Addis Ababa,May 02/2025 (ABN)

At its 44th Ordinary Meeting, Ethiopia’s Council of Ministers passed several transformative resolutions that mark a significant shift in the country’s economic direction. These decisions reflect Ethiopia’s increasing openness to global engagement, regional integration, and inclusive growth, positioning the country as a proactive player in the African and global economic arena.

Encouraging Responsible Foreign Investment

In a major move, the Council approved a draft proclamation regulating foreign ownership and use of immovable property in Ethiopia. The legislation is designed to balance Ethiopia’s need for foreign capital with the protection of national interests, particularly citizens’ rights to land.

The policy aims to:

• Attract quality foreign investment,
• Expand access to housing,
• Foster job creation, and
• Safeguard land for local communities and future generations.

This law will modernize the investment landscape while upholding Ethiopia’s sovereignty and sustainable development goals.

Ethiopia Set to Join the African Finance Corporation

In another strategic decision, the Council greenlit Ethiopia’s membership in the African Finance Corporation (AFC) a pan-African multilateral institution that provides funding and expertise for infrastructure and industrial development.

Joining the AFC will:

• Unlock financial and technical support for critical national projects,
• Enhance public-private partnerships, and
• Strengthen Ethiopia’s push toward sustainable economic growth.

This move demonstrates the government’s commitment to diversifying its financing options and accessing regional capital pools.

Advancing Intra-African Trade Under AfCFTA

Ethiopia has also taken a bold step in implementing the African Continental Free Trade Area (AfCFTA) Tariff Reduction Agreement. By approving this agreement, the country will begin dismantling tariff and non-tariff barriers that limit cross-border trade.

The benefits include:

• Increased access to a pan-African market of over 1.3 billion consumers,
• Improved competitiveness for Ethiopian manufacturers and exporters, and
• Greater integration into regional and global value chains.

This decision aligns with Ethiopia’s broader goal of transitioning into a regional trade and logistics hub in East Africa.