Make Acquisition
Land Acquisition in Ethiopia, land is public property. Individuals, companies and other organizations have only use right of land. There are two broad classifications of land for rent or lease purposes: rural land and urban land. Application for land acquisition can be made during a field visit of an investor and after taking out an investment license. The Ethiopian Investment Agency (EIA) has the mandate to facilitate the allocation of land for FDI projects throughout the country. Urban land for other activities is available on an auction basis.
The auction prices vary, depending on demand. The lease and rental prices of urban and rural land vary according to location, type of investment and class of land. The land cannot be mortgaged or sold, but the lease or rental value of land and the fixed assets thereon may be mortgaged or transferred to a third party. Urban land – the regional administrative units are in charge of allocating urban land for investors. Urban land is divided into land for industrial use and land for other activities. Industrial land is given much attention by the government and a number of industrial zones with the necessary infrastructural facilities (roads, electricity, water, telephone) are established in the major cities and towns in order to support the country’s drive for rapid industrialization.
Industrial land in industrial zones is allocated to investors at fixed prices. Land for export-oriented industries is generally available at concessionary rate. Rural land is rented mainly for agriculture. The Ministry of Agriculture and Rural Development allocates farm land to foreign investors. In addition, it provides technical support for private investors investing in agriculture. The support ranges from providing information, technical support, and facilitation of other public services. Currently, there is nearly 11.55 million ha of land readily available for farming. The rental price of rural land is generally low. There is strong commitment from the government to avail the country’s fertile land for investment.
