Ethiopia’s Council of Ministers has unveiled a groundbreaking draft proclamation that would allow foreign nationals to own immovable property in the country—potentially reversing decades of state-centered land ownership policy.
The new bill, officially referred to the House of People’s Representatives (HoPR) for deliberation, outlines specific conditions under which non-Ethiopians may acquire land and property without undermining citizens’ constitutional rights. According to the Council, the legislation aims to balance local access to land while attracting foreign capital, encouraging real estate development, and generating employment.
If passed, the law would mark a significant departure from the current legal framework, which strictly prohibits foreign nationals from owning land or real estate. It would also align with the government’s broader liberalization agenda, as outlined by Prime Minister Abiy Ahmed during a high-level meeting with major taxpayers in March 2025.
At the time, Abiy emphasized Ethiopia’s intent to open up its real estate and retail sectors to foreign investment—part of a series of sweeping macroeconomic reforms rolled out by the ruling Prosperity Party last year. The reforms signal a pivot towards market-driven policies, reflecting a growing neoliberal trend within Ethiopia’s policy circles.
The move comes amid growing debate over the legacy of Ethiopia’s 1975 land reform, which nationalized rural lands in the wake of the 1974 revolution. The country’s current constitution still vests land ownership solely in the state and “the peoples of Ethiopia.” While the reform was once hailed as a victory for farmers, critics now argue that rigid public ownership has stifled private investment and urban development.
Supporters of the draft proclamation argue it could stimulate Ethiopia’s struggling housing sector and enhance foreign investor confidence. However, opponents warn that such a shift risks exacerbating inequality and undermining rural livelihoods if not carefully regulated.