The Federal Democratic Republic of Ethiopia (FDRE) Constitution, under article 32(1), allows any foreigners lawfully in Ethiopia the right to freedom of movement. The Constitution does not put preconditions on the enjoyment of freedom of movement of foreign nationals save for lawful presence in the country. The right reflected in the Constitution is also echoed by article 28 (1) of the Refugees Proclamation that states that every recognized refugee or asylum seeker has the right to liberty of movement within the national territory subject to laws applicable to foreign nationals generally in the same circumstances. Hence, it is not intended to guarantee an absolute freedom of movement for refugees. The rights could be limited by regulations governing foreigners in the same circumstances. 

The Refugee Proclamation, under article 28 (3), provides that RRS may facilitate the enabling conditions for recognized refugees and asylum-seekers to facilitate their right of movement. These provisions seem to refer to encampment practices the Government of Ethiopia has been applying for refugees and asylum-seekers by recognizing the role of the government to arrange places or areas where refugees may reside and facilitate their movement. Despite the Pledge it made, during the Leader's Summit in 2016, to expand Out-of -Camp Policy (OCP) and the 2019 Refugees Proclamation, Ethiopia is still applying an encampment policy, whereby most refugees reside in camps, with limited freedom of movement. 

Matters of refugees’ movement and residence outside of camps is currently regulated by a Directive to Determine Conditions for Movement and Residence of Refugees Outside of Camps issued by RRS in 2019. The Directive is put place with the aim of uniformly regulating refugees’ movement and residence outside of camps in line with the 1951 Refugees Convention, the Refugees Proclamation and relevant international standards. The Directive recognizes three categories of refugees who enjoy freedom of movement and choice of residence with varying degrees of restrictions. These are pass permit holders, refugees who are part of UNHCR’s urban assistance program (urban assisted refugees) and regular residence outside of camps. As per article 24 of the Directive, RRS head office, RRS’s zonal coordination offices or refugee camps may issue pass permits to enable refugees to exit camps.  The reasons for issuance of pass permits, as covered under article 27-28 of the Directive, include: processing application for Out-of- Camp Policy (OCP) and urban refugee status and government employment; overseas trip and preparation for vocational or higher education; family visit; leisure; tourism; mourning; marriage and accompanying traveling relatives; and medical treatment which is not available in the refugee camps. Generally, as stated in article 31, the pass permit should, among others, indicate the name of the refugee, refugee camp/address, refugee identification number, dates of issuance and expiry of the pass permit, the place where movement is allowed and the reason thereof. The second category is the Urban refugees who are allowed by the GoE, in line with articles 23 and 24 of the Directive, to reside in Addis Ababa and other urban areas under exceptional conditions. These include refugees requiring special medical assistance that is not available in refugee camps, refugees with serious protection concerns, refugees who are unable to stay in camps for humanitarian reasons and refugees from certain nationalities (such as Yemeni, Iraqi, Syrian and others) that do not have a specific camp designated for them to reside. OCP refugees are the other category of refugees enjoying freedom of movement and choice of residence with all its limitations. Until quite recently, the eligibility requirements for granting OCP status were being an Eritrean recognized refugee; have lived in camp for at least forty-five days; have the necessary means to financially support oneself; ability to submit relatives or friends who can commit to support the refugee (as guarantor); and having no criminal record whilst being sheltered in camp. However, some of these requirements have been changed under the Directive. The Directive, under article 8(1), expanded OCP, renamed in the Directive as regular residency outside camps, to all nationals as long as they have lived in camps at least for three months. According to article 13 of the Directive, the three months minimum period of stay at refugee camps does not apply to court approved adopted children; children separated from their parents; asylum-seekers with health problems; single mothers; elderly people; and refugees who urgently process foreign travels.