Dealing with Construction Permits in
Ethiopia
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
ETB 4,129,105
- City: Addis Ababa
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Obtain design approval
The agency involved is the Building Design Department, which is part of the municipality. BuildCo will submit the building plans and will receive a form to be filled out by the owners of the neighboring plots. BuildCo must obtain the neighbors’ consent before obtaining the design approval.
Agency: Municipality (Subcity Building Permit process)
|
60 days
|
ETB 10,000
|
| 2 |
Obtain consent from neighbors and submit it to municipality
The company must get a written statement from the neighbors, stating that there are no land disputes on the plot where the warehouse will be built.
Agency: Municipality (Subcity)
|
3 days
|
no charge
|
| 3 |
Obtain bank statement
BuildCo must show proof of sufficient funds to build the warehouse. A commercial bank can provide this proof if the company has enough funds in its bank account or if the company is able to obtain a loan.
Agency: Commercial Bank
|
1 day
|
no charge
|
| 4 |
Obtain approval of construction
After the design is approved, the company must submit the bank statement described above and check the zoning requirements to obtain approval for the construction. After this approval is granted, construction can begin.
Agency: Municipality
|
30 days
|
ETB 600
|
| 5 |
Request and receive excavation inspection from municipality
At the beginning of the construction, BuildCo must inform the municipality (by phone) about the initial stages of construction. The municipality checks whether the work has been performed according to plan. The wait period between requesting and receiving the inspection depends on the inspectors’ availability. Once the permit is obtained, inspections will occur occasionally without affecting the work.
Agency: Municipality
|
1 day
|
no charge
|
| 6 |
Request and receive mid-construction inspection
During construction, the municipality can randomly inspect the building.
Agency: Municipality
|
1 day
|
no charge
|
| 7 |
Request water and sewage connection from WSSA
Agency: Water Supply and Sewage Authority (WSSA)
|
1 day
|
no charge
|
| 8 |
Obtain water and sewage connection from WSSA
Agency: Water Supply and Sewage Authority (WSSA)
|
29 days
|
ETB 4,000
|
| * 9 |
Obtain telephone connection from ETC
Agency: Ethiopian Telecommunications Corporation (ETC)
|
30 days
|
ETB 2,000
|
* Takes place simultaneously with another procedure.