The Ministry of Urban and Infrastructure has issued a new directive requiring foreign nationals to show a minimum deposit of USD 150,000 to own residential property in Addis Ababa and Sheger City.
Directive Number 1147/2018 lays out the operational framework for Proclamation No. 1388/2017 and establishes location-based financial tiers, strict foreign exchange controls, restricted banking procedures, and clear criminal disqualifications for foreign buyers looking to purchase or construct homes in the country.
Under the regional financial framework, foreign buyers must demonstrate minimum capital based on property location. A minimum of USD 120,000 is required for regional state capitals and major regions—including Oromia, Amhara, Tigray, Sidama, Central Ethiopia, South Ethiopia, South West Ethiopia, Somali, and Harari—as well as the Dire Dawa city administration.
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For regional states such as Afar, Benishangul-Gumuz, and Gambella, the minimum is set at USD 100,000. If the final purchase or construction price exceeds the initially registered amount, buyers are required to deposit the difference in US dollars before closing the deal and must inform the ministry.
Moreover, the directive integrates foreign-exchange management directly into the real estate sector by tasking the Ministry of Urban and Infrastructure with collaborating with the National Bank of Ethiopia (NBE) to regulate fund repatriations. Foreign currency deposits must be converted into Birr at prevailing exchange rates and held in restricted bank accounts until property transactions receive formal ministry authorization.
