The Workers Rights 
The new Expatriate Employment and Work Permit Issuance Directive along with Council of Ministers Regulation No. 587/2026, represents a significant shift for multinational companies, foreign investors, and engineering contractors in Ethiopia.
The improvements define the various stages of a project, prohibit multiple foreign management roles and adjust immigration charges. The shifts also continue Ethiopia’s efforts to increase the capability of its own personnel and to minimize the reliance on foreign workers.
Clearer Rules for Project Lifecycle
This new guidance clearly differentiates between the pre-operative and post-operative periods. Pre-operational is the period starting with an investment permit and includes construction activities, site setup and activities.
The legal transition is the point at which the business becomes a legal entity under the attack of the official business license. The moment the licence becomes active, i.e. commercial goods and services are supplied, the company is subject to the foreignly employed preponderance quota system.
This eliminates the uncertainty to businesses that had previously been relying on the need for a long development process as an excuse for nonoperation employment caps.
Strict 1-to-1 Rule for Foreign Managers
The most important amendment is the “Strict Position Rule” that restricts companies to one foreign national on each designated position in management.
Therefore one can choose to be one CEO, or one COO, or one Finance Manager, but not have two CEO’s, two COO’s, or two Finance Managers to avoid the localization obligations.
Rules also provide for the ability of foreign investors to sponsor a Finance Manager during a pre-operational period in addition to Project Managers and Deputy Project Managers.
Knowledge Transfer Becomes Critical
Designated political and technical recipients must be in place in Ethiopia for foreign technical and non-executive workers for purposes of knowledge and skill transfer in a structured manner.
Training plans and quarterly skill-transfer reports may be criteria for permits to renew. This places knowledge transfer as a key compliance obligation, not just a human-resources matter.
New Visa and Permit Fees
Regulation No. 587/2026 also revises Immigration and Citizenship Service fee structures. Foreign Business Employment Visas have been marked at $402 for 30 day Single Entry and $1,002 for 90 day Multiple Entry.
The investment Entry visa has seen a significant raise in fees against the others with a fee of $252–$502 for 3 and 5 years. For high-value investors, there is a 10-year multiple entry Golden Visa as well at special interests rates.
What Companies Should Do Now?
Foreign companies need to perform an audit on the title of executives, and formalize local counterparts and knowledge transfer plans; there must be coordination of work permit renewals with timings of the business license to allow the company to transfer its knowledge to local people.
Companies can use these steps to minimize classification risks, as well as stay in step with the changing localization framework in Ethiopia.
FAQs
What’s Ethiopia’s strict position rule?
It halves the number of foreign nationals a business can have for its appointed positions and bars multiple appointments of foreign leaders.
At what time does the operational phase start?
The operational phase begins after issuance of the business license and after beginning of the commercial provision of goods/services.
What is the new visa charge for business visas?
This updated fee amount is 30-day single-entry visa, $402 and 90-day multiple entry visa, $1,002.
More Global Work Visa Updates
Where Are Visa Risks Rising?
Find the latest UK migrant worker visa concerns.
How Will US Rules Impact?
Check out who faces tougher work visa restrictions.
Which Cities Welcome Remote Workers?
Explore the best global work-life hotspots.
Where Can Digital Nomads Work?
Browse the top visa-friendly destinations.
What’s Changing In UK Visas?
Get to know the latest immigration rule updates.
