 A complete guide to investing in Ethiopia's real estate. How does home ownership work in Ethiopia? Is it simply a long lease? African countries are quickly becoming a thriving ground for profitable investments. Because of the increasing economic and political stability in most parts of the continent, investors now have more options for where to put their money. Real estate investment in Ethiopia appears to be the new gold mine. Surprisingly, Ethiopia is also emerging as one of Africa's fastest growing economies. According to the World Bank, its average GDP increased by 9.4% from 2011 to 2020, while the poverty rate fell by 6% in five years, from 30% to 24%. It has a population of over 112 million people as of 2019 and is growing at a rate of 2.61% per year. As a result, Ethiopia's growing population will result in a real estate boom. Are you considering investing in Ethiopia? Here's everything you need to know about the East African country's real estate market. Why consider investing in Ethiopia? Ethiopia's economic projections remain positive, despite a drop in growth caused by COVID-19 and civil war. The impact of the COVID-19 pandemic on the country was mostly felt in the manufacturing and service sectors. After agriculture, these sectors are one of the major drivers of economic growth in the country. Because Ethiopia has a diverse economy, agriculture thrived while the service sector suffered during the pandemic. As a result, its GDP growth rate fell slightly to 6.1%. This was still enough to keep the country's position as one of the fastest growing economies. With the impact of COVID-19 fading, the government is pushing ahead with plans to privatize some state-owned industries with the exception of transportation, air, banking, and telecommunications. These will continue to be under government control. Most other industries are now open to foreign investment. To support this, the government revised its investment law in 2020. The new reforms will encourage foreign investment in services and infrastructure, information technology, tourism, education, and healthcare. Ethiopia is a promising investment hub as a result of these reforms and strong foreign support. Investing in Ethiopia clearly has enormous advantages. Ethiopia real estate, future prospects. A foreigner may find it difficult to invest in Ethiopian real estate. It is, however, a worthwhile investment. The Ethiopian government's emphasis on infrastructure development will undoubtedly have an impact on other sectors of the economy. Real estate is one sector that will undoubtedly benefit from these reforms. Ethiopia's government intends to build 20 industrial parks in order to provide more job opportunities for the country's growing population. Six of these parks are currently operational in the country. Five of the six parks are owned by the government, while one is owned by a private company. What is the significance of this, and how does it affect real estate investment in Ethiopia? Our interest in Ethiopian real estate stems from the country's ongoing industrial transformation. The cities or areas surrounding these parks will almost certainly see an increase in population. This means that demand for affordable housing and other basic necessities will rise. Ethiopia has a large workforce, with the majority of its population aged 15 to 65. Almost certainly, the majority of them will relocate to cities or areas designated for development. The resulting housing demand makes investing in Ethiopian real estate a profitable venture. Can foreigners buy property in Ethiopia? Ethiopia is one of the few African countries where neither foreigners nor citizens own land. The government frequently leases out the land for a set period of time. However, lease ownership can be transferred from one party to another. When the lease expires, the new owner must update it. Before a foreigner can qualify for a lease, they must meet certain criteria, which is the most difficult aspect of investing in Ethiopia. First and foremost, you must be an investor in the country. According to the law, a foreign investor can acquire leased land in the name of the company for up to 99 years. However, in order to be considered an investor, you must have a minimum capital of $200,000. Begin your real estate adventure in Ethiopia. If your capital and bank statements are in order, here's how to get started buying real estate in Ethiopia. Given the difficulty of acquiring a landed property, here is a step-by-step guide to follow. One, get the property tax statement. This is a document that shows the property tax authority's assessment and registration of the property. It is one of the first of many documents required before proceeding with the property transfer. This is available from the property tax authority office. Two, register the property with the real estate registry. Proceed to the real estate registry after you have completed the purchase with the seller. A registration fee of 10,000 bar is required here. After that, the asset is internally transferred to the Ethiopian Surveying Authority. Three, survey and inspection of property. The Ethiopian Surveying Authority will conduct a routine land survey. It will then submit its findings to the measurement department. This will all be completed in 10 days. There is no additional charge for this. Four, the measurement department. The measurement department will review and approve the Ethiopian Surveying Authority's inspection report. The report will be returned to the registry department for review. Following an engineering and legal review of the request, the real estate registry will approve the documents. The document is authenticated with a stamp once it has been approved. This document, along with a stamp form, will be distributed to the parties involved. On the stamp form, both parties will print their contract agreement. Your dream of investing in Ethiopian real estate is now 80% realized. Five, final contract draft presentation. Both parties' lawyers will draft a contract agreement on the stamp form provided by the real estate registry. The contract is then taken to the lawyer's syndicate for verification. On the form, the lawyer representing both parties should include their syndicate identification number. This will confirm that the lawyer is a member of the lawyer syndicate. This entire process usually takes four days and costs 0.5% of the property's value. Six, real estate registry approval. Both parties will return the form to the real estate registry once it has been verified by the lawyer's syndicate. The contract is then reviewed, stout, and approved for registration by the real estate registry. This process should take about 10 days. Foreign investors in Ethiopia must obtain a residency entry visa. This gives the lawyer power of attorney, allowing him or her to represent you in court. It will not be possible to register any property without this. Although the majority of steps are free of charge, certain conditions may necessitate the payment of a commission. The buyer's commission is one example. When receiving the official property tax statement from the property tax authority office, this may be requested. We hope this guide is useful to you. If you have any questions about investing or purchasing property in Ethiopia, please leave them in the comments section. If you've been to Ethiopia before, please share your thoughts with us. Do not forget to subscribe to Africa Reloaded for more content.