Ethiopia Moves to Establish National Data Governance Framework

Ethiopia is moving to establish a national framework for managing data, with the Council of Ministers approving a draft law designed to strengthen data security and sharing while supporting artificial intelligence and the digital economy.

The proposed National Data Management Proclamation was approved at the council’s 59th regular meeting and will now be submitted to the House of Peoples’ Representatives after the cabinet incorporated its recommendations.

The legislation is intended to support Ethiopia’s digital transformation by setting rules for data security and sovereignty, while improving the sharing, interoperability and reuse of data.

The government also expects the framework to help modernise public services, strengthen artificial intelligence research and innovation, and accelerate the development of a data-driven economy.

The cabinet approved the draft unanimously.

The meeting also produced decisions on power-sector financing and tax administration.

The council approved a draft law to ratify a 145.8 million special drawing rights loan agreement with the International Development Association, the World Bank’s concessional lending arm. The financing will fund the first phase of a project focused on power-sector reform, investment and modernisation.

The council said the borrowing is consistent with Ethiopia’s national debt policy and agreed unanimously to send the draft ratification law to parliament.

On taxation, the cabinet approved amendments to the federal income tax regulation aimed at improving transparency and administrative efficiency and aligning the rules with the amended federal income tax proclamation.

The revised regulation will take effect from the date of its publication in the Federal Negarit Gazette.

The council also approved amendments to the federal VAT regulation following the abolition of turnover tax.

Under the changes, taxpayers previously collecting turnover tax on professional services and other supplies will be required to register for VAT and collect the tax.

Some supplies will also be exempted from VAT under the revised regulation, following government concerns that the tax burden on certain goods and services was affecting access to basic supplies and the competitiveness of domestic industries.

The VAT changes will take effect once published in the Federal Negarit Gazette.

The cabinet further approved draft legislation to amend Ethiopia’s Defence Forces Proclamation and agreed to submit it to parliament. The government said the amendment is intended to update the legal framework governing the armed forces and enable them to carry out their constitutional responsibilities.

A separate draft proclamation governing the organisation, powers and functions of federal executive bodies was also approved for submission to parliament. The proposed law is intended to reorganise federal executive institutions following the national elections and define their powers and responsibilities.

Source: FSX Business News