published texts it cites. It is not legal advice and does not confirm whether a provision is still in force or has been amended. Federal laws are published in the Federal Negarit Gazeta in Amharic and English, and the Amharic version prevails where they differ. Consult a qualified Ethiopian lawyer about your situation.