Abstract:
This study investigated and analyzed how FDI has a contribution for the expropriation of rural
land in Oromia Regional State and its advantage and disadvantage. Thus, the objective of the
study is how to strike a balance between the rampant surges of FDI to Ethiopia and how
government makes sure its sustainability without undermining the constitutional right of rural
land holders. To that effect, key informant interviews, observation, FCD and legal document
analysis were employed. Moreover, the paper has dealt with the land tenure system and policy in
Ethiopia in general since 1974. Furthermore, the issue of expropriation, compensation and
valuation in Oromia has been gone through. It dealt why, how and who expropriate the rural
land. Particularly, the rationale behind expropriation which means the public purpose for it is a
camouflage to abuse of land is discussed in depth. Thus, the finding of the study has shown
attracting quality FDI has indispensable role in supporting economical and social development
of the country. The Ethiopian legislations pertaining to expropriation, in general and the issue of
what activities amount to public purpose, the procedural aspects of expropriation, and the
fairness of valuation methods are inadequate and unclear. The practice of affected person’s
participation, social investment, investor’s linkage with these farmers was squat. Rehabilitation
and resettlement in the surveyed areas was poor. The role of the court during appeal after
administrative exhaustive remedy is limited to entertain the issue of the amount of compensation
only. The practice of rent seeking during expropriation especially when compensation is paid
was observed. Therefore, the author recommends that expropriation of rural land for Public
purpose should be allowed only if the benefits to the public outweigh the costs to the affected
individuals or the benefit to accrue is found to be covering all the damage caused to the
displaced plus significant economic, social or ecological gain to the society.
