Tuesday, August 2, 2011


WHEREAS, it is necessary to promote the basic metal and engineering industries to make the sub-sector contribute to overall economic development;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
1. Short Title
This Proclamation may be cited as the "Basic Metals and Engineering Industry Agency Establishment Proclamation No.47/1996".
2. Definitions
In this Proclamation:
1. "Basic Metal Industry" means an industry engaged in the processing of metallic ores to be used as raw materials by other industries;
2. "Engineering Industry" means an industry engaged in the manufacturing of various engineering products and capital goods;
3. "Scrap Metal" means unusable military or civil equipment made of metals and their accessories and spare-parts including non-metallic parts thereof.
3. Establishment
1. The Basic Metals and Engineering Industry Agency (hereinafter "the Agency") is hereby established as an autonomous Public Organ having its own legal personality.
2. The Agency shall be accountable to the Prime Minister.
4. Head Office
The Agency shall have its head office in Addis Ababa and may have branch offices elsewhere as necessary.
5. Objectives
The objectives of the Agency shall be to promote the Basic Metals and Engineering Industry and to make the sub-sector contribute to overall economic development.
6. Powers and Duties
The Agency shall have the following powers and duties:
1. to formulate, on the basis of the industrial policy of the country, policies for the development of the Basic Metals and Engineering Industry sub-sector, and follow up the implementation of same upon approval;
2. to undertake market studies and promotional activities relating to the sub-sector;
3. to provide services in the selection of technology and products enhancing the development of the sub-sector and skills thereof;
4. notwithstanding any provision to the contrary in the Public Enterprises Proclamation No. 25/1992, to restructure public enterprises engaged in the sub-sector and, in general, to direct and supervise their organization and management, other than their financial administration;
5. to assess the production capacities and technological capabilities of enterprises engaged in the sub-sector with a view to:
(a) facilitating production of key products;
(b) making efforts enabling the local production of materials necessary for the implementation of projects in the country;
(c) providing assistance in building local capacities for designing and manufacturing new products;
(d) enabling and assisting in designing and manufacturing of other products locally.
6. to encourage the participation of private investors in sub-sector;
7. to undertake studies regarding engineering and technical skills pertaining to the sub-sector and set appropriate professional standards for the country; to certify the competence of consultants and contractors engaged in the sub-sector; and to promote the development of professional skills in the field;
8. to promote the expansion of modern management engineering and production techniques to raise the quality of products in the sub-sector;
9. to render consultancy services in the identification and preparation of projects in the sub-sector;
10. to undertake studies and research as well as encourage the establishment of research and dissemination centres pertaining to the sub-sector.
11. to cause the collection and sales or export of scrap metals under government ownership;
12. to own property, to enter into contracts and to sue and be sued in its own name;
13. to perform such other functions as are conductive to the attainment of its objectives.

7. Organization of the Agency
The Agency shall have:
1. a Management Board;
2. a Head and Deputy Heads, as may be necessary, to be appointed by the Government; and
3. the necessary staff.
8. Members of the Board
The Board shall have such number of members as to be appointed by the Government.
9. Powers and duties of the board
The Board shall have the following powers and duties:
1. to exercise an overall direction and supervision of the activities of the Agency;
2. to approve and ensure the implementation of the short and long-term plans as well as the annual work programmes and budgets of the Agency;
3. to decide on policy issues relating to public enterprises supervised by the Agency when submitted to it by the Head of the Agency;
4. to approve the annual activity reports of the Agency;
5. to decide on other matters relating to the management and administration of the Agency when submitted to it by the Head of the agency.
10. Meeting of the Board
1. The Board shall meet once every three months; provided, however, that it may meet at any time at the request of the Chairman as may be necessary.
2. There shall be a quorum where the majority of the members are present at meetings of the board.
3. Decisions of the Board shall be passed by majority vote; provided, however that, that the Chairman shall have a casting vote in case of a tie.
4. Without prejudice to the provisions of this Article, the Board shall draw up its own rules of procedure.
11. Powers and Duties of the Head of the Agency
1. The Head shall be the chief executive officer of the Agency and shall, subject to the general directives of the Board, direct and administer the activities of the Agency.
2. Without limiting the generality of sub-article (1) of this Article, the Head of the Agency shall:
(a) exercise the powers and duties of the Agency specified under Article 6 of this Proclamation;
(b) employ and administer the personnel of the Agency in accordance with directives issued by the Board following the basic principles of federal civil service laws;
(c) prepare the work programme and budget of the Agency; and implement same upon approval;
(d) effect expenditure in accordance with the budget approved for the Agency;
(e) represent the Agency in all its dealings with third parties;
(f) prepare and submit to the Board reports on the performance and financial operations of the Agency.
3. The Head may delegate part of his powers and duties to the other officials and employees of the Agency to the extent necessary for the efficient performance of the activities of the Agency.
12. Budget
The budget of the Agency shall be drawn from the following sources:
1. budgetary allocation by the Government ;
2. income from service fees; and
3. income from other sources.
13. Books of Accounts
1. The Agency shall keep complete and accurate books of accounts.
2. The books of accounts and financial documents of the Agency shall be audited annually by the Auditor General or by auditors to be designated by him.
14. Repeal
The Scrap Iron Board Charter (General Notice No. 168/1953) is hereby repealed.
15. Transfer of Rights and Obligations
The rights and obligations of the Defence Industry Commission, later on known as the Engineering Industry Commission, are hereby transferred to the Agency.
16. Effective Date
This Proclamation shall enter into force as of the 31st day of October, 1996.
Done at Addis Ababa, this 31st day of October, 1996.

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