A new bill introduced by the Ministry of Urban Development and Infrastructure proposes a sweeping overhaul of urban land lease policies and addresses the issue of unauthorized housing across Ethiopia.
The proposed legislation, designed to replace the 2011 Acquisition of Urban Land Proclamation, suggests replacing the traditional competitive bidding process with a more flexible negotiation-based land leasing system. This would enable the government to lease land for national services that could not previously be transferred via standard tender or allocation.
One of the most contentious aspects of the bill is the plan to seize and demolish all illegal housing built in urban areas since November 2011. The government intends to take action over the next three years, targeting land occupied without proper authorization—a strategy that aligns with previous statements by the Addis Ababa City Administration regarding unapproved housing developments.
The bill was recently reviewed by the Parliamentary Committee for Urban Infrastructure and Transport Affairs. Gebru Bayebign, head of the Ministry’s Land Management Desk, highlighted that the revisions are crucial to address the imbalance between urban land supply and demand.
Key features of the bill include:
- Negotiated Land Transfers: The proposed law allows land to be leased through negotiations instead of traditional bidding, provided that the price is at least 50% of the region’s average lease bid price.
- Comprehensive Land Lease System: Over the next three years, all urban land will be integrated into the national land lease system.
- Mandatory Housing Development: Cities must allocate at least 20% of prepared land for housing, aimed at alleviating urban housing shortages.
- Restrictions on Multiple Land Allocations: The bill prevents individuals who have already received urban land allocations from benefiting a second time in the same city, either individually or through cooperatives.
- Extended Lease Fee Review Period: The new law extends the review period for land lease fees from two to three years.
The bill, which has yet to receive any significant objections from lawmakers, marks a decisive shift in how urban land is managed and aims to curb the proliferation of illegal housing in Ethiopia’s rapidly growing cities.
