Ethiopia, 2 November 2025 - Ethiopia has introduced a broad package of new laws and directives aimed at restructuring its economy, professional sectors, and regulatory framework on Saturday — marking one of the country’s most comprehensive reform drives in recent years.
Officials said the changes are part of an IMF-supported modernization program designed to expand the tax base, strengthen capital markets, and attract foreign investment.
Over the past two years, federal and regional institutions have issued dozens of regulations covering finance, labor, land, and property management.
The Ministry of Labor and Skills has drafted a directive classifying overseas employment agencies into three tiers, requiring them to file quarterly electronic reports, maintain specified office standards, and observe limits on the number of workers deployed abroad.
In parallel, the Addis Ababa Revenue Office launched a new rental tax system that requires digital lease registration and rent collection through banks or approved platforms.
Taxes are now calculated after a 35 per cent fixed deduction, with progressive rates reaching up to 35 per cent, and penalties for unregistered or idle properties also introduced.
In the financial sector, the Ethiopian Capital Market Authority (ECMA) increased minimum paid-up capital for transaction advisors to 8 million birr for large-client firms and 5 million birr for others. Publicly listed companies must keep updated shareholder records and face fines for delayed reporting.
Land management is also being reshaped under a draft bill that would phase out permanent ownership titles within five years and convert all holdings to long-term lease agreements linked to a national digital registry. The reform seeks to improve transparency, accountability, and property administration.
Analysts say these steps reflect Ethiopia’s determination to modernize its economy despite ongoing coordination and enforcement challenges. They note that consistent implementation and investor confidence will be key to sustaining reform momentum.