Ethiopian agricultural law rests on the 1995 Constitution, which vests rural land in the State and the peoples and leaves its administration to the regional States under federal law, and on the Rural Land Administration and Use Proclamation No. 1324/2024, which allows landholders to pledge their land use right to financial institutions12. Markets are governed by the Ethiopia Commodity Exchange Proclamation of 2007 and the Coffee Marketing and Quality Control Proclamation of 2017, and inputs by the Seed Proclamation of 2023345. Finance was reshaped by the floating of the birr from 29 July 2024 and by the National Bank of Ethiopia and Banking Business Proclamations of February and March 2025, the latter opening banking to foreign investment678. The Ten Years Development Plan 2021–2030 and the Homegrown Economic Reform Agenda set the policy frame910.
This note explains how the entries are linked. Proclamations and regulations link to the scan of the Federal Negarit Gazette held in FAOLEX, the FAO legal database, and finance laws link to the copies published by the National Bank of Ethiopia and the Ethiopian Capital Market Authority. Each entry gives the date of the President's signature in the closing formula of the text, the gazette issue and date, and the entry-into-force clause as the text states it. The proclamations in this inventory enter into force on the date of publication in the Federal Negarit Gazette unless the entry says otherwise, as for Proclamation No. 1263/2021, in force from its approval by the House of Peoples' Representatives on 6 October 2021, and Proclamation No. 1147/2019, which waited for the Collateral Registry or 12 months1112.
Milestones in agricultural and agri-finance policy
Aug 1995
Constitution in force, rural land vested in the State and the peoples1Law
Apr 2003
Rural Development Policy and Strategies issued13Strategy
Jul 2005
Rural Land Administration and Land Use Proclamation No. 456/200514Law
Seed and Agricultural Production Contract Proclamations523Law
Jul 2024
Foreign Exchange Directive floats the birr from 29 July6Finance
Aug 2024
Rural Land Administration and Use Proclamation No. 1324/20242Law
Feb–Mar 2025
National Bank and Banking Business Proclamations open banking to foreign investment78Finance
Dec 2025
Mandatory bank investment in DBE bonds repealed24Finance
8.1
Constitution, land and cooperatives
Constitution of the Federal Democratic Republic of EthiopiaProclamation No. 1/1995Federal Negarit Gazeta 1st Year No. 1 of 21 Aug 1995, in force 21 Aug 1995
Article 40(3) vests the ownership of rural and urban land exclusively in the State and the peoples of Ethiopia and provides that land shall not be subject to sale or other means of exchange, and Article 40(4) gives peasants the right to obtain land without payment and protection against eviction1. The federal government enacts laws on the use and conservation of land (Article 51(5)), while the regional States administer land in accordance with federal law (Article 52(2)(d))1.
Rural Land Administration and Use ProclamationProclamation No. 1324/2024Signed and published 14 Aug 2024 (Federal Negarit Gazette 30th Year No. 58), in force on publication
The Proclamation applies to rural land throughout the country and leaves the detailed rules to regional laws2. A landholder may lease out part or all of the holding for up to 10 years for annual crops and 30 years for perennial crops, and leases must be authenticated and registered (Article 9)2. Article 15 allows a landholder to pledge the land use right to a financial institution, with the creditor's use of the land after a default limited to the contract period and to no more than ten years2.
Recent changes: Repeals the Federal Rural Land Administration and Use Proclamation No. 456/2005 (Article 67), itself signed and published on 15 July 2005 (Federal Negarit Gazeta 11th Year No. 44), which had replaced Proclamation No. 89/1997214.
Expropriation of Land Holdings for Public Purposes, Payments of Compensation and Resettlement ProclamationProclamation No. 1161/2019Signed and published 23 Sep 2019 (Federal Negarit Gazette 25th Year No. 90), in force on publication
The Proclamation governs expropriation of rural and urban landholdings for public purposes, compensation and the resettlement of displaced landholders, and repealed Proclamation No. 455/200525.
Recent changes: Amended by Proclamation No. 1336/2024, signed and published on 11 July 2024 (Federal Negarit Gazette 30th Year No. 41), in force on publication, on responsibility for compensation and resettlement costs and on dispute procedures26.
Cooperative Societies ProclamationProclamation No. 985/2016Signed and published 23 Dec 2016 (Federal Negarit Gazette 23rd Year No. 7), in force on publication
The Proclamation provides for primary cooperative societies, unions and federations and their registration by the Federal Cooperative Agency or a regional organ17. Under Proclamation No. 1263/2021 the federal body is the Ethiopian Cooperatives Commission, accountable to the Ministry of Agriculture11.
Recent changes: Repealed Proclamation No. 147/1998 as amended by Proclamation No. 402/200417.
Investment ProclamationProclamation No. 1180/2020Signed and published 2 Apr 2020 (Federal Negarit Gazette 26th Year No. 28), in force on publication
The Proclamation applies to all investments except minerals and petroleum and re-establishes the Ethiopian Investment Commission27. It repealed Investment Proclamation No. 769/2012 and Council of Ministers Regulation No. 313/201427. The bank-related provisions of Investment Regulation No. 474/2020 Article 4(1) were repealed by the Banking Business Proclamation No. 1360/20258.
Definition of Powers and Duties of the Executive Organs ProclamationProclamation No. 1263/2021In force on approval by the House of Peoples' Representatives on 6 Oct 2021, published 25 Jan 2022 (Federal Negarit Gazette 28th Year No. 4)
The Proclamation sets the mandates of the federal ministries. The Ministry of Agriculture is tasked, among other duties, with facilitating an agricultural and rural finance system accessible to farmers, pastoralists and private actors, and the Ministry of Irrigation and Lowland with irrigation and lowland development11. It places agricultural research, the Agricultural Transformation Institute, the Ethiopian Cooperatives Commission, the Coffee and Tea Authority and the Agricultural Authority under the Ministry of Agriculture and the Ethiopia Commodity Exchange under the Ministry of Trade and Regional Integration11.
Recent changes: Later amendments were not reviewed for this profile.
Commercial Code of the Federal Democratic Republic of EthiopiaProclamation No. 1243/2021Signed and published 12 Apr 2021 (Federal Negarit Gazette 27th Year No. 23), in force on publication
The Code governs traders, business organizations and commercial registration, and its enacting proclamation repeals Books One, Two and Three of the Commercial Code Proclamation No. 166/196028.
Ethiopia Commodity Exchange ProclamationProclamation No. 550/2007Signed and published 4 Sep 2007 (Federal Negarit Gazeta 13th Year No. 61), in force on publication
The Proclamation establishes the Ethiopia Commodity Exchange as a wholly state owned market institution with its own legal personality for trading agricultural commodities3.
Recent changes: Amended by Proclamation No. 665/2010 of 14 January 2010 (Federal Negarit Gazeta 16th Year No. 12), which empowers the Council of Ministers to set conditions for trading a commodity exclusively at the Exchange, and by Proclamation No. 1050/2017 (Federal Negarit Gazette 23rd Year No. 78 of 7 August 2017, in force as of 1 July 2017), which made the Ministry of Trade the regulatory authority of the Exchange and added warehouse and bonded yard functions2930.
Coffee Marketing and Quality Control ProclamationProclamation No. 1051/2017Gazette issue dated 5 Jun 2017 (signature line dated July 2017, day blank), in force on publication
The Proclamation sets quality control and marketing rules for everyone involved in the coffee trade, coordinated by the Ethiopian Coffee and Tea Authority4. It allows coffee supply transactions outside the Ethiopia Commodity Exchange if they are registered with the Authority (Article 7(2)) and allows coffee producers to export directly from their own farms after grading (Article 8(2))4.
Recent changes: Repealed the Coffee Quality Control and Marketing Proclamation No. 602/2008. The FAOLEX copy leaves the gazette issue number and the day of signature blank4.
Seed ProclamationProclamation No. 1288/2023Signed and published 24 Jul 2023 (Federal Negarit Gazette 29th Year No. 30), in force on publication
The Proclamation regulates variety release, seed certification and seed supply, and does not apply to the use of farm-saved seed, its exchange among smallholder farmers or pastoralists, or seed for research and education (Article 3(2))5.
Recent changes: Repealed the Seed Proclamation No. 782/2013 of February 2013, which had replaced Proclamation No. 206/2000531.
Plant Breeder's Right ProclamationProclamation No. 1068/2017Signed and published 1 Mar 2018 (Federal Negarit Gazette 24th Year No. 29), in force on publication
The Proclamation provides for the protection of new plant varieties and repealed Proclamation No. 481/200632.
Agricultural Production Contract ProclamationProclamation No. 1289/2023Signed and published 6 Jul 2023 (Federal Negarit Gazette 29th Year No. 27), in force on publication
The Proclamation governs contract farming between contractors and producers. A contract must be attested by at least three witnesses, one of them from the appropriate authority, and registered with the document authentication and registration authority23.
Irrigation Water Users' Associations ProclamationProclamation No. 841/2014Signed 26 Sep 2014, in force on publication in the Federal Negarit Gazette
The Proclamation provides for the establishment, registration and management of irrigation water users' associations33. The FAOLEX copy is a retyped text, and the gazette issue number was not verified33.
Live Animals Marketing ProclamationProclamation No. 819/2014Signed and published 26 Mar 2014 (Federal Negarit Gazette 20th Year No. 30), in force on publication
The Proclamation regulates the domestic and export marketing of live animals34.
Veterinary Drug and Feed Administration and Control ProclamationProclamation No. 728/2011Signed and published 19 Jan 2012 (Federal Negarit Gazetta 18th Year No. 14), in force on publication
The Proclamation regulates veterinary drugs and animal feed35.
Ethiopian Agricultural Businesses Corporation Establishment RegulationCouncil of Ministers Regulation No. 368/2015Signed and published 22 Dec 2015, in force on publication
The Regulation establishes a public corporation to procure and supply agricultural inputs, stabilize input prices and provide mechanization and machinery rental services, and transfers to it the seed, input supply, natural gum, equipment and mechanization enterprises36.
Several financial laws were replaced or amended between 2019 and 2025. The Movable Property Security Right Proclamation of August 2019 created a single electronic collateral registry for movable assets, the 2019 amendments to the microfinance and insurance proclamations opened ownership to foreign nationals of Ethiopian origin, and the 2025 Banking Business Proclamation replaced the 2008 law and opened the sector to foreign investment1237388. Directive FXD/01/2024 of 29 July 2024 let banks trade foreign exchange at freely negotiated rates and required exporters to convert 50% of repatriated proceeds into birr6, and on 13 July 2026 the NBE Board approved a cut of the surrender requirement on goods exports to 30%39. The National Bank ended the requirement for commercial banks to invest in Development Bank of Ethiopia bonds with effect from 31 December 202524.
National Bank of Ethiopia ProclamationProclamation No. 1359/2025Signed and published 4 Feb 2025 (Federal Negarit Gazette 31st Year No. 14), in force on publication
The Proclamation redefines the powers of the central bank with the aims of price stability and a sound financial system7. It keeps in force the Ethiopian Deposit Insurance Fund Regulation No. 482/2021 until replaced and provides for settlement of government debt to the Bank on agreed terms7.
Recent changes: The Foreign Exchange Directive of July 2024 was issued under the earlier National Bank of Ethiopia Establishment Proclamation No. 591/2008 (as amended), while Directive No. SBB/98/2025 of December 2025 cites Proclamation No. 1359/2025624. The repeal article of Proclamation No. 1359/2025 was not read in full.
Banking Business ProclamationProclamation No. 1360/2025Signed and published 12 Mar 2025 (Federal Negarit Gazette 31st Year No. 28), in force on publication
The Proclamation opens the banking sector to foreign investment under a regulatory framework and gives the National Bank powers as resolution authority for non-viable banks8.
Recent changes: Repealed the Banking Business Proclamation No. 592/2008 (signed and published 25 August 2008, Federal Negarit Gazeta 14th Year No. 57) and its Amendment Proclamation No. 1159/2019, and the bank provisions of Investment Regulation No. 474/2020840.
Microfinancing Business ProclamationProclamation No. 626/2009Signed and published 12 May 2009 (Federal Negarit Gazeta 15th Year No. 33), in force on publication
The Proclamation governs the licensing and supervision of microfinance institutions by the National Bank and repealed Proclamation No. 40/199615.
Recent changes: Amended by Proclamation No. 1164/2019, signed and published on 9 January 2020 (Federal Negarit Gazette 26th Year No. 7), in force on publication, which allows foreign nationals of Ethiopian origin to own microfinance capital37.
Insurance Business ProclamationProclamation No. 746/2012Signed and published 22 Aug 2012 (Federal Negarit Gazeta 18th Year No. 57), in force on publication
The Proclamation governs the licensing and supervision of insurers by the National Bank and repealed Proclamation No. 86/199441.
Recent changes: Amended by Proclamation No. 1163/2019, signed and published on 9 January 2020 (Federal Negarit Gazette 26th Year No. 6), in force on publication, which changed the ownership definition and allowed the National Bank to regulate takaful insurance38.
Movable Property Security Right ProclamationProclamation No. 1147/2019Signed and published 7 Aug 2019 (Federal Negarit Gazeta 25th Year No. 76), in force 12 months after publication or on the start of the Collateral Registry, whichever came first
The Proclamation allows individuals and entities to use movable assets as security for credit, provides for a single electronic collateral registry to set priority among creditors, and names the expansion of banking services to rural areas among its aims12. The start date of the Collateral Registry was not verified for this profile.
National Payment System ProclamationProclamation No. 718/2011Signed and published 18 Jul 2011 (Federal Negarit Gazeta 17th Year No. 84), in force on publication
The Proclamation gives the National Bank oversight of payment systems and payment instrument issuers42.
Recent changes: Amended by Proclamation No. 1282/2023, signed and published on 3 February 2023 (Federal Negarit Gazette 29th Year No. 9), in force on publication, which requires annual licence renewal by payment instrument issuers and system operators, and in part by the Capital Market Proclamation No. 1248/20214319.
Capital Market ProclamationProclamation No. 1248/2021Adopted by the HoPR in June 2021, signed and published 23 Jul 2021 (Federal Negarit Gazette 27th Year No. 33), in force on publication
The Proclamation establishes the Ethiopian Capital Market Authority, which describes itself as formally established in June 2021, and provides for securities exchanges1944. The House of Peoples' Representatives adopted the Proclamation in June 2021, and it entered into force on publication on 23 July 20212019. The Ethiopian Securities Exchange was set up as a public private partnership under its Article 3145.
The Directive lets banks and authorized dealers trade foreign currency at freely negotiated rates and has the National Bank publish an indicative daily rate from bank submissions6. Directive FXD/01/2024 required exporters to convert 50% of repatriated export proceeds into birr at a negotiated rate and allowed them to keep 50% in a retention account6, and on 13 July 2026 the NBE Board approved a cut of the surrender requirement on goods exports to 30%39. US dollar series in this profile break at July 2024.
Recent changes: Amended by Directive No. FXD/05/2026, in force from 25 May 2026, which delegates approval of letters of credit and cash against documents to commercial banks46.
Investment on DBE Bonds (Repealing) DirectiveNBE Directive No. SBB/98/2025In force 31 Dec 2025
The Directive repeals Directive No. SBB/81/2021, under which commercial banks invested in Development Bank of Ethiopia bonds24. A bank that had not invested 1% of its audited outstanding loans and advances of 30 June 2025 had to settle that requirement by 31 January 202624.
Development Bank of Ethiopia Re-establishment RegulationsCouncil of Ministers Regulations No. 83/2003Signed 24 Jan 2003 (Federal Negarit Gazeta 9th Year No. 28)
The Regulations re-establish the Development Bank of Ethiopia to provide investment credit, including short-term loans, to viable projects and to mobilize funds from domestic and foreign sources47.
Laws and directives that frame agricultural finance
Instrument
Number
Signed
Federal Negarit Gazette
Entry into force
Rural Land Administration and Use (land use right as collateral, Article 15)
Proclamation 1324/2024
14 Aug 2024
30th Year No. 58, 14 Aug 2024
On publication
Movable Property Security Right
Proclamation 1147/2019
7 Aug 2019
25th Year No. 76, 7 Aug 2019
12 months after publication or start of the Collateral Registry, whichever first
National Bank of Ethiopia
Proclamation 1359/2025
4 Feb 2025
31st Year No. 14, 4 Feb 2025
On publication
Banking Business
Proclamation 1360/2025
12 Mar 2025
31st Year No. 28, 12 Mar 2025
On publication
Microfinancing Business
Proclamation 626/2009
12 May 2009
15th Year No. 33, 12 May 2009
On publication
Microfinance Business (Amendment)
Proclamation 1164/2019
9 Jan 2020
26th Year No. 7, 9 Jan 2020
On publication
Insurance Business
Proclamation 746/2012
22 Aug 2012
18th Year No. 57, 22 Aug 2012
On publication
Insurance Business (Amendment)
Proclamation 1163/2019
9 Jan 2020
26th Year No. 6, 9 Jan 2020
On publication
National Payment System
Proclamation 718/2011
18 Jul 2011
17th Year No. 84, 18 Jul 2011
On publication
National Payment System (Amendment)
Proclamation 1282/2023
3 Feb 2023
29th Year No. 9, 3 Feb 2023
On publication
Capital Market
Proclamation 1248/2021
23 Jul 2021
27th Year No. 33, 23 Jul 2021
On publication
Cooperative Societies
Proclamation 985/2016
23 Dec 2016
23rd Year No. 7, 23 Dec 2016
On publication
Agricultural Production Contract
Proclamation 1289/2023
6 Jul 2023
29th Year No. 27, 6 Jul 2023
On publication
Foreign Exchange Directive
NBE FXD/01/2024
–
Not gazetted (NBE directive)
29 Jul 2024
Investment on DBE Bonds (Repealing) Directive
NBE SBB/98/2025
–
Not gazetted (NBE directive)
31 Dec 2025
Source: FAOLEX · NBE · ECMA — Signed is the date of the closing formula 'Done at Addis Ababa' in each text, which is the date of the President's signature. Gazette issue and date are as printed on the front page. The date of approval by the House of Peoples' Representatives is not printed in these texts. NBE directives are issued by the National Bank and are not published in the Federal Negarit Gazette.
8.4
Strategies and plans
The Ten Years Development Plan targets crop production of 925 million quintals in 2029/30, from 543 million quintals at its base, and projects the agricultural share of GDP to fall from 32.6% in 2019/20 to 22% in 2029/30 (targets and projections)9. Its financing table plans birr 3.4 trillion of non-budget domestic credit for agriculture over ten years, 24.3% of the planned total, an allocation that spans ten fiscal years and the 2024 float and is therefore not converted to US dollars9. The second National Financial Inclusion Strategy targeted 70% of adults with a formal account by 2025, from 45% in 202021.
Ten Years Development Plan, Ethiopia 2030. The Pathway to Prosperity2020/21–2029/302021
The plan projects the share of agriculture in GDP to fall from 32.6% in 2019/20 to 22% in 2029/30 and targets an increase in crop production from 543 million to 925 million quintals and in irrigated crop production from 8 million to 38 million quintals (targets)9. Its financing table plans birr 3.4 trillion, 24.3% of planned non-budget domestic credit of birr 14 trillion, for agriculture over the ten years9. The amounts are plan allocations spanning ten fiscal years and the 2024 float, so no US$ equivalent is given.
Homegrown Economic Reform AgendaHGER (2019) and HGER 2.0Launched 2019, second phase announced 2024
The Ministry of Finance describes the agenda, launched in 2019, as entering a second phase in 2024 with a shift to a market-based foreign exchange system and an interest rate-based monetary policy10. A review of 2019–2022 lists agricultural reforms, including a revision of the Agriculture and Rural Development Policy and a draft revised rural land proclamation submitted to the Council of Ministers49. A new Rural Land Administration and Use Proclamation was published in August 20242.
Rural Development Policy and StrategiesMinistry of Finance and Economic DevelopmentApril 2003
The policy links rural development to agricultural development and to the building of a market economy13. A revision of the Agriculture and Rural Development Policy was under way during the 2019–2022 reform period, and no approved successor was verified for this profile49.
National Agriculture Investment PlanNAIP 2013–2022 EFY (2021–2030)July 2022
The Ministry of Agriculture's investment plan sets flagship programmes for crops, horticulture, livestock, fisheries and natural resources for 2021–203050.
National Financial Inclusion Strategy IINFIS-II 2021–2025September 2021
The National Bank's strategy aims to raise the share of adults with a formal financial account from 45% in 2020 to 70% by 2025 (target) and lists the scaling of national agricultural insurance among its actions21.
National Agroecology Strategy for Food System Transformation2026–2040December 2025
The Ministry of Agriculture published the strategy with the Alliance of Bioversity International and CIAT and CIFOR-ICRAF for the period 2026 to 204054.
Agreement establishing the African Continental Free Trade AreaAfCFTAInstrument of ratification deposited 10 Apr 2019
Ethiopia deposited its instrument of ratification with the African Union Commission on 10 April 2019 as the 19th country to do so, and its chief trade negotiator described the AfCFTA as the first free trade agreement Ethiopia had signed18.
Accession to the World Trade OrganizationWorking Party on the accession of EthiopiaWorking Party established 10 Feb 2003
Ethiopia is an acceding government, and its working party was established on 10 February 200355. Accession had not been completed when the WTO page was read on 19 October 202655.
African Growth and Opportunity Act eligibilityUS Presidential Proclamation 10326Signed 23 Dec 2021, termination effective 1 Jan 2022
The United States terminated Ethiopia's designation as a beneficiary sub-Saharan African country under AGOA with effect from 1 January 2022, after determining that Ethiopia did not meet the eligibility requirements of section 506A(a)(1) of the Trade Act22.
Intergovernmental Authority on DevelopmentIGADFounding member of IGADD in 1986, IGAD since 1996
Ethiopia was among the six founding members of IGADD in 1986, which IGAD superseded in 1996 with food security and environmental protection among its priority areas57.
AI-assisted content, human-reviewed: This page was generated with the assistance of artificial intelligence and reviewed by a human editor. (last review: October 2026) Despite review, errors or outdated values may remain; please verify critical figures against the linked primary sources before relying on them. Nothing here is investment, legal or financial advice.
