A draft proclamation allowing foreign nationals to own or occupy immovable property in Ethiopia has been submitted to the House of People’s Representatives. According to the announcement, the proposed law is carefully designed to ensure that it does not affect Ethiopian citizens’ right to acquire and use land.

The Council of Ministers submitted the draft legislation with the aim of encouraging foreign investment in Ethiopia. In its regular meeting on Thursday, May 1, 2025, the Council deliberated on six key issues, including the draft proclamation, and subsequently approved them, as announced by the Prime Minister’s Office.

The Prime Minister’s Office also stated that one of the key reasons for introducing a legal framework allowing foreign ownership of land and property is its potential to create employment opportunities for Ethiopians. Additionally, the office noted that the proclamation could help to stabilize the housing market by ensuring a balance between demand and supply.

According to the Prime Minister’s Office, the proposed law is expected to further boost housing development and enhance accessibility. Meanwhile, in late November, the House of People’s Representatives approved another proclamation aimed at expanding foreign investors’ role in Ethiopia’s real estate development sector.