The Addis Ababa City Administration revoked the land leases of Ethiopian-born Saudi billionaire Mohammed Hussein al-Amoudi and dozens of investors.
The actions were taken just three months after the new mayor of the capital, Takele Uma, took office.
About 412.6 hectares of land, which was leased to Ethio-Saudi billionaire Mohammed al-Amoudi and other investors, has been reclaimed by the city administration.
According to head of Addis Ababa Land Bank and Transfer Office Tesfaye Tilahun, The investors promised to create more than four million jobs when they were leased the land, however, none of them managed to do so.
A total of 55ha of the land is associated with Midroc Ethiopia, a private company owned by al-Amoudi, who is currently under custody by Saudi government following the order of Crown Prince Mohammed Bin Salman after being accused of high level corruption.
Just next to the government, Midroc is the second biggest employer in Ethiopia.
It is a private Investment Group with 41 companies, which are engaged in multifaceted business sectors from mining to aviation across the country.
The company leased almost 3,000 square meters of land in the heart of the capital, piassa in 2005, agreeing to build an on-site city center.
“The company just placed a fence around this gigantic tract of land instead of building the city center, it gave the city a bad image, making it a waste collection place,” Tesfaye told VOA.
About 19 government agencies and 18 businesses linked to African diplomats are also amongst those that saw their licenses revoked last week.
The city administration also disclosed that it will continue auditing other properties in the city, a measure that has resulted into revoking lease agreements of investors, few days after the Administration discovered that 500 condominium apartments were seized by illegal owners in the capital, which is a home to four million residents.