WHEREAS, it is provided by the Constitution of the Federal Democratic Republic of Ethiopia that land is the property of the State and the people of Ethiopia and that its use is subject to specific regulation by law;

WHEREAS, for the last few years, lease has been in place as a cardinal land-holding system to transfer urban land to users to the extent possible and in accordance with the Master Plan;

WHEREAS, it is believed that transferring urban land by lease for a fair price, consistent with the principles of a free market, will help achieve overall economic and social development and build capacity enabling progressive urban development based on the lifespan that a landed property may have and the period it requires to recover investment costs, the special nature of the investment, and the land use specified in conformity with the Master Plan;

WHEREAS, it has been found necessary, arising from these circumstances, to develop optimum conditions in which lease will become the exclusive urban land-holding system and to remove obstacles to and expedite the process of permitting and holding urban land by lease based upon an investment plan made in conformity with the Master Plan;

WHEREAS, it has conversely been found necessary to ensure that the process in which the claims of anyone alleging infringement of one’s legal rights and benefits is transparent and expedient;

NOW, THEREFORE, in accordance with Sub-Article (2)(a) of Article 55 of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: