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Dire Dawa Investment Agency
Tel: 251-25-1113234

Why is Dire Dawa Administrative Region So  Appealing for  investments ?

            Being fully empowered by well built systems of basic infrastructure, the peace and security and other natural resources of this region makes the Dire Dawa Administrative Region ONE IDEAL PLACE for investment!
      Since investment plays major role in the economics of any state or region the Dire Dawa Administrative Council has given due consideration to it and designed certain policies which encourage investments in the region. The policies are now fully applicable in the Administrative region in addition to the encouraging policies of the federal government.


The following are the three Investment Encouraging Policies already in action.


In terms of investment the Dire Dawa Administrative Region is privileged with the following Infrastructures and other benefits.

1. Transport Systems
  • An international Air port
  • Railway that stretches from the capital (Addis Ababa) to the see port in Djibouti
  • Highways to the port in Djibouti, to Addis Ababa, and to other cities
2. Communication
  • There is surplus land lime and mobile telephone lines & fax lines available
  • Internet through dial up and broad band services are also available for low price
  • DLS ( Data Link Service ) [ for more info visit OR ]
  • Post office . . .
3. Electrical Power
  • High megawatts (MW) of electrical power is available throughout the region
  • Also, there are two huge Diesel generators of each capable of supplying 20 MW that are ready and at standby to maintain the service on emergency power shutoffs
4. Water
  • There is 20 billion cubic meter clean underground water being used, besides the streams and ponds in the rural areas
5. Man Power
  • The city is full of people graduated in different fields of both natural and social science (many of them computer literates)
  • Ample cheap labor force and people with vocational and technical training in varies fields / GM (General Mechanics), Electronics, Wood Work, Electricity, Metal work, Construction Skills . . . etc are available.

6. Natural Resources

Rare Metals (Associated Gemstone) [ Lithium, Tantalum-niobium, Cesium, beryl & emerald ]
Lead (galena) Ore of Lead, Zinc etc
Mica and Feldspar (for paint, electrical installation, plastic rubber
Industrial & construction materials [ cement, chemicals, glasses...
Clay [ cement, pulp...
River sand and Sandstone [construction, glass & fibber...

The Investment Encouraging Policies in Dire Dawa
Administrative Council.

        The following is a brief note on the three investment encouraging policies that the Administrative Council designed concerning legislation on investments in the Dire Dawa Administrative Region.

i) 70-100% Free Lease Grant

Evaluation Points applied to examine whether the investment deserves the lease free grant focus on the following:
- reduction of unemployment and poverty
- conveying foreign currency by processing agricultural products
- saving of foreign currency by manufacturing products that are being imported from abroad for    domestic use.
- reducing the cost of construction work and improve the techniques
- Investments that promote the use of new technological capabilities; encouraging invention works
- Investments that reduce problems of residential housing

According to the total points scored on the evaluation (issues mentioned above and few others not mentioned here) the lease grant will hold as stated in the table below.

Total points scored
Lease Discount
Grant period
Initial payment
Years to finish paying the rest

  88 and above




  67 - 88


  46 - 66


  25 - 45


          The (70-100%) lease free grant is carried out by a board after the project is completed and has stated operating.
The investor presents documents applicable to the evaluation and if his/her project scores 88 points or more, the 100% Lease Discount will be effectual and all payments (including the initial payment) will be refund to the investor.


ii) Free Income Tax Policy

 Investments that are in manufacturing, ago-industry OR producing products the federal investment board enlisted and exporting at least 50% of that produced OR supplying 75% of that produced to exporters are granted free income tax for five years.

iii) Custom Charges free and Tax free

       Investors are given license to import capital goods and construction materials that are necessary/appropriate to their project free of custom charges and tax.
The investor can also import spare parts that are worth up to 15% of the total value of the capital goods free of
custom charges.

  • Vehicles can be free of customs charges according to regulations stated by the federal investments board. However any investor is allowed to import ambulances to be used for employees on emergency cases OR buses for touring free of custom charges


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