Ethiopia plans to open its real estate market to international investors, ending a long-standing restriction on foreign property ownership. At present, foreign nationals are prohibited from possessing real estate in the African country, including both residential and commercial properties
“We are preparing to enact a law that permits foreigners to possess property,” the Prime Ministe told a meeting of large taxpayers in the capital Addis Ababa that was broadcast by state media outlets on March 23. He added that his administration is also intending to amend existing laws to open up the country’s retail sector, which is currently restricted to Ethiopians only.
“It (economy) was closed, but now we will slightly open it. So we want you to be ready as well,” he said. In recent years, Africa’s second most populous country has sought to liberalize its state-run economy, encouraging foreign investments in sectors like telecoms and banking as part of a strategy to enhance foreign capital inflows, stimulate growth, and generate employment opportunities in the nation of 120 million people.
According to the Ethiopian Investment Commission, in the first 10 months of the current fiscal year, Ethiopia received $3 billion in Foreign Direct Investment (FDI). The Commissioner Hanna Arayaselassie told Ethiopia News Agency that the government has made significant investments in infrastructure, including roads construction, industrial parks development, among other efforts to attract more investments into the country.
“The industry parks constitute a very important infrastructure that has been built for investors both foreign and domestic. We are providing ready made facilities in terms of infrastructure services, so visitors can quickly come in and become operational” she said.
The impending change on foreign property ownership coincides with the government’s push to develop real estate, including allocating land in Addis Ababa for luxury apartments and planning to construct affordable housing units through international partnerships. However, this development has sparked concerns over the displacement of current residents, as widespread demolitions have been carried out in the capital to make way for those investments.
Ethiopia’s largest region, Oromia, a cultural, economic and political powerhouse, is set to lead in property development, with the Sheger City project, including a new airport, showcasing Ethiopia’s infrastructural ambitions by 2027.
