In an effort to attract more foreign capital, Ethiopia will now allow foreign investors to own property for the first time. Prime Minister Abiy Ahmed (PhD) announced the loosening of property ownership laws during a meeting with investors on March 22, 2024.
While Ethiopians and the Ethiopian diaspora have long been allowed to purchase property, foreigners were previously restricted unless investing in approved commercial projects. But PM Abiy said foreigners will now be permitted ownership rights without such obligations.
Speaking to investors on March 22, 2024, PM Abiy said the ban on international retailers like Starbucks and supermarket chains is being lifted. "We'll now open the market for them,” he stated. Malls are being constructed massively in Addis Ababa to accommodate these new players, according to him.
Ethiopia has long maintained protectionist policies, keeping the retail sector closed to foreign companies. However, since taking office in 2018, PM Abiy has pushed for economic reforms and liberalization.
The telecommunications industry was the first to be opened, with Safaricom acquiring a 850 million dollars license. Banking regulations are also being reformed to allow foreign investment.
Opening the retail market has been part of Ethiopia's Homegrown Economic Reform Agenda, currently being implemented through 2026.