Land ownership is exclusively vested in the state and people of the region and shall not be subject to sale or other means of exchange. Private investors and any organizations, however, have the right to use land on lease or rental basis through legal processes.

An Investor has the right to hold land either on lease or renal basis in Oromia. The Investment Board of the region with priority given to approved investments delivers land to an investor within 60daysup on receiving an application.

Urban land in eight towns (Adama, Bishoftu, Mojo, Dukam, Burayyu, Sebbata, Jimma and Shashamanne) and in areas within 10 km radius (in all directions) from the national capital Finfinne (Addis Ababa) is administered under lease, Subject to the size and location of the land in each specific town or area, the minimum annual lease charge ranges from Birr 0.37 to Birr 2.33 per square meter.
Urban Land in the remaining 369 big and small towns of Oromia is administered on rental basis and the annual rental charge ranges from Birr 0.01 to Birr 0.32 per square meter depending on the location and size of the land.
Moreover, “Industrial Zones” have been identified in 12 Zones of the region with access to the necessary infrastructures.

Lease payment is effected within 30 years for holding periods of less than 40 years and within 40 years for holding periods equal to 40 years and above respectively.

Rural land can be held from 20-45 years based on the type of project on the basis of land renting system.
 

• The rental rate of rural land for agricultural purpose has been set based on the development level of the zones and distance from main all weather roads. Accordingly, the minimum and maximum annual charges for one hectare of rural land in the region is Br. 70.40 and 135.00 respectively.
• Land in East Shoa Zone located within 5 kilometers radius from main asphalt roads may be offered for industry at a floor rental charge of 0.34 Birr per square meter per year. Lands in the remaining zones shall be provided for the same purpose at a floor rate of 0.10Birr per square meter per annum.
• Rural land rent for tourism purposes ranges between birr 0.10 –2.00 per square meter per annum.
• Any farmer can also rent out up to 50% of his/her holding to another farmer for a period of three years or to a private investor for about 15 years where the price will largely depend on the agreement of both parties, (but not less than the floor rate set by the state).

Lease

• Land holding period 30-99 years
• Modality of payment 30-40 years

Rent

• Holding period 20-45 years
• Modality payment on annual basis for the whole contract period

Similarities

In both cases, investors have the right to transfer land to a third party and entitlement to compensation when requested by the public interest for expropriation.

To acquire land for investments, applications can be submitted to Regional
Investment Board or Zonal Investment Committees. The board or zonal investment committees make the allotment decision. The quantity or size of land granted is based on the type of project, method of production and the like.
Foreign investors or joint ventures may submit their land request application together with a photocopy of investment permit and summary of action plan. Domestic investors may be requested to attach their summary of implementation plan to acquire land for investment activities.