Individual Corruption

Citing a 2007 study by the Federal Ethics and Anti-corruption Commission (FEAC), Transparency International 2009 reports that leasing land is virtually impossible without bribing the city administration, and this practice is said to continue due to a lack of detailed and clearly laid out laws and directives. The lack of accountability makes it possible for officials to exploit loopholes and enrich themselves through corruption. This perception is supported by the Transparency Ethiopia Corruption Diagnostic Baseline Survey 2009, in which citizens living in Addis Ababa cite property registration as an area where bribes are often needed, with the average bribe being ETB 500.

Business Corruption

Corruption within land distribution is considered by many to be institutionalised, according to the Federal Ethics and Anti-corruption Commission (FEAC). This is illustrated well by the US Department of State 2009, according to which, state and party-owned companies tend to receive preferential access to land leases and credit. Moreover, sub-city land administration officials have allegedly developed an attitude that it is their right to take bribes. Corrupt practices involve facilitation payments as well as bribes in order to be allowed to keep land that is leased. Arbitrary interpretations of laws and regulations also occur.

In April 2010, seven defendants accused of corruption were sentenced by the Federal High Court for two to fifteen years of prison in addition to fines for selling land illegally, according to the US Department of State 2010. Two fake companies were created by a former technician in the Land and Housing Department in order to appropriate ETB 205 million (USD 12.5 million) and two employees in the land leasing company formalised the associations.

Political Corruption

The government owns the land in Ethiopia. With land values increasing in Addis Ababa, Transparency International 2009 reports that incentives for corruption in the allocation of land, which is provided to individuals and investors on long-term leases, have grown significantly. Moreover, an increasing number of reports reveal collusion between the private sector and government officials. In addition, according to the same source, there have been frequent corruption cases against land developers. FEAC reports prosecuting 49 cases involving land distribution in 2007, with its investigations leading to the confiscation of over 575,000 square metres of land at an estimated value of almost USD 120 million.

Frequency

The World Bank & IFC: Doing Business 2012:
- It takes 10 procedures to register property over a period of 41 days, costing 2.1% of the property value.

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the protection of property rights in Ethiopia, including financial assets, a score of 4.4 on a 7-point scale (1 being 'very weak' and 7 'very strong').