Legal, regulatory, tax and labour DD and Ethiopian red flags

Module 03 / 5 · 70 min

Verify ownership, licences, contracts and land rights, estimate tax and labour exposures, and recognise the red flags that recur in Ethiopian company records.

In this module you will learn to

Verify incorporation, the share register, licences, material contracts and litigation
Test land, lease and title rights for each important property
Identify and estimate tax and labour exposures
Recognise common red flags in Ethiopian company records and rank the top issues in a data room

Built on

Erudite Africa training module: Ethiopian Context, topic 3.d Due Diligence Mastery, Levels 1 and 2 (October 2026)
NBE directives as listed in the lessons: SBB/90/2024, SBB/92/2024, MFI/36/2023, Instruction FCPED/142/26
Ethiopian tax laws: Income Tax Proclamation No. 979/2016 as amended by No. 1395/2025, VAT Proclamation No. 1341/2024, Federal Tax Administration Proclamation No. 983/2016, Transfer Pricing Directive No. 981/2024
ESX Rulebook (December 2024)
A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
IFC Performance Standards on Environmental and Social Sustainability

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.