Ethiopia to Allow Foreigners to Own Property
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Loading... - Adzo Asamoah
- 13 Sep 2024
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In a significant move to attract foreign investment, Ethiopia's Prime Minister Abiy Ahmed has announced that the government is preparing to enact a law that permits foreigners to own property in the country. Currently, foreigners are prohibited from possessing real estate in Ethiopia, including both residential and commercial properties.
Speaking to a gathering of prominent business figures in Addis Ababa, Prime Minister Abiy Ahmed stated that the government is working on a new legislation to enable foreign ownership of real estate. Although he did not specify a timeline for the law's presentation to parliament, this move is expected to boost foreign investment in the country.
The government also plans to revise current regulations to broaden access to Ethiopia's retail industry, which is currently limited to citizens only. Prime Minister Abiy Ahmed encouraged businesses to prepare for the changes, stating, "It used to be closed, but now we're planning to gradually open it up. Therefore, we urge you to prepare accordingly."
This move is part of the government's strategy to open up segments of the heavily regulated economy to foreign investors, following the recent liberalization of telecommunications and banking sectors. The goal is to increase foreign capital inflows, stimulate growth, and generate employment opportunities in the country, which has a population of over 100 million people.
Ethiopia is one of Africa's fastest-growing economies, and the government has ambitious plans for privatization. However, these policies have faced challenges in recent years due to domestic political conflict and international events such as the COVID-19 pandemic and the War in Ukraine. The government is currently in discussions with the International Monetary Fund to secure financial backing for its Home-Grown Economic Agenda.
