The Ethiopian government has opened the door for foreign nationals to own residential property across the country. The Council of Ministers today gave unanimous approval to Proclamation No. 1388/2025—a forward-looking law designed to attract foreign investment while safeguarding the interests of Ethiopian citizens.

Professor Mohamed Abdo, who heads the Urban Development Committee, describes the legislation as a strategic step toward economic growth and stronger international ties. “This isn’t just about property rights,” he says. “It’s about signaling to the world that Ethiopia is ready to embrace responsible investment and shared prosperity.”

The law strikes a delicate balance. While it grants foreigners clear legal rights to acquire and use residential land, it stops short of allowing them to dive into real estate business ventures, ensuring the sector remains under local stewardship.

Council members are also mindful of the need to protect local homeowners. They’ve called for safeguards to prevent inflated prices and ensure affordable housing remains within reach for Ethiopians. Plus, they stress that this opportunity shouldn’t be limited to just the capital city but extended to urban areas nationwide to promote balanced growth.