Can a foreigner purchase land in Ethiopia to create a farm ? - Ethiopia forum - Expat.com (2024)

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Can a foreigner purchase land in Ethiopia to create a farm ? - Ethiopia forum - Expat.com? ›

Thank you. A foreigner cannot buy land n Ethiopia but one can lease land for any investment including farming. Even Ethiopian Citizens cannot buy land in the country. It used to be that anyone could own land under the Haile Selasie government.

Ethiopia is among the few African countries where foreigners or even citizens do not own land. The land is often leased out by the government for a period of time. However, to buy a property as a foreigner in Ethiopia, it is possible to transfer lease ownership from one party to another.

Access to land in Ethiopia

Smallholder farmers have the right to cultivate land, but they cannot sell, exchange, or mortgage it. Investors can lease land from smallholders and regional states and large-scale investors can lease but not purchase land from the government.

"Foreigners are not allowed to own property in Ethiopia. The Ethiopian government does not permit foreign nationals to purchase land or real estate in the country. However, foreigners may lease property for up to 50 years with the approval of the Ministry of Urban Development and Construction.

Land ownership is legally vested in the Ethiopian state and public. Hence, land cannot be sold or exchanged. Peasant farmers, pastoralists and semi-pastoralists who are or who wish to be engaged in agriculture have only usufruct rights and cannot sell, exchange or mortgage the land.

Construction costs for private developers is currently between ETB25,000 and ETB35,000 per square meter, while their selling price is between ETB45,000 and ETB70,000 per square meter, according to the engineer.

A foreigner cannot buy land n Ethiopia but one can lease land for any investment including farming. Even Ethiopian Citizens cannot buy land in the country. It used to be that anyone could own land under the Haile Selasie government.

Land may be held in one of the following four ownership regimes: private, communal, state or open access.

Ethiopia had nearly 38.5 million hectares of agricultural land in 2020, which corresponded to over 34 percent of the country's total land area. Generally, the area used for the cultivation of crops and the production of animals increased in the period under review.

The Ethiopian highlands are among the regions where inappropriate land use practices such as excessive tillage of croplands and overgrazing on grasslands have been reported as the main causes of soil erosion and severe land degradation (Nyssen et al., 2004; Hurni et al., 2005, 2015; Abegaz et al., 2016; Tamene et al., ...

Is real estate profitable in Ethiopia? ›

One of the main advantages of investing in real estate in Ethiopia is the potential for strong returns. The demand for housing and other types of property is high, and the market is expected to continue growing in the coming years.

Can Foreigners Buy Property In Ethiopia? Ethiopia is among the few African countries where foreigners or even citizens do not own land. The land is often leased out by the government for a period of time. However, it is possible to transfer lease ownership from one party to another.

The Bank offers a tailor-made credit arrangement for diaspora community including Mortgage, Car loan, and Personal/Consumer loans and for selected productive project financing. The Mortgage is a secured Long-Term Loans that allow Diasporas to purchase real estate and homes in Ethiopia.

The right to ownership of rural and urban land, as well as of all natural resources, is exclusively vested in the State and in the peoples of Ethiopia. Land is a common property of the Nations, Nationalities and Peoples of Ethiopia and shall not be subject to sale or to other means of exchange.

The Ethiopia Land Administration to Nurture Development (LAND) project works at the national and regional levels of government to further improve the legal and regulatory framework related to land tenure and property rights and thereby support the Government of Ethiopia's and USAID's goal of increasing economic growth, ...

The principles vary depending on whether the access to rural land is required for livelihood or for investment. About payment to access rural land, the constitution has stipulated free access for livelihood and investors access through payment arrangement (FDRE Constitution, 1995, Article 40(4–6)).

An investor is required to take out a Business License before moving to production. At this stage it is mandatory to: Produce Investment License • Register minimum capital required to start-up investment. If all criteria are fulfilled a Business License is issued by the Ethiopian Investment Agency within 4 hours.