Ethiopia to allow foreign real estate ownership towards economic liberalisation
Prime Minister Abiy Ahmed of Ethiopia has unveiled plans to introduce legislation allowing foreigners to own real estate in the country to accelerate economic growth and attract foreign investment in the East African country.
The Ethiopian prime minister speaking on state television on March 23 during a meeting of large taxpayers in the capital, Addis Ababa, emphasized the Ethiopian government's commitment to revising these regulations.
"We will introduce a law which will allow foreigners to own property," Abiy announced, signalling a pivotal shift in policy.
This move forms part of Ethiopia's broader strategy to liberalise its economy and create a more welcoming environment for investors, the Ethiopian prime minister announced.
For years, Ethiopia has maintained strict regulations prohibiting foreigners from owning residential or commercial properties within its borders, posing a significant obstacle to attracting international capital.
Abiy's government envisions these reforms as integral to its overarching strategy to attract foreign capital, spur growth, and generate employment opportunities in Ethiopia, Africa’s oldest independent country.
To promote foreign investment inflows and economic progress, the Ethiopian prime minister in 2023 committed to opening up industries that were previously under the authority of state-owned enterprises.
These reforms come after the vice governor of Ethiopia’s central bank Solomon Desta told reporters in 2023 of plans to issue 3 to 5 licenses in five years to foreign investors in a banking sector dominated by the state-owned Commercial Bank of Ethiopia.
