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April 23, 2017 – In its 44th regular session held today, the Council of Ministers unanimously agreed to forward a draft proclamation to the House of People’s Representatives. The draft aims to define the legal conditions under which foreigners can own or possess immovable property in Ethiopia.
The proposed legislation establishes a framework that protects citizens’ rights to acquire and utilize land while encouraging foreign investment. The Council emphasized that this initiative will help attract foreign capital, stimulate housing development, balance housing supply and demand, and create employment opportunities.
Deliberation on Financial Agreements
In addition, the Council discussed two financial assistance agreements—one with the Government of Italy and another with the International Development Association (IDA).
The Italian government has extended a grant of €11.5 million to support Ethiopia’s Environmental and Green Economy Development Budget Program. The loan will be repaid over 30 years, with a 16-year grace period.
The IDA has provided 38.1 million Special Drawing Rights (SDR) to fund the Education Sector Transformation Program. This loan is to be repaid over 38 years, including a 6-year grace period, and carries a 0.75% service charge. The Council confirmed both agreements are interest-free and align with Ethiopia’s debt management policy. These draft proclamations were also unanimously approved to be forwarded to the House.
Membership in the African Finance Corporation
The Council reviewed a draft proclamation to ratify Ethiopia’s membership in the African Finance Corporation, which supports infrastructure, natural resource, and industrial development. The Council stated that joining the corporation will unlock additional financial resources for the private sector, boost economic growth, and reduce poverty. The draft was unanimously approved for submission to the House of People’s Representatives.
Implementation of AfCFTA Tariff Reductions
The Council also discussed a draft regulation to implement tariff reductions under the African Continental Free Trade Area (AfCFTA) Agreement. The regulation aims to enhance intra-African trade, develop value chains, and support economic transformation. It also outlines new customs tariff rates for goods imported from AfCFTA member countries to ensure smooth trade flows. The Council decided that the regulation will take effect one month after its publication in the Federal Gazette.
Service Fee Regulations for Federal Institutions
Two draft regulations were discussed concerning service fees charged by the Ministry of Transport and Logistics and the Civil Society Organizations Authority. The new fees are designed to cover service costs, boost institutional revenues, and improve service quality and customer satisfaction. The Council approved these regulations to take effect upon publication in the Negarit Gazette.
Air Transport Agreement with Austria
Lastly, the Council reviewed a draft proclamation approving an air transport agreement with the Austrian government. The agreement is expected to strengthen bilateral relations, expand market access for Ethiopian Airlines, and enhance trade, investment, tourism, job creation, and foreign exchange earnings. The Council unanimously approved forwarding the draft to the House of People’s Representatives.
All decisions were made in accordance with information provided by the Office of the Prime Minister.
