• Sun. Apr 14th, 2024

Ethiopia’s Foreign Property Ownership Policy: A Step Towards Economic Reform or a Threat to Cultural Heritage?

BySamantha Nguyen

Apr 4, 2024
Ethiopia Turns to Property Ownership Incentives to Attract Foreign Investors

The government of Ethiopia is set to undergo a significant shift in its foreign property ownership policy. This change is part of Prime Minister Abiy Ahmed’s broader economic reform agenda, aimed at liberalizing key sectors of the economy. The policy is viewed as both a long-term strategy and a measure to address short-term issues.

The government believes that allowing foreign property ownership may attract more international investment to Ethiopia, increase tax revenue, and stimulate competition in the local real estate market. Local property developer Solomon Assefa agrees with this viewpoint, stating that it could bring much-needed foreign exchange into the economy. However, he recognizes that Ethiopia may not be as attractive to foreigners seeking property compared to other destinations like Dubai. The country’s appeal to foreign investors lies in its low labor costs and subsidized electricity offered by the state.

To support foreign investment, the government has allocated prime city-center plots for the construction of luxury apartments 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. The government aims to raise funds through auctions, leading to widespread demolitions in the capital to make way for these developments. However, this may come at a cost to Ethiopians who are evicted from their homes due to these developments.

The impending changes have sparked debate among stakeholders about their potential impact on Ethiopia’s real estate market and society as a whole. While some see it as an opportunity for growth and development, others express concerns about displacement and loss of cultural heritage.

In conclusion, Ethiopia’s decision to allow foreign property ownership is an important step towards liberalizing its economy and attracting more international investment. While there are potential benefits and challenges associated with this policy shift, it remains clear that it will have a significant impact on Ethiopia’s future economic trajectory.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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