The study on impact of the current land lease law on business and investment expansion in Addis Ababa city Administration had been carried out with the objective to critically investigate the land lease law enacted in 2011 and its related directives issued to guide the implementation of the land lease policy and its impact on business and investment expansion. The study also aims to establish facts whether the realization of the law had achieved the intended purposes. In view of that, the impact of the latest functional urban land lease law on business sector development and investment expansion has critically been assessed. In doing so, background review has been conducted with different land lease policies and laws promulgated in the country since the endorsement of free market economic system in the country.