Chapter One – Introduction to Basic

Essences of Land
 What is Land?
 Rights to Land
 Property
 Forms of Ownership to Land

 Nature and Scope of Land Rights in Ethiopia

Scope and Objects of Land Rights

Ownership of Land in Ethiopia

Governing Land Laws in Ethiopia

  What is Land?
Williamson, I., Enemark, S., Wallace, J., & Rajabifard, A. (2010).
Land Administration for Sustainable Development pp 40-41
 What is Land?

In legal theory, land includes :

- the surface of the earth ,
- The air above the surface and
- The depth below the surface to the earth’s center.

exampled by an inverted pyramid having its tip, at the center of the earth, extending
outward through the surface at the boundary lines of the tract, and continuing on upward to
the heavens
Therefore Land includes :
- the ground, soil, surface of earth,
- everything attached to the earth/surface (trees and
herbage, or houses and other buildings.)
- every thing under it (water, mineral)
- the air above it.
 To Summarize Land is:
 Ground + fixtures on it + natural resources beneath ground + rights
(eg. easement)
 Ground + fixtures (eg. Building)

 Ground only

 In Ethiopia land signifies only the ground and plants fixed thereon

Art. 1133 of Civil Code

In Ethiopia land laws can be categorized as:
- General law ( Civil code)
- Special laws ( lease, environment, natural resource…)
 @@@Property
The meaning of the term property varies, depending upon the
context used:
- Property as a material (thing)/tangible that belongs to someone,
- property as a right (ownership) concept/intangible,
- Property as characteristics of something (eg. Physical Property of
water colorless, odorless, liquid, gas or solid)
- Property in legal terms is the relationship between or among
people (natural or legal) with respect to a thing (tangible or
intangible)
@@@Some Basic concepts about property and
ownership
• In its narrower and proper legal sense, property
may be defined as an exclusive right to:
- control/possess,
- use it a its fruits,
- transfer,
- follow on others hands,
- exclude all others from the above
• Property rights are real rights (rights in-rem)
Some Basic concepts about property …
• It is a name for a concept that refers to:
- the rights/ privileges,
- obligations,
- restrictions that govern the relations of
persons with respect to things having economic
or financial value.
 @@@Objects of Property
- Defn. the goods or things over which property right
may be exercised.
- object of property may refer to:
1. corporeal/ tangible matter, which has an organic
or physical unity,
2. corporeal/tangible, but consists of specific things,
3. Immaterial/ incorporeal/intangible but which is a
source of wealth,
 Ownership
- The right to assert that something is one’s
own, may be asserted against all comers.
- In former times considered as trinity of rights:
-utendi, (Use it)
- fruendi, (Use its fruits) and
- abutendi (abuse)
 Ownership
• Modern common law western treatises consider ownership as bundle
of rights.
• They compare it with bundle of sticks, where each stick represents
separate right/interest.
•The 1960 Ethiopian civil code defines ownership right as follows:
Art. 1204.- Definition.
(1) Ownership is the widest right that may be had on a corporeal thing.
(2) Such right may neither be divided nor restricted except in
accordance with the law.
Art. 1205. - Scope of right.
(1) Without prejudice to such restrictions as are prescribed by law, the
owner may use his property and exploit it as he thinks fit.
(2) He may dispose of his property for consideration or gratuitously,
 # #Rights to Land

Social institutions define/delimit range of privileges to individuals.

The privileges include:
Ownership
 Right to Land
In a mature legal system one may have the following rights:
 Possession (physical control)

 Use and enjoyment

 Right to manage the thing (manage the use of)

 The right to the income (fruit of a tree, offspring of an animal, rent of land,
profit from investment on land)
 The right of transmissibility of the above rights (this is right one is provided
to transfer rights not the land itself)
 The right to transfer the land itself (inherit, sale)

 The right to do away (destroy a house), but it is limited for public safety and
health reasons
 The right to exclude others (ownership is a right claimed against the world,
no one is allowed to interfere in one’s ownership right)
Discuss which rights are enjoyed in Ethiopia?
 Forms of Ownership of Land
 There are four forms of land ownership in the world:
- Open access
- Communal ownership
- State ownership
- Private ownership
 Open access
 There are some things in respect of which no one has property rights.
 Each of us has a privilege (freedom) to use such things , and the rest of the world
has no right to limit us
 To put it in terms of exclusion, none of us has the right to exclude others from
such things, nor do we ourselves have the right not to be excluded from use.
 Every person has a free access to use or exploit such things,
 The assumption is that either they are not highly valued , or abundant not
exhaustible (air and sunlight), Waking paths, parks, radio/TV waves
 Is it possible for ETV to force us to subscribe? Or should it limit its services by
putting codes etc?
 It is not possible to force the state or individuals to provide or maintain its
availability
 Communal Ownership

 Communal ownership of land refers to such property of land

commonly owned by a community of a certain village or locality.
 Proc. 456/2005 defines it as "communal holding" means rural land
which is given by the government to local residents for common
grazing, forestry and other social services. Art. 2 (12)
 The defining characteristic of communal ownership is that every member
of the community has the right not to be excluded from the resource.
 Communal Ownership
 An individual who is a member of the community
therefore has not only a privilege to use the thing, but
also a right not to be excluded from it.
 The difference between open access and communal
property is that in the first case a person may not claim a
use as a matter of right, while he may do in the second
case.
 The similarity is that in both cases no body can exclude
the person from using the resource.
 In a more closed community, access is allowed only to
members (eg. Grazing pasture in a village)
 State ownership
 State ownership of land is common in many countries,
especially urban land
 30% of the US land is owned by federal and state
governments
 In Europe urban municipalities control large amount of
urban land
 In former socialist countries still some states have full
ownership of rural land
 In China all urban land and natural resources is owned by
the state and all rural land by village communities.
 State ownership
 A property completely owned by the state and when the state
is able to use by itself or allocate its use to others,
 Although it is individuals who may use the property, the state
has the ultimate power of management,
 Land neither owned by private individuals nor by the
community,
 In most countries, mountains, public highways, public halls,
parks, trans-boundary rivers and forest lands, lakes, etc are
owned and administered by the state,
 Article 2(13), of Proc. 456/2005 considers “forestlands, wild
life protected areas, state farms, mining lands, lakes, rivers and
other rural lands,” as state holding lands. Urban Land
721/2011 (preamble,title, defn.,Article 5…)
 Private ownership
 Ownership right vested in the individual person
 Provides rights of use, exchange, abuse, and exclude others from
using it. (use, rent/lease, mortgage, inherit, donate, sale, exchange)
 Widest right 1204(1) of Civil code
 Many countries recognized it, and others prohibited it (former
USSR), African countries
 In Ethiopia, land belongs to the state and the Ethiopian people. No
private ownership of land. Read Art. 40(3) of FDRE constitution.
 As a segment of private ownership, joint ownership (such as
condominium) and common ownership within a family can also be
categorized here.
 Private ownership
 Ownership right vested in the individual person
 Provides rights of use, exchange, abuse, and exclude others from
using it. (use, rent/lease, mortgage, inherit, donate, sale, exchange)
 Widest right 1204(1) of Civil code
 Many countries recognized it, and others prohibited it (former
USSR), African countries
 In Ethiopia, land belongs to the state and the Ethiopian people. No
private ownership of land. Read Art. 40(3) of FDRE constitution.
 As a segment of private ownership, joint ownership (such as
condominium) and common ownership within a family can also be
categorized here.
Nature and Scope of Land Rights in Ethiopia

Topics
1. Scope of Land Rights,
2. Ownership of Land in Ethiopia
3. Governing Land Laws in Ethiopia
 Scope of Land Rights
 The definition of land based on the medieval
concept didn’t match modern societies,
 Modern societies limit scope of land rights b/se:
- development of aviation technology,
- interests of governments to control and
develop natural resources,
- integration of 3D concepts (apartments, condos…)
- modern infrastructures (tunnels, overpass,
underpasses)
 Scope of Land Rights

- In Ethiopia ownership of land is limited beneath

and above the land “to the extent necessary for
the use of the land.” Articles 1207-1211 of the
Civil Code
- to the depth of foundations,
- to the depth of toilet/ latrines,
- to the height of buildings
 Scope of Land Rights

 Other restriction reasons:

- public safety, Also consider values for land development:
Economic value, Envtl. Protection value, Equity
- public health, value and Livability value

- public interest,
- urban beautification,
- Governments use different laws to protect these
- urban planning laws,
- environmental protection laws,
- compensation laws …
 Scope of Land Rights

 Restrictions listed in the civil code include : Article

1210-1225 of the CC
 Restrictions related to rural lands:
 Ownership of Land in Ethiopia
 The source of ownership of land is the FDRE
Constitution. The Constitution under article 40(3)
The right to ownership of rural and urban land, as
well as of all natural resources, is exclusively vested
in the State and in the peoples of Ethiopia. Land is a
common property of the Nations, Nationalities and
Peoples of Ethiopia and shall not be subject to sale or
to other means of exchange
 Ownership of Land in Ethiopia
 The Constitution under article 89(5) gives
administrative power of the land to the state:
Government has the duty to hold, on behalf of
the People, land and other natural resources and
to deploy them for their common benefit and
development.
 By this delegation, the state is empowered to
hold and use land in the best interest of the
people.
 Governing Land Laws in Ethiopia
 The Civil Code :
- contained all the necessary rules concerning
immovable properties when codified:
- acquisition,
- possession (under property law) ,
- transfer of land either for consideration
(Contract and sales) or gratuitously (law of
succession).
- With the revolution of 1974 the private
ownership was abolished, and most rules were
suspended.
 Governing Land Laws in Ethiopia
- Currently applicable if relevant and as far as it does
not contradict the latter laws
 FDRE Rural Land Administration and Land Use
Proclamation 456/2005 and the different regional
rural land proclamations.
 Urban Land Lease Proclamation No. 721/2011 and
other similar urban land lease regulations adopted
by regional states,
 Expropriation of Landholdings for Public Purposes,
Payments of Compensation and Resettlement
Proc.No. 1161/2019 are the major ones.
 Chapter Two: Rural Land Laws

Ethiopian Tenure History in Brief

- Rural land tenure during Imperial Era
- Rural land laws of the Derg era and
- Current Rural land law (with better detail)
What is Land Tenure?
- Black’s Law Dictionary Defn. : a right, term or mode
of holding or occupancy,
- FAO Defn. - a relationship, whether legally or
customarily defined, among people, as individuals or
groups, with respect to land.”
- Similar to the definition given to ‘Property right’
-
 Ethiopian Tenure History in Brief

The pre-1974 Revolution era

The Imperial Era
- The Imperial era (pre 1974) tenure system in
Ethiopia may be classified as pre and post Menelik
eras,
- Again, under each classification, tenure system can
be categorized as North and South,
- In the pre-Menelik era, land was communal in most
of the south, while under kings in the north
 The pre-1974 Revolution era

The Imperial Era

Pre-Menelik Era Post-Menelik Era

Northern Ethiopia Northern Ethiopia

Southern Ethiopia Southern Ethiopia

 Reasons for this Classification
- Land Tenure in North and south was different in pre-
Menelik era,
- re-annexation of additional territories and

introduction of new tenure systems (especilly Menelik

era)
- Enactments of decrees in respect of rist and gult
lands ( especially Hailesellassie era)
- Enactments of constitutions and civil code that
changed the property right system (especially
Hailesellassie era)
- In Post Menelik era though similar naming the
relationship established had significant differences
 The pre-1974 Revolution era Northern Ethiopia

- Starting from time immemorial land was controlled

by the king.
- All lands annexed as a result of expansion of
territories went to the king
- Land collected in this way had been distributed to
individuals, church and partly held by the state itself
 The pre-1974 Revolution era Northern Ethiopia

Land acquired by King

(Common to State ownership)

Church Government
Private rist
Land land
land

Land distributed in
Land to be distributed lieu of salary and
Heirs among the clergy pensions (maderia and
(samon land) ginde bel)
 The pre-1974 Revolution era Northern Ethiopia
- Major tenure arrangements were Rist and Gult,
Rist
Was Characterized by :
- Rist right confers use right over the land,
- Rist holders had all rights except sale.
- Original Rist right may be created as a result of
Emperor’s grant or clearance of forest by the original
father (‘Akigni Abat’)
- It is inheritable to children irrespective of sex or
birth order.
 The pre-1974 Revolution era Northern Ethiopia
Gult
-Gult right is not as such use right
- Gult right provides rights of administration,
adjudication, and tribute collection over rist holders who
settled on the land,
- This right is acquired by the nobility/aristocracy through
Emperor’s grant. It was like public office and needed
appointment,
- Since it was temporary right (may also be life time for
some), it was neither inheritable nor alienable. (Exceptions
were there during Gonderine era).
- A single estate of gult land, often included strip-fields,
 Gult Vs Rist

R R

R
R Gult Right(3-4
R
R
sq.miles)
R

R R
 The pre-1974 Revolution era Northern Ethiopia

Rights and obligations of rist owners and gult holders

 Rist Holder Peasants

- Land tax- tribute(1/3) and tithe (1/10) of total produce,

- In the old days peasants were also required to provide
manual service to the nobility and the church (grinding,
fencing, farming, collecting firewood) which claimed 1/3 rd
of peasant’s time,
- Concerning decision of production the peasant had full
right,
- His right was relatively secured with little interference
either from the immediate gult holder or even the emperor .
 The pre-1974 Revolution era Northern Ethiopia
The Gult holder
- Being granted the office he acted as: chief tax
collector, judge, and administrator,
- For his service he shall:
 retain part of the tax for himself.
uses the court fees and fines he collected in his
capacity as a judge.
 own land as rist to be cultivated by the peasants
 The pre-1974 Revolution era Southern Ethiopia
-Emperor Menelik II re-annexed the southern part of Ethiopia
(1875-1889),
- Previously all land was held customarily as common property,
- Then most of the land was confiscated by emperor’s forces
and distributed to :
- soldiers,
- church,
- local gentries and
- to imperial families
- Local people were left landless
- Land became private property
 The pre-1974 Revolution era Southern Ethiopia
-This condition of landlessness of the southern people
continued until the mid 1960s.
- Local people were given the name gabbar (paradoxically
means tax payer) and served northern land owners.
- After second world war government continued to transfer
land to investors, northern settlers, patriots of war ….
 Among 4 million ha (after 1940s) few thousands reached to
the gabbars (Bahru Zewde)
- Investment on modern farm increased during the 1960s and
when most land owners sold their land, the gabbars converted
to tenants.
- The office of Gult was weakened because of establishments
of modern courts, tax collection systems, civil and military
 The pre-1974 Revolution era Southern Ethiopia

-Additional land taxes ( Education tax, health tax)

were levied in addition to the previous burdens,
-Being tenant and increased tax burdens ,however
exacerbated the problems of the peasants,
- Resistance to land reform from northern peasants
as well as the southern part strengthened, (Ministry
Land Reform and Admin.)
- The Emperor failed to address the resistance
- Government couldn’t made meaningful land
reform and finally it became a reason for its
downfall (under the slogan “Land to the Tiller.”
 The Derg Era- Rural Land
- After the downfall of the imperial power, Derg came to
power,
- The Derg immediately passed two land related proclamations
which fundamentally changed the age old tenure system
- Proclamation 31 of 1975 nationalized all rural land and
transferred it to state ownership (Art.3)
- Land was redistributed in the country and landless tenants
land.
- No compensation for land confiscation
- It gave only use right.
- It specifically prohibited sale, donation, mortgage, lease/rent
or inheritance of land (except inheritance to minor children
and widow) (see art.5)
 The Derg Era- Rural Land
- The Derg limited the maximum limit to 10 hectares
(art. 4(3)
- Tenants were given right to hold the land they tilled
until land distribution to be carried out
- Large scale agricultures were distributed, or held
by cooperatives or run by the state
- Peasant association with the sole objective of land
distribution (art.10) were established in an area that
covers 800 hectares
 The Derg Era- Rural Land
- The Derg had enjoyed popular support from the
peasantry of the south,
- On the other hand northern peasants (rist owners) and
big land owners from across the country opposed the law.
Because:
- it reduces the previous holdings;
- restricts the land rights as mentioned above
- Generally, the land distribution was successful at that
time but later erroneous policies prevented the peasant
from enjoying it. (villagization, resettlement, grain
requisition)
- The “Land to the Tiller” brought the Derg to power and
the it ended up as owner rather than the peasant.
 FDRE Era Rural Land Tenure
- It starts in 1991, when EPRDF took power,
- The constitution once again maintained state
ownership of land in Ethiopia,
- Ethiopia has no separate rural land policy; it is
included in the constitution,
- The justification for state ownership is based on two

grounds: social equity and tenure security,

- social equity - the constitution and other subsidiary

legislations allowed any person to get land for free,

 FDRE Era Rural Land Tenure

- Tenure security- is to be chiefly guaranteed

through prohibition of sale,
- Government argued that if land is salable then
overtime it may be concentrated in the hands of
speculators; will create massive migration to
cities..,
- Rather those who genuinely wish to invest in rural
land will get land in lowlands of the country,
- Critics: the argument is not corroborated with
evidence; rather studies show that farmers prefer
rent to sale during periods of hardship,
 Critics on FDRE Era Rural Land Tenure
- Giving land for all doesn’t practically work for lack
of land in rural areas, “social equity is costly in that
it amounts to social poverty”,
- promotes insecurity of tenure because it allows,
among other things, periodic redistribution,
- is inefficient because it constrains land transactions
and has inhibited the emergence of a dynamic land
market,
 Critics on FDRE Era Rural Land Tenure
- Gives the state immense power over the farming
population because land is state property,
- promotes fragmentation of land and growing
pressure on land resources because it
discourages rural people from leaving their
farms for other employment opportunities
 Critics on FDRE Era Rural Land Tenure
- Government refutes these criticisms as baseless and rather
provides the land registration as good example to ensure
security (this is also verified by World Bank studies,
- The fear of both the government and the critics are
somehow unwarranted,

- There has not been hard evidence which support

government claim of peasants land sale during periods of
hardship,

- On the other hand there is neither hard evidence that shows

state ownership of land causes tenure insecurity or less
productivity,
 Critics on FDRE Era Rural Land Tenure

- Recent studies show rather farmers feel secure on

their holding irrespective of the fact that they are
not the owners,
- The Current land registration and certification
process also adds their confidence,
- Privatization before finalization of land
registration may create a chaos and widespread
and conflict.
 Basic Contents of Current Rural Land Laws
1. Preamble
2. Definition of terms,
3. The Right to hold and use rural land,
4. Rural Land Use Restrictions,
5. Miscellaneous Provisions
 Preamble
Preambles of Proclamations generally tell:
 The background (the legal ground) of the
proclamation,
 The importance of the proclamation,
 The intention of the proclamation
 The background (the legal ground) of the
proclamation
 The legal ground of Proclamation No. 456/2005
-Chapter 3 of the FDRE Constitution – Fundamental
Rights and Freedoms (Democratic Rights)
-Article 40 (1) – 40(8) – The Right to Property
-The following are the major contents in these
articles:
 Every Ethiopian has the right to own private property. (40.1)
 Private property is any thing which is created by the labour, creativity,
enterprise or capital of the individual (40.2)
 Land is not subject to private ownership. It is the common property
of the state and the people. (40.3)
 The background (the legal ground) of the
proclamation
 Farmers and pastoralists will get land free of charge (40.4&5).
 Investors will get land upon payment (40.6)

 Every person will have right to the immovable created on the land
(40.7)
 Government may expropriate land for public purpose and upon
payment of compensation (40.8)Ethiopia_1994 Constitution.pdf
 The importance of the proclamation
The major ones are:
- Ensure sustainability of natural resources by using
Agro-ecology based land use planning,
- To establish a database containing information
about the parcels and the holders,
- To create conducive environment for land
administration,
- To encourage private investors to invest in rural
land (agriculture)
 Definition of terms
- Rural land – Land outside the municipality 2(1),
- Rural Land Administration – Process of :
 providing rural land holding security,
 Implementing land use plans,
 Resolving land disputes,
 Enforcing restrictions and obligations,
 Organizing information about land parcels,
 Analyze the land information,
 Provide land information to users Art. 2(2)
 Definition of terms
- Holding Right Art. 2 (4):
 Use land (agriculture and natural resource devpt.),
 Lease,
 Bequeath (family members, legal heirs),
 Acquire property,
 Sale the property acquired,
 Exchange the Property,
 Bequeath the property
 The Right to hold and use rural land
• Acquisition of Rural Land
 The proclamation (RLAUP) creates free access to rural land (art. 5.1.
a.&.b)
 But there are requirements of
 Residency (the person must reside in the area)
 Profession (the person must have a desire to engage in agriculture)
 Age (the person must be above 18 years)Proc
No. 456-2005 Rural Land Administration and Land Use.pdf
 Critics say that the free access policy does conflict with the restriction
on land distribution
 It created population pressure by discouraging farmers from moving
to cities in search of alternative lives
 The Right to hold and use rural land
 The type of right provided to peasants and
pastoralists is known as “holding right.”
 Holding right is secure because:
Holding right is guaranteed by certificate (art.6)
No distribution without consent (art.9.3)
Compensation in the event of expropriation (7.3)
Proc
No. 456-2005 Rural Land Administration and Land
Use.pdf
 The right is not limited by time (Art. 7.1)
 Acquisition of Rural Land

• Modalities of Land Acquisition

For farmers /pastoralists
- Donation,
- Inheritance or
- Grant from the government Art. 5 (2)
For investors, institutions, NGOs according to their
objectives an related laws use right is given Art.5(4)
 Acquisition of Rural Land

 Family members who have income and live

elsewhere will not benefit from inheritance,
 The laws talks about inheritance by will,
 Land transferred to investors
- It signifies, large-scale agricultural land transfer on
lease or sale basis,
- The purpose is to produce food crops, bio-fuel,
sugar, cotton food oil, and other industrial imputes,
 Acquisition of Rural Land
• Justification for government (Giving land to investors)
 Ethiopia has been victim of food insecurity and poverty
and the land has to be used,
 Hence by doing so the country will benefit in terms of:
 Capital inflow (eg. 700 tractors are imported annually)
 Foreign currency income (in the future when products are
exported)
 Technology transfer,
 Employment opportunities
 Food security (we shall see that. Because most of them are
engaged in cash crops)
 Saving foreign income (currently we pay million USD a
month for oil and sugar deficit, our textile industry will need
millions of tones of cotton)
 Acquisition of Rural Land
Critics on Land Given to Investments
 There is no visible technology transfer,
 Affects settlers since they are evicted,

 Environmental Impact Assessment has not been properly

made and followed,
 Parks , forest and wild life are affected (Dessalegn)

 No discussion with public,

 Since remittance (sending back dollars out of country by

investors) is free, we will not benefit from foreign
income
 TRANSFERABILITY: LEASE AND RENT
 Rural land holding may be transferred to others by
way of rent (farmer-farmer), lease (farmer-investor),
donation or inheritance,
 Two restrictions: all the holding may not be rented
out; and transfer for definite / limited period.
 In any case, leased land may be given as a security
to loan (mortgage)
 Termination of land rights
• Permanent employment of the farmer that brings to him an
average salary determined by government,
• Engagement in professions other than agriculture and for which
tax is paid,
• Absence of a farmer from the locality without the knowledge of
his whereabouts and without renting the land for more than 5
years,
• Fallowing the land for three consecutive years without sufficient
reasons,
• Failure to protect land from flood erosion,
• Forfeiting land right upon written notification,
• Voluntary transfer of land through gift,
• Land distribution (the loss will be partial).
• Expropriation of land without replacement of another land
 Dispute settlement
Land conflict is rife in many regions of the
country
Reasons are many but some of them are:
- Boundary conflict
- Inheritance issues
- Divorce cases
- Loss of land associated with corruption
- Inadequate compensation
 Assignment
Form four groups,
Amhara, Oromia, Southern NNPR, Benishangul,
Rights,
Restrictions,
Obligations,
Compare with 456/2005
Out of 5%
 Chapter Three: Urban Land Laws
A BRIEF OVERVIEW ON URBAN LAND TENURE
 Modern urbanization started with the establishment of
Addis Ababa,
 Menelik proclaimed the 1908 land legislation of Addis
Ababa which recognizes private ownership of urban
land,
 During the reign of Haile selassie, private ownership of
urban land was re-emphasized by the subsequent
Constitutions of the 1931 and 1955 (art.43) as well as
the 1960 Civil Code,
 The Civil code recognizes private ownership of property
in general and land in particular,
 A BRIEF OVERVIEW ON URBAN LAND
TENURE
 Urban land was controlled by few urban elites,
 The revolution changed the system through proc.
47/1975, (Government ownership of Urban Lands
and Extra Houses Proclamation No. 47/1975 (1967
EC),
 Proc. 47/1975 provides land to urban dwellers and
such holding system was known as permit system,
 The right to urban land was restricted, but the right
was lifetime and inheritable,
 A BRIEF OVERVIEW ON URBAN LAND
TENURE
 All urban land was transferred to state ownership (art. 3.1) and
homeless people were allocated with 500 m2 land to build one
(art.5)
 No compensation was paid for the loss of land (art. 3.3)

 All extra urban houses (houses other than dwelling houses)

were also nationalized (see art 11 cum. 13)
 Urban land was not subject to sale, mortgage, donation,
inheritance, and lease (art. 4.1)
 Government became sole owner of land and collector of rent
(see detail under art. 20)
 The effect was that shortage of housing in major cities
(private construction of houses for rental purposes was
shrunken)
 A BRIEF OVERVIEW ON URBAN LAND
TENURE
 Today Urban land is being governed by lease system,
 The first lease proclamation was promulgated in 1993
(proc.80/1993), then revised in 2002 (272/2002), which is
also repealed by the current proc. 721/2011,
 Most cities leased land within their control to collect
revenue to run the city,
 Lease serves as a means to transfer state ownership of land
to users, an alternative to private ownership,
 Scope and Definition of Lease
Scope
 The application of the lease proclamation is limited
to only urban centers of Ethiopia,
 Rural lands are not under the lease proclamation
(Art.3) of 721/2011
Definition of Lease
 A system of land tenure by which the right of use of
urban land is acquired under a contract of definite
period
 ADVANTAGES OF LEASE SYSTEM
The lease holding system was expected to achieve the
following advantages:
Retain the public’s share of land value increments
for infrastructure investments,
- public invst.: Roads, ditches, water lines,
electric lines, social services),
- private invst.
- location (considering many factors)
 Facilitate & Manage urban development /growth,
- land supply in selected areas,
- minimizes redevelopment cost
 ADVANTAGES OF LEASE SYSTEM
- one of the tools for land use control
Reserve land for public purposes, such as
government building and green areas,
- minimizes the cost of government to allocate
land
Stabilize land and housing prices and Provide
affordable housing to the population:
- provision of subsidized land,
- provision of land based on demand,
- providing land cheaply even for free
 ADVANTAGES OF LEASE SYSTEM
 Serve as effective source of fund in the
absence of effective tax system,
- when there are weak property taxation,
lease helps to collect better revenue,
 Facilitate investment in property by foreign
entities,
- where private ownership of land is forbidden
 Encourage investment
- Minimizes initial cost of investment,
- Getting land in short time,
- Getting developed land
Overview of Previous Lease Proclamations
The first lease proclamation
Urban Lands Lease Holding Proclamation No. 80/1993
- It was the first proclamation to introduce lease system
Objectives:
- to create equitable distribution of land,
- to control the growth of city centers ,
- to increase urban revenue to finance urban
infrastructure,
- to expedite construction of urban houses to alleviate
the existing shortage,
 Overview of Previous Lease
Proclamations
- to provide land utilization value[market value of urban
land] which was not in existence,
- to ensure transparency in land transfer and avoid
land speculation,
- to promote the economic development of urban
centers through involvement of investors,
- to ensure tenure security by providing land rights of
longer durations,
 Overview of Previous Lease Proclamations

Significant improvements as compared to the permit

system
- it allowed a free transfer of lease right in the form
of :
- sale,
- mortgage and
- contribution in Share Company (Art. 10.1).
- But it restricted to the amount the lessee paid and
levied duty to pay back the difference to town
administration (Art. 10.4).
- The intention was to capture any increase in land
 Overview of Previous Lease Proclamations
- It was difficult for the municipalities to apply it
since true value was hidden by buyers and sellers,
- Modality of land acquisition was only tender,
The second Lease Proclamation
Name
- Re-enactment of Urban Lands Lease Holding
Proclamation No. 272/2002,
Objectives:
- To collect fair share of income from the urban
lands,
 Overview of Previous Lease Proclamations
The idea behind:
- urban land cannot be distributed to all for free ,
- only those who can afford must get it ,
- income collected from them shall be re-invested in the
urban infrastructure .
Modalities of Land Acquisition:
- Auction,
- Negotiation,
- It allows regional cities to add more options,
- Addis Ababa City Government came up with three
additional methods: namely, lot, assignment and award
- Almost all regional governments adopted the 5 options
 Overview of Previous Lease Proclamations

- the revised proclamation did not require the

repayment of an enhanced land value gained by
the leaseholder during transfer of the lease right,
 The Current Lease Proclamation
Background, Justification and Objectives of the
Proclamation
Background
- Article 40 of the constitution,
- Rapid economic growth in all economic sectors,
- Rapid economic growth in all regions (Ethiopia),
- The increased dd for land due to these situation,
- To address gaps observed in the previous
proclamations,
- The need for efficient and responsible LA to manage
all the above
 The Current Lease Proclamation
Justifications
- Developing efficient, effective, equitable and
well-functioning land and property market,
- Sustaining free-market economy,
- Building transparent and accountable LAS
ensuring rights and obligations of lessor & lessee,
 The Current Lease Proclamation
Objectives
- Satisfy the increased dd for land due to the
background factors,
- Ensure good governance in the LAS
Application of Lease System
- Lease is the only way to acquire land in urban
centers of Ethiopia,
- Article 3, 5(1), 5(3) of Proc. 721/2011
- Only five years were given to apply it in all
urban centers (Was it practical?)
 The Current Lease Proclamation
Conversion of Old Possessions to lease system
- Old possession Defn. Article 1 (18) of 721/2011
- Old possessions are converted to lease when:
1. a property attached on an old possession is transferred to a
third party through any modality other than inheritance (Art. 6.3)
2. Regularization pursuant to the regulations of regions and
urban administrations (Art. 6.4) ,
3. an application to merge an old possession with a lease hold is
permitted, (Art. 6. 6)
4. Additionally, when the study about it is concluded by the
ministry and determined by the council of ministers Art. 6(1)
 The Current Lease Proclamation
Conversion of Old Possessions to lease system
Exceptions
Conversion to lease is not forced when :
- Old possession is divided among heirs/legatees upon their request,
- Divorcee couples who hold old possession divide it in accordance
with relevant laws,
- When one of the divorcees takeover,

- A replacement land provided to holders of old possession whose land

was lost by expropriation ,
- Land possessions without documentations are decided to be certified
by a directive of relevant region or city administration
 Modalities of Urban Land Acquisitions
- Previously land used to be acquired through five means:
Auction, Negotiation, Assignment, Lot and Award,
- since most of them open door for corruption and “rent
seeking” behaviors only Auction(tender) and Allotment
(land transfer without auction) are recognized (art.6),
- Special Auction(Tender) Art.11(7) and 11(8) of 721/2011
- As a matter of principle auction will be used,
- For activities that have public advantage land may be
transferred by allotment (upon payment of the minimum
lease price) Article 12 (1) (a-g) of 721/2011
 Transfer of Lease Rights
- Leasehold right is freely transferable in the current proclamation ,
- But to discourage “rent seeking” activities (seeking benefit without

adding value) the proclamation puts four strategies: (Article 24 (1)-

24(7)
- speculators who participate repeatedly in unfinished land
sale shall be denied such right,
- Sale of unfinished land requires municipal supervision,
- People who wish to sell their lease right (bare land) or half
completed construction will get very little benefit (paid lease price +
construction cost + 5% of profit gained from sale)
 Transfer of Lease Rights
Example
Ms. A has bid 200 m2 of land from the city municipality for 4000 birr/m2 (total
800,000 birr). Out of it, assume that she has made a 10% advance payment of 80,000
birr as lease price.
She constructed a foundation at a cost of 40,000 birr.
Her total cost at this point amounts 120,000 birr.
The bank interest is 5%
The current lease value of land in similar location is 5000 birr per square meter and
that gives a total value of 1,000,000 birr.
1. The seller (lessee) will get the following:
2.1. 80,000 birr (lease price paid)
2.2. 4000 (5% of 80,000 which is the bank interest)
2.3. 40,000 (construction cost)
2.4. 10,000 (5% of 200,000 birr (1000,000 – 800,000)
2. Total =134,000 (Profit=14,000).
3. Government profit = 190,000 birr.
4. Note also the new owner will pay the remaining 700,000 lease price transferred to
him from the seller.
 Formation and Terminations of Lease Contract

Formation of Lease Contract

- Any person who got permission to hold land should sign
lease contract with the appropriate body Art.16(1),
- The appropriate body is responsible to follow –up and
ensure the implementation of the lease contract Art. 16
(50)
Contents of the Lease Contract (Major)
- The time to start construction,
- The time to complete construction,
- Payment schedule,
- The grace period given,
- Rights and obligations of the signing parties Art.16 (2)
 Formation and Terminations of Lease Contract

Terminations of Lease Contract

Conditions for termination of lease contract:
- When lessee fails to use the land as per the lease contract
Art. 21 (1) to (3), Art. 25(1),
- If decision is made to use the land for other purposes by
the appropriate body due to public interest, Art.25 (1)(b),
- If the lease contract is not renewed at the end of the
lease period
 Formation and Terminations of Lease Contract

Considerations:
- The presence of force majeure in case of failing
to abide by the lease contract, Art. 25(2),
- Compensation in case of decision made to use
the land for other purposes due to public
interests , Art. 25(4),
- One year time is given in case of termination of
un renewed lease contract Art. 25(5).
 Informal Settlement
- No definition is given in proclamation 721/2011
about informal settlement,
- Possessions held without the authorization of
responsible body will be administered in lease if:
- acceptable by the urban plans of the towns,
- meet parceling standards of the towns,
- meet other prerequisites specified by regional
or city administration regulations, Art. 6(4),
- The regularization should be undertaken within 4
years since the enactment of Proc. 721/2011 Art. 6(5)
 Chapter Four
Housing Tenancy and Condominiums

Housing
- It is not only a shelter, Image2
- It includes having:
-adequate privacy,
- space,
- security,
- lighting and
- basic infrastructure
Right to Housing
-UN Universal Declaration of Human Rights (Art. 17)and,
- African Charter on Human and Peoples’ Rights (Art. 14)
 Right to Housing

- International Covenant on Economic, Social and

Cultural Rights recognizes the right of all individuals
to adequate standards of living, including adequate
food, clothing, and housing (Article 11),
- Millennium Development Goals, of which Goal 7,
Target 11 aims that “by 2020, to have achieved a
significant improvement in the lives of at least 100
million slum dwellers”,
- Ethiopian Constitution
 Lease of Houses/Tenancy

Lease of Houses/Tenancy
- legal mechanism of rent/lease that transfers the
right of occupancy, use and enjoyment of the
house to the lessee/tenant,
- The owner/landlord/lessor keeps the ownership
right,
- In Ethiopia, there are two systems of rent: private
and public
 Lease of Houses/Tenancy

- Public rent- Government assigns a regulated and mostly

fixed rate of rent for its tenants,
- Private rent- private owners of residential and commercial
houses are free to set the market price for rent,
General Principles of Lease/Rent
- Lease of immovable is a contract in general and governed
by Art. 1675-2026 of the CC,
- Duration: Art.2927 of CC
- for definite or indefinite period,
- it may not be made for more than 60 years
* this terms of periods are irrelevant in terms of land
 Rights and obligations of lessors /Land Lord
Obligations of Lessor (landlord)
- Delivery Art.2900 of the , Art 2904 (1) of the
and Art.2905-2906 of the CC
- Peaceful enjoyment of immovable Art. 2911 of the
CC,
- Apparent defect Art.2907, Art. 2908 (1) of CC,
- Alterations of immovable Art. 2912 CC,
- Claims of third parties on immovable Art. 2915 CC,
- Repair – Art. 2916 of the CC
 Obligations of the lessee
- Care while enjoyment of immovable by lessee Art. 2921 of CC,
- Control by the lessor Art. 2922 of the CC,
- Payment of rent Art. 2923 of CC

Terminations of Lease Contract

- Total loss or destruction of the property let (Art. 2929)
- Failure to observe contractual agreements by the lessor
(Art. 2930)
- Failure to observe contractual agreements by the lessee
(Art. 2931)
- Expiry of lease term (Art. 2965)
- Termination upon notice, for indeterminate lease
agreements (Art. 2966)
 Condominium
Nature of Property
- Definition
Condominium Proclamation No. 370/2003 Art.2 (1)
- Condominium housing is a recent phenomenon to the
Ethiopian real property ownership,
- Main reasons for condominium approach in Ethiopia:
1. Lack of adequate housing units ,
2. Urban decay
3. Development of real estate companies.
 Condominium
- Related to these reasons were:
- to create alternative urban land use in addition to plot based
houses ,
- accommodate more people on smaller size of land ,
- assist the development of private developers and co-
operatives
Ownership of Condominium Buildings
- In a condominium, each owner holds individual title to a
condominium unit,
- Unit owners have Joint ownership of common facilities,
- Unit owners are required to be members of a
condominium association, Proc. 370/2003 Art. 8
 Rights and Obligations of Unit Owners
Rights of Unit Owners
- Ownership right,
- Voting and to be elected in the association
Obligations of Unit Owners
- To be a member in the unit owners’ association (Art. 12),
- To follow the decisions of the association as well as the
general meeting of the owners,
- To contribute to the general expenses of the building
such as maintenance, security and property tax,
- Notify sale or lease of units to the association
 Formation and objectives of Unit Owners Association

Objective:
- Manage the condominium on behalf of unit owners,
- Ensure the peace and security of residents in the
Condominium,
- Ensure that unit owners, occupiers of units, lessees of the
common elements comply with rules,
- Perform other necessary activities in the interest of unit
owners’ mutual benefit,
- Determine the conditions on the use of common elements,
- Lease, subject to security, and transfer the common elements,
- Determine fines, fees and contributions;
- Enter into contracts, sue or be sued. Articles 10,11, 13 of
 Chapter Five
Land Use Restrictions
Introduction
- ownership (or holding right) is not as such absolute,
- it can be restricted for:
- public safety,
- public health or
- security reasons
- Restrictions can range from limiting:
- the use and enjoyment,
- lease,
- mortgage,
- transfer of rights to
 Land Use Restrictions
Instruments of Land Use Restrictions
- Legislations are the tools/instruments of land use
restrictions,
- The commonly known ones include:
- expropriation,
- urban planning,
- building code,
- environmental protection,
- nuisance,
- civil code,
- natural resource exploitation,
 Land Use Restrictions
Major Characteristics of the Legal instruments
1. Nuisance Laws
- They describe owners of an immovable may not
disturb neighbors while using their property,
- The disturbance may include: smoke, soot,
unpleasant smells, noise or vibrations,
- They may be found in different legislations like:
- Civil Code,
- planning laws,
- building codes …
 Land Use Restrictions
2. Planning Laws
- Urban plans determines the use of urban lands,
- They determine land use type and building density,
- They also determine the building heights,
- The urban design and other elements,
- The currently effective law is Proclamation No. 574/2008 at Federal
level
3. Building Regulation
- The building code enforces the need of permission for: -
construction of new building,
-work on existing building and
- demolition of a building,
- Plan consent and building permit prior to building,
- The currently active proclamation is proclamation 624/2009 ,
- It sets the minimum standard builders and buildings should meet
 Land Use Restrictions
4. Environmental Laws
- It controls management and release of hazardous
emissions which may damage the environment,
- This may range from residential waste to dangerous
industrial wastes
 Land Use Restrictions
Expropriation
Legal basis:
Article 40 (8) of FDRE Constitution:
Without prejudice to the right to private property, the
government may expropriate private property for public
purposes subject to payment in advance of compensation
commensurate to the value of the property.
Definition
The right of the nation or state, or of those to whom the power
has been lawfully delegated, to condemn private property for
public use, and to appropriate the ownership and possession
of such property without the owner’s consent on paying the
owner a due compensation to be ascertained according to law.
 Land Use Restrictions

Nature of Expropriation
- Expropriation is an inherent power of the state to
take private individuals land,
- There are two limitations however:
1. Public purpose
Proc_1161_2012_Expropriation_for.pdf
2. Just compensation (refer the same for d/t
compensation types)
 Land Use Restrictions

Justification
- To get the land that government needs for the
development works,
- To provide land for the steadily growing urban
population,
- Redevelopment of urban slum areas among
others.