Can a foreigner purchase land in Ethiopia to create a farm ?

A foreigner cannot buy land n Ethiopia but one can lease land for any investment including farming.
Even Ethiopian Citizens cannot buy land in the country.  It used to be that anyone could own land under the Haile Selasie government. But when the communists government took power it nationalized all land and even the current government still enforces the same communist rules on ownership of land.  You can lease land for up to 99 years with an option to renew. The lowest number of years that I am aware of is 15, 20, 25, 30 ...

The cost of land per hectares has gone up over time. City land is much higher in value and it costs more.  Farm land is classified based on distance form Addis Abeba. The furthest you are the lowest it is.

Check out the web site of the Ethiopian Investment Commission to find out more.

Kebede

Hello all,

what Kebede is explaining is correct, only in practice some details have to be considered.

1. Before you go into a lease agreement you must become a "official investor" and hold a investment licence, which needs a paid up capital of 200.000 USD or 150.000 USD for a joint venture. No one will talk with you and go into commitments without this!

2. you can lease directly from government, but also from private people. Lease from private people is mostly limited on time, see the regional law, for example Oromia maximum 15 years, which is quite short for a investment in agriculture and land owner request often 5 years advance.


3. Land from Government, either federal or regional is still cheap but limited

4. Land from private people can also be leased from government if you are willing to pay a compensation. The process go through the regional government. The compensation is regulated by law, general you have to pay 10 years of potential harvest with a 10 years profit estimation! I know people who paid up to 12.000 USD per ha (10.000sqm). The process is as well quite time consuming and had some high risk of corruption!

But most important is that you know yourself what you want to do with the land. Land has been for my understanding over valuated in the last years. People are just running for land and after securing the land they do nothing.  In the moment you know in details what you want to do, if you have a good plan you follow on the land, execute your project & investment the land will come by itself.

Do not allow other people to put pressure on you and control you, by giving your fears that land is  the Number 1 issue for your investment, it is not!

Also put the project and the idea above the land issue, this will define the kind of land you need, make a careful selection. Once you have your land there is no way of return! A mistake you will have to pay later in the project! Look at all details, labour force, neighbours, soil, water, climate, etc....


Feel free to contact me, I know quite a view areas of land which are available.

oliver

I am interested in contract farming involved 1000 hectares and all products export,  anyone suggest how to contact...
KC Man
Email :  ****

oliver sodo wrote:

Hello all,

what Kebede is explaining is correct, only in practice some details have to be considered.

1. Before you go into a lease agreement you must become a "official investor" and hold a investment licence, which needs a paid up capital of 200.000 USD or 150.000 USD for a joint venture. No one will talk with you and go into commitments without this!

2. you can lease directly from government, but also from private people. Lease from private people is mostly limited on time, see the regional law, for example Oromia maximum 15 years, which is quite short for a investment in agriculture and land owner request often 5 years advance.


3. Land from Government, either federal or regional is still cheap but limited

4. Land from private people can also be leased from government if you are willing to pay a compensation. The process go through the regional government. The compensation is regulated by law, general you have to pay 10 years of potential harvest with a 10 years profit estimation! I know people who paid up to 12.000 USD per ha (10.000sqm). The process is as well quite time consuming and had some high risk of corruption!

But most important is that you know yourself what you want to do with the land. Land has been for my understanding over valuated in the last years. People are just running for land and after securing the land they do nothing.  In the moment you know in details what you want to do, if you have a good plan you follow on the land, execute your project & investment the land will come by itself.

Do not allow other people to put pressure on you and control you, by giving your fears that land is  the Number 1 issue for your investment, it is not!

Also put the project and the idea above the land issue, this will define the kind of land you need, make a careful selection. Once you have your land there is no way of return! A mistake you will have to pay later in the project! Look at all details, labour force, neighbours, soil, water, climate, etc....


Feel free to contact me, I know quite a view areas of land which are available.

oliver

Hi,
So nice of you for giving a clear picture... What if i get marry to a Ethiopian girl and shall open a company on spouse name(Ethiopian citizen)?//

Arif

@Riyadh male

@oliver sodo Hello, Oliver. I am a Romanian farmer that wants to relocate to Ethiopia. Can we talk, please?

@Alexander323 The comment is 2 years older, I am not sure if he is available. But I am here if you want someone to discuss it with.

@Sertsedengle Shewandagn Sure, how can we communicate, please?