International developers have shown strong interest in constructing 15,000 housing units, three convention centres, and two horse racing venues to be developed in Addis Abeba. The Land Bank & Development Corporation (LBDC) made the calls for interested developers last month, with the deadline passing last week.

Established in 2018 with five billion Birr capital, the Corporation is in a property development business, identifying under-utilised land under federal institutions. Many of the 300 federal agencies and state-owned enterprises hold close to 100hct of undeveloped and underdeveloped land in the capital.

Under Lensa Mekonnen, the Corporation is looking to partner with developers in business for at least 10 years and with experience managing projects above 350 million dollars in value. It expects developers to bring external financing with no government guarantee requirements. International investors must also partner with local developers to facilitate technology and knowledge transfer. Around 270 local real estate companies registered with a combined capital of 5.8 billion Br. Close to 13pc are foreign-owned.

The land availed by the Corporation will be considered as an equity share.

“The equity share depends on the project type," said Lensa, who served as the Ethiopian Tourism Organization (ETO) CEO before her current appointment.

She disclosed that the Corporation has identified 70 plots in prime locations in Addis Abeba for the first batch of projects, including schools and health facilities. Its executives are evaluating proposals before announcing their next move.

“Companies will be selected either through an open bidding process or directly,” Lensa told Fortune.

Officials say the housing units planned under the scheme are expected to ease the chronic housing shortage in the capital. A low-cost housing scheme was launched in Addis Abeba 17 years ago; the Addis Abeba Housing Development Corporation built hundreds of thousands of units, with 85pc of them already being allocated to homeowners. The supply, however, is a far cry from the over one million units in demand.

As the burden takes its toll, the federal government turns to foreign investors.

In 2018, the Addis Abeba City administration partnered with the Abu Dhabi-based private real estate company to develop the 50 billion Br La Gare Eagle Hills Project. Resting on 36hct, the project encompasses three hotels, a mall, 4,000 apartment units, and entertainment complexes. Despite promises of rapid construction, a single bloc has yet to be completed.

The federal government's 10-year plan introduced last year aspires to build four million units in the coming decade. More than half is expected to be developed either by private developers or under public-private partnerships.

Imam Mahmoud, chair of the housing department at the Ethiopian Institute of Architecture, Building Construction & City Development, applauds the initiative to bring international developers into the process.