WHEREAS, it is provided by Article 40 of the Constitution of the Federal Democratic Republic of Ethiopia that land is the property of the State and the peoples of Ethiopia and that its use shall be subject to specific regulation by law;

WHEREAS, the sustainable rapid economic growth registered across all economic sectors and regions in the country has necessitated continuously and increasingly the demand for urban land which requires such an appropriate administration that it is efficient and responsive to land resources demand;

WHEREAS, the prevalence of good governance is a foundational institutional requisite for the development of an efficient, effective, equitable and well functioning land and landed property market, the sustenance of a robust free market economy and for building transparent and accountable land administration system that ensures the rights and obligations of the lessor and the lessee;

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