Ethiopia’s Council of Ministers approves draft law allowing foreign nationals to own property, marking a significant shift to stimulate investment and address housing shortages.
Ethiopia is poised to allow foreign nationals to own real estate for the first time, marking a significant shift in its economic policy.
Today, May 1, 2025, the Council of Ministers approved a draft proclamation permitting foreigners to own or possess immovable property, including residential and commercial buildings.
This move aims to attract foreign investment, stimulate the housing sector, and create employment opportunities.
The draft law, now awaiting debate in the House of People’s Representatives, is designed to balance foreign investment with the protection of Ethiopian citizens’ land rights.
By establishing a clear legal framework for foreign ownership, the government seeks to address the chronic mismatch between housing supply and demand and to unlock large-scale investment in housing development.
This policy shift is part of a broader strategy to liberalize Ethiopia’s economy and attract foreign capital.
In recent years, the government has opened up sectors such as telecommunications and banking to foreign investors.
The new real estate law is expected to further enhance Ethiopia’s appeal as an investment destination.
Critics, however, caution that the reforms must be implemented carefully to ensure they do not disadvantage local populations or lead to speculative property bubbles.
The government has indicated that the legislation will include provisions to prevent such outcomes, though specific details have yet to be disclosed.
As Ethiopia continues its economic transformation, the opening of the real estate market to foreign investors represents a significant milestone in its efforts to integrate into the global economy and promote sustainable development.
