Ethiopia Turns to Property Ownership Incentives to Attract Foreign Investors

In the coming months, Ethiopia will undergo a significant shift in its foreign property ownership policy as part of Prime Minister Abiy’s broader economic reform agenda. This change is not only a long-term strategy but also an immediate solution to address pressing issues. The government aims to attract more international investment by allowing foreign ownership of property, increase tax revenue and stimulate competition in the local real estate market.

While many see the potential benefits of this policy, local property developer Solomon Assefa recognizes that Ethiopia may not be as attractive to foreigners compared to other destinations like Dubai. However, he believes that the country’s low labor costs and subsidized electricity offered by the state may make it more appealing to foreign investors.

To encourage foreign investment, the government has allocated prime city-center plots for luxury apartment construction in Addis Ababa. Over the past year, property developers have been granted access to land throughout the capital with agreements requiring them to reserve 30% of new housing units for public-private partnerships with the state.

In January, the finance ministry announced plans to construct over 78,000 affordable housing units in Addis Ababa through international tenders. To raise funds for these developments, auctions are being used with widespread demolitions taking place in the capital to make way for these projects. However, this may come at a cost to Ethiopians who are evicted from their homes to accommodate new properties, highlighting potential challenges that may arise as this policy is implemented.

Despite some concerns about potential evictions and other challenges associated with this policy change, many experts believe that it has enormous potential benefits for Ethiopia’s economy and future growth prospects.

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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