Browsing by Author "Gudeta, Lilanie"

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    Effectiveness of Environmental Impact Assessment vis-à-vis Investment laws in Ethiopia: The Case of Floriculture Investment
    (Addis Ababa University, 2020-10) Gudeta, Lilanie; Assefa PhD, Engdawork
    Focus on economic growth may bring about policies and legal regimes that encourage investments without due consideration for the environmental consequences of investment projects. Environmental impact assessment is conducted with the aim of avoiding and/ or mitigating the environmental consequences of projects. In Ethiopia, the EIA proclamation obliges projects that may cause significant environmental damage to conduct EIA prior to project implementation. However, the same requirement is not set in the investment laws of the Country, leading for licensing organs such as the EIC to grant permits that will allow investors to commence their projects without being required to conduct an environmental impact assessment. This study aims to evaluate the nexus between EIA and FDI in one of the most profitable investment areas, i.e. the floriculture sector. To this effect, the study evaluates the policy, institutional and legal framework of EIA and Ethiopian investment law with the intention to investigate the legal gap created by the investment laws on implementation of EIAs and whether or not the country’s focus of increasing FDI by calling of investors on floriculture sector have hindered the implementation of EIA and obstructing the constitutionally enshrined right to clean and healthy environment and building a sustainable development. To achieve the objectives of this research, a qualitative research approach that involves focal person interviews with EIC and EFCCC officials, as well as analysis of the existing laws and policies, was conducted. This research found that the several policies (GTP II and Environmental Policy), the FDRE Constitution, and other legislations (including voluntary and mandatory code of practice) tried to create a positive relationship between EIA and investment as a whole, and floriculture investment, in particular. They tried to do so by using a cross-reference among provisions or sections or simply mentioning the term ‘sustainable development’. However, some of these documents, on the other hand, tend to create an imbalance that undermines EIA over FDI. The findings also show the lack of relation and coordination between the two key institutions, the EFCCC and EIC in ensuring a proper implementation of EIA in FDI.
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    The Form and Scope of Self-Regulation under the Draft Capitals Markets Proclamation of Ethiopia
    (Addis Ababa, Ethiopia, 2020) Gudeta, Lilanie; Petros, Fekadu(Asst. Professor)
    Recently, the Ethiopian government is poised to set-up the country’s first stock market by 2020 and as a result, a draft Capital Markets Establishment Proclamation has been approved by the Council of Ministers.1One of the vital building blocks of strong capital markets is effective regulation of participants. This research is a doctrinal and ex-ante research that tries to assess the scope and form of self-regulation under the draft proclamation. To achieve this objective, the analysis primarily depends on primary sources and uses secondary resources as a supplement. The assessment identified that the self-regulation under the draft proclamation takes the form of a mandatory co-regulation model whereby exchanges and SDCCs are recognized as SRO and other actors may be recognized and act as an SRO under government-supervision. Meanwhile, the scope of self-regulation is very much dependent on the delegation of power to be made by the Capital Markets Authority. Accordingly, the assessment found that self-regulation is relevant in the Ethiopian context and the identified form and scope of self-regulation under the draft proclamation has merits as it provides for the recognition of SROs. Further, it was found that the draft proclamation provides for various modalities to address the inherent risks pertaining to SROs. SROs’ lack the appropriate regulatory (including monitoring and enforcement) mandate under the draft proclamation to flexibly act and respond to market changes are notable limitations. Particularly, the subjective standard applied in delegation is open to arbitrary decision making on the part of the Authority and, in some instances, may expose the capital market to a potential of conflict of interest among the regulator (the Authority) and the regulated (when the government acts as a private actor).