HomeReportsInvestment Climate Statements...Custom Report - 904d4e473f hide Investment Climate Statements Custom Report Excerpts: Djibouti, Ethiopia, France, Germany, Monaco Bureau of Economic and Business Affairs Sort by Country Sort by Section In this section / Djibouti 2. Bilateral Investment Agreements and Taxation Treaties 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics Ethiopia 2. Bilateral Investment Agreements and Taxation Treaties 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics France and Monaco 2. Bilateral Investment Agreements and Taxation Treaties 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics Germany 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics Djibouti 2. Bilateral Investment Agreements and Taxation Treaties Djibouti does not have a bilateral investment treaty (BIT), nor does it have a bilateral taxation treaty with the United States. However, Djibouti is eligible to benefit from the African Growth and Opportunity Act (AGOA). The Common Market for Eastern and Southern Africa (COMESA), of which Djibouti is a member, signed a Trade and Investment Framework Agreement (TIFA) with the United States in 2001. In March 2018, Djibouti signed the trade agreement for the African Continental Free Trade Area (AfCFTA), paving the way for a liberalized market for goods and services across the continent. A total of 54 countries have signed the agreement and Djibouti is one of 30 countries to have ratified the agreement. Djibouti has signed bilateral investment treaties with several countries. There is no publicly available list of these treaties, and the terms are not standardized from one treaty to the next. Other treaties to which Djibouti is a party include ESA (Eastern and South Eastern Africa)-EU Interim Economic Partnership Agreement, COMESA, Agreement for the Promotion, Protection and Guarantee of Investment among Member States of the Organization of Islamic Conference, Cotonou Agreement, AU Treaty, League of Arab States Investment, Arab League Investment Agreement, and Arab Economic Unity Agreement. Business tax exoneration is given to all newly registered foreign and Djiboutian companies for the first three years of operations for those operating in Classes V through VIII (110,000 DJF (621 USD) to 513,000 DJF (worth of annual business taxes). For those above Class VIII (>513,000 DF (2,898) worth of annual business taxes) and for all banks, they are exonerated from the “proportional” business tax which is equivalent to 20% of their business revenues. Business value added tax (VAT) and consumption tax exoneration is provided to foreign and domestic businesses working in the hospitality, heavy- and light-industrial, real estate and land development sectors during the construction and onboarding phases of the project. As soon as the project begins operations, then the tax exoneration ends. For example, a hotel that is undergoing construction may receive VAT and consumption tax exonerations until the hotel opens for business. Real estate and sales tax reduction from 10% to 3% is provided for all sales and purchases of land, buildings, and homes for all transactions made by any entity including individuals, foreign or domestic businesses, organizations, schools, etc. Previously, only businesses could receive a tax break of paying 5% sales or purchase tax on land and buildings in their first purchase. Corporate (profit) tax exoneration is provided for all businesses that enter the market with an initial investment of 50 million DJF (282,486 USD) or more, for up to seven years. 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy Host Country Statistical source* USG or international statistical source USG or International Source of Data: BEA; IMF; Eurostat; UNCTAD, Other Economic Data Year Amount Year Amount Host Country Gross Domestic Product (GDP) ($M USD) 2019 $3,346 2019 $3,319 www.worldbank.org/en/country Foreign Direct Investment Host Country Statistical source USG or international statistical source USG or international Source of data: BEA; IMF; Eurostat; UNCTAD, Other U.S. FDI in partner country ($M USD, stock positions) N/A N/A N/A N/A BEA data available at https://www.bea.gov/international/ direct-investment-and-multinational-enterprises-comprehensive-data Host country’s FDI in the United States ($M USD, stock positions) N/A N/A N/A N/A BEA data available at https://www.bea.gov/international/ direct-investment-and-multinational-enterprises-comprehensive-data Total inbound stock of FDI as % host GDP N/A N/A 2019 52.5% UNCTAD data available at https://unctad.org/en/Pages/DIAE/ World%20Investment%20Report/ Country-Fact-Sheets.aspx * Ministry of Finance and Economy Table 3: Sources and Destination of FDI Data not available. Table 4: Sources of Portfolio Investment Data not available. Ethiopia 2. Bilateral Investment Agreements and Taxation Treaties Ethiopia is a member of the Multilateral Investment Guarantee Agency (MIGA) and it has bilateral investment and protection agreements with Algeria, Austria, China, Denmark, Egypt, Germany, Finland, France, Iran, Israel, Italy, Kuwait, Libya, Malaysia, the Netherlands, Sudan, Sweden, Switzerland, Tunisia, Turkey and Yemen. Other bilateral investment agreements have been signed but are not in force with Belgium/Luxemburg, Brazil, Equatorial Guinea, India, Morocco, Nigeria, South Africa, Spain, the United Kingdom, and the United Arab Emirates. Ethiopia signed a protection of investment and property acquisition agreement with Djibouti. A Treaty of Amity and Economic Relations, which entered into force in 1953, governs economic and consular relations with the United States. There is no double taxation treaty between the United States and Ethiopia. Ethiopia has taxation treaties with fourteen countries, including Italy, Kuwait, Romania, Russia, Tunisia, Yemen, Israel, South Africa, Sudan, and the United Kingdom. 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy Host Country Statistical source* USG or international statistical source USG or International Source of Data: BEA; IMF; Eurostat; UNCTAD, Other Economic Data Year Amount Year Amount Host Country Gross Domestic Product (GDP) (M USD) 2019/20** $107.7B 2019 $95.9B www.worldbank.org/en/country Foreign Direct Investment Host Country Statistical source* USG or international statistical source USG or international Source of data: BEA; IMF; Eurostat; UNCTAD, Other U.S. FDI in partner country (M USD, stock positions) 2020 $738 2019 N/A http://www.investethiopia.gov.et/ Host country’s FDI in the United States (M USD, stock positions) 2019 N/A 2019 N/A http://bea.gov/international/ direct_investment_multinational_ companies_comprehensive_data.htm Total inbound stock of FDI as % host GDP 2019/20** 10% 2019 2.62% www.worldbank.org/en/country *National Bank of Ethiopia and Ethiopian Investment Commission **Ethiopian Fiscal Year 2019/2020, which begins on July 8, 2020. Table 3: Sources and Destination of FDI Direct Investment from/in Counterpart Economy Data From Top Five Sources/To Top Five Destinations (US Dollars*, Millions) Inward Direct Investment Outward Direct Investment Total Inward $10,766 100% Total Outward*** N/A N/A China $3,364 31.3% N/A N/A N/A Saudi Arabia $1,421 13.2% N/A N/A N/A Turkey $915 8.5% N/A N/A N/A United States $738 7% N/A N/A N/A India $538 5% N/A N/A N/A “0” reflects amounts rounded to +/- USD 500,000. Data regarding inward direct investment are not available for Ethiopia via the IMF’s Coordinated Direct Investment Survey (CDIS) site (http://data.imf.org/CDIS); we have instead used data from the Ethiopian Investment Commission. *The yearly average exchange rate is used for each year from 1992 – 2020 in order to convert the amount of FDI from domestic currency into U.S. dollars. *** Total Outward investment data are not available. Table 4: Sources of Portfolio Investment Data regarding the equity/debt breakdown of portfolio investment assets are not available for Ethiopia via the IMF’s Coordinated Portfolio Investment Survey (CPIS) and are not available for external publication from the Government of Ethiopia. France and Monaco 2. Bilateral Investment Agreements and Taxation Treaties Investments in France by other EU member states are governed by the provisions of the Treaty of Rome and by European Union law. France has Bilateral Investment Treaties (BITs) with 95 countries: Albania, Algeria, Argentina, Armenia, Azerbaijan, Bahrain, Bangladesh, Bosnia and Herzegovina, Bulgaria, Cambodia, Chile, China, Colombia, the Democratic Republic of the Congo, Costa Rica, Croatia, Cuba, Czech Republic, Djibouti, Dominican Republic, Egypt, El Salvador, Equatorial Guinea, Estonia, Ethiopia, Georgia, Guatemala, Haiti, Honduras, Hong Kong, Hungary, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kenya, Korea (South), Kuwait, Kyrgyz Republic, Laos, Latvia, Lebanon, Liberia, Libya, Lithuania, Madagascar, Malaysia, Malta, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique, Namibia, Nepal, Nicaragua, Nigeria, North Macedonia, Oman, Pakistan, Panama, Paraguay, Peru, Philippines, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Seychelles, Singapore, Slovakia, Slovenia, Sri Lanka, Sudan, Tajikistan, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, and Zambia. Bilateral Investment Treaties between France and the following countries have been signed but are not in force: Angola, Belarus, Brazil, Ghana, and Zimbabwe. France previously had BITs with Mauritius and Syria; new BITs with these two countries have been signed but have not yet entered into force. UNCTAD maintains the most current list of ratified and non-ratified BITs, including links to each document: https://investmentpolicy.unctad.org/international-investment-agreements/countries/72/france . The United States and France have enjoyed a Navigation and Commerce Treaty since 1822, which guarantees national treatment of U.S. citizens. The 2021 finance law reduces corporate tax from its current level of 28 percent. Firms with revenues above €250 million ($295 million) will be taxed 26.5 percent on profits in 2021 and 25 percent in 2022. Firms with revenues at or below €250 million ($295 million) will be taxed 27.5 percent on profits in 2021 and 25 percent in 2022. Since 1994, a Convention between the Government of the United States of America and the Government of the French Republic continues to be in force for the avoidance of double taxation and the prevention of fiscal evasion. France has tax agreements with 128 countries: Albania, Algeria, Andorra, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, Cameroon, Canada, Central African Republic, Chile, China, Cyprus, Colombia, the Democratic Republic of the Congo, Croatia, Czech Republic, Denmark, Ecuador, Egypt, Equatorial Guinea, Estonia, Ethiopia, Finland, Gabon, Georgia, Germany, Ghana, Greece, Guinea, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Island, Ivory Coast, Israel, Italia, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Korea (South), Kosovo, Kuwait, Kyrgyz Republic, Latvia, Lebanon, Libya, Lithuania, Luxemburg, Macedonia (FYRM), Madagascar, Malaysia, Malawi, Mali, Malta, Mauritania, Mauritius Island, Mayotte, Mexico, Monaco, Mongolia, Montenegro, Morocco, Namibia, Netherlands, New Zealand, New Caledonia, Niger, Nigeria, Norway, Oman, Pakistan, Panama, Philippines, Poland, French Polynesia, Portugal, Qatar, Quebec, Romania, Russian Federation, Saudi Arabia, Saint-Martin, Saint Pierre and Miquelon, Senegal, Serbia, Singapore, South Africa, Spain, Slovakia, Slovenia, Sri Lanka, Sweden, Switzerland, Syria, Tajikistan, Taiwan, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uruguay, Uzbekistan, Venezuela, Vietnam, Zambia, and Zimbabwe. (Ref: https://www.impots.gouv.fr/portail/les-conventions-internationales .) 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy French Statistical source* USG or international statistical source USG or International Source of Data: BEA; IMF; Eurostat; UNCTAD, Other Economic Data Year Amount Year Amount French Gross Domestic Product (GDP) ($M USD) 2019 $2,762,036 2019 $ 2,715,518 www.worldbank.org/en/country Foreign Direct Investment French Statistical source* USG or international statistical source USG or international Source of data: BEA; IMF; Eurostat; UNCTAD, Other U.S. FDI in France ($M USD, stock positions) 2019 $69,160 2019 $83,826 BEA data available at https://apps.bea.gov/ international/factsheet/ France’s FDI in the United States ($M USD, stock positions) 2019 $258,106 2019 $310,743 BEA data available at https://www.bea.gov/international/ direct-investment-and-multinational- enterprises-comprehensive-data Total inbound stock of FDI as % host GDP 2019 33.2% 2019 32.1% UNCTAD data available at https://stats.unctad.org/handbook/ EconomicTrends/Fdi.html * French Source: INSEE database for GDP figures and French Central Bank (Banque de France) for FDI figures. Accessed on March 19, 2021. Table 3: Sources and Destination of FDI Direct Investment from/in France Economy Data 2019 From Top Five Sources/To Top Five Destinations (US Dollars, Millions) Inward Direct Investment Outward Direct Investment Total Inward 868,686 100% Total Outward 1,532,818 100% Luxembourg 170,622 19% United States 243,567 16% The Netherlands 117,249 13% The Netherlands 203,426 13% United Kingdom 115,987 13% Belgium 159,478 10% Switzerland 103,230 12% United Kingdom 144,689 9% Germany 82,985 9% Italy 96,470 6% “0” reflects amounts rounded to +/- USD 500,000. *Note: These figures represent the stock of foreign direct investment (FDI), not the annual flow of FDI. The United States was the top investor by flow of FDI in 2020. Table 4: Sources of Portfolio Investment Portfolio Investment Assets as of March 2021 Top Five Partners (Millions, current US Dollars) Total Equity Securities Total Debt Securities All Countries 2,857,162 100% All Countries 812,317 100% All Countries 2,044,846 100% Luxembourg 494,945 17% Luxembourg 283,555 35% United States 275,087 13% United States 374,725 13% United States 99,638 12% The Netherlands 244,554 12% The Netherlands 299,787 10% Germany 74,835 9% Luxembourg 211,390 10% Germany 216,963 8% Ireland 72,217 9% Italy 185,959 9% United Kingdom 216,814 8% The Netherlands 55,323 7% United Kingdom 179,367 9% Germany 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy Host Country Statistical source* USG or international statistical source USG or International Source of Data: BEA; IMF; Eurostat; UNCTAD, Other Economic Data Year Amount Year Amount Host Country Gross Domestic Product (GDP) ($M USD) 2020 €3.332,230 2019 $3.861,000 Federal Statistical Office, www.destatis.de www.worldbank.org/en/country Foreign Direct Investment Host Country Statistical source* USG or international statistical source USG or international Source of data: BEA; IMF; Eurostat; UNCTAD, Other U.S. FDI in partner country ($M USD, stock positions) 2018 €98,909 2019 $148,259 Bundesbank BEA data available at https://apps.bea.gov/ international/factsheet/ Host country’s FDI in the United States ($M USD, stock positions) 2018 €361,401 2019 $521,979 Bundesbank, BEA data available at https://www.bea.gov/international/ direct-investment-and-multinational-enterprises-comprehensive-data Total inbound stock of FDI as % host GDP 2018 1.6% 2019 1.0% Federal Statistical Office, Bundesbank, UNCTAD data available at https://stats.unctad.org/handbook/ EconomicTrends/Fdi.html * Source for Host Country Data: Federal Statistical Office, www.destatis.de; Bundesbank, www.bundesbank.de Table 3: Sources and Destination of FDI Direct Investment from/in Counterpart Economy Data From Top Five Sources/To Top Five Destinations (US Dollars, Millions) Inward Direct Investment Outward Direct Investment Total Inward $1,023,358 100% Total Outward $1,754,585 100% Luxembourg $189,366 18.5% United States $310,971 17.7% The Netherlands $178,883 17.5% Luxembourg $213,181 12.1% United States $119,195 11.6% The Netherlands $201,183 11.5% Switzerland $84,618 8.3% United Kingdom $140,310 8.0% United Kingdom $74,000 7.2% France $101,516 5.8% “0” reflects amounts rounded to +/- USD 500,000. Table 4: Sources of Portfolio Investment Portfolio Investment Assets Top Five Partners (Millions, current US Dollars) Total Equity Securities Total Debt Securities All Countries $3,706,904 100% All Countries $1,346,852 100% All Countries $2,360,052 100% Luxembourg $688,255 19% Luxembourg $558,479 41% France $365,233 15% United States $485,817 13% United States $211,170 16% United States $274,648 12% France $459,604 12% Ireland $151,491 11% The Netherlands $266,276 11% The Netherlands $307,341 8% France $94,371 7% United Kingdom $148,535 6% Ireland $221,856 6% Switzerland $60,256 4% Spain $133,980 6% Edit Your Custom Report