Addis Ababa, July 1, 2025 (FMC) — Ethiopia’s House of People’s Representatives (HPR) has approved a groundbreaking proclamation allowing foreign nationals to own residential property in the country, marking a significant policy shift aimed at boosting investment, revitalizing the real estate sector, and creating employment opportunities.
During its 41st regular session held today, lawmakers passed the Proclamation on Homeownership by Foreign Nationals with a majority vote, following joint presentations and recommendations by the Standing Committees on Urban Infrastructure and Transport Affairs, and Justice and Legal Affairs.
Professor Mohammed Abdo, Chairperson of the Urban Infrastructure and Transport Affairs Standing Committee, emphasized that the proclamation is the result of extensive stakeholder consultations, during which key provisions were clarified and refined to ensure legal precision and alignment with Ethiopia’s broader economic goals.
He underlined that the new law supports Ethiopia’s ongoing efforts toward inclusive and sustainable economic growth, while also safeguarding national interests. “The proclamation strikes a balance between attracting foreign investment and ensuring that property ownership by foreign nationals aligns with the country’s legal and economic frameworks,” he said.
Professor Mohammed added that the legislation is expected to stimulate the real estate market, diversify housing options, and help address urban housing shortages, while fostering job creation throughout the construction and services sectors.
Issa Boru, Deputy Chairperson of the Justice and Legal Affairs Standing Committee, noted that the bill incorporates best practices from other countries and ensures that foreign homeowners are fully subject to Ethiopian law, including the specific provisions outlined in the new legislation.
Meanwhile, in the same session, Parliament also unanimously approved the Revised Overseas Employment Proclamation, aimed at improving protections for Ethiopian citizens seeking work abroad.
Presenting the bill, Negeri Lencho, Chairperson of the Human Resources Development, Employment and Technology Affairs Standing Committee, stated that the updated proclamation addresses gaps in the existing legal framework and is designed to streamline service delivery, enhance citizens’ safety, and promote ethical labor migration.
“The revised law improves the competence and competitiveness of Ethiopian job seekers, while also acting as a strong deterrent against illegal human trafficking,” he said. “It encourages citizens to pursue overseas employment opportunities through legal channels only.”
With the adoption of both proclamations, Ethiopia takes a significant step toward modernizing its legal landscape in support of economic transformation, international cooperation, and the protection of its citizens at home and abroad.