Call for Applications: Ethiopia Insolvency Practitioners Training Program

Background

With the overarching goal of improving the country’s business climate, the Government of Ethiopia enacted a new Commercial Code (Proclamation No. 1243/2021) in 2021. The new Commercial Code repealed three sections of the old (1960) commercial code governing traders (Book I), business organizations (Book II) and bankruptcy (Book V), while the remaining sections dealing with carriage and insurance (Book III) and negotiable instruments and banking transactions (Book IV) remained in force.

With the introduction of various insolvency procedures other than bankruptcy, including preventive restructuring proceedings, reorganization proceedings and simplified reorganization proceedings, the new commercial code brought forth major reform in Ethiopia’s insolvency regulatory regime.

The conduct of insolvency proceedings (preventive restructuring, reorganization, and bankruptcy proceedings) under Book III of the new Commercial Code of Ethiopia (Proclamation No. 1243/2021) requires a high degree of knowledge and skills about the rules and process of insolvency proceedings on the part of persons responsible for the conduct of these proceedings.

The professionals that are qualified to be appointed by bankruptcy courts to undertake these responsibilities – experts in preventive restructuring, supervisors in reorganization proceedings and/or trustees in bankruptcy proceedings – must have the requisite knowledge and skills to assist bankruptcy courts, supervisory judges and other relevant regulatory authorities and successfully manage the proceedings and discharge their professional and legal responsibilities as set out in the Commercial Code and other laws of Ethiopia.

As part of the insolvency reforms to Ethiopia’s Commercial Code, the Government of Ethiopia is focused on ensuring that there is a suitably skilled group of insolvency practitioners, who can ensure that the insolvency provisions are appropriately implemented and are operational. The International Finance Corporation/World Bank Group is proposing to hold an intensive five day long specialized training program for insolvency practitioners aimed to create a cohort of professionals with strong insight on best practices in insolvency, including in relation to corporate restructuring and liquidation. The program also aims to create network and strengthen professional ties in leading jurisdictions around the world.

The program will be composed of themes covering the main elements of insolvency:

  • Objectives of an insolvency system
  • Overview of the Ethiopian insolvency system
  • Preventive restructuring
  • Reorganization
  • Bankruptcy (including simplified bankruptcy)
  • Case studies of key elements of the insolvency process

The program will be delivered by leading experts from the French and French-influenced insolvency frameworks through a combination of presentations, discussions, group exercises, and case studies. The program will be conducted in English.

This program is by invitation only and candidates will be selected through rigorous screening process. No fees are charged for the program for qualified candidates. Candidates to this program will be screened based on the strength of their application and the relevance of their professional experience – to act as insolvency practitioners.  These candidates will be expected to in turn train other professionals to take on this role.  This will help ensure a sustainable and continuous body of insolvency practitioners that will develop over time.

 

The training primarily targets those professionals who have education and experience in related legal practice, accounting, auditing, valuation, liquidation, and related specializations. To this effect, interested applicants who meet the criteria set out below are invited to submit their applications.

 

Selection Criteria

Applications will be examined based on the following six criteria whose individual weight towards the total will be determined in due course.

1.    Education

  • M or equivalent in business law, commercial law, financial law, investment law or related specializations; or
  • A or M.Sc. in Accounting, Finance, Auditing or related fields; or
  • Certified Chartered Accountant; or
  • Master of Business Administration (MBA) in Finance or related specializations.

2.    Minimum Work Experience.

  • At least 7 – 10 years and evidence showing active practice in law, accounting, auditing, or related professional practice areas. Experience in valuation of assets and businesses, particularly in connection with debt-ridden businesses.

3.    Relevant Experience

  • Insolvency/bankruptcy, restructuring or reorganization related experience in the last five years; or
  • Experience in liquidation or dissolution of companies in the last five years; or
  • Experience in management of insolvent companies in the last five years; or
  • Experience in management of insolvent borrowers or experience in foreclosure of borrowers’ property in the last five years; or
  • Experience in valuation of assets and businesses, particularly in connection with debt-ridden businesses.

4.    Character

  • Be of a good character;
  • Current evidence from police that the applicant has no record of conviction of breach of trust, theft, robbery or other similar criminal offenses while serving as a promoter, director, manager, member of supervisory board, auditor or holding any other managerial position or under any other circumstance.
  • Demonstration of capability to carry out unsupervised the functions and duties of an insolvency practitioner.

5.    Motivation Letter

Applicants must submit a motivation letter explaining what they have been doing and what they are aspiring to do, and how the training will be relevant for what they intend to do (not more than 800 words).

6.    Letter of Recommendation

Applicants must submit a strong letter of recommendation from their current or former employers or clients or professors attesting to their relevant experience and character (not more than 800 words).

7.    Résumé / CV

Applicants must submit an updated résumé of not exceeding two pages

Deadline

Application will close on 11:59pm, Sunday, the 8th of October 2022.

Submission

Applications shall be sent to Fantu Farris at (fmulleta@ifc.org) and Dr. Taddese Lencho at (tadbode@yahoo.com), copying Meaza Bahiru(mheterat@ifc.org) and Yibeltal Azene (yshiferaw@ifc.org), with a title “Ethiopia Insolvency Practitioners Training Program