Ethiopia: Council Passes Draft Law to Allow Foreign Nationals Own ‘Immovable Property’ in Ethiopia

Addis Abeba — The Council of Ministers has introduced a new draft proclamation aimed at regulating the ownership and use of immovable property by foreign nationals in Ethiopia, marking a significant shift in the country’s land and property ownership laws.

The proposed legal framework was discussed today by the Council of Ministers and is now referred to the House of People’s Representatives (HoPR) for reviews and possible approval into law. According to the statement by the Council the draft bill seeks to define the conditions under which foreigners can acquire land without crowding out “Ethiopians’ right to own and use land.”

The Council said the legislation is expected to stimulate foreign capital investment, boost affordable housing development, balance market demand and supply, and generate employment opportunities.

Currently, foreign nationals are prohibited from owning immovable property including land, residential or commercial buildings in Ethiopia. If enacted by the Parliament, the new draft law would mark a major policy shift in Ethiopia’s land and property ownership.

But in March this year Prime Minister Abiy Ahmed revealed during a meeting with a group of large taxpayers the government’s intention to allow foreigners to own real estate as part of broader economic reforms. At the time, Abiy also indicated plans to liberalize Ethiopia’s retail sector, which remains closed to foreign ownership.

March this year also marked the 50th anniversary of Ethiopia’s landmark land reform, introduced through the “Proclamation to Provide for the Public Ownership of Rural Lands” following the 1974 student revolution. Ethiopia’s current constitution exclusively vests land ownership “in the State and in the peoples of Ethiopia.”

Critics often point to historical and current political-economic factors that challenge the viability of land privatization in Ethiopia. This concern has intensified following the macroeconomic reforms launched by the ruling Prosperity Party in July 2024, which reflect the neoliberal orientation of property ownership policies.