ADDIS ABABA, June 24, 2017 (FBC) – The Ethiopian House of Peoples’ Representatives has approved a bill granting foreign nationals the right to own immovable property in the country.
The Parliament’s Standing Committee for Urban Development, Infrastructure, and Transport Affairs provided clarifications and responses to questions from Members of Parliament regarding the new proclamation.
The committee emphasized that while the law allows for home ownership, land remains the property of the government and the people. Therefore, foreign investors will not have the right to sell or convert land. The new measure aims to attract investment without infringing upon the rights of Ethiopian citizens.
To qualify for residential home ownership investment, foreign nationals are required to invest a minimum of $150,000 USD. The committee explained that this amount was set in comparison to the current housing market in Ethiopia, acknowledging that the sum is relatively low. It was also noted that this initial investment threshold is subject to revision over time.
Concerns were raised by some MPs that the low investment amount might lead to a significant influx of foreign nationals, potentially increasing the country’s population. In response, Mohammed Abdo (Prof.), chairperson of the Standing Committee, clarified that the proclamation restricts this type of investment to spouses and children only, mitigating concerns about rapid population growth.
Furthermore, it was stated that if investors wish to operate outside of Addis Ababa, regional states would implement the directive according to established guidelines.
