HAWASSA UNIVERSITY SCHOOL OF GRADUATE STUDIES

COLLEGE OF LAW AND GOVERNANCE

SCHOOL OF LAW

GRANTING DUAL CITIZENSHIP IN ETHIOPIA: TOWARDS ATTRACTING

AND ENSURING SECURITY OF DIASPORA INVESTORS

LL.M. THESIS IN COMMERCIAL LAWS

BY:

ABEBAW BIHON KOREM

HAWASSA UNIVERSITY, HAWASSA, ETHIOPIA

MAY, 2019
GRANTING DUAL CITIZENSHIP IN ETHIOPIA: TOWARDS ATTRACTING

AND ENSURING SECURITY OF DIASPORA INVESTORS

BY:

ABEBAW BIHON KOREM

A THESIS SUBMITTED TO

HAWASSA UNIVERSITY SCHOOL OF LAW

COLLAGE OF LAW AND GOVERNANCE

SCHOOL OFGRADUATE STUDIES

HAWASSA UNIVERSITY,HAWASSA, ETHIOPIA

IN PARTILAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE OF

MASTER OF LAW

(LL.M. IN COMMERCIAL LAWS)

ADVISOR: DANIEL BEHAILU (ASSOCIATE PROFESSOR)

MAY, 2019
 HAWASSA UNIVERSITY
COLLAGE OF LAW AND GOVERNANCE
SCHOOL OF GRADUATE STUDIES, SCHOOL OF LAW
ADVISORS’ APPROVAL SHEET

This is to certify that the thesis entitled: “Granting Dual Citizenship in Ethiopia: Towards

Attracting and Ensuring Security of Diaspora Investors” submitted in partial fulfillment of

the requirement for the degree of Master’slaw (LL.M.) with specialization in Commercial

Lawsto the Graduate Program of Hawassa University School of Law, has been carried out by

AbebawBihon under my guidance. Therefore I recommend that the student fulfilled the

requirements and hence hereby can submit the thesis to the school.

Submitted by:

Name of the Researcher Signature Date

AbebawBihon ___________ _______

Approved by:

Name of the Advisor SignatureDate

Daniel Behailu (Associate Professor) May 20, 2019.

 Declaration

I hereby declare that this LLM thesis is my original work and has not been presented for a
degree in any other university, and all sources of material used for this thesis have been duly
acknowledged.

Name__________________________Signature:___________ Date____________
 Examiners’ Approval Sheet
As Members of the Board of Examiners of the final open defense, we certify that we have
read and evaluate the thesis prepared by Abebaw Bihon under the title “Granting Dual
Citizenship in Ethiopia: Towards Attracting and Ensuring Security of Diaspora
Investors”and recommend that it be accepted as fulfilling the thesis requirement for the
degree of Master in Law with specialization in Commercial Laws

__________________________ _____________ _____________

Name of the Chair Person Signature Date
__________________________ _____________ _____________
Name of the Major Advisor Signature Date
__________________________ _____________ _____________
Name of the Internal Examiner Signature Date
__________________________ _____________ _____________
Name of the external Examiner Signature Date
__________________________ _____________ _____________
SGS Approval Signature Date
 ACKNOWLEDGMENT

I would like first say a very big thanks to my advisor Dr. Daniel Behailu for all the support

and encouragement he gave me since the inception of this work. Without his guidance and

constant feedback the thesis would not have been achievable. It was a great privilege and

honor to work under his guidance.

My Sincere thank also goes to interviewees Mr. Mohammed Endris, Mr. Abraham Suim, Mr.

Mr. Ahmed Nur Ahmed Yusuf Hassen and Mr. Habtu Mamo for helping me easily access

information necessary to my study. I would also like to thank Mr. Tebibu Solomon who

generously cooperatedwith me in providing relevant information and materials.

A very special thank goes to Dr.Tsegaye Degineh for his unreserved and invaluable advice and

suggestions. I offer great respect and appreciation to his integrity and approachable personality.

I am extremely grateful to my parents for their love, prayers, caring and scarifies. Your

encouragement when the times got rough are much appreciated and noted. I am very much

thankful to my Lezi for her love, understanding and continuing support to complete this work.

i
 TABLE OF CONTENTS

CONTENTSPAGE

ACKNOWLEDGMENT..............................................................................................................................i

TABLE OF CONTENTS.............................................................................................................................ii

LIST OF ABBREVIATIONS......................................................................................................................v

LIST OF TABLES......................................................................................................................................vi

Abstract......................................................................................................................................................vii

CHAPTER ONE..........................................................................................................................................1

1. INTRODUCTION..................................................................................................................................1

1.1 Background of the Study...................................................................................................................1

1.2 Statement of the Problem...................................................................................................................4

1.3 Research Questions............................................................................................................................6

1.4 Objective of the Study.......................................................................................................................6

1.4.1 General Objectives......................................................................................................................7

1.4.2 Specific Objectives.....................................................................................................................7

1.5 Research Methodology and Methods.................................................................................................7

1.6 Significance of the Study...................................................................................................................9

1.7 Scope of the Study.............................................................................................................................9

1.8 Limitation of the Study....................................................................................................................10

1.9 Structure of the Study......................................................................................................................10

CHAPTER TWO.......................................................................................................................................12
ii
2. GENERAL OVERVIEW OF DIASPORA ENGAGEMENT AND DUAL CITIZENSHIP.................12

2.1 Defining Diaspora............................................................................................................................12

2.2 Defining Citizenship........................................................................................................................14

2.3 Dual Citizenship and Theories of Citizenship..................................................................................14

2.4 Global Convergence towards Dual Citizenship...............................................................................17

2.5 Diaspora Investment........................................................................................................................19

2.6 Diaspora Engagement and Citizenship laws in Ethiopia..................................................................20

2.6.1 Overview of Ethiopian Diasporas.............................................................................................20

2.6.2 Citizenship Laws of Ethiopia: Historical Perspective...............................................................22

2.6.3 The Role of Diasporas in the Economic Development of Ethiopia...........................................27

2.6.4 The Status of Diaspora Investments in Ethiopia.......................................................................29

2.6.5 Government Initiatives to Promote Diasporas Engagement in Ethiopia...................................33

2.6.6 Challenges of Diaspora Investors in Ethiopia...........................................................................37

CHAPTER THREE...................................................................................................................................40

3. DUAL CITIZENSHIP AS HOME COUNTRY DIASPORA ENGAGEMENT STRATEGY:

COUNTRY EXPERIENCES....................................................................................................................40

3.1 Introduction.....................................................................................................................................40

3.2 India.................................................................................................................................................41

3.3 Turkey.............................................................................................................................................44

3.4 Kenya..............................................................................................................................................47

3.5 Philippines.......................................................................................................................................48

CHAPTER FOUR.....................................................................................................................................51

4. GRANTING DUAL CITIZENSHIP AS AN INCENTIVE FOR DIASPORA INVESTMENT IN

ETHIOPIA................................................................................................................................................51

4.1 Introduction.....................................................................................................................................51

4.2 The Current Yellow Card Scheme...................................................................................................51

iii
 4.2.1 Drawbacks of the Yellow Card and the Need for Dual Citizenship..........................................53

4.3 Reasons for Intolerance of Dual Citizenship in Ethiopia.................................................................59

4.4 Legalizing and Regulating Dual Citizenship in Ethiopia.................................................................63

4.4.1 Alternative Approaches............................................................................................................63

4.4.2 Maintaining the Yellow Card Scheme......................................................................................65

4.4.3 Considering Investment Related Implications of Dual Citizenship...........................................65

4.5 Chapter Summery............................................................................................................................66

CHAPTER FIVE.......................................................................................................................................68

5. MAIN FINDINGS AND RECOMMENDATIONS..........................................................................68

BIBLIORAPHY........................................................................................................................................vii

ANNEX: INTERVIEW GUIDING QUESTIONS...................................................................................xvii

iv
LIST OF ABBREVIATIONS

FDI - Foreign Direct Investment

GTP - Growth and Transformation Plan

ICSID – International Convention on the Settlement of Investment

Disputes

IMF- International Monetary Fund

IOM - International Organization for Migration

NBE - National Bank of Ethiopia

NRIs - Non Resident Indians

OCI - Overseas Citizens of India

OECD - Organization for Economic Co-Operation and

Development

FDRE - Federal Democratic Republic of Ethiopia

PIO - People of Indian Origin

WB - World Bank

v
 LIST OF TABLES

TABLE PAGE

Table 1: Summery of Diaspora Investment Projects in Ethiopia 1992-2018 by country of

origin……………………………………………………………………………………………..29

vi
 Abstract
(…. )Ethiopians residing abroad are not diasporas; nor are people of Ethiopian
origin; they are only Ethiopians. Ethiopians living abroad are the pillars of
Ethiopian economy more than exports of chat and coffee. If they are properly
managed, they have the power to change the country (…)1

The above quoted speech strengthens the idea that Ethiopians who declared themselves as
citizens of other countries to receive passport and other opportunities. In reality they do not
consider themselves as foreigners. They intend to remain the constituency of Ethiopia wherever
they reside. This sense of belongingness should be given due regard to enable the diasporas
contribute to the economic development of the country. Diasporas’ home country economic
contribution in general and investment in particular is determined by specific diaspora
engagement strategies adopted by the country. Granting dual citizenship is emerged as a new
form of incentive to increase diaspora investment in a home country. Ethiopia doesn’t allow its
diasporas to hold dual citizenship. This thesis argues that dual citizenship may facilitate
diaspora investments in Ethiopia if it is allowed. Among other things, the thesis identifies the
role of diaspora investments in Ethiopia, inadequacy of the diasporas engagement strategies
taken by the government, the existing citizenship laws hinder diasporas’ engagement in
investment, and the need for introducing dual citizenship to encourage diaspora investment in
Ethiopia. To that end, the researcher analyzed the existing literatures related to diasporas
engagement and citizenship, consulted the experience of other countries, assessed policy and
legal documents of the country, and included some empirical data through key informant
interviews.

1
TamagnBeyen, Speech on the Recent Official Visit of Ethiopian Prime minister to Ethiopian Diaspora ,Washington
DC, USA published on YouTube <https://www.youtube.com/watch?v=_6ASH8wWrl0> 31 July 2018 (translated
from Amharic, emphasis added)
vii
 CHAPTER ONE
1. INTRODUCTION

1.1 Background of the Study

A number of emigrant countries try to connect with their overseas population. The overseas

population, otherwise called diasporas are key business partners of their country of origin.

Migration has created a large number of diasporas living outside of Ethiopia. Due to different

political and economic reasons, Ethiopians have migrated from the country. Ethiopian diasporas

emerged in four different stages of migration. The first was the pre 1974 exile of elites; the

second stage happened from 1974-1982 as the result of the Red Terror; the third one was family

reunification from 1982 to 1991 and lastly the post 1991 migration due to ethnic violence and

political oppression.2

It is hardly possible to find the exact quantitative data on the number of Ethiopian diasporas

living abroad.3 However, it is estimated to be 3 million. 4 The potential influence of diasporas

over the country’s economic and political development has been recognized. From the economic

perspective, Ethiopian diasporas send remittance, purchase bonds, involve in investments, and

import Ethiopian goods and transfer knowledge and technology. According to the IMF staff

report, remittance comprises 5.5% of the country’s GDP.5

2
Sonja Fransen and Katie Kuschminder, ‘Migration in Ethiopia: History, Current Trends and Future Prospects’
(2009) Maastricht Graduate School of Governance Migration and Development Country Profiles paper series, 20
3
MekonnenTesfaye, Mobilazing Ethiopian Diaspora Capital and knowledge Networks for Economic Growth And
Transformation <www.tigraionline.com/articles/diaspora-ethiopians-2015.html> accessed 15 November 2018
4
AsratSiyum, ‘Engaging the Diaspora’ The Reporter (Addis Ababa, 1 September 2018)
<www.thereporterethiopia.com/article/engaging-diaspora> accessed 10 November 2018
5
IMF‘Staff Report for The 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the
Executive Director for the Federal Democratic Republic of Ethiopia (2018) IMF Country Report No. 18/18, 53

1
Maximizing development benefits of the diaspora community requires the establishment of a

strong tie between diasporas and their country of origin. Extension of rights through dual

citizenship is an important diaspora engagement policy alternative. 6 Granting of dual citizenship

is an official assurance of membership to the home country of diasporas.7 The current trend of

the world manifests tolerance on dual citizenship.

Dual nationality is a growing phenomenon, because of high levels of international

migration and because in recent years several countries have amended their nationality

laws to allow individuals to retain their original citizenship even when they naturalize in

another country.8

Dual citizenship attracts the interest of African governments as a tool for increasing diaspora

investment and remittance.9 Half of African countries allow dual citizenship.10 Despite the fact

that Ethiopia has a huge number of diasporas, the nationality law did not allow dual citizenship.

Ethiopia is among the countries whose nationality law is based on the principle of “Jus

Sanguinis”. The right of citizenship is acquired by blood. The 1930 Nationality Law is the first

law governing citizenship issues. It did not allow dual citizenship. Latter on citizenship is

recognized under article 6 and 33 of the FDRE constitution. There is no express prohibition of

dual citizenship for Ethiopian nationals who acquire another country’s nationality. However, the

nationality law (Proclamation no.378/2003), which provides the details of citizenship, made no

6
Gamlen A., ‘Diaspora Engagement Policies: What are they, and what kinds of States Use them? (2006) Centre on
Migration Policy and Society, Working Paper No.32 10-11
7
Ionescu, Dina, ‘Engaging Diasporas as Development Partners for Home and Destination Countries: Challenges for
Policymakers’ (2006) IMO, Migration Research Series 26
8
Djoulassi K. Oloufade and Roland Pongou, ‘Dual Citizenship Institution: A Pareto Improvement?’( 2012) MPRA
Paper No. 40705, 3
9
Beth Elise Whitaker, ‘The Politics of Home: Dual Citizenship and the African Diaspora’ (2011) 45 (4) IMR 755,
755
10
Ibid

2
change from the 1930 nationality law concerning dual citizenship. Dual citizenship remains a

taboo for Ethiopia. Ethiopian Nationals obtain another country’s citizenship are no longer

citizens of Ethiopia.11 A significant number of Ethiopian citizens are renouncing their Ethiopian

citizenship in order to obtain a new one. For instance, from 178,000 first generation Ethiopian

diasporas in the USA, 47% became US citizens.12 It could be for the use of public benefits

reserved only for citizens. Denial of dual citizenship rights by their origin country makes such

individuals lose all rights and public benefits attached to their home country citizenship. 13This is

true especially in countries like Ethiopia which have restrictive policies on investment and

property ownership by foreigners.

The issue of diaspora and home country development in general, and the role of granting dual

citizenship in engaging diaspora in particular, receives the attention of many literatures. For

instance, David claims that providing diaspora with dual citizenship rights enables home

countries to encourage diaspora remittances and their return. 14 Mazzolari, argued that dual

citizenship rights might increase return migration and diaspora return to one’s country of origin

might in turn affect subsequent human capital investments.15

However, the researcher has identified that little has been done on country specific studies on the

nexus between dual citizenship policies and diaspora investment. Furthermore, the issue remains

almost untouched in Ethiopia’s context. Other literatures mainly focus on the interplay between

dual citizenship and remittance and return. Country specific study is important since diasporas’

11
Ethiopian Nationality Law Proclamation No.378/2003, Art. 20(1)
12
MPI, ‘The Ethiopian Diaspora In the United States’ (2014) prepared for RAD 3
13
Djoulassi K. Oloufade and Roland Pongou, ‘Dual Citizenship Institution: A Pareto Improvement?’(2012) MPRA
Paper No. 40705, 3
14
Leblang D, ‘Harnessing the Diaspora: Dual citizenship, Migrant Remittances and Return: Work in Progress’
<https://bc.sas.upenn.edu/system/files/Leblang10.07.11.pdf> accessed 16 November 2018
15
Whitker (n 9)

3
contributions to home country development depends on specific circumstances of the diasporas

and their home country. Diasporas engagement initiatives taken by the country, the reason for

migration, the settlement pattern and skills of the diaporas are important factors. Therefore,

contextual analysis is very vital. Considering the potential role of diaspora investors in the

country, this thesis unlike other researches, focuses on dual citizenship and investment in

Ethiopia. Diaspora investors are brain gainers, altruistic technologists, capital investors, catalysts

and diplomats.16 In one way or another diaspora investment influences different economic policy

documents. One of the major goals of Diaspora Policy of Ethiopia is improving diaspora

engagement in investment.17 Furthermore, the ruling government as part of its current “reform”

manifests some commitments to improve diasporas engagement in investment.

1.2 Statement of the Problem

Ethiopian government took different initiatives to engage diasporas in investment. But still

diaspora investment remains unsatisfactory. From 3 million diasporas, less than 1% are actually

engaged in investments.18 In Some literatures it is narrated that poor diaspora engagement in

investment is the result of problems related with access to information, corruption, bureaucracy

and access to finance.19 The tension between the ruling government and diasporas have also been

raised as another bottleneck.20 However, as far as the researcher’s knowledge is concerned, the

country’s intolerance of dual citizenship as a hindering factor of diaspora investment in Ethiopia

has never been studied well.Tariku Raga, in his article identified the potential contributions of

16
Michael Ardovino and Thomas Debass, ‘Diaspora Direct Investment (DDI): The Untapped Resource for
Development’ ( 2009) USAID Technical Report 7-11
17
Ethiopian Diaspora Policy, Ministry of Foreign Affair (2013 )10
18
Sarah Gebretsadik, ‘Politics, Practices, and Potentials: Analyzing the Role of Diaspora-owned Businesses in
Ethiopia’s Development’ (MSC Thesis York University 2015)
19
Ibid
20
Katie Kuschminder, ‘Diaspora Engagement in Ethiopia: Finding Its Footing (2010) Maastricht university
Migration Policy brief

4
Ethiopian diasporas in the country’s development and the factors hindering them from
21
participating in the development process. The study simply states that Ethiopia does not allow

dual citizenship. The implication of such prohibition has not been addressed well. Under the title

“Diaspora engagement policies in Ethiopia” Kuschminder on her part briefly discussed the

attempts made by the government to formulate the diaspora policy. 22 The study mentions nothing

about the potential benefits of granting of dual citizenship in Ethiopia. A research made by

Sarah Gebresadik analyzes the role of diaspora-owned businesses in Ethiopia’s development and

the complexities surrounding them. But dual citizenship has got little attention in the study.

Samuel Alemu, Tsegaye Degineh and Endalew L. Enyew forwarded their opinions that it is time

for Ethiopia to tolerate dual citizenship in order to be benefit from diaspora potentials in different

developmental aspects of the country.23 These were fragmented efforts which don’t specifically

deal diaspora investments.Thus, this study fills the existing literature gaps in the area of diaspora

investment and dual citizenship with particular emphasis on the role of dual citizenship in

promoting diaspora investment in Ethiopia.

Acknowledging gaps in literatures, there are also different concerns raised in relation with dual

citizenships in Ethiopia that this study intends to addresses. Ethiopia enacted a law permitting

Ethiopian migrants with foreign citizenship some privileges if they hold a person of Ethiopian

Origin Identification Card, known as the “Yellow Card.” The law permits Ethiopian migrants

21
Tariku Raga, The Potential Contribution of Ethiopian Diaspora in Development: The Presenting Absent Partners’
(2017) 5 (1) Humanities and Social Science 14-25
22
Kuschminder (n 20 )
23
Samuel Alemu, ‘The Case for Granting Ethiopian Diaspora Dual Citizenship’ The Reporter (Addis Ababa, 15
September 2018) <www.thereporterethiopia.com/article/case-granting-ethiopian-dual-citizenship> accessed16
November 2018; Dr. TsegayeDegineh,’በኢትዮጰያ የጥምር ዜግነት አስፈላጊነትና መታወቅ የሚገባቸው ነጥቦች’ The
Reporter (Addis Ababa, 16 December 2018) <www.ethiopianreporter.com/article/14211>; Endalew L. Enyew,
‘Does the Current Political Reform in Ethiopia Require Amendments of the National Law on Foreign Nationals of
Ethiopian Origin’ <www.satenaw.com/does-the-current-political-reform-in-ethiopia-require-amendment-of-the-
nationality-law-on-foreign-nationals-of-ethiopian-origin> accessed 4 December 2018

5
with foreign citizenship to be treated as domestic investors so long as they hold the Identification

Card.24However, Ethiopian diasporas continuously express their dissatisfaction and claim the

government to grant them dual citizenship as the Yellow Card couldn’t bring all the benefits of

granting of dual citizenship. They are claiming that the country’s tolerance of dual citizenship

will enable them to fully participate in its economic developments including investment. The

implication of such dissatisfactions on the confidence of diaspora investors is worth to be

studied.

Furthermore, introducing dual citizenship as a new phenomenon to the country may cause

unforeseen implications.Such oversights could impede the proper implementation of dual

citizenship to the intended purpose.Thus, this study aims to highlight the possible implications of

dual citizenship and the ways of governing and exercising it in the manner it promotes diaspora

investment.

1.3 Research Questions

The study addresses the following major research questions:

 What are the benefits of diaspora investment in Ethiopia?

 What are the legal and practical problems hindering diaspora investment in Ethiopia?

 How dual citizenship can be an incentive for diaspora investment in Ethiopia, if it is

allowed?

 How can dual nationalities be legalized and regulated in Ethiopia?

1.4 Objective of the Study

Providing Foreign Nationals of Ethiopian Origin with Certain Rights to be Exercise In their Country of Origin
24

Proclamation No. 270/200, Art. 5

6
1.4.1 General Objectives

This study in general intends to investigate the potential effects of granting of dual citizenship to

encourage diaspora investment in Ethiopia.

1.4.2 Specific Objectives

Beyond its general objective, the research has specific objectives to:

 Explore the benefits of diaspora investment in Ethiopia

 Identify the possible legal and practical obstacles of diaspora investment in Ethiopia

 Discuss the role of granting dual citizenship in attracting diaspora investment in Ethiopia

 Present the possible ways of legalizing and regulating dual citizenship in Ethiopia for

investment propose

1.5 Research Methodology and Methods

The researcher employs qualitative approach in this thesis. The research questions are best

addressed by exploring experiences, opinions and attitudes of people. The thesis studies the

presence and characteristics of a phenomenon.25 The aim of the study is constructing the

hypothesis that granting of dual citizenship can positively affect diaspora investment in Ethiopia.

If statistics are used in this research, it is to strengthen qualitative analysis of the study; not for

achieving quantifiable and objective results.

The primary sources of data for this thesis are legislations, different policy documents and

interviews. Whereas the secondary data sources are books, articles, scholarly commentaries and

the like.

Liza Webley, ‘Qualitative Approach to Empirical Legal Research’ citing Peter Cane and Herbert Kritzer (eds)
25

Oxford Handbook of Empirical Legal Research (OUP 2010) 18

7
The thesis is primarily a doctrinal analysis. The researcher consults the positive and negative

experience of other countries to draw lessons how inclusive citizenship laws may secure and

attract diaspora investors, and the way how countries can regulate dual citizenship in their laws.

This will be done by using a “comparative method.”26 Countries are selected purposively. The

number of diasporas they have and the effectiveness of their dual citizenship policies in

incorporating the interests of diasporas investors are considered. Doctrinal analysis has been

applied in a rigorous analysis of laws and different policy documents. The analysis is limited to

the extent of relevancy of the laws and policies to the study. The researcher has assessed

citizenship laws, investment laws, investment policy, diaspora engagement policy and other

strategic plan documents.

Supplementing the doctrinal study, the thesis involves some empirical study. It goes beyond the

study of the black letters of the law. The researcher opts for this type of legal research to see

some the practical effects of citizenship law on the Economic decisions of diasporas; and how

such decisions would in turn affect diaspora investments in Ethiopia. Empirical data have been

collected basically by using qualitative technique.

Interview is employed to retrieve people’s experience in the given issue. The researcher has

made key informant interview with authorities of the Ethiopian Investment Commission,

Ethiopian Diaspora Agency and the Ethiopian Diaspora Association. Among those authorities,

sample was taken on the basis of purposive sampling. Experience and key roles in the institutions

have been considered to take interview participants. In order to make balance between collecting

of possible wide ideas and retrieving the best of their experience in one hand and, off topic

Mark
26
Van Hoecke, ‘Methodology of Comparative Legal Research’
<www.bjutijdschriften.nl/tijdschrift/lawandmethod/2015/12/RENM-D-14-00001> accessed on 27 Nov. 2018

8
discussions on the other hand, the researcher used semi structured interview as a data collection

tool.

Another research technique for this thesis is secondary document analysis. This method is chosen

because of the researcher’s inability to reach the study population. In the interest of better

qualitative analysis, the researcher may use quantitative research results of others’ since there is

little room for change of qualitative results even if the researcher himself able to conduct such

researches. Secondary analysis enables the researcher save time and cost of data collection and to

make accessible difficult population to study.27 Most importantly, by using secondary analysis,

demographic and economic data are taken from the databases of WB, IMF, IOM and OECD and

NBE.

1.6 Significance of the Study

It can be consulted by concerned policy makers to create a better understanding of dual

citizenship as a determinant of diaspora investment in order to facilitate governments attempt to

promote diaspora investment. It may fill some gaps in literatures and will be used as a stepping

stone for further detail researches in the area.

1.7 Scope of the Study

Granting dual citizenship may have so many political and economic implications. However, this

thesis is conceptually limited to the potential effects of dual citizenship on diaspora investment in

Ethiopia. The research doesn’t address all arguments for or against dual citizenship. Rather it

will highlight the benefits of dual citizenship from the perspective diaspora investment in

Ethiopia.
Wing Hong Chui, ‘Quantitative Legal Research’ citing Mike Mc Conville and Wing Hong Chui (eds), Research
27

Methods for Law (Edinburg University press 2007) 60

9
1.8 Limitation of the Study

Using secondary document analysis as a research method has its own limitations. The researcher

will have no control of the empirical data of the work of the other persons or institutions.

Beyond some doubt on their accuracy, perspectives of interpretation of those data may be

different from the researcher’s objective to be achieved in this study. Attempt is made to reduce

the challenges by making the major source of information from official data sources. However,

the inherent problem of the method is still there. Another limitation of this study is absence of

actual quantitative evidences on the positive correlation between granting dual citizenship and

diaspora investments in different countries. Arguments in this regard are mainly based on

theoretical justifications.

1.9 Structure of the Study

The study has five chapters including this introductory part. The second chapter presents general

overviews and theoretical frameworks about dual citizenship and diaspora investment. Among

other things the meaning of diasporas, meaning and theories of citizenship and the benefits of

diaspora investments are dealt.More detail discussions are presented about the status and roles of

diaspora investmentsin Ethiopia. The government’s initiatives to promote diaspora investment

and the practical and legal challenges of diasporas’ engagement in investment are covered.The

third chapter is devoted to discuss the experience of different countries in protecting the interest

of their diaspora population through citizenship policies. The fourth chapter is reserved to study

the need for dual citizenship for encouraging diaspora investment in Ethiopia.Findings and

recommendations take the last chapter of the thesis.

10
 CHAPTER TWO
2. GENERAL OVERVIEW OF DIASPORA ENGAGEMENT AND DUAL
CITIZENSHIP

2.1 Defining Diaspora

11
Defining diaspora has paramount importance to classify diaspora population, registration and

measurement of diaspora population (for accurate qualitative and quantitative data), and to

determine the policy focus of a home country. Diaspora can be defined in many different ways. It

may refer people dispersed from their origin homelands that have a collective memory, myth,

sentimental or material links to their homeland. 28 The International Organization on Migration in

its Glossary on Migration in 2004 defines diaspora as “members of ethnic and national

communities, who have left, but maintain link with their homeland.” Global Forum on Migration

and Development provides the definition of diaspora as “individuals originating from one

country living outside this country irrespective of their citizenship or nationality, who,

individually or collectively, are or could be willing to contribute to the development of this

country.”29

From the definitions above, some elements can be deduced. Migration, ether forced dispersal or

any form of migration creates diasporas; diasporas maintain link with their country of origin;

they show voluntary contribution to the development of such country; and citizenship is not a

criterion to call someone as diaspora. It is difficult to distinguish diaspora and migrant

population from the definitions of diaspora. The level of contribution to the development of a

home country is not also clear.

The Ethiopian Diaspora policy defines Ethiopian diaspora as “Ethiopians and foreign nationals

of Ethiopian origin residing outside Ethiopia”.30 Another definition is found under the Ethiopian

Diaspora Agency Establishment Regulation No. 432 /2018; “Ethiopian Diaspora means an

28
Safran w, ‘Diaspora in Modern Societies: Myths of Homeland and Return’ (1991) 1 (1) Diaspora, 83
29
Global Forum on migration and Development (GFMD) (2008) 2
30
Ethiopian Diaspora Policy(2013) 8

12
 31
Ethiopian national or Foreign national of Ethiopian origin that permanently resides abroad.”

The latter is narrower than the former; it puts permanent resident as requirement. It excludes

instant migrants from the definition of diaspora. These definitions don’t require diasporas’

contribution or willingness to contribute for the development of the country as a criterion.

Diasporas are not required to maintain any linkage to their home country under this definition.

These are extremely broad definition difficult to adopt and effectively apply.

For the purpose of this paper, diasporas should be understood as international migrants dispersed

from their country of origin but remain in some way part of their country of origin and willing to

contribute for the development of such country. Every migrant cannot be identified as diaspora.

The existence of diaspora requires more than a mere population of expatriates. Members of the

community should continue to identify with their homeland and cultivate ties both between

themselves and their homeland.32When speaking Ethiopian diasporas in this thesis, it refers to

those Ethiopian migrants or migrants of Ethiopian origin who have some kind of linkage to

Ethiopia and thus have an interest in Ethiopia; and includes the descendants of migrants. The

Economic tie and contribution of diasporas to their country of origin is the center of this thesis.

The researcher prefers to use “diaspora” instead of “Diaspora” to avoid the narrower historical

usage of the latter for only Jewish and Greek migrants; the plural form of the term is used to

indicate diversity of diaspora communities.33

2.2 Defining Citizenship

31
Ethiopian Diaspora Agency Establishment Regulation No.423/2018, Art. 2(3)
32
AlwynDidar Singh, ‘Developing a Knowledge Base for Policymaking on India-EU Migration’ 2012 CARIM-
India Research Report, 4
33
Robin Cohen, Global Diasporas: An Introduction ( (2nd edn, Routledge 2008 ) 1

13
Historically citizenship had been understood as the privileges of membership of a particular

political community.34 In other words citizenship was perceived as political participation in some

form of democracy most importantly the right to vote. In modern context citizenship goes

beyond political participation. It includes people’s right and duties in all dealings with others. 35

In general citizenship can be defined as the capacity to participate in both the political and the

socio economic life of the community; and includes citizens’ willingness to see themselves as

some sense of belongingness to a particular state and ready to respect regulations like paying

tax.36 Citizenship as a legal concept connotes full membership in a state and the corresponding

tie to state law and submission to state power. In terms of terminology, the researcher use

citizenship and nationality interchangeably for the purpose of this thesis. Citizenship should be

understood as a term which includes membership (sense of belongingness), rights (civil, political

and social rights), and participation (responsibilities and duties).

2.3 Dual Citizenship and Theories of Citizenship

Dual citizenship simply refers the case where citizens combine membership in several states. It

happens when political membership overlaps two or more states. Dual citizenship is also called

dual nationality, plural citizenship and even multiple-citizenship. It should not be understood as

membership of only two states. Dual citizenship can be acquired by blood, birth, naturalization,

marriage or in extreme cases by investing a certain amount of money.There are three main

theories of citizenship. These are the communitarian, republican and liberal theories.

34
Bellamy R, Citizenship: A Very Short Introduction (OUP 2008) 1
35
Ibid 2
36
Ibid 13

14
The communitarian model takes communities as its starting point, rather than the nation or city

state of the republican model, and focuses on how social groups influence values and behavior. 37

Communitarian assumption of citizenship focuses on the identity and sense of belongingness to a

community, and the need to work towards the common good of this community. Unlike liberal

and republican theories, the communitarian model of citizenship stresses communities rather

than a specific country.38 The identity of citizens can be determined in the context of the culture

and traditions of the community they live in. Thus, the good of the community is above

individual rights. A citizen is a member of a community of memory and beliefs that preceded it

and to which he owes allegiance and commitment before being a subject of rights. 39The theory

rejects the liberal thesis on the ethical neutrality of the state. 40 State cannot be a neutral player;

but rather a provider of political identity in a social and cultural context within a given territory

and develops active and participatory political subjects.41Communitarians oppose dual

citizenship. The first argument for such opposition is that dual citizenship is a treat to loyalty to a

specific community. It erodes sense patriotism.42 Secondly communitarians claim that dual

citizenship makes national integration, identification and solidarity difficult for migrant receiving

countries.43

37
Bryony Hoskins and others, ‘Contextual Analysis Report Participatory Citizenship in the European Union Institute
of Education’ 2012 Report 1 European Commission, Europe for Citizens , 2
38
Ibid
39
Erika González, ‘On the Concept and Models of Citizenship’
<www.ioe.ac.uk/about/documents/About_Overview/Gonzalez_Garcia_E.pdf> accessed 30 February 2019
40
Ibid
41
VicentGodana, ‘The Composite Terrain of Dual Citizenship Concept: an Analytical Study of the Kenyan
model’(LLM thesis, University of Nairobi 2015)
42
Joachim Blatter, ‘Dual Citizenship and Theories of Democracy’ (2011)15 (7) Citizenship Studies 769
43
Ibid 780

15
Republican theory stresses the promotion of a common good through political participation

which is the only way to be free in their view. 44 For republicans, to participate in collective

decision-making is the fundamental political duty of citizens. There are divided arguments on the

acceptance of dual citizenship among republicans. “Developmental” republicans see dual

citizenship positively. Dual citizenship is perceived as an instrument of better political

participation. It gives more rights and opportunities for political participation since dual citizens

have those rights and opportunities in more than on country. 45 From this perspective it can be

said that republicans put no restriction on voting rights and other political participations of dual

citizens.46 On the other hand “protective” republican theorists resist dual citizenship as it

deteriorates citizens’ ability to obey civic duties like military service and paying taxes, and

political participation.47

According to the liberal theory, citizenship is understood as a legal status originated from a

natural law tradition.48 For liberals, citizenship rights are moral rights that are natural or universal

they are given to all persons in their capacity as human beings with reason and dignity. The

theory focuses on individual rights within the ambit of the rule of law. Liberals recognize that

citizens have certain obligations, such as obedience to the law and payment of taxes, which are

essential to maintain the state. In this regard, whether an individual acquires citizenship of a

single state, multiple states or decides to remain stateless, liberalist leaves it to the discretion of

the individual as of right. This theory captures aspects of voluntary acquisition of dual

citizenship. A person who acquires citizenship of a second country by registration and opts to

44
FilizKartal, ‘Liberal and Republican Conceptualizations of Citizenship: A Theoretical Inquiry’ (2001-2002) 2728,
Turkish Public Administration Annual.
45
Blatter (n 42) 778
46
Ibid
47
Ibid
48
Heater Derek, A Brief History of Citizenship (New York University Press, 2004) 52

16
retain citizenship of the origin state, in liberalist view is in exercise of individual right since

individual rights have precedence over group or community rights. Therefore, dual citizenship is

justified according to liberal theory since an individual is free to choose his/her political

membership.

2.4 Global Convergence towards Dual Citizenship

From theoretical perspective or practical relevance, it is argued that dual citizenship threatens

social solidarity and state security due to division of loyalty by citizens. Multiple loyalties may

erode state sovereignty and damage public sprit.49 Dual citizenship creates inequality because

dual citizens will have rights in more than one state; they will have more rights than mono-

nationals.50 Dual voting right is an example for such claims. From investment perspective, dual

citizenship may give rise to the proliferation of business entities with multiple nationalities.

Business entities may get their nationalities on the basis of the nationality of their owners.

Investments with multiple nationalities may create complexity for host states in investment treaty

protections.

However, proponents support tolerance of dual citizenship. Accepting dual citizenship does not

sustain a material social cost. Dual citizenship will not be exceptional source of conflict and a

treat to national security if the world is ready to reduce conflicts. There is no evidence that the

recent tolerance of dual citizenship pose direct costs.51 Furthermore, dual citizens are not

enjoying more rights than single nationals as they are exercising rights in different states; not in a

single state. For instance, one person-one vote principle is not violated since dual citizens’ vote
49
Thomas Faist (ed), Dual Citizenship in Europe from Nationhood to societal integration (Ashagate Publishing
Limited 2007) 6
50
Perter j, Dual citizenship as a Human Right <https://academic.oup.com/icon/article-abstract/8/1/111/682643>
accessed 28 December 2018
51
Ibid

17
in different states, not in the same state. As long as the vote in one country does not have any

influence on the aggregation of interests in the other country, the principle of one person-one

vote is not violated.52Another counter argument is that countries previously perceived their

emigrant population as traitors has changed their perception and accept them as valuable socio

economic partners. Dual citizenship is seen as an instrument to strengthen the bond between

migrants and sending countries. Policy responses are available to reduce complexities in relation

with investments by entities holding multiple nationalities. Host states can limit protection of

investors and investments owned and effectively controlled by dual nationals holding the

nationality of host states. Investment treaties may consider to give effect for article 25 (2) (a) of

the ICSID which excludes protection of investments made by host state nationals from treaty

protection. Denial of benefits to entities owned or effectively controlled by host state nationals is

also another mechanism.

There is an increasing tolerance of dual citizenship. Countries eased their restrictions on dual

citizenship. One of the reasons for such trend is migration. A need arises to facilitate

naturalization of migrants in host countries without losing their home country citizenship.

Governments of emigrant countries tolerate dual citizenship as an instrument to maintain linkage

with emigrants leaving abroad. Countries able to protect their economic interests like remittance

flow and investments by their diasporas through the insensitive of dual citizenship. Dual

citizenship is alsoimportant for political development; emigrants play a great role by lobbing and

controlling governments of their home country.53 Dual citizenship is also justified even by

communitarians as it strengthens ethnic and cultural bond between migrants and their community

in the country of origin. The real justification for increasing tolerance of dual citizenship is
52
Blatter (n 42) 777
53
Faist (n 49)

18
instrumental motivation that overseas population is economically important interims of

remittance and investment.54Dual citizenship enables developing states (as most of them migrant

sending states) keep their tie with their diaspora community.

2.5 Diaspora Investment

Diaspora investment can be described as “a cross boarder business-directed investment flows

transacted by diaspora individuals living in a diaspora in their country of origin.” 55 A growing

body of literature suggests that diasporas play a critical role in supporting sustainable

development by transferring resources, knowledge and ideas to their country of origin. Diaspora

investors are facilitators of transnational knowledge that contribute to the diffusion of technology

and product knowledge from host country to home country. Diasporas are not only investors, but

they also offer market information about the host state with investors and firms in the country of

origin.

Compared to typical foreign investors, diaspora investments are more stable. Diaspora investors

hold strong emotional relationships to their homeland. Diasporas have a memory about their

country of origin, which they cannot easily erase. Their participation in investment in their

country of origin may be seen as honorable and desirable activity. Thus, diasporas usually invest

in their homeland for reasons other than profit motive motives.

Riddle and Nilsen identify that diaspora investors are more important than typical FDI investors

since they are:

Blatter (n 42) 782

54

M.
55
Elo& L. Riddle, ‘Understanding Diaspora Investment’
<www.resarchget.net/publication/303739055_Understanding_diaspora_investment> accessed 25 March 2019

19
 Less likely to repatriate profit and more likely to reinvest in existing firms and/or
establish new ventures in their country of origin; less likely to extract capital in periods of
political and/or economic risks; more likely to invest in greenfield activities rather than
merely merging or acquiring local firms, thereby creating positive employment effects;
prefer local inputs and employee over imported products and labour; seek to cultivate
socially and environmentally responsible business practices; provide social capital
linkages for local firms to external supply chins and markets, thus enhancing
opportunities for local firms internationalization; and enhance local human capital
through knowledge spillovers and social remittances.56

Diasporas contribution to their country is determined by the home country’s attitude towards

them. Some countries may consider their diasporas as traitors. Others may perceive diasporas as

strategic alliances for their economic developments. Actively encourage diaspora direct

investment is become a means to reduce the downsides of typical foreign direct investment.

Home country governments should encourage the link between diasporas and their country of

origin. Extension of dual citizenship and voting rights become home country measures to boost

diaspora investments.

2.6 Diaspora Engagement and Citizenship laws in Ethiopia

2.6.1 Overview of Ethiopian Diasporas

Emigration from Ethiopia is relatively a recent phenomenon. Historically, Ethiopians were not

traveling outside of their homeland. The reason may be related with the long lasting

independence of the country.57Currently emigration from Ethiopia is common. Due to different

political and economic reasons, Ethiopians have migrated from the country. Both low and high

56
Liesl Riddle &Tjaim.Nielsn, ‘Policies to Strengthen Diaspora Investment and entrepreneurship: Cross National
perspective’<www.researchgate.net/publication/30004215262_policies_to_strengthen_diaspora_investment_and_en
terprenurship_Cross_national_perspectives> accessed 2 April 2019
57
TamiruWodimAgegnehu, ‘Easing Ethiopian Born Foreign Investor Restrictions’ Addis Fortune (Addis Ababa, 29
August 2016) <https://addisfortune.nrt/columns/easing-ethiopian-born-foreign-investor-restrictions/> accessed on
15 March 2019

20
skilled migrants move from Ethiopia to deferent countries of the world.Ethiopian diasporas

emerged in four different stages of migration. The first was the pre 1974 exile of elites; the

second stage happened from 1974-1982 as the result of the Red terror; the third one was family

reunification from 1982 to 1991 and lastly the post 1991 migration due to ethnic violence and

political oppression.58 The first wave of migration comprises of students sent abroad for further

studies. Their destinations were mainly Europe and North America. The second wave of

migration was the result of violent behavior of the military regime. Many people fled from

Ethiopia due to fear of Red Terror and other human right violations. The third weave happened

from 1982 to 1991.59 Families of the second weave migrants travelled to join them through

family reunification schemes.60 Lastly, the post 1991 migration comprises of migrants as a result

of political repression and ethnic violence mainly due to Ethic federalism. 61 Labor migration is

another aspect of the post 1991 weave of migration. In general migrants from Ethiopia can be

seen as either victim migrants or labor migrants. The former mainly consists of more skilled

migrants reside in North America and Europe. The latter category of migrants has crossed the

Mediterranean due to economic reasons. Their destinations are mainly the Middle East countries.

It is hardly possible to quantify the exact number of Ethiopian diasporas created by the above

waves of migration. The Ethiopian Diaspora Agency acknowledged that one of the serious

challenges in mapping Ethiopian diasporas is knowing their number.62 This is because of the fact

that illegal migration is common in Ethiopia. According to the 2012 figure of the Ministry of

58
Fransen and Kuschminder (n 2)
59
Katie Kuschminder & Melissa Siegel, ‘Understanding Ethiopian Diaspora Engagement policy’ (2011)United
Nations University UNU-MERIT Working Paper Series No.2011-040) 4-5
60
Ibid
61
Ibid
62
Interview with Mohammed Endris, Deputy Director General, Ethiopian Diaspora Agency (Addis Ababa, 13
February 2019)

21
Labour and Social Affairs, 60-70 per cent of Ethiopian migrants are irregular migrants.63 The

collection of information on migration depends on the data from host countries; it is not easy to

find information about irregular migrants in host countries. Despite the odds, the number of

Ethiopian diasporas is estimated up to 3 million; more than one million in the Middle East, six

hundred thousand in Africa, more than half a million in North America and the rest in Europe,

Australia and Asia.64 A large number of skilled diasporas reside in Europe and America.

According to the 2016 US census, the number of Ethiopian diaspora is estimated 305, 800. 65 It is

the second largest Sub-Saharan African diaspora group in the US (next to Nigeria) and the

fifteenth largest in Europe.66 USA, Israel, Italy, Canada, Sweden the UK and Australia are the

seven OECD countries where largest Ethiopian diasporas are leaving. 67 Ethiopian diasporas in

the OECD are potential source of investment as they are relatively more skilled and better earned

diasporas.68

2.6.2 Citizenship Laws of Ethiopia: Historical Perspective

Historically, Ethiopia is among the countries whose nationality law is based on the principle of

“Jus Sanguinis”. Under the “Jus Sanguinis” principle, the right of citizenship is acquired by

blood. A person gets his nationality from his/her parents despite the place of birth. Citizenship

law based on “Jus Sanguinis” is less inclusive than citizenship law based on “jus soli” principle.

63
Carter, B. &Rohwerder B, Rapid Fragility and Migration Assessment for Ethiopia (Rapid Literature Review)
(2016) 1
64
IOM Special Liaison Office , Ethiopia, Mapping of Ethiopian Diasporas Residing In the United States of America
(2018) 2
65
Ibid
66
OECD Stat, <http://stats.oecd.org/> accessed 25 December 2018
67
Ibid
68
Ethiopian Diaspora Policy (2013) 5-6

22
It has “an element of exclusion, in the sense that citizenship drives meaning, in part, by

excluding non citizens from basic rights and Privileges”.69

The 1930 Nationality Law is the first law governing citizenship issues. Save some amendment in

1933,70 it had served until a new law was enacted in 2003. The law provided that “any person

born in Ethiopia or abroad, whose father or mother is Ethiopian, is an Ethiopian subject.” 71The

principle is citizenship by blood. The law put other modes of acquiring Ethiopian nationality like

marriage and naturalization. According to article 2 of the law, Ethiopian nationality is conferred

to a foreign woman by a lawful marriage of an Ethiopian man. The law was silent whether the

women should avoid her foreign nationality to acquire Ethiopian nationality. The benefit of

silence goes to her; she is allowed to hold dual citizenship. On the other hand, article 4 of the

same law stipulated that marriage to a foreign man cannot be a ground to deprive the woman’s

Ethiopian nationality, unless the marriage confers her foreign nationality. To put it simply, she

has not been allowed to hold dual citizenship. A foreigner can also apply to hold Ethiopian

nationality by way of naturalization. A foreigner may apply to naturalize in Ethiopia if he/she

attains the age of majority, resides in Ethiopia, capable of earning his life and family, speaks and

writes Amharic language and has not been charged for committing a crime. 72 In some special

cases, residence and language proficiency requirements need not be considered. 73 Again the law

was silent whither the person is required to renounce his/her foreign nationality in order to

69
Patrick A. Imam and Kapodar, ‘Does Inclusive Citizenship Law Promote Economic Development?’ (2019) IMF
Working Paper Series No. WP/19/03 p. 7
70
An amendment was made to include a provision under Article 12. The amendment was published on
BirhaninaSelam Newspaper Vol. 9 No. 41, (5 October 1933)
71
The 1930 Nationality Law of Ethiopia, Art. 1
72
Ibid, art. 12 (1) (a-e)
73
The 1933 amendment provided sub (2) of article of 12 of the 1930 Nationality Law which said: If the Imperial
Government deems any foreigner who applies for Ethiopian citizenship to be of value or if it finds other special
reason which convinces it may grant him /her Ethiopian citizenship even if he/she does not fulfill the requirements
prescribed in article 12 (1) (b) and (d) of the nationality law of 1930.

23
naturalize in Ethiopia. From the silence of the law it could be argued that it is not necessary to

renounce foreign nationality to acquire Ethiopian nationality by way of naturalization. Thus, it

was possible to hold dual nationality. In other circumstances the law made it clear that dual

nationality is not allowed. An Ethiopian national who acquires another country’s nationality will

loss his/her Ethiopian nationality.74

The 1931 Constitution of the Empire of Ethiopia did not provide the grounds of acquisition and

loss of Ethiopian Nationality. It simply left the issue to be determined by another law. “The law

specifies the requisite conditions for the status of Ethiopian subjects.” 75 No substantial change

was made by the 1955 Revised Constitution of Ethiopia concerning equation and loss of

Ethiopian citizenship. Under Article 39 of the constitution it was stipulated that “the law shall

determine the conditions of acquisition and loss of Ethiopian nationality and of Ethiopian

citizenship.” One slight deference between the above two provisions of the two constitutions is

that the 1955 constitution presented as if “Ethiopian nationality” is different from “Ethiopian

citizenship”. However, it is difficult to know the exact distinction between the two terms. The

then working law (the 1930 Nationality Law) has no clue. From the reading of this law,

“Ethiopian” and “Ethiopian subject”, and “Ethiopian Nationality” and “Ethiopian citizenship”

(see the amendment) were used interchangeably.

More elaborated constitutional provisions were found in the 1987 People’s Democratic Republic

of Ethiopia (PDRE) Constitution.

Article 31

74
The 1930 Nationality Law of Ethiopia, Art. 11 (a)
75
Constitution of the Empire of Ethiopia 1931, Art. 18

24
 1. Any person with both or one parent of Ethiopian Citizenship is an Ethiopian

2. Particulars relating to citizenship shall be determined by law.

3. The conditions and procedures for the acquisition of Ethiopian citizenship by citizens

of other countries and stateless persons shall be determined by law.76

The leading principle to acquire Ethiopian citizenship was blood. Foreigners may acquire

Ethiopian citizenship. The grounds of loss of Ethiopian citizenship and other details were

reserved to be prescribed by other laws. There was not express constitutional prohibition of dual

citizenship.

Latter on citizenship has been recognized under article 6 and 33 of the FDRE constitution.

Article 6
Nationality
1. Any person of either sex shall be an Ethiopian national where both or either parent is
Ethiopian.
2. Foreign nationals may acquire Ethiopian nationality.
3. Particulars relating to nationality shall be determined bylaw.
Article 33
Rights of Nationality
1. No Ethiopian national shall be deprived of his or her Ethiopian nationality against his
or her will. Marriage of an Ethiopian national of either sex to a foreign national shall not
annul his or her Ethiopian nationality.
2. Every Ethiopian national has the right to the enjoyment of all rights, protection and
benefits derived from Ethiopian nationality as prescribed by law.
3. Any national has the right to change his Ethiopiannationality.
4. Ethiopian nationality may be conferred upon foreigners in accordance with law
enacted and procedures established consistent with international agreements ratified by
Ethiopia.

76
Constitution of People’s Democratic Republic of Ethiopia 1987, Art. 31

25
The FDRE constitution keeps the old tradition of acquiring Ethiopian citizenship by blood. Still

“Jus Sanguinis” is the principle. A person becomes Ethiopian national where at least one his/her

parent is Ethiopian. Being born from Ethiopian mother or father is the requirement. But who is

Ethiopian from the very beginning? In other words, how can a person prove that at least ether of

his/her parents is Ethiopian? Ethiopian nationality may also be given for foreigners despite the

absence of blood relationship, after they pass through some administrative processes. This is

technically called “citizenship by acquisition”.77

The new nationality law (Proclamation No.378/2003) which repealed the 1930 Nationality Law

provides the details of citizenship in Ethiopian. Consistent with the constitution, the law adopts

citizenship by descent as a rule.78 Acquisition by law is also recognized for foreign nationals and

stateless persons.79 The proclamation doesn’t tolerate dual citizenship. Ethiopian citizens who

voluntarily obtain another country’s citizenship are no longer citizens of Ethiopia. 80 It is also a

must for a foreigner to renounce his/ her nationality to obtain Ethiopian nationality. 81 As the

constitution puts no provision concerning grounds of loss of citizenship, the parliament has got a

wide discretion to provide such grounds under the Nationality Proclamation. Re-acquisition of

Ethiopian Nationality is possible only where a person return to domicile in Ethiopia, renounce

his foreign nationality and applies to authorities. 82 Thus, voluntary acquisition of another

77
BronwenManby, Citizenship Law in Africa: A Comparative Study (Open Society Institute 2009) X
78
Ethiopian Nationality Law Proclamation No.378/ 2003 Art. 3
79
Ibid, Art. 4
80
Ibid, Art. 20(1)
81
Ibid. Art.5 (7), 6 (4) and (8). The proclamation closes the room for dual citizenship. As the otherwise reading of
article 8 indicates, even foreigners who have made outstanding contributions for Ethiopia are required to renounce
their previous nationality before Ethiopian nationality is conferred to them. Their contribution alone does not
guarantee dual citizenship in Ethiopia. It has been widely told that the founder of Menschn fur Menschn ,
KarlheizBohm ,and Dr. Catherine Hamlin, founder of Addis Ababa Fistula Hospital, have been given Ethiopian
nationality in response for their outstanding contributions. That was an Honorary Citizenship. What is the status of
Honorary Citizenship Pass Port in Ethiopia?? Immigration laws of Ethiopia do not recognize it as a travel document
unless it is considered as ordinary passport. In that case, is it an instance of de-facto dual citizenship in Ethiopia?
82
Ibid, Art 22 (1)

26
country’s citizenship became a ground of loss of Ethiopian nationality. It is because of this

reason Ethiopian diasporas loss their Ethiopian nationality after naturalizing in their host

countries.

2.6.3 The Role of Diasporas in the Economic Development of Ethiopia

Ethiopian diasporas play critical roles in the country’s development through sending remittances,

transferring knowledge and technology, investing their money in different sectors of the

economy, participating in charity works, building the country’s image etc.

Remittances have contributed a lot for the development of Ethiopia.According to the 2015/ 16

annual report of the National Bank of Ethiopia,remittance from the diaspora communities of

Ethiopia reached 3.5 billion in 2015, USD and 4 billion USD in the year 2016.It isestimated 7.4

per cent of the GDP; and exceeds the value from export. Remittances from Ethiopian diasporas

benefit families of senders. Remittance receiving households have higher purchasing power,

better houses, fewer household income shocks, a greater ability to save and higher levels of
83
subjective well-being. Remittances were also found to be very important in protecting against

income shocks, offering family welfare, covering living expenses, and helping reduce poverty.

Returning migrants who have saved their earnings bring foreign currency and may invest in

activities that reduce unemployment and bring in taxes. However, studies indicate that less than

20 per cent of remittances being used for productive investments such as education, housing or

land, or a business investment.84 Substantial amount of remittance is used for subsistence

livelihood.

83
Kuschminder, K. & Siegel M, ‘Migration & Development: A World in Motion: Ethiopia :Country Report’ (2014)
(UNU-MERIT) 3 - 4 <http://migration.unu.edu/publications/reports/migration-development-a-world-in-motion-
ethiopia-country-report.html> accessed 25 December 2018
84
Ibid

27
Another contribution by Ethiopian diasporas is purchase of bonds. The government of Ethiopia

has used diaspora bond as a means of borrowing from Ethiopian diasporas in financing the

Grand Ethiopian Renascence Dam. It is believed the diasporas have shown their willingness to

buy the bond out of sense of patriotism to their motherland beyond the rate of interest they would

be paid. As of March 2016, Ethiopian diasporas bought bonds worth 600,000,000 Ethiopian

Birr.85 It constitutes 7 % of the total bond purchase and donations for the dam. 86 In another report

in 2017, the contribution of Ethiopian diasporas for the dam has reached around 40 million US

dollar.87It is of course below their potential. Due to the political divide between the government

and the diasporas, very few members of Ethiopian diasporas bought the bond.

Ethiopian diasporas are contributing for the Diaspora Trust Fund. It has been initiated by the

current Prime Minister to raise funds for vital socio-economic projects in Ethiopia. 88 As of 22

March 2019 the total deposit reaches 3.659 million USD.89

Most importantly, Ethiopian diasporas have participated in business activities in general and

investments in particular. Diasporas are arguably the second largest job creators next to the

government.90 Diaspora investments are more important than remittances. They are more

sustainable form of income generation, job creation and development of the country.

2.6.4 The Status of Diaspora Investments in Ethiopia

85
Office of National Council for the Coordination of Public participation on the Construction of Grand Ethiopian
Renaissance Dam,Citing ‘MakonnenTesfaye The Imperative of Stepping-up Ethiopian Diaspora’s Contribution to
Hedase Dam (GERD)’ <www.tigraionline.com/articles/gerd-hedase-dam.html > accessed 25 January 2019
86
Ibid
87
YospehKassaye, (Ethiopian Representatve), Statement presented to the GFMD (Second Dialogue on the Global
Compact on Migration, Geneva 2017) 4
88
<www.ethiopiatrustfund.org> accessed March 2019
89
Ibid
90
Interview with AbrehamSium, Director, Ethiopian Diaspora Association (Addis Ababa, 25 February 2019)

28
According to data from EIC from the years 1992 to 2018, the total number of diaspora projects is

4099, with total investment capital of 2,027,715,000 Ethiopia Birr5. Operational projects create

5,517 temporary and 11,680 permanent employments. The data are limited to those investments

licensed under the jurisdiction of Federal Investment Commission.91 Furthermore, most of the

giant companies of MEDROC Ethiopia have not been included; they have been licensed as

purely FDIs, despite their ownership is linked with Ethiopian born Saudi Arabian billionaire. 92

In general diaspora projects worth over 14.7 billion US$ have been registered for the last 15

years.93 Diaspora investment in the regional states of Ethiopia generated employment

opportunities for over 200,000 citizens.94

Table 1

Summary of Diaspora Investment Projects

from 1992-2018 GC
By Country of Origin
Pre-
Implem Total No
Implem Operation
entation of
entation
Country of Origin Projects

No of No of No of Capital Perm Temp

Projects Projects Projects '000' ETB Empl Empl.

Abkhazia 1           1
Australia 77 2 15 39,893 86 42 94
Australia/Ethiopia 1           1
Austria 4   1 2,709 6 0 5
Belgium 19   4 5,667 12 9 23
Britain 364 3 21 123,109 185 73 388
Britain/Ethiopia 2   2 2,250 27 41 4
Bulgaria 1           1
91
Investment proclamation No. 769/2012, Art. 4, According to this article, the above investments are either joint
venture investments or investments by Ethiopian diaspora which falls in to areas of investment which entails
incentives. Other investments are licensed by Investment Authorities of the Regional States
92
Email From Ethiopian Investment Commission to Researcher (26 March 2019)
93
Yospeh ( n 87)
94
Ibid

29
Bulgaria/Ethiopia   1         1
Canada 513 19 55 270,975 708 147 587
Canada 1           1
Canada/Ethiopia 3   2 3,275 32 10 5
China     1 4,000 16 0 1
Czech Republic 1           1
Denmark 12   1 1,000 2 0 13
Djibouti 25   1 5,600 15 5 26
Djibouti/Ethiopia   1         1
Eritrea 3           3
Estonia 1           1
Ethiopia 2   3 18,100 37 35 5
Ethiopia/USA 1           1
Finland 9   3 9,675 33 25 12
France 24   1 11,000 12 10 25
France/Eth 1   1 3,431 33 0 2
Georgia 1           1
Germany 212 6 12 44,118 227 561 230
Germany/Ethiopia 3 1 2 13,000 16 18 6
Germany/France/Et
hiopia   1         1
Greece 8           8
Greece/Ethiopia 1           1
Hungary 1           1
India 5           5
Ireland 1           1
Israel 55 2 4 7,348 54 1,205 61
Italy 111 7 10 32,231 225 49 128
Italy 1           1
Italy/Canada/Ethiop
ia 1           1
Italy/Ethiopia 5 6 1 800 63 0 12
Japan 1           1
Lebanon 1           1
Netherlands 103 7 11 31,635 114 196 121
Netherlands/Ethiopi
a 1           1
New Zealand 4   1 3,500 20 100 5
New Zealand 1           1
Nederland’s 2           2
Niger 1           1
Nigeria 1           1
Norway 40 1 1 1,931 23 0 42
Russia 5           5
Saudi Arabia 8 1         9

30
 Sweden 1           1
Somalia 4 1         5
South Africa 2   1 5,000 5 6 3
Spain 5           5
Sudan 7   1 1,000 6 2 8
Sudan/Ethiopia 1           1
Swaziland 5           5
Sweden 224 13 34 255,532 642 1,129 271
Sweden/Ethiopia   2         2
Sweden 1           1
Switzerland 25 1 4 4,885 19 11 30
Togo 3           3
Turkey 4           4
Uganda 2           2
UK 10           10
USA 1,638 40 124 867,520 2,624 7,947 1,802
USA/Britain/Ethiop
ia 1           1
USA/Ethiopia 28 3 6 228,232 248 4 37
USA/Italy/Ethiopia     1 300 5 25 1
USA/Switzerland/E
thiopia 1           1
Yemen 49 2 3 30,000 22 30 54
Yemen/Ethiopia 3           3
Grand Total 3,652 120 327 2,027,715 5,517 11,680 4,099

Source: EIC, 201995

Diaspora investments have so many advantages over typical FDI and domestic investments in

Ethiopia. Ethiopia is less demanded by typical foreign investors due to small domestic market

size, inadequate infrastructure, restrictive investment policies, political unrest and other factors.

Ethiopia is ranked 159 from190 in ease of doing business ranking in 2019. Ethiopian

diasporasare motivated to invest not only for profit. Diasporas invest in Ethiopia for several

reasons, including emotional, financial and social status motivations. They want to invest in

Ethiopia because they want to make a social impact and feel proud and accomplish when doing

so. A study revealed that the underline motivators of diaspora investment in Ethiopia are not

95
Email from Ethiopian Investment Commission to Researcher (13 February 2019)

31
incentives provided by the government; rather it is the emotional attachment with their

homeland.96 In terms of distribution of investment diaspora investors prefer to invest in the

regional states they belong.97 This can at least reduce investment concentration in the capital city.

Compared to domestic investors diaspora inventors use their own financial sources than

requesting access to finance. They have better exporting capacity than domestic investors.

Diaspora investments enable the country to achieve its aspirations expressed in different legal

policy documents. Encouraging diaspora investments is the issue of achieving policy coherence.

The Country’s Employment Policy and Strategy document puts accelerating private investors as

one of the strategies for employment creation. Ethiopian diasporas are perceived to be important

sources of employment creation through their investments in Ethiopia.98 Technology transfer and

employment creation are the targets of GTP II. Diaspora investors have played their role to that

end.

Considering the number of diasporas and their investment potential actual diaspora investment is

very law.Ethiopian diaspora have the potential to invest. For example, the average annual

household income of Ethiopian diasporas in the USA for some years before 2014 was 36,000

USD.99 Eleven percent of the diasporas have got above 90,000 USD annual household income;

and three percent of the diasporas were able to earn above 140,000 USD annual household

income.100 Even though government initiatives able to increased diaspora businesses and

investment, still Ethiopia has not benefited from its diasporas in terms of investment.101

96
Sarah (n 18)59-60
97
Interview with Mohammed Endris (n 62)
98
Ethiopian Ministry of Labor and Social Affairs, National Employment Policy and Strategy of Ethiopia (2009)22
99
MPI, (n 12) 4
100
Ibid
101
Interview with Mohamed Endries (n 62)

32
Opening the 2015 Diaspora Day, the ex president of the country Dr. Mulatu Teshome, said that,

“diasporas involvement over the last decade is not something taken lightly; the Ethiopian

diaspora has few hundred projects to its name over the past decades accounting for a total

investment capital of one billion dollar “that is not enough” since a lot is expected from the

diaspora.”102 From 2.5 to 3 million diasporas, only 3,000 to 4,000 have actually entered into

investment in Ethiopia; this leads to the conclusion that Ethiopia has still a lot of work to do to

engage the diasporas in investment.103 In terms distribution dispora investments are limited to

constriction machinery lease and real estate development.104Diasporas are not engaging in large

scale investments. They are mainly involving in investments which can be done by local

investors.105 Therefore, engaging diasporas in investment is unfinished business for the

government of Ethiopia.

2.6.5 Government Initiatives to Promote Diasporas Engagement in Ethiopia

The Ethiopian government has officially recognized in its policy and legal documents the

important roles of the diasporas to the countries development. Legislations and policies

recognize the Ethiopian diasporas as integral parts of the country’s development. Increasing

attempts have been made by the government to promote diasporas engagement in the

development of the country. The government of Ethiopia considers diasporas as stakeholders in

the development process of the country.

102
Birhanu Fikade, ‘Diaspora Business in Ethiopia: Mismatched Expectations’ (2015)
<onlineethiopia.net/2015/08/Diaspora-business-in-ethiopia-mismatched-expectetions/> accessed on Nov. 14/2018
103
Sarah (n 18)
104
Elizabeth Chacko & Peter H. Gebre, ‘Leveraging the Diaspora for Development: Lesson from Ethiopia’ (2013)
78 (3) Jeo Journal 495, 495
105
Interview with Habtu Mamo, Senior Investment promoter, Ethiopian Investment Commission (Addis Ababa, 12
February 2019

33
 The potential role of the Ethiopian Diaspora in development efforts has, in recent years,

won unprecedented recognition from the Ethiopian government. This interest in the

actual and potential contribution of the Diaspora to development in Ethiopia is manifest

in the explicitly reference to the role of the Diaspora in the Country’s poverty reduction

program, including the recognition of the positive impact that remittances have on the

country’s service account and in facilitating mechanisms to encourage direct investment

from Ethiopians abroad.106

The government has established institutions for diaspora engagement. Ethiopia has several

departments working on different aspects of diasporas. At the federal level, the Ethiopian

government had three different bodies dealing with diasporas. The General Directorate for

Ethiopian Expatriates (Ministry of Foreign Affairs), The Ethiopian Diaspora Coordinating Office

(Ministry of Capacity Building) and the Diaspora Desk in the Addis Ababa City Government

Investment Authority. At regional level, there are branches of diaspora coordinating offices that

also engaged directly with the diaspora abroad.

Currently, an agency called Ethiopian Diaspora Agency has been established by Council of

Ministers Regulation No. 432/2018 under the Ministry of Foreign Affairs. It will be responsible

for diaspora affairs. The Agency aims at implementing the Diaspora Policy, and protecting the

rights and interests of Ethiopian diasporas in collaboration with relevant bodies.107

Ethiopian Diaspora Association was established by the cooperation between the government and

the diaspora community. It has already been in operation since 2012 with aim of assisting its

106
Ministry of Foreign Affairs, Diaspora Engagement Affairs General Directorate, Basic Information for Ethiopians
in the Diaspora ( 2011) 5 (emphasis add)
107
Ethiopian Diaspora Agency Establishment Regulation No.432/2018, Art. 5

34
members in pursuance of heir lawful rights to fully engage in the ongoing social and economic

development of Ethiopia and serve as bridge between the diasporas and the government. 108 It

provides information and supportive letters to its members; it put pressure on the government to

establishment Ethiopian Diaspora Agency.109

Development Bank of Ethiopia and the NBE are financial institutions that are involved in

Diaspora engagement. The NBE introduced Diaspora Foreign Currency Account. The NBE

Directive No.XD/31/2006 was issued with objective of encouraging diaspora investment. It

enables the diaspora individuals and diaspora business organizations to open account in US

Dollar, Pound Sterling and Euro. Among other things, the account may serve as collateral for

loans, and it can be used to make feign payments without waiting for government foreign

currency payment procedures. The commercial bank of Ethiopia has also recently introduced

mortgage loan arrangement for the diasporas for the purpose of purchasing or constructing

residential houses.

Diaspora engagement policy has been implemented. The Ministry of Foreign Affairs published

an official Diaspora Policy in 2013 to use the economic potential and skills of the Ethiopian

diasporas in a more organized and consistent way.

In 2001, the then Ministry of Revenue issued regulations aimed at giving duty and tax free

entitlements for Ethiopians returning to their country permanently. Its basic rational is to ease

and encourage the diasporas to return to Ethiopia. But, in 2006, the provision was lifted as the

<www.ethiopiandiasporaassociation.org/> accessed on 20 March 2019

108

Interview with AbrehamSium (n 90 ) He expressed that the Association, on the behalf of the diasporas, demanded
109

ministerial level institution in order the diasporas able to participate in decision making process; but the government
opted agency level institution.

35
government suspected that vehicles were being singed over to third parties without paying duty

which violated the law.

The Investment laws provide investment incentives for both foreign investors and the diasporas

include income tax exemptions for some years, 100 percent duty exemption on the import of

machinery and equipment for investment projects. Such policies have encouraged many in the

Ethiopian diaspora to invest in small businesses in Ethiopia. The granting of diaspora Ethiopians

some privileges like Ethiopian citizens is another important initiative. Providing Foreign

Nationals of Ethiopian Origin Certain rights and to be Exercised in their Country of Origin

Proclamation No.270/2002 (Yellow Card Proclamation here in after) was enacted. The preamble

provides the justifications behind the coming into force of the law. These are: strengthening the

connection between diasporas and their homeland, and creating favorable environment for

diasporas’ further contributions for their country’s development by easing legal restriction. The

proclamation extends privileges to the Ethiopian diasporas. The holder of the Card has the right

to enter without visa, live and work without live and work permit, be included in pension

schemes, own immovable property, be considered as domestic investor, and utilize social and

administrative services. Further discussion on this law will be presented latter in chapter four.

Things have been changed in Ethiopia since the “Reform”. The government is calling Ethiopian

diasporas more than any time ever to actively engage in the economic development of the

country. A team led by Ethiopian Prime Minister Dr. Abiy Ahmed visited Ethiopian diasporas in

US, Europe and the Arab world with the aim of bridging the gap between diasporas and the

government. Measures have been taken to create mutual consensus and to overcome long lasting

distrust between government and diasporas.

36
2.6.6 Challenges of Diaspora Investors in Ethiopia

As discussed above, Ethiopian government took different initiatives to engage the diasporas. But

still diaspora investment remains unsatisfactory. The EIC has recognized complaints from the

diaspora community that bureaucratic bottle necks, problems related with access to finance, land

and information are the main problems of investing in Ethiopia.110 Researching on the issue,

Chacko and Gebre affirmed that access to finance, access to land, lack of reliable information,

poor contract enforcement, and legal and policy uncertainties are serious challenges on diaspora

investment in Ethiopia.111 Furthermore, political factors may discourage the diaspora from

engaging with Ethiopia.

Lack of coordination among different departments and their poor implementation capacity

hinders diaspora investment. Compared to local investors, diaspora investors need special

assistance as they are not familiar with the business environment. However, diaspora investors

have complained that they couldn’t get proper assistance from diaspora related institutions to

overcome long bureaucratic processes.112 Bureaucratic obstacles hinder diaporas engagement in

investment especially this is true in lower level of government institutions. 113 Corruption is

another challenge of investing in Ethiopia which may be caused by long bureaucratic process.

It is not easy to get access to finance in Ethiopia. Ethiopia’s rank of easy of obtaining credit for

business owners is among the lowest. According to the World Bank, Ethiopia is ranked 175

among 190 countries in the ease of getting credit in 2019. Banks require high value collateral

requirements to extend credit for investors. The problem is more challenging for diaspora

110
Interview with Ahmed Nur Yusuf Hassan, Director, Investment License and Registration Directorate, Ethiopian
Investment Commission (Addis Ababa 12 February 2019)
111
Chacko&Gebre (n 104)
112
Ibid 74
113
Interview with Mohamed Endries (n 62)

37
investors as they rarely own property in Ethiopia that can be used as collateral to get credit from

banks.

Lack of current and accurate information about investment laws, policies and other business

information is a major problem for investment in general and diaspora investment in particular.

Government institutions’ culture of holding relevant investment information and access it

to investors is very poor. It makes quick access to information very difficult. One of the

objectives of the Ethiopian Diaspora Agency is to facilitate quick access to information

for diaspora investors.114

The Effectiveness of some of the incentives is questionable. Although the incentives are

beneficial to members of the diaspora community, they may be perceived as unfair privileges by

the local population. It may create envy between diaspora community and the local population.

Some incentives like tax exceptions may be used for unintended purpose and create problems on

local market fair trading. Diaspora Foreign Currency Account is also abused. As the requirement

is one year living permit in a foreign country, people get the permit in neighboring countries but

actually reside in Ethiopia and use the advantages of diaspora account.115

The tension between the ruling government and diasporas has also been raised as another

bottleneck.116 Diasporas have expressed discomfort with the ruling government by limiting their

economic contribution. For example, diaspora investment reduced by half within 6 months after

the 2005 election.117 The reduction is partly attributed to diasporas’ grievance to the political

114
Ibid
115
Ibid
116
Kuschminder (n 2)
117
Chacko&Gebre (n 104) 500

38
situation of the country.118Another study shows that Ethiopia lost 4 billion USD due to

remittance boycott from 2015-2017.119

CHAPTER THREE
3. DUAL CITIZENSHIP AS HOME COUNTRY DIASPORA
ENGAGEMENT STRATEGY: COUNTRY EXPERIENCES

3.1 Introduction

Dual citizenship has been recognized as a possible measure taken by country of origin in order to

facilitate diaspora investments.120 Despite the instrumental use of dual citizenship rights being
118
Ibid
119
AyeleGelan, Analysis: How Can Ethiopia Boost Remittance Inflows? Addis Standard (Addis Ababa, 24 July
2008) <www.addisstandard.com/analysis-how-can-Ethiopia-boosst-remittance-inflows/ > accessed 20 January 2019
120
Global Forum on Migration and development, Facilitating Development Impacts of Diaspora Engagement in
Skills Transfers, investments and Trade between Countries of Residence and Origin, ( Draft Background Paper RT
2.2)’ <www.gfd.org./files/documents/gfmd_sweden2013-2014_rt2-2-background-paper-en.pdf accessed 18 March
2019

39
relatively new, many states are following this trend and recognizing their migrant population. A

number of states in Asia and Latin America whose nationals migrate to the USA in large

numbers left their restrictions on dual citizenship to facilitate migrants’ naturalization in the

USA.121Dual citizenship attracts the interest of African governments as a tool for increasing

Diaspora investment and remittance.122 Half of African countries allow dual citizenship.123

Under international law the issue of determining nationality is left for the discretion of sovereign

states. Thus, the extent and mode of recognition of dual citizenship differs among different

countries. In some states, dual citizenship is recognized in the full sense that includes voting

right and participating in public offices. Others restrict political rights of voting and holding of

public offices. Some countries prefer to give special identification Cards than granting dual

citizenship.

Below the researcher presents the experience of liberalizing citizenship laws as a tool for

engaging diasporas in the economic development by some countries. India, Turkey, Kenya and

Philippines are selected. All have huge number of daspora population in different parts of the

world. India has been chosen since it has particular statutes that recognize and regulate diasporas

status very close to the Ethiopian model. Turkey has very inclusive citizenship laws. Kenya’s

geographical position is very close to Ethiopia. Economically, Philippine is in the developing

countries list like Ethiopia.

3.2 India

121
Francesca Mazzolari, Dual Citizenship Rights do They Make More and Richer Citizens? (2009) 46 (1)
Demography 169
122
Whitaker (n 9) 755
123
Ibid

40
India is the origin of the second largest diaspora in the world next to Mexico. According to the

2017 UN world migration report, India has 16.6 million diasporas. 124Indian diasporas

significantly contribute for the economic development of the country through remittance and

investment.

The Constitution of India clearly provides that persons voluntarily acquired citizenship in

another country loss their Indian citizenship. 125 It doesn’t tolerate dual citizenship. The 1955

Citizenship Act (as amended), has the same provision under section 9.In response to constant

request for dual citizenship from Indian diaspora and the fact that the Indian constitution does

not allow dual citizenship, the government came up with a solution of offering a special Card

schemes. India created the Person of Indian Origin (PIO) Card scheme in 1999 and Overseas

Citizens of India (OCI) Card scheme in 2005. The PIO scheme was merged with OCI by the

Citizenship Amendment Act 2015.

PIO is offered for foreign nationals of Indian origin up to the 3 rd generation, or foreign citizens

who at any time held Indian Pass port, or for a spouse of Indian citizen or a PIO. The holders of

the Card can visit India without visa for 15 years from the issuance of the Card; they are

exempted from registration at Foreign Regional Registration Officer or Foreign Registration

Officer for their stay not more than 180 days; they enjoy equal rights in the economic, financial

and educational benefits with Non Resident Indians (NRIs) except employment in public offices.

In 2005 India introduced the Overseas Citizenship India (OCI) program by amending the

Citizenship Act, 1955. In that way a legal bond is created with people who have lost their Indian

citizenship. Foreign national who was eligible to become Indian citizens on the commencement

124
UN Department of Economic and Social Affairs, International Migration Report (2017) 13
125
The Constitution of India 1950 Art. 9

41
of the Indian Constitution, or was a citizen of India on or on at the time of the commencement of

the Constitution, or belongs to the territory that become part of India after independence is

eligible for OCI. A minor child of such person is also eligible. OCI holders enjoy various

benefits like multi-purpose, lifelong and multiple- entry visas for visiting India, exemption from

registration with Foreign Regional Registration Officer or Foreign Registration Officer for their

stay in India. A registered Overseas Citizen of India is also entitled to facilities available to them

in economic, financial and educational fields except in matters relating to the acquisition of

agricultural or plantation properties. They enjoy some further benefits similar with local visitors

in respect to entrance fees to the national parks.

In 2015 the two schemes were merged. The OCI is presented as an option for PIO holders. Thus,

PIO holders can have equal rights with OCI holders if they choose for the scheme. The new

scheme extends eligibility to the fourth generation. The scams are not available for India

diasporas who are citizens of Pakistan and Bangladesh.

Furthermore, other laws extend the rights of Indian diasporas involved in the Card schemes.

Indian Diasporas are allowed to acquire or transfer immovable properties except agricultural land

/farm house/ /plantation property/.126 Investments made by Non Resident Indians (NRIs) which

by definition includes OCI are deemed to be domestic investments as if they are investments

made by residents.127This makes it easier for the diasporas to invest in India; and benefits the

country as the money earned cannot be easily repatriated abroad.128 Indian diasporas are highly

involving in IT sector investments. Indian diasporas contributed around 10% of India’s FDI in

126
Master Circular on Aquisation and Transfer of Immovable Property In India By NRIs/PIOs/Foreign Nationals of
Non-Indian Origin 2015
127
Transfer or Issue of Security by Persons Residing Outside India Regulations, 2000, Schedule 4
128
ShereyaChaliagalia, ‘The Diaspora and India’s Growth Story’ (2018) Observer Research Foundation (ORF) Issue
Brief, Issue No. 232, 4

42
2008.129In 2016 India become the world’s largest recipient of remittance by receiving 62.7 billion

USD.130 The success is partly attributed to policy measures taken by the government including

PIO and OCI Card arrangements.

The PIO Card and new OCI schemes have drawbacks since holders do not have Indian passport,

and have no equal right with citizens. They have no equal opportunity in matters of public

employment; they cannot be elected as president and vice president of the country, they may not

be appointed as judges, in the high court or supreme court of India; they don’t have to be

registered voter; they cannot hold public services and posts; and they are not eligible for

membership in parliaments. Card holders may not purchase agricultural land or farm houses and

may not travel to restricted areas without permission. They are not allowed to invest in a firm or

proprietorship concern engage in any agricultural /plantation activity or real estate business or

print media.131 Thus, Indian diasporas are still persistently lobbing their government to grant dual

citizenship. They clam dual citizenship as it could ensure unrestricted flow of capital, investment

and human resources for economic development of India. 132Economically better ofIndian

diasporas in US, Canada and UK are requesting dual citizenship and voting rights.133It is argued

that Indian government reduces potential diaspora investments by prohibiting dual nationality to

its overseas population.134

129
Dieu Hack-Polay& Juliana Siwale (eds), African Diaspora Direct Investment: Establishing the Economic and
Socio-Cultural Rationale (Palgrave Macmillan 2018) 67
130
World Bank, ‘Remittance to developing Countries Decline for Second Consecutive year’ available at
www.worldbank.org/en/news/press-release/2017/04/21/remittances-to-developimg-countries-decline-for-second-
consecuntive-year accessed on 15 March 2019
131
Government of India, Department of Industrial Policy and Promotion Ministry of Commerce and Industry,
Consolidated FDI Policy circular (2017) 13
132
SohaliVerma, ‘Instruments of Engagement: Assessing India’s PIO and OCI Schemes 2013 CARIM-India
Research Report 12
133
ShereyaChaliagalia, ‘The Diaspora and India’s Growth Story’ (2018) Observer Research Foundation (ORF) Issue
Brief, Issue No. 232, 7
134
Capacity Development Management Action Plan Unit (AFTCD), Operation Quality and Knowledge Service
Department (AFTQK), ‘Mobilizing African Diaspora for Development: Concept Note’ (2007) 35

43
3.3 Turkey

Turkish Constitution is silent about the acquisition of dual citizenship. It only recognizes that

every person connected with turkey through the bond of nationality as Turkish, and a child of

Turkish mother or father is Turkish.135 Conditions to acquire Turkish citizenship are determined

by other laws. But once the bond of nationality created, the constitution doesn’t discriminate

among citizens on the base of acquiring it. Citizens are equal before the law either they are

mono-citizens or dual citizens.136 Though the constitution does not expressly recognized dual

citizenship, it requires the government to take necessary measures to keep the bond between

Turkey and its overseas population.137 Dual citizenship is one of the “necessary measures” to

safeguard diasporas and home country relationships.

Turkish diasporas were not allowed to hold dual citizenship before the amendment of the 1964

Nationality Act in1981. The Amendment enables a large number of emigrants acquiring

citizenship in their countries of residence while retaining their Turkish citizenship, if permitted

by legislation of the host country.138 The main precondition is to inform the Turkish authorities

about acquiring citizenship in another country. However, the 2009 Citizenship Law removed the

condition to inform Turkish authorities about holding of foreign citizenship. The introduction of

dual citizenship in turkey has been motivated by the prevalence of migration. 139 Turkish

emigrants in different countries wanted to naturalize in their host countries without the pain of

losing their Turkish nationality. The current Citizenship Act of 2009 granting of dual citizenship

is not limited only for the diasporas. Aliens may also acquire dual citizenship in Turkey.

135
The constitution of Turkey 1984 (as amended), Art. 66 (1 & 2)
136
Bilgin T, ‘Multiple Citizenship and Its Consequence in Turkish Law’ (2006) 3 (1) Ankara Law Review 1, 4
137
The constitution of Turkey, Art. 62
138
Turkey Amendment Act No. 2383 (R.G February 17, 1981, No. 17254)
139
Bilgin T, ‘Multiple Citizenship and Its Consequence in Turkish Law’ (2006) 3 (1) Ankara Law Review 1, 5

44
Dual citizens enjoy all the rights and obligations conferred up on mono-citizens. In Turkey dual

citizens can have equal economic and political rights with mono-citizens. Dual citizens can be

elected administrative, governmental, parliament or judicial positions. 140 There are some

exceptions to this rule. International law doesn’t allow diplomatic protection to be given for dual

nationals residing in the country of their second nationality. 141 Turkish dual nationals may be

exempted from serving in military services.142

The experience of Turkey in engaging its Diaspora is not limited to granting of dual citizenship.

In order to avoid difficulties faced by Turkish diasporas in countries where dual citizenship is not

tolerated. Turkey introduced a privilege of non-citizen status also called the Pink Card in 1995.

In case host countries do not allow dual citizenship, Turkish diasporas may acquire non

citizenship status in Turkey. They are deprived of voting rights and holding of public offices.

This arrangement targeted 2.4 Turkish diasporas living in Germany. Germany did not accept

dual citizenship by naturalization before the amendment of its citizenship law. Turkey has kept

its bond with its diasporas in Germany by providing them the Pink Card arrangement. It was

replaced by the “Blue Card” since 2004. The 2009 citizenship law has also recognized this

arrangement. Holders are allowed to be treated as nationals except the rights vote and to be

elected, to be employed in public services, to render military services, andto import

exemptedvehicles and household goods.143 They have almost equal investment opportunities with

citizens.

140
Andrei Stavila, ‘Citizens-Minus and Citizens-Plus: A normative Attempt to Defend Citizenship Acquisition as an
Entitlement Based on Residence’ ( European University Institute, PHD thesis 2013) 143
141
Bilgin T, ‘Multiple Citizenship and Its Consequence in Turkish Law’ (2006) 3 (1) Ankara Law Review 1, 15
142
Ibid
143
Turkey Citizenship Law No. 5901/2009, Art. 28

45
This development shows the wish of the Turkish state to maintain ties with emigrants due to

economic benefits. The main economic benefits associated with granting of dual citizenship are

remittances and direct investment. By creating favorable circumstances for Turkish emigrants to

practice trans-nationalism through the institution of dual citizenship and privileged non-citizen

status, Turkey reveals impact on diaspora engagement at home. The main benefit of dual

citizenship in turkey is political participation and sense of belongingness. In terms of investment,

foreigners have almost equal rights with citizens. Dual citizenship does not put Turkish diasporas

in a privileged position regarding ownership and participation in the country’s investment

sectors. Most sectors that are allowed for Turkish citizens are also open for foreign

investors.144Turkey has concluded double taxation Treaties with over 80 countries. 145 Diaspora

investors holding dual citizenship in Turkey may benefit from such treaties.

3.4 Kenya

There are around 3 million Kenyans abroad. Remittance from Kenyan diaspora reaches 2 billion

USD in 2017.146 The government of Kenya has committed to encourage the contributions of the

diasporas to the development target of the country in 2030. 147 Until 2010, Kenya opposed to dual

citizenship for its diasporas. The significant number of Kenyans abroad and their economic

importance their remittance and investment forced the government of Kenya to tolerate dual

citizenship. The constitution of Kenya 2010 under article 16 stipulates that a citizen by birth does

not lose Kenyan citizenship by acquiring the citizenship of another country. Citizen by birth

144
US Department of State, 2015 Investment Climate of – Turkey, www.state.gov/e/eb/rls/othr/ics/2015/241775.htm
accessed 30 March 2019
145
Investment Support & Promotion Agency of Turkey, Legal Guide to Investing in Turkey (CMS 2017) 008
146
World Bank, Migration and Remittance Data, 2017
<www.worldbank.org/en/topic/migrationremittancediasporaissues/brif/migration-remittance-data> accessed on 5
April 2019
147
Kenyan Diaspora Policy (2014 ) 8

46
refers a person born from Kenyan mother or father, or a child found in Kenya. 148 Furthermore,

the constitution provides that a Kenyan citizen by birth who ceased to be a Kenyan citizen

because of acquiring foreign citizenship is entailed to claim Kenyan citizenship; only application

is required.149 This provision has retroactive nature. Kenyan Citizenship and Immigration Act

also confirms de jure acceptance of dual citizenship in Kenya.150

The Citizenship and Immigration Act regulates dual citizenship in Kenya.One way of regulating

the danger of dual citizenship in Kenya is by precluding its secret holding. Dual nationals are

required to disclose their foreign citizenship within three months since they become dual

citizens.151Failure to disclose once dual nationality is a crime which entails serious punishments

in fine up to five million Kenyan Shillings or three years imprisonment or both. 152Abusing dual

citizenship rights to receive unfair advantages and to commit or facilitate crimes is also

punishable.153A dual citizen is the subject of the laws of Kenya.154

Kenyan diasporas holding dual citizenship in Kenya get better advantages than foreigners. They

have the right to vote. They can own private land. Foreigners get access to land only by lease

holding system.155 There are also areas of investment allowed for citizens that are otherwise

restricted for foreigners. Ceilings are common in telecommunication, mining, insurance, foreign

contractors and other sectors.156

148
Kenyan Constitution 2010, Art. 14 (1 &4)
149
Ibid Art. 14 (5)
150
Citizenship and Immigration Act of Kenya 2011 Art. 8
151
Ibid Art. 8 (3)
152
Ibid Art. 8 (4)
153
Ibid Art. 8 (5)
154
Ibid Art. 8 (7 )
155
The Constitution of Kenya 2010 Art. 65 (1
156
US Bureau of Economic and Business Affairs, 2017 Investment Climate Statement: Kenya
<www.state/e/eb/rls/othr/ics/2017/af/269745htm> accessed on 3 April 2019

47
Dual citizens have no equal political rights with single nationals in Kenya. According to article

78(2) of the Constitution of Kenya dual citizens may not hold state office. The constitution puts

very broad illustrative list of “state offices”. 157 Dual citizens are deprived of holding such offices.

It is a rigid exclusion as the prohibition is made by the constitution, which is the supreme law of

the country.

3.5 Philippines

The Philippines has 5.7 million diasporas which constitute 10 % of its population. 158 The 1987

Constitution of the Republic of Philippines under Article IV Section 5 provides that dual

citizenship involves serious national interest and shall be dealt by law. The constitution has not

closed the room for dual citizenship rather it requires dual citizenship should be regulated well in

order not to compromise the interest of the state. Considering around 10 per cent of the

Philippine population lives abroad,159 the government of Philippines actively attempts to engage

with its diasporas. In 2003, the Philippines passed the Citizenship Retention and Re-acquisition

Act, and granting natural born Filipinos who lost their Filipino citizenship through naturalization

in a foreign country the opportunity to retain or re-acquire their Filipino citizenship. The Act

endowed full civil and political rights. In the same year, Philippines also extended political rights

to its diaspora population by enacting the Overseas Absentee Voting Act of 2003 granting the

right to vote to eligible Filipino migrants. All citizens of Philippines abroad (including dual

citizens) who attain the age of 18 are eligible for vote for president, vice president, senators and

party-list representatives.160

157
The Constitution of Kenya 2010 Art. 260
158
UN Department of Economic and Social Affairs ( n 60 )
159
Melane R, Migration and Children Left-Behind : A Literature Review (presented for UNICEF 2007) 1
160
Philippines Overseas Absentee Voting Act of 2003, Sec. 4

48
 For the interest of national security and loyalty, there are some conditions to be fulfilled to

exercise some civil and political rights by dual nationals. Those who want take elective public

offices in the Philippines are required to renounce their foreign nationality. 161 Persons who are

candidates or actually occupying public office in another country which they are naturalized

citizens; and persons who are in active service of another country’s armed force, are not eligible

to vote in the Philippines.162

Through the instrument of dual citizenship Philippines diasporas have the rights to own land and

property in the Philippines, to engage in business or commerce, to travel bearing a Philippine

passport, to vote in the Philippine elections, and to practice his/her profession in accordance with

Philippine laws and regulations. Otherwise the legal environment in the Philippines is restrictive

for foreigners. Foreigners cannot fully own land; only lease arrangements are available. They are

not allowed ownership in the areas of mass media, small scale mining, private security, marine

resources and manufacturing of firecrackers and pyrotechnic devices. 163 There are also various

professional activities which can be licensed only for citizens.164In some other areas of

investments, foreigners may participate with ceilings.165

The Philippines has already concluded Double taxation treaties with more than 36 countries

including its diasporas’ major destination countries.166 It may ease double taxation obligation of

dual citizens by simply extending the scope of application of the treaties to dual citizens. It

enables dual citizens invest in the country without fearing of excessive tax obligations.
161
Philippines Citizenship Retention and Re-acquisition Act of 2003, Sec. 5(2)
162
Ibid Sec. 5(4(a & b)
163
US Department of State, 2015 investment Climate – Philippines
<www.state.gov/e/eb/rls/othr/ics/2015/241706.htm> accessed 28 March 2019
164
Ibid
165
Ibid
166
Fatima Palong, ‘Tax Treatment of Dual Citizens Under Republic Act (RA) No.9225’ (2005) XVII (6) NTRC Tax
Research 14, 19

49
The author of the law, Senator Franklin Drilon said that the citizenship law of the Philippines, by

tolerating dual citizenship, enables the Filipinos abroad to progress economically and socially in

their host countries without fearing lose of their original citizenship. 167Granting of dual

citizenship is expected to boost the economy of the Philippines as it would bring more

investments and development assistance to the country. Dual citizens are investing in strategic

industries and businesses such as housing and real state.168 Allowing professionals who left the

country to once again practice their profession in the country would change brain drain in to

brain gain. The Philippines is among the largest remittance receiving countries. According to

WB staff calculation the Philippines got more than 33.8 billion USD remittance from its

diasporas in 2018; it constitutes 10.2% of its GDP.

167
Ibid, 16
168
Ibid, 18

50
 CHAPTER FOUR
4. GRANTING DUAL CITIZENSHIP AS AN INCENTIVE FOR DIASPORA
INVESTMENT IN ETHIOPIA

4.1 Introduction

As discussed in chapter two, dual citizenship remains a taboo for Ethiopia. Though there are

sufficient reasons to take it seriously, the country’s intolerance of dual citizenship as hindering

factor of diaspora investment has got little attention. Ethiopian nationals have the rights to

renounce their Ethiopian nationality and acquire the nationality of other countries. As a result a

significant number of Ethiopian citizens are renouncing their Ethiopian citizenship in order to

obtain a new one. Ethiopian diasporas with foreign nationalities around the world express their

dissatisfaction by the existing citizenship laws of the country and request dual citizenship. In his

recent official visit to the USA, the prime minister of Ethiopia, Dr. Abiy Ahimed, met a number

of Ethiopian diasporas residing in different parts of USA. One of the burning questions that

diasporas had for the prime minister was the question of dual citizenship. Thus, this chapter

51
assesses the need for granting of dual citizenship in the interest of diasporas’ satisfaction; its

implication on diaspora investment, and the possible ways of managing it in light of foreign

experiences discussed in the previous chapter.

4.2 The Current Yellow Card Scheme

An attempt has been made to mitigate the problems posed by the prohibition of dual citizenship

by enacting a law that grants special privileges for foreigners of Ethiopian origin. Proclamation

No. 270/2002 was enacted with the objective of easing restriction imposed on the diasporas

when they lost their nationality, and enable them to contribute the development of the country. It

is a strategy of engaging the diaspora community. Holders of the special identification card / the

YellowCard/have been endowed with various privileges.The law gives the privilege to enter the

country without visa. Card holders can live, work and to be employed in Ethiopia without live

permit or work permit.They can get insurance scheme coverage; they can own immovable

properties; and utilize economic, social and administrative services as Ethiopians. 169 Most

importantly, the law allows Ethiopian diaspora investors with foreign citizenship to be treated as

domestic investors if they hold a person of Ethiopian Yellow Card. This privilege gives them at

least two advantages.170 Firstly, Yellow Card holders are able to participate in areas of

investments that are otherwise prohibited for foreign investors. Foreigners are not allowed to

invest in various areas including financial sectors airport services, retail trade and brokerage,

wholesales trade, export trade of raw coffee, chat, oilseeds, pulses, export of live sheep, goats,

and cattle, construction companies, restaurants and bars (except international and specialized

restaurants), trade auxiliary and ticket, transport services, grinding mills, hair salons, building

169
Providing Foreign Nationals of Ethiopian Origin with Certain Rights to be Exercise In their Country of Origin
Proclamation No. 270/2002 Art. 5
170
Ibid

52
and vehicle maintenance, and milling and timber products. 171 Secondly, they are exempted from

the minimum capital requirement which is mandatory for foreign investors.The investment law

provides that foreign investors should allocate minimum capital ranging from 50,000 USD to

200,000 USD.172

The privileges are available for Ethiopian nationals who lost their nationality, or descendants of

Ethiopian nationality up to the fourth generation or spouse of the holder of the Card. 173A person

should pay 100 USD for issuance, 40 USD for renewal and 60 USD for replacement of the

identification Card.174 An Ethiopian diasporas who has held Eritrean nationality is not eligible to

apply for the YellowCard unless his or her spouse is the holder of the YellowCard. 175 This may

be fear of security risks due to the past bad relationships between the two countries.

4.2.1 Drawbacks of the Yellow Card and the Need forDual Citizenship

It is argued that the Yellow Card Proclamation would make Ethiopian diasporas as good as

Ethiopian citizens concerning their investments.176Authorities interviewed in the EIC don’t see

dual citizenship as an incentive of diaspora investment. Since diaspora investors with the Yellow

Card are allowed to invest in Ethiopia and granted national treatment, granting of dual

citizenship will have little role in facilitating diaspora investment.

Nevertheless, Yellow Card cannot substitute granting of dual citizenship. It is not an assurance of

belongingness. It is simply gives privileges. Holders are neither aliens nor citizens. They may not
171
US Department of State, 2018 Investment Climate of Ethiopia <www.state.gov.e/eb/rls/ics/2018/af/28146.htm>
accessed on 14 March 2019
172
Investment Proclamation No. 769/2012, Art. 11 (1-3)
173
Providing Foreign Nationals of Ethiopian Origin with Certain Rights to be Exercise In their Country of Origin
Proclamation No. 270/2002 Art. 2(1) & 8 (3)
174
Certain Rights and Privileges of Foreign Nationals of Ethiopian Orgin to be Exercised in the Country of their
Origin Council of Ministers (Amendment) Regulation No. 252/2011, Art.2
175
Ibid
176
Interview with Habtu Mamo (n 105)

53
hold Ethiopian passport. It can be easily amended or repealed by parliament. Unlike citizenship,

it has no constitutional basis. The law remains under the good will of the government. As

discussed somewhere in this thesis, such Card is the status of non citizenship than the status of

citizenship in the case of Turkey.

Ethiopian Origin Identity Card Proclamation may not avoid the distinction between “us”

and “them”. Why it is the discretion of the government to allow the diasporas to live and

work in Ethiopia? Ethiopia is our home! Why the diasporas are given a secondary place?

The country’s intolerance of dual citizenship erodes sense belongingness; it creates

emotional discomfort among the diasporas.177

Diasporas’ home country attachment is an important motivator of diaspora investment in

Ethiopia. Greek historian Diodorous Siculus wrote the following statement:

The Ethiopians conceived themselves to be of greater antiquity than any other nation, and

it is probable that, born under the sun’s path, its warmth may have ripened them sooner

than other man. They supposed themselves to be the inventors of worship, of festivals, of

solemn assemblies, of sacrifice, and every religious practice (….).178

Ethiopians feel pride in their homeland’s ancient history. Ethiopian diasporas feel proud or

ashamed to identify themselves as Ethiopians where outside of their homeland. Even though they

live abroad for long time and take other courtiers’ citizenship they remain Ethiopians at heart.

Their foreign citizenship is taken for the matter convenience of their life circumstances. Thus, a

need arises to cultivate this sense of attachment. Granting of dual citizenship is a genuine

Interview with AbrehamSium (n 90)

177

Bernard M. Magubane, The Ties that bind: African American Consciousness of Africa (Trenton, NJ: African
178

World Press 1987) 163 cited in Robin Cohen, Global Diasporas: An Introduction 2nd ed. (Routledge 2008) 44

54
incentive to boost diasporas’ sense of belongingness to their homeland. The bond of nationality

may unit ethnically, religiously and politically divided Ethiopian diasporas.

Furthermore, the privileges are narrowed by exceptions. It doesn’t allow voting right and holding

of public offices.179The law has also been the subject of continuous abuse by the actions of the

government.180

Exceptions

According to article 6 of the Yellow Card Proclamation holders of the Card are not eligible to

elect or to be elected in any level of government. Yellow Card holders may not be employed in

the areas of National Defense, Security, and Ministry of Foreign Affairs, and similar political

establishments. This drawback of the Yellow Card Scheme lessens the holders from citizens. The

Scheme is very similar with the Indian PIO and OCI arrangements. However, the situation of

diasporas in the two countries is very different. Indian diasporas are labour diasporas. 181 But

potential investor diasporas of Ethiopia are victim diasporas. It looks exclusions does not

consider the characteristics of Ethiopian diasporas. Political environment is one of the pushing

factors of emigration from Ethiopia. Potential diaspora investors are conflict generation

diasporas due to political oppressions. Motivation to participate in the country of origin also

depends on the ability of the diaspora to access political structures in the country of origin.

Ethiopian government can take the trust of the diasporas by involving them in policy process.

The diasporas contribute a lot for the economic development of the country. They need to have

some say on the political and economic policies of the country. It enables them to increase their

179
Providing Foreign Nationals of Ethiopian Origin with Certain Rights to be Exercise In their Country of Origin
Proclamation No. 270/2002 Art.6
180
Samuel (n 23)
181
Robin Cohen, Global Diasporas: An Introduction (2ndedn, Routledge 2008 ) 18

55
participation in investment. Though they are not allowed to hold dual citizenship, Ethiopian

diasporas remain influential in the politics of their country. They remain connected with the

politics through diplomatic influence, financing the oppositions, establishing media

organizations, organizing and leading civic resistance, and economic sanctions by remittance

boycott.

It is difficult for Ethiopian diasporas to participate in large scale investments without political

belongingness in the country. The potential gains from diasporas investments may be limited by

the prohibition of political participation of diasporas. Ethiopian diasporas are excluded from the

decision making and policy making processes with regard to Ethiopia. “So far, diasporas have

not been participated or consulted in the policy or law making processes of the country; only

Tigray Regional State reserves seats in the regional parliament by its own initiative.”182

The implication of the exclusion is not limited to diasporas’ participation in investment; but also

in using diasporas’ talents and skills in politics. Controversies have been raised following the

appointment of the Press Secretariat of the Office of the Prime Minster, Billene Seyoum as she

holds Canadian citizenship. The legality of the appointment remains controversial as a Canadian

citizen of Ethiopian origin employed in a political establishment. Government tried to mask the

issue by hiding her from the face of the media and lowering here position in the department.

Government’s Abuse of the Privileges

The privileges given to the holders of the Yellow Card have been the subject of continuous

abuse by the acts of the government. They are excluded from participating in areas including the

financial sector, broadcasting and legal consultancy services.

Interview with Abraham Sium (n 90), The Regional State of Tigray is cited as a role model for the rest of the
182

regions in engaging diasporas for development.

56
 The reason of exclusion may be related with the fact that the investment proclamation as well as

sector establishment proclamations reserved those areas of investment for only Ethiopian

nationals. For instance, the Banking Business Establishment Proclamation makes it clear that all

share holders of a banking business should be Ethiopian Nationals. 183 The same provision is

found under the Insurance Business Establishment Proclamation. 184 The NBE directives No.

SBB/61/2015 and SIB/41/2015 stressed that it is illegal for foreigners (even of Ethiopian origin)

to hold shares in the banking and insurance businesses. Under the Freedom of Mass Media and

Access to Information Proclamation only Ethiopian nationals are allowed to establish mass

media.185 These laws go against what was initially intended by the Yellow Card Proclamation.

However, as both the Investment Proclamation and the sector establishment Proclamations were

enacted after the Yellow Card proclamation, they may prevail over the latter.

A practical example of abusing the privileges is the NBE Guideline No.FIS/01/016 which

concerns portfolio investments by foreigners. Using the privileges provided in the Yellow Card

Proclamation many people purchased bank and insurance shares before or after acquiring foreign

citizenship. Latter in the year 2016, the National bank of Ethiopia came up with the above

Guideline which obliged banks and insurance companies to quit selling of shares for foreigners

of Ethiopian origin, and ordered them to sell shares owned by the those persons for other persons

of Ethiopian nationality. The shares have been offered for sell up to 26 times of their pare

value.186 The shareholders have only allowed collecting the initial par value of the shares. They

would not be paid dividends after June 30, 2016. Sell beyond par value belongs to the

government’s treasury. This puts diaspora investors in uncertainties about their investment. A
183
Banking Business Establishment Proclamation No. 592/2008, Art. 2(5)
184
Insurance Business Establishment Proclamation No. 746/2012, Art. 2 (8)
185
Freedom of Mass Media and Access to Information Proclamation No. 590/2008, Art. 5
186
Samson Berehane, ‘Wogagen Shares Soar to New Heights’ Addis Standard (28 September 2017, Addis Ababa)
<https://addisfourtune.net/article/wegagen-shares-soar-to-new-hights/>accessed 21 March2019

57
lawyer called Tamiru Wendim Agegnehu wrote an article on the unjust nature of the Guideline.

He puts his colleague’s opinion as follows:

‘…our economy benefits a lot from the remittance of our Ethiopian-born relatives who

resides abroad, and we, on the contrary, deny them the right to own shares in banks. The

Golden rule of ‘don’t do unto others what you don’t want others do unto you’ should

have informed such directives (toward respecting the rights and benefits of) the daispora

in whose name we have designed a square in Addis…’187

Diasporas’ participation in financial sector investments should not be seen lightly. It creates an

opportunity for less wealth and less educated diasporas to participate in portfolio investments.

Beyond portfolio investments, it enables diasporas to establish their own financial institutions to

satisfy their needs in case other financial institutions are unable to serve their interests. Diaspora

owned financial institutions may facilitate further diaspora investments by easing access to

finance.

The restrictions are said to have some policy justifications. The restriction of Ethiopian diasporas

holding foreign nationality from investing the in financial sector is related with the country’s

economic policy not to open the market for foreigners. 188 The researcher disagrees with this

argument. It is not far from the truth to argue that the restrictions are politically motivated. Due

to change in the political climate, now the government is in the process of opening the market for

Ethiopian diasporas.

187
TamiruWendimAgegnehu, ‘Legal Issues Regarding the NBE Guideline on Diaspora-Owed Shares in Banks’
(2017) 11 (2) Mizan Law Review 404, 409
188
Interview with Mohamed Endris (n 62)

58
This is an instance that holding of the Yellow Card does not substitute dual citizenship. It is

possible to put the holders of the Yellow Card to the status foreigners per se by enacting

additional exclusionary laws. The privileges might be taken away by the government according

to the political climate. For example, Yellow Card holders were able to lease land for the purpose

of residence houses construction in Addis Addis Ababa and other major cities. However, in 2008

the City of Addis Ababa officially suspended the possibility of land lease for the holders of the

YellowCard.189 Without property security it is difficult to call the diasporas to invest in Ethiopia.

4.3 Reasons for Intolerance of Dual Citizenship in Ethiopia

Long lasting arguments on the behalf of the government for not to tolerate dual citizenship are

mainly related with security concerns. Authorities have mentioned national security reasons why

dual citizenship is not tolerated in Ethiopia. Firstly, allowing dual citizenship poses security

problems; country’s demographical position creates security problems when people living in the

neighboring countries claim dual citizenship.190 Secondly, dual citizens may put the country

under foreign influence by propagating the agenda of a foreign country they hold citizenship. 191

Another argument is that dual citizenship may encourage emigration from Ethiopia. 192 There are

also arguments that granting of dual citizenship in Ethiopiais difficult since it requires

constitutional amendment.

However, counter arguments are presented that the government’s clams do not hold water; the

advantages of granting dual citizenship overweight its disadvantages. 193 Dual citizens have both

rights and obligations; not only rights. Security concerns should be backed by criminal laws of
189
Chacko&Gebre (n 104)
190
Interview with MohommedEndris (n 62)
191
Ibid
192
Ibid
193
Inerviw with AbrehamSium (n 90)

59
the country.194The government’s perception of diasporas as traitors of the country is

“unconscious bias”.195

It should be noted that the researcher is not holding the opinion that Ethiopia should introduce

another form of acquiring citizenship. Rather Ethiopian should tolerate Ethiopian diasporas to

retain their Ethiopian nationality when they acquire foreign citizenship. It is not common

Ethiopian citizens naturalize in neighboring countries. Even it is common and there are peoples

of Ethiopian origin holding citizenship in the neighboring countries, they are not automatically

granted dual citizenship. Proof of their Ethiopian origin is important. Their claim depends on the

host country’s acceptance of dual citizenship.The demographic location of Kenya is almost

similar with Ethiopia. Kenya allows dual citizenship; and no evidence suggests that Kenya

sustains serious security costs due to dual citizenship.

No evidence is presented that prohibition of dual citizenship minimizes the numbers of emigrants

from Ethiopia. Migration continues even the country is not tolerating dual citizenship. The focus

should be on the finding of a way to make migration contributes to development. The emphasis

is on the importance of transforming Ethiopia’s brain drain to brain gain by crating enabling

legal environment like granting dual citizenship. One method of transforming brain drain to brain

gain is encouragement of diaspora investment.

Many Ethiopian diasporas are living in USA, Israel, Italy, Canada, Sweden the UK, South Africa

and Australia where dual citizenship is allowed. As indicated in Table 1, around 85 per cent of

diaspora investments are originated from those countries where dual citizenship is allowed.

Ibid
194

DrTsegayeDegineh, Interview to ESAT TV, Published on YouTube <https://m.youtube.com/watch?

195

v=k6hdokhljnl> 19 February 2019

60
Thus, granting dual citizenship enables them to benefit from the citizenship status of those

countries without losing their Ethiopian nationality. Diasporas granted with dual citizenship are

likely to get better employment opportunities and other benefits by naturalizing in the host states.

Dual citizenship helps them to strengthen economic integration in their country of residence. The

benefits may increase their investment capacity in Ethiopia. As the quest for dual citizenship is

not attain the status of international law, Ethiopia may not be required to grant dual citizenship

for citizens of other counters other than Ethiopian diasporas. Ethiopia may put double standards

i.e. allow its diasporas to hold dual citizenship, and prohibit immigrants from holding dual

citizenship. Reciprocity is not a requirement.

Is dual citizenship prohibited under FDRE constitution? Many people argue that Ethiopia

prohibits dual citizenship by its constitution. The former senior official Berket Simon in his

recent book wrote that prohibition of dual citizenship has been declared under the FDRE

constitution.196 Professor TilahunTeshome, Chair Person of the recently established Legal and

Justice Affairs Advisory Council, also argued in favor of this opinion. 197 According to him, dual

citizenship is possible only after the amendment of the constitution and the nationality law. 198

Other scholars have presented the otherwise argument. Writing on the issue, Dr. Tsegaye

Degineh has argued that the FDRE constitution has not expressly precluded the possibility of

dual citizenship in Ethiopia; and it is not necessary to amend the constitution to allow Ethiopian

diasporas to hold dual citizenship; it is enough to amend the nationality proclamation.199

196
Bereket Simon, ትንሳኤዘ-ኢትዮጵያ፡- ከመንታ መንገድላይ፡ከተመፅዋችነት ወደ አፍሪካዊ ኩራት የተደረገ ሽግግር መፃኢ
ፈተናዎችና መልካም እድሎች (AngokorpubisherpvLtd 2018) 412 (it says…. ምንም እንኳ አገራችን ድርብ ዜግነት
እነደማትፈቅድ በህገ-መንግሰቷ የደነገገች ቢሁንም…)
197
Ethiopia’s Diaspora, Issue of Dual Citizenship <https://ethiodailypost.com/2018/12/06/ethiopias-diaspora-issue-
of-dual-citizensip/> accessed 02 January 2019
198
Ibid
199
Dr. Tsegaye Degineh,’በኢትዮጰያ የጥምር ዜግነት አስፈላነጊትና መታወቅ የሚገባቸው ነጥቦች’ The Reporter (Addis
Ababa, 16 December 2018) <www.ethiopianreporter.com/article/14211> accessed 26 January 2019

61
The issue of dual citizenship may arise from two scenarios: when Ethiopian national takes

citizenship in another country or when a foreign national acquires Ethiopian citizenship. As per

article 6(2) and 33(4) of the constitution, a foreigner may acquire Ethiopian citizenship. The

constitution is silent whither it is necessary to renounce one’s former citizenship in order to

obtain Ethiopian citizenship. No ground of loss of Ethiopian citizenship is provided under the

constitution. Moreover, the constitution under article 33 (1) put strong protection for Ethiopian

nationals not to be deprived their nationality against their will. Marriage to a foreigner cannot be

a justification to deprive Ethiopian citizenship. Thus, unlike the Indian Constitution, there is no

express prohibition of dual citizenship under the FDRE constitution. Nor does it explicitly permit

dual citizenship like the Kenyan Constitution. If we follow the principle “anything which is not

prohibited is allowed”, the conclusion is that the FDRE constitution does not preclude

acquisition of dual citizenship. This works basically when Ethiopian citizens acquire foreign

nationality. Citizenship by law is an exception in Ethiopia; it should be interpreted narrowly. It is

logical to argue that the constitution requires renunciation of foreign citizenship when a foreigner

other than a person of Ethiopian origin takes Ethiopian nationality. Like the constitution of

Ethiopia, the constitution of Turkey is silent on dual nationality. But, Turkey tolerates dual

citizenship by its citizenship law. The same is true in the case of the Philippines.

If any authoritative interpretation suggests that dual citizenship requires amendment of the

constitution, Ethiopia will not be the first to do so. Countries like Brazil, Costa Rica, Dominican

Republic, Ecuador, Colombia, Mexico, South Korea,200 and Kenya amended their constitution to

grant dual citizenship for their diasporas.

4.4 Legalizing and Regulating Dual Citizenship in Ethiopia

200
Peter J. Spiro, At home In Two Countries: The Past and Futures of Dual Citizenship (2016) 95

62
4.4.1 Alternative Approaches

If dual citizenship is allowed in Ethiopia, there are two alternatives approaches to be followed. It

may be allowed without any limitation or with certain limitations. 201 Both alternatives are

practiced by countries around the world. The laws of dual citizenship vary from country to

country according to their respective necessities. In the experience of Turkey, dual citizens enjoy

equal rights with mono-citizens. No restriction has been made on dual nationalities either in

political participation or employment and investments opportunities. Turkey follows a very

liberal approach of dual citizenship. In some other countries dual citizens can be restricted from

running for public offices, elections, voting, etc. As discussed in chapter three, Kenya restricts

dual citizens from holding of various public offices. In the Philippines dual nationals are required

to renounce their foreign citizenship to hold public offices. Dual nationals who are candidates or

actually occupying public office in another country, and persons who are in active service of

another country’s armed force, are not eligible to vote in the Philippines. Kenya’s restriction of

dual nationals from holding of almost all forms public offices is unwise, and is not recommended

to be adopted by Ethiopia.

Mere granting of dual citizenship is not enough; what matters most is the extent of the right.

Most states now afford full voting rights to external citizens in national elections either by mail

(US, Spain, or Italy) or at consulates abroad (Poland, France, or Sweden). 202 In some countries

they have representation in national legislatives (Italy, France, Cape Verde, or Colombia,)203

In adopting either of the models, the need of Ethiopian diasporas and government security

concerns should be balanced. Ethiopian diasporas remain concerned with the Ethiopian politics.

201
Dr. TsehayeDegineh, ‘ለኢትዮጵያየጥምርዜግነትአስፈላጊነት፣ጥቅምናአሉታ፡ጭምቀሀሳብ’ (presented to Prime Minister
Dr. Abiy Ahmed) Email from DrTsehayeDegineh to Researcher 25 April 2019
202
Spiro (n 145) 95
203
Ibid

63
Even though they have no right to vote, they could indirectly participate in the politics of the

country. If not recognized in political sphere of the country, they will continue to challenge the

legitimacy of the government indirectly. But, without formal representation in the political

sphere, engaging them in the economic development makes no sense. Political rights especially

the right to vote and parliamentary representation are important for Ethiopian diasporas. IOM

study of Ethiopian diasporas in USA indicates that illegibility to vote is among the hindering

factors of diaspora investment in Ethiopia.204 Lesson may also be taken from the experiences of

Kenya and Philippines in extending the right to vote to their expatriates.

Granting dual citizenship without any limitation is a better alternative for the purpose attracting

and ensuring the security of diaspora investors in Ethiopia. However, this may amounts to

complete ignorance of security related problems of dual citizenship raised by the government. In

the interest of not to compromise national security, Ethiopia may grant dual citizenship with

some limitations.The latter probably pose constitutional issues. Unlike many constitutions

(including the Constitution of Turkey article 66), FDRE constitution article 33 (1) makes clear

that Ethiopian citizenship cannot be deprived even a person commits any act of disloyalty.

Again, as per article 33 (2) once the bond of nationality is created, all citizens have equal

opportunity to enjoy citizenship rights. Discriminations between dual citizens and mono-citizens

may not be justified under the constitution. Kenya made it possible by constitutional provisions.

Therefore, Ethiopia may allow its diasporas to hold dual citizenship without limitations which

doesn’t require constitutional amendment; or grant dual citizenship with some limitations of

rights which may require amendment of the constitution so that it allow such limitations on dual

nationals.
IOM Special Lesion Office , Ethiopia, Mapping of Ethiopian Diasporas Residing in the United States of America
204

(2018) 23

64
4.4.2 Maintaining the Yellow Card Scheme

Dual citizenship cannot be a solution for all categories of diasporas. Its significance is

determined by host countries’ citizenship policy inclusiveness to tolerate dual citizenship.

Significant number Ethiopian diasporas probably naturalized or want to naturalize in countries

where they are not allowed to hold dual citizenship. Countries including Kuwait, United Arab

Emirates, Bahrain, Qatar, Saudi Arabia and Djibouti don’t allow dual citizenship. The Yellow

Card arrangement is still crucial to engage Ethiopian diasporas holding citizenship in such

countries.That is how Turkey tried to protect the interest of it diasporas in such situation through

the Blue Card Scheme. The Ethiopian government should refrain from abuse of the privileges of

YellowCard holders under the guise of enacting new laws.

4.4.3 Considering Investment Related Implications of Dual Citizenship

One of the important things that Ethiopia should worry of legalizing dual citizenship is the issue

of double taxation. Some countries may impose taxes on their citizens wherever they are and

irrespective of the place of source of the income. This may broaden the burden of dual citizens. It

may indirectly discourage diasporas investment in Ethiopia. Double taxation agreement eases

dual citizens’ burden of taxation. Ethiopia has double taxation agreements with USA, Italy,

Kuwait, Romania, Russia Yemen, Israel, South Africa Sudan, and UK. 205 Further agreements and

the extension of the existing agreement to apply for dual citizens will create conducive

environment for diaspora investors with dual citizenship. Turkey has already signed 86 double

taxation treaties.

US Department of State, 2018 Investment Climate of Ethiopia <www.state.gov.e/eb/rls/ics/2018/af/28146.htm>

205

accessed 14 March 2019

65
Ethiopia has concluded more than 30 Bilateral Investment Treaties including with countries

which allow dual citizenship. The Treaties are known for their traditional nature. They don’t

address contemporary developments in the international investment disputes. In defining

“Investor” and “Investment” under the Bilateral Treaties of Ethiopia, the issue of dual

nationalities is untouched. To benefit from doubts, Ethiopian diaspora investors with dual

nationality may claim treaty protection for their investments. Thus, Ethiopia should rethink its

Bilateral Investment Treaties not to include dual nationals under the definition of “investor”, and

investments owned by dual nationals from the definition of “investments. Otherwise double

protection of diaspora investors, as domestic and foreign investors at the same time will sustain

the country excessive costs.

4.5 Chapter Summery

This chapter basically demonstrates that the current special Card arrangement instead of dual

citizenship does not satisfy the interests of Ethiopian diasporas. Compared to dual citizenship the

Yellow Card arrangement has many drawbacks. It excludes diaspora Ethiopians holding dual

nationality from political participation. The special privileges are infringed by the legislative acts

of the government. The limitations of the scheme are discouragingdiasporas from inviting in

Ethiopia. In order to eradicate the drawbacks of the YellowCard arrangement, and encouraging

diaspora investment Ethiopia needs to introduce dual citizenship. Arguments not to tolerate dual

citizenship are not as strong as they are propagated. Concerning the model to be adopted, the

interest of diasporas and the country is a relevant factor.

66
 CHAPTER FIVE
5. MAIN FINDINGS AND RECOMMENDATIONS

After exploring literatures, analyzing interviews and relevant legal documents, and consulting

foreign experiences, the study has come up with the following findings and recommendations.

The findings and recommendations may serve as inputs for policy makers.

67
1. Ethiopia has a large number of diasporas residing in different parts of the world. The

government of Ethiopia has recognizeddiasporas as powerful and potential sources of

investment. The economic contributions of Ethiopian diasporas is too large to ignore. Ethiopia is

yet to liberate its economy from the influence of its diasporas. Diaspora investment is a key to

achieve policy objectives in job creation, technology transfer and sustainable development in

Ethiopia.The Ethiopian government has taken different initiatives to attract diaspora community

to invest in the country. Despite commitments taken by the government, diaspora investment in

Ethiopia remains unsatisfactory. Diaspora investors are facing problems related with access to

finance, access to land, access to reliable information, poor contract enforcement, and legal and

policy uncertainties, and political dissatisfactions.

2. Though it has been given little attention, this study finds that one of the contributing factors

for poor diaspora investment is attributed to non-inclusive nature of citizenship laws of the

country. Exclusionary citizenship laws of the country erode diasporas’ important investment

motivator; sense of belongingness. The current Yellow Card arrangement doesn’t ensure

property security for diaspora investors either because it is narrowed by exceptions or

continuously abused by the acts of the government. Ethiopian diasporas holding citizenship in

foreign countries are excluded from formally participating in the political spheres of the country.

The privileges granted by the Yellow Card Proclamation have been narrowed down by

subsequent legal enactments. Holders of the Yellow Card are precluded from investing in the

financial sectors. Thus, the study recommends that lifting the ban on dual citizenship is an

acknowledgement of sense of belongingness. It also better assures property security for diaspora

investors. Consistent with the endeavor to engage diasporas in investment, the government

should consider the instrumental value of dual citizenship. Existing studies and country

68
experiences suggest that there is a positive correlation between diasporas’ home country

investment and dual citizenship. To realize the aspiration of engaging diasporas in investment,

the Ethiopian diasporas need to be offered dual citizenship status by amending the existing

nationality laws including the constitution if necessary.

3. The government of Ethiopia resists dual citizenship mainly due to security fears and foreign

influences.Though it is difficult to pay no attention to the government’s perception of dual

citizenship as a threat to national security, politicizing dual citizenship and creating ‘ins’ and

‘outs’ meets no policy coherence. Government can regulate dual citizenship in a way that

reduces national security risks on one hand, and benefiting diaspora investments on the other

hand. Lessons should be taken from the citizenship laws of Kenya and Philippines.

4. Mere extension of dual citizenship to the Ethiopian diaspora is not sufficient to attract and

security diaspora investors. It requires various interests to be entertained. The study reveals that

potential diaspora investors are very much interested in the politics of the country.In order of

such emotional respects, the study recommends that the model and the extent of dual citizenship

to be adopted should be broader enough at least to include voting right and parliamentary

representations in addition to social and economic rights. Diasporas who have already acquired

foreign citizenship should be given the chance to regain their Ethiopian citizenship without

renouncing their foreign citizenship.

5. There are many countries which don’t tolerate dual citizenship. Granting dual citizenship in

Ethiopia serves little for Ethiopian diasporas who have naturalized or interested to naturalize in

these countries. Thus, it is recommended that the existing Yellow Card arrangement remain

effective for diasporas holding foreign citizenship in countries where dual citizenship is not

69
allowed. The privileges should not be the subject of continuous abuse by enactment of opposing

laws.They have to enjoy possible rights less the status of citizenship. In this regard the current

move of Ethiopian government to re-open the financial markets to Ethiopian diasporas with the

Yellow Card is appreciated.

6.Granting dual citizenship will have implications on tax obligations of dual citizens.Together

with change in citizenship laws, a need arises to expand double taxation agreements to ease

burdens of diaspora investors. The applicability tax treaties between Ethiopia and other countries

should be extended to dual citizens. This is particularly important to prevent double taxation of

dual citizens investing in Ethiopia. On the other hand, Bilateral Investments Treaties of

Ethiopiashould not grant unreasonable protections for diaspora investors. Thus, Ethiopia should

rethink its Bilateral Investment Treaties with countries which allow dual citizenship in order not

to include dual nationals under the definition of “investor “and “investment” to avoid excessive

protection of diaspora investors due to treaty shopping

70
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with special focus on the Horn of Africa region' (2015)The Regional Mixed Migration

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(2006) Centre on Migration Policy and Society' Working Paper No.32

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IV. Laws and Policy Documents

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xiv
FDRE, Diaspora Policy, Ministry of Foreign Affair (2013)

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Industry, Consolidated FDI Policy circular (2017) 13

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NRIs/PIOs/Foreign Nationals of Non-Indian Origin 2015

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xv
Transfer or Issue of Security by Persons Residing Outside India Regulations, 2000, Schedule 4

V. List of Interviews

Interview with Ato Abraham Sium, Dirctor General, Ethiopian Diaspora Association

Interview with Ato Ahmed Nur Ahmed Yusuf Hassen, Director, Investment License and

Registration with Directorate, Ethiopian Investment Commission

Interview with Ato Habtu Mamo, Senior Investment Promoter, Ethiopian Investment

Commission

Interview with Ato Mohammed Endris, Duty Director General, Ethiopian Diaspora Agency

xvi
 ANNEX: INTERVIEW GUIDING QUESTIONS

Hawassa University
Collage of Law and Governance Studies
School of Law
LLM in Commercial Laws
Semi Structured key Informant Interview Questions to Authorities of Diaspora
Associations

The main reason for this interview questions are to collect in-depth information from
organizational authorities to retrieve relevant information on the issue of “Granting of dual
Citizenship in Ethiopia: Towards Ensuring Security of Diaspora Investors.” The data will
be applied for the master’s thesis requirement in master of Laws in Commercial Laws (LLM).
The information you will provide in this interview will be kept confidential and will be utilized
only for the purpose of the study, your authentic responses is highly valuable for the
achievement of the objectives of this research.

Thank you in advance for your cooperation!!!

1. What is the importance of establishing the Diaspora Association? What are the roles and
responsibilities of the Association?
2. Who are Ethiopian diaporas for the purpose of your Association?
3. How do you see the role of Ethiopian diasporas in the economic development of the
country?
4. What are the advantages of diaspora investments over other forms of investments in
Ethiopia?
5. What are the initiatives taken by the government to improve the economic participation
of diasporas?
6. Do you think the measures are sufficient to engage the diasporas in the economy?
7. What are the legal and practical challenges that hinder diaspora investment in Ethiopia?
8. Do you have any idea (any authoritative response from the government) why Ethiopia
does not allow dual citizenship for its diasporas holding foreign nationality?

xvii
9. What are the advantages and disadvantages of granting dual citizenship in Ethiopia?
Any practical evidence? Can it improve diaspora investment in the country?
10. How do you explain the country’s intolerance of dual citizenship in one hand and
accepting Ethiopian diaspora as strategic alliance for Economic development on the
other hand?
11. Should Ethiopia allow dual citizenship for its diasporas? If so in what way? In full scale
including political participation like the right to vote? Or in any other way?
12. How much the “YellowCard” is used by the diasporas especially for investment
purpose? How do you compare it with dual citizenship? Does it ensure the security
diaspora investors regarding their investment?
13. Do the diasporas clam dual citizenship? Why?
14. How do you see the prohibition of Ethiopian diasporas holding foreign nationality from
investing in financial business like banking? Is it a policy reason or a political motive?
And also how do you see the current move forward to re-open the business for the
diaporas?
15. What future plans does the Association have, to improve diasporas’ economic
participation in Ethiopia?
16. Do you have anything to add or discuss which is relevant to the topics covered above?
Thank you!!!

xviii
 Hawassa University
Collage of Law and Governance Studies
School of Law
LLM in Commercial Laws
Key informant Interview Questions to organizational Authorities of Ethiopian Investment
Commission

The main reason for this interview question is to collect in-depth information from
organizational authorities to retrieve relevant information on the issue of “Granting of dual
Citizenship in Ethiopia: Towards Ensuring Security of Diaspora Investors.” The data will
be applied for the master’s thesis requirement in master of Laws in Commercial Laws (LLM).
The information you will provide in this interview will be kept confidential and will be utilized
only for the purpose of the study, your authentic responses is highly valuable for the
achievement of the objectives of this research.

Thank you in advance for your cooperation!!!

1. Would you please tell me your name and your position in your organization?
2. How long have you worked in this institution
3. How do you see the status of diaspora investment in Ethiopia?
4. What are the advantages of diaspora investments over other forms of investments in
Ethiopia?
5. What kinds of measures your organization has taken to assist the diaspora to engage in
investment?
6. What are the legal and practical problems that hinder diaspora investment in Ethiopia?
7. How do you explain the countries intolerance of dual citizenship as a hindrance of
diaspora investment?
8. How do you compare the “YellowCard” and dual citizenship?
9. If you ever had an authoritative response from the government, why dual citizenship has
been prohibited in Ethiopia?
10. Can granting of dual citizenship be an incentive for diaspora investment in Ethiopia?
Why or why not?

xix
11. How do you see the prohibition of Ethiopian diaspora holding foreign nationality from
investing in financial sectors like banking and insurance?
12. How should Ethiopia regulate dual citizenship for investment purpose?
13. What future plans your institution has in order to improve diaspora investment in
Ethiopia?
14. Do you have anything to add or discuss which is relevant to the topics covered above?
Thank you!!

xx
 Hawassa University
Collage of Law and Governance Studies
School of Law
LLM in Commercial Laws
Semi Structured key informant Interview Questions to Authorities of Ethiopian Diaspora
Agency

The main reason for this interview questions are to collect in-depth information from
organizational authorities to retrieve relevant information on the issue of “Granting of dual
Citizenship in Ethiopia: Towards Ensuring Security of Diaspora Investors.” The data will
be applied for the master’s thesis requirement in master of Laws in Commercial Laws (LLM).
The information you will provide in this interview will be kept confidential and will be utilized
only for the purpose of the study, your authentic responses is highly valuable for the
achievement of the objectives of this research.
Thank you in advance for your cooperation!!!
1. Would you please tell me your name and your position in your organization?
2. How long have you worked in this institution
3. Why Ethiopian Diaspora Agency has been established?
4. Who are Ethiopian diasporas?
5. How do you see the role of Ethiopian diasporas in the economic development of the
country?
6. What are the advantages of diaspora investments over other forms of investments in
Ethiopia?
7. What are the initiatives taken by the government to improve the economic participation
of diasporas?
8. Do you think the measures are sufficient to engage the diasporas in the economy?
9. What are the challenges that hinder the engagement of the diasporas?
10. Do you have any idea why Ethiopia does not allow dual citizenship for its diasporas
holding foreign nationality?
11. What are the advantages and disadvantages of granting dual citizenship in Ethiopia? Any
practical evidence?

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12. Should Ethiopia allowed dual citizenship for its diasporas? If so in what way? In full
scale including political participation like the right to vote? Or in any other way?
13. How do you explain the country’s intolerance of dual citizenship in one hand and
accepting Ethiopian diasporas as strategic alliance for Economic development on the
other hand?
14. How much the “YellowCard” is used by the diasporas especially for investment purpose?
How do you compare it with dual citizenship?
15. Do the diasporas clam dual citizenship? Why?
16. What future plans your institution has in order to improve diasporas’ economic
participation in Ethiopia?
17. Do you have anything to add or discuss which is relevant to the topics covered above?

Thank you!!!

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