May 21 , 2025
A draft law proposing to allow foreign nationals to lease land and own residential property faced intense debate in Parliament yesterday, May 20, 2025. The legislative bill, tabled by the Council of Ministers two weeks ago, was sharply criticized by opposition MPs and has now been referred to the Standing Committee on Urban Infrastructure & Transport Affairs for further review.
Opposition legislator Desalegn Chane (PhD) denounced the bill as "untimely" and warned it could worsen inequality by displacing poor urban residents.
“This proclamation will make the city a place only for foreign investors," he said. "Citizens themselves have not yet been assured of land ownership. The law could undermine Ethiopians’ access to affordable housing."
Another opposition MP, Abebaw Desalew (PhD), echoed the concerns, stating the law directly contradicts Article 40 of the Constitution.
“The Constitution clearly declares land as the common property of the Ethiopian people," he argued. "This draft treats land as a transferable, individual commodity that can be sold to foreigners, which is unconstitutional."
The draft law seeks to create a legal framework allowing non-Ethiopian nationals to acquire land through lease or properties for residential use, on the condition they invest at least 150,000 dollars. Authors of the bill hope it will help attract foreign investment, stimulate the housing and construction industries, and create jobs.
The law prohibits foreign nationals from owning immovable property, including land and buildings, reaffirming land as the collective property of the "Ethiopian Nations, Nationalities, and Peoples."
If enacted, the law will also define the ceiling on property holdings allowed for foreign nationals through upcoming regulations.
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