Ethiopia Country Profile

Land Administration

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 information is backed by the Transparency Ethiopia Corruption Diagnostic Baseline Survey 2009 in which citizens living in the Ethiopian capital, Addis Ababa, cite property registration as an area where bribes are often needed, with the average bribe being ETB 500.

Business Corruption

Land distribution is reported by the Federal Ethics and Anti-corruption Commission (FEAC) to be one of the sectors in which corruption is institutionalised, and the US Department of State 2008 notes that state and ruling party-owned companies receive preferential access to land leases and credit. Reportedly, sub-city administration officials working with land administration have 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 one incident, it was reported that a public official hit a client for refusing to bribe him.

Political Corruption

The government owns all land in Ethiopia. With land values increasing in the Ethiopian capital, 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, the same source reports that 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 575,531 square metres of land at an estimated value of almost USD 120 million.

Frequency

The World Bank & IFC: Doing Business 2010:
- It takes 10 procedures to register property over a period of 41 days, costing 2.2% of the property value.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the protection of property rights in Ethiopia, including financial assets, a score of 4.3 on a 7-point scale (1 being 'very weak' and 7 'very strong').