Land is available for foreign investors on lease-hold and rental basis
In Ethiopia, there are three categories of land
Rural land, used for agricultural purposes
Urban land for industrial purposes
Urban land for other activities
Industrial land in industrial zones is allocated to investors at fixed prices. Land for export-oriented industries is generally available at concessionary rate.
Duration of lease holding
The maximum lease holding period varies according to the type of activity and the location.
|Area of activity||Location||Period of lease (years)|
|Residential housing, science and technology, research and study, charitable organizations, and religious institutions||Any urban center||99|
|Urban agriculture||Any urban center||15|
|Education, health, culture and sports||Addis Ababa||90|
|Other urban centers||99|
|Other urban centers||80|
|Other urban centers||70|
|Other urban centers||70|
Modalities of payment
The payment of the lease can be made in full or periodically.
Rights of lease holding
Any lease-hold possessor can freely transfer its rights.
Dedicated areas are reserved for investors. Land is, for instance, available in the following IPDC industrial parks
|Industrial park name||Location||Type and number of sheds||Status|
|11,000 sq. m||5,500 sq. m||3.000 sq. m|
|Hawassa Phase- I, Cycle -I||Hawassa||12||22||3 special sheds||Operational|
|Hawassa Phase- I, Cycle -II||Hawassa||5||10||–||Operational|
|Bole Lemi –II||Addis Ababa||–||–||–||Under construction|
|Kilinto||Addis Ababa||–||–||–||Under construction|
Source: IPDC. Last update: October, 1 2018
Building and construction
Before starting construction work, the investor has to get a construction permit.
Depending on the location of the project, the construction permit might be delivered by the woreda, the district, the municipality or a ministry. The application has to be made to the urban administration or to any other designated organization. The application has to provide the following information/documents
|Full name and address of the applicant||Investment permit||Location of the project||Table showing the total area of the floors|
|Planning consent||Architectural and electrical
designs for buildings of category “A” which
have no concrete roofing
|Architectural, structural and electrical
designs for buildings of category “A” having concrete
|Architectural, structural, sanitary,
electrical designs and soil test and structural
analysis report for buildings of category “B”
|In addition to the plans required
for buildings of category “B”,fire safety
plans and descriptions thereof
shallbe submitted for buildings
of Category “C”
|Electro-mechanical designs and analysis
for buildings using lifts and artificial ventilation
|Number of floors of neighbouring
buildings below and above ground level and their
distance from the boundary lines
|Full name, address, signature
of the person that prepared plans of the building.
A copy of the registration certificate
is also required.
Source: IGuide Ethiopia