• Housing for the Poor in Addis Ababa


  •   
  • FileName: sdd2006-12.pdf [read-online]
    • Abstract: This is the main feature of Addis Ababa, which is the capital city of Ethiopia. ... There fore about 24.8% of all Addis Ababa household are. living in over crowded dwellings. ...

Download the ebook

Housing for the Poor in Addis Ababa
Azeb Kelemework Bihon
is an Economist working as a team leader for Addis Ababa
city Administration Housing Agency and responsible for
Policy Analysis, Project Preparation and Fund Searching
for low income housing. She has worked in Planning and
Economic Development Bureau for more than 13 years; and
at Land lease department of the Municipality as a team
leader of Market Study and sales.
The stagnant nature of economic development and rapid population growth of most
of the developing countries makes effective and efficient service delivery difficult for
governments, to satisfy the need of their residents. Housing is one of the basic
necessities for human survival; despite it remains for long period as a critical
problem of most of the cities of developing countries.
This is the main feature of Addis Ababa, which is the capital city of Ethiopia.
Housing supply of the last 30-40 years could not cope to the fast raise need. In
addition the government tenure system drives more than 40% of the housing stock to
non-reparable and inhabitable state. The availability of basic infrastructural facilities
and amenities is also very limited.
The paper deals with analysing the existing shelter situation of the city to identify
and analyse the main causes of housing problem so as to develop action plan to
implement the proposed strategies, that are believed, enable to bring about a change
in the situation and living standard of the low income families.
Accordingly, in addition to the ongoing actions taken by the city Administration,
increasing the availability of financial resource, and reducing construction cost by
motivating beneficiaries to participate in financial and labour contribution are some
of the proposals recommended by the paper.
For the purpose of this paper the concept “Poor or Low Income Households” is
used to refer to those households that can not be embraced in the ongoing housing
development program that is executed by the city administration and private sector.
Here particular attention is given to households who need assistance to fill the gap
that could not be covered by their income so as to build their shelter.
1
Azeb Kelemework Bihon
Acronyms
AACA Addis Ababa City Administration
AACG Addis Ababa City Government
AAHDPO Addis Ababa Housing Development Project Office
AAIA Addis Ababa Investment Authority
AARH Agency for the Administration of Rental Houses
CSA Central Statistical Authority
DPPE Development and Poverty Profile of Ethiopia
FEDB Finance & Economic Development Bureau
IHDP Integrated Housing Development Program
MOFED Ministry of Finance and Economic Development
NUPI National Urban Planning Institute
ORAAMP Office for the Revision of the Addis Ababa Master Plan
PADCO Planning and Development Collaborative International
UIS Urban Inequities Survey
UN-H United Nation -Habitat
Shelter Situation Analysis
Basic General Data
Geography and Administration
Addis Ababa is the capital city of Ethiopia, a country that is situated in the horn of
Africa. It is a chartered city that is exercising decision and execution responsibilities
separately. The council that is accountable to the federal government and the
residents of the city is the highest administrative body led by the mayor. It has also a
city manager who is responsible for municipal activities. According to proclamation
311/2002 Administering and Developing Houses for low income families is one of
the functions of the city Administration.
The structural form of the city is organized under 10 sub-cities which are
composed of 100 kebeles that are the lowest administrative level.
Demography
Currently the total population of Addis Ababa is estimated to be 3 million of which
the number of female has greater proportion (52%) and, about 42% of the total
2
Housing for the Poor in Addis Ababa
588235 households, are female headed. Average annual growth rate of the population
is 2.9% to which the natural increase has lower contribution, 1.21% than migration
that constitutes the remaining 1.7%. (CSA 1999:263-268)
Economy
Different studies indicate that the economy of the city is service sector dominant and
the private; especially the informal economic activity has a greater contribution. So,
80% of the city’s dwellers earn very low income of less than 74.51 USD per
month.(ORAAMP 2002: 24) On top of this the high unemployment rate of the city
that is more than 40% aggravates the poverty situation of the residents. Hence most
of the households spent more than 50% of their income on food.
Before 2002/03 the greater proportion (56.6%) of the city administration’s
revenue was allocated for recurrent budget to perform the day to day activities. This
hinders investment tasks and consequently economic development of the city.
Currently the composition of the city expenditure is changed to 61.1% for capital and
the remaining 38.9% for recurrent budget on average. (FEDB 2002-2006)
Shelter Related Facts and Figures
Access to Shelter
The housing condition of Addis Ababa is by far inadequate in quantity and quality
terms to meet the need of the residents.
Housing Stock
In 1994 the number of housing units (374,742) was 9.5% less than the number of
households (414262) which need an equal number of dwellings. (CSA1999:218).
Based on the data of planning and policy commission the difference has increased to
24.8% with in ten years, even if the total housing stock has raised to 471429 with
2.5% average annual increment. The unfulfilled demand for residential housing in
2004 was therefore 116,806.
Besides, different studies indicate that 269814 (about 80%) of the houses located
in the inner part of city (337268) need complete replacement because of dilapidation.
Hence, the estimated gap between housing supply and demand or housing deficit due
to new household formation and dilapidation as of 2004 is estimated to be about
386,620.
1 Currently one USD is about nine Ethiopian birr
3
Azeb Kelemework Bihon
Housing Quality
Measuring housing quality by major indicators that are availability of adequate space
for privacy and mobility and Physical condition of the houses, most of the dwellings
in the city are termed as low level of quality. About 31% of the housing stock had
only one room and the average number of households in one-room house is 1.1
(CSA1999:229-233). There fore about 24.8% of all Addis Ababa household are
living in over crowded dwellings. (UIS 2002:24)
With regard to physical condition, the feature of most of the units is in need of
replacement because, 82.3% of the total housing stocks are built up of mud and wood
and served for more than 40 years (CSA 1999:224-227).
Housing Standard, Affordability and Tenure
The housing standard of the city is incompatible with the affordability of the majority
residents to build their shelter. The city administration has adopted housing standards
(G+0 and G+1) in 1994 and 2003 with respective construction cost of 3889 and 6667
USD, which are only affordable to households who earn a monthly income of more
than 167 and 222 USD respectively. (Esrael 2005:47-48)
However according to the assessment result of housing study of ORAAMP 92%
of the total population of the city earn a monthly income of less than 167 USD
(ORAAMP 2002:24-26). In other words the majority of the residents have no
financial capacity to build their dwelling to fulfil the standard of the regulation,
provided that the estimation of construction cost of the units remain unchanged.
However this is beyond the current reality since the price of construction materials is
raising rapidly. Data collected by interviewing the Engineers of housing development
project office indicates that, the respective price change of the main construction
materials that have great role in determining construction cost of a house, with in the
last two years was 61%, 37% and 26% for cement, sand and reinforcement bar. So
that it is not difficult to understand that the percentage of people who cannot afford
to build standard unit could go up.
In the light of tenure, Addis Ababa has two forms of housing tenure, government
and private, which accounted for 40.4% and 50.8% of the total housing units
respectively (CSA1999:253). Residents who own land formally are secured to obtain
tenure certificate irrespective of sex, even though those households who built house
on illegally obtained land, which proportionate about 25% of the total units,
(ORAAMP 2002:34) are not secured to legal status and are vulnerable to forced
eviction.
4
Housing for the Poor in Addis Ababa
Access to and cost of basic services
In view of access to basic services the residents of the city are severing from lack of
potable water, sanitation, transport, communication, drainage, education and health
facilities. The level of the problem is high lighted as follows.
a) About 88.5% the housing units of the city have pipe line connection to taped
water supply, yet 28.6% of the households experience frequent disruption
(UIS2002:10-12) which makes the time and cost of acquiring water high.
b) Sanitary is also the other component of basic service that needs great attention
to make the city clean and create healthy living atmosphere. Of the total waste
generated 25% is dumped on the streets, drainage channels and vacant plots. (FEDB
2005:12) Besides 23.9% of the houses have no access to toilet facility (CSA
1999:244) and the problem is worsened by the fact that more than 33 % of the
households use shared toilet with six or more than two families (UIS 2002:14)
c) Means of transport, which is dependent on road, is one of the major problems
of the city Addis Ababa. The length and type of the road with its limited sidewalk
and drainage facility is not adequate. Hence this leaves the city for frequent traffic
accident. In 2004 the city had only 2,146 km road of which 36% was asphalt and the
remaining 64% gravel road. Hence the total road area coverage of the city was 17.6
km or 6.1 % of the built up area. Besides the length of road with side walk way and
drainage facility was only 11.7% and 28.7% of the total road respectively. The
number of traffic accident is there for growing at faster rate that reached 10190 in
2004 from 8581 in 1998. (FEDB 2005:6-9)
d) Access to education, especially at pre school level, which is provided by public
sector only, is not different from the feature of the other basic services of the city.
The following data on the students’ enrolment with specific age group at different
level of school could prove the low level of provision of the service. ( Pre School -
31.6%, Primary (1-8 School) - 94% and Secondary (9-10 School) - 68.1 %.)
( FEDB 2005 :)
e) Government is the major health service provider in the city. Private sector also
involve in health care service provision though the fee is unaffordable to poor
families. Hence most of the members of low income group have no access to health
care service or health service coverage of the city is only 68%, because health
institutions and professionals are very limited in number. The low health status of
inhabitants of the city can be seen from the following quantitative indicators.
5
Azeb Kelemework Bihon
Clinic to population ratio 1: 7175, Hospital bed to population ratio...1: 868
Physicians to population ratio 1: 3521, Nurse to population ratio 1: 1596 and HIV
prevalence 12.4% (FEDB 2005:15)
Existing housing policy
Currently though housing policy is not yet formulated at national and city level, the
city’s housing principle is following the free market economic policy adopted in
1991that create conducive atmosphere for private sector particularly the real estate
developers to participate in housing development.
The federal government enacted proclamation on urban development policy that
gives high attention for alleviating housing problems of urban areas. The city
administration has also prepared five years housing development program in 2004 to
reduce housing problem of the city by 50%.
The program gives prior attention for alleviating housing problem of low income
households. It promotes high raise (up to G+4) condominium buildings with a
minimum built up area of 22 m2 to minimize the construction cost so as to benefit
low income families. Government, Private sector (Real estate developer,
Cooperatives, and Individuals) and Non Governmental Organizations (NGO) are
considered as the major actors in housing construction and marketing activities.
Accordingly even though the involvement of NGO’s is limited, the first two actors
are playing a great role in increasing housing stock of the city.
The city administration has established legal institutions Housing Agency,
Housing Development Project Office, Micro and Small Scale Commercial Enterprise
and Technical and Vocational Education Training to implement housing
development program. Under housing agency a department is created with the main
responsible of looking for assistance from different sources to be used for
constructing residential houses for low-income residents. Never the less, different
forms of financing or funding schemes of low-income housing couldn’t yet be
practical. Instead the city administration is building units by its own revenue only
which leaves the successful implementation of the program under question.
In parallel to improving housing situation, the city administration has stressed on
alleviating poverty by creating job and loan opportunities for unemployed
households. In both directions a prior attention is given for improving the living
standard of women.
6
Housing for the Poor in Addis Ababa
Actors in Shelter Delivery and their Roles
The central government represented by AARH was involved in constructing and
renting houses for residential and other purposes before 1991 none the less the
outcome was not as it was required. “Over the period 1974-1991, the AARH
constructed 8623 dwelling units through out urban Ethiopia.” (PADCO 1996:29) At
present it is only renting the constructed and nationalized houses with a monthly rent
of above USD 11.11.The city administration is renting about 150,000 nationalized
units rented below USD 11.11 per month and known as Kebele houses. Besides even
though it was responsible for supplying low cost residential houses it built 7409 units
only during 1996-2004. Now days it is involving in building 32000 units for
residential and commercial purposes with a high emphasis of supplying housing for
the low income households. The process is however hindered by shortage of
financial and material resources.
Housing cooperatives, individuals and real estate developers are the main actors in
shelter delivery for owner occupied and rental purposes. Nonetheless the sluggish
land supply system and unaffordable construction cost and requirements are the main
factors that affect private housing supply. The number of plots allocated by lottery
system between 1995 and 2002 was only 2049 (Esrael 2005:41-46). Better result is
registered in 2004 and 2005 when about 60,000 members organized under 2000
cooperatives acquire land for residential purpose.(AACA 2006:14). The other
problem is that, individuals and cooperatives are obliged to deposit about 20% of the
total building cost in block account to acquire land for residential house. (NUPI
2004:211) On the other hand even if the participation of real estate developers is
growing since 1998/99 as a matter of principle, these privately owned companies do
not concerned about supplying houses for low-income parts of the society. “The
study indicated that real estate developed houses constructed up to now are
accessible to the high income group only.” (NUPI 2004:193)
Design
The city administration is constructing houses based on master plan and
neighbourhood planning of the city. The existing dominant housing topology is
changed from single to multi-storey (up to G+4) to maintain the population density
of the core area 650-2000 Inh/hect proposed by the master plan. For instance 696
units are built on 45191 m2 plot of land or on average 755 persons are settled on one
hectare. (AAHDPO 2005: 3)
7
Azeb Kelemework Bihon
The other main principle of the design of the condominium houses is that
maintaining the existing mixed settlement that is constructing units for different
income groups and purposes. Based on this units for commercial and communal
purposes are also constructed with the Studio up to three bed room type of residential
houses.
Identification of Critical Shelter Problems of Addis
Ababa
The quantitative data of shelter situation analysis indicates that critical shelter
problems of Addis Ababa are housing shortage, poor housing quality and poor living
and working environment. The problem is especially acute for poor households that
account for 92% of the city’s population.
The average housing stock percentage increase (2.3%) between 1994 and 2004
was not compatible with the average annual growth rate of the population (3%) of
the same period. This leaves 65.7 % of the households to be affected by housing
shortage. As a result almost a quarter of the total households are living in
overcrowded dwellings.
Besides the units, which are constructed of mud and wood, especially those
owned by the government have served for more than 40 years with out significant
maintenance. As a result they are in a poor physical condition and in need of
complete demolish and replacement
With regard to the shelter related services, a greater proportion of the residents
have less access to basic services and amenities such as safe water, sanitary, health,
education, transport and communication facilities
Efforts targeted at solving the housing problem of the city have fallen short of the
accumulated demand. Especially housing need of the majority or the poor families
who can not afford government and private development programs is very serious.
Analysis of Critical Shelter Problems
The existing housing shortage, which is the main problem of the city, is created as a
result of rapid population growth rate and insufficient housing supply to satisfy the
newly formed households. The continuously growing backlog housing need leaves
about 25% of the city’s population to live in overcrowded dwellings.
8
Housing for the Poor in Addis Ababa
Low level of housing supply is aggravated by the poor physical condition of the
long lived units which need complete replacement. These type of units accounts
about 80% of the units located in the inner part of the city. In 2004 about 65.7% of
the residents were affected by housing deficit as a result of insufficient housing in
quantity and quality terms.
The complementary part of housing that is accessibility of basic services such as
water, sanitation, transportation, communication, education and health is not in
different condition. Most of the residents are severing from lack of these basic
facilities and makes the existing housing problem of the city worse.
Housing crisis of the city highly affects the low-income group which accounts
more than 90 % of the city’s population. Low level of economic development of the
city, where the livelihood of a great number of the population depends on informal
activities as well as more than 40% of the residents have no source of income for
survival, is the main factor that hinder the majority of the city’s population to acquire
dwelling. This problem was revolving for the last 30-40 years.
In contrast to this fact, housing approaches implemented by different actors were
very limited and unresponsive to the need of the low-income households. Housing
development programs undertaken by real estate developers who based on free
market principle are high income oriented. On the other hand this part of the society
has no financial capacity to build owner occupied unit as an individual or
cooperative. An individual has to earn a monthly income of more than 167.00 USD
to acquire land and build a house for dwelling with a minimum area that is adopted
in housing regulation of the city administration. But 92% of residents earn a monthly
income of less than 167 USD. Hence the number of private applicants (63,380)
registered to acquire plot of land to build their dwelling between 1988 and 1995 was
only 3.4% of the total average population of the same period. Besides the level of
interest rate (8.75%2) and requirement, to deposit 20% of the construction cost in
block account, of formal financial institutions are unaffordable for the majority of the
population. Instead communities based saving associations (Idir and Iqub) are
common practices in the city, to cover financial need of housing and other activities.
The state, at central and municipal level, took the main responsibility of housing
provision especially for low-income group since 1975. But the measures taken to
address the problem have given little result, because, it has no sufficient financial
capacity to perform its duties.
2 Currently the government is trying to minimise bank loan interest rate for housing to 7%
9
Azeb Kelemework Bihon
The data obtained from annual reports of Finance and Economic Development
Bureau indicates that the financial condition of the municipality was characterized by
continuously raising financial deficit, which reached up to 35.4% of the collected
revenue in 2001/02. The proportion of capital expenditure was less than 50% of the
total expenditure up to 2002/03 .
More over the city administration’s operation on the sector was very limited. Up
to 2003 the maximum amount of money spent in housing construction was only
7.7% of the capital expenditure in 1999/00.
The city administration has started to act on the long lived housing problem by
giving prior attention and allocating a significant portion (almost 50% of the capital
expenditure in 2004/05) since 2003/04. Accordingly it has planned to finalize the
construction work of 31,756 units at a cost of 93.2 mills USD and to build 33,000
new units at a cost of 95.1 mills USD in 2006/2007. (AACA2006:5-6) In other
words, the amount of money needed to cover the planned housing activities is 188.3
mills USD, which is about 81% of the revenue collected in 2004/05, that is, the
largest amount of revenue collected with in nine years.
The other main challenge of housing supply by the municipality is again related to
the issue low level of income of the residents. The city administration has started to
exert an effort to meet the housing need of the society particularly of low income
households, by building, selling and renting houses at subsidized price and interest
rate. It is also allowing them lower down payment and longer term of payment,
especially, Studio and one bedroom type of units are highly subsidized to attain at its
objective.
The selling price of the houses was decided to be 105.6 USD per m2 which is
36.7% lower than the market value (166.7 USD) estimated by the infrastructure and
construction authority of the city administration as of 2004/05.On top of this studio
and one bed room type of units are sold at 30% less (73.9USD) of the selling price.
The beneficiaries of these types of units were also allowed lower level of down
(7.5%) payment, in relation to two and three bed room types, and to pay 25% of their
monthly income to finish their loan with in 20 years at free and 2% interest rate
respectively.
Based on this payment arrangement an individual has to earn a monthly income of
26 and 48 USD so as to purchase a studio or one bed room type of house
respectively. But the sustainability of the existing selling price fall under question as
a result of price rise of construction materials. So the city administration has planned
to raise the selling price per m2 of studio and one bedroom to 127.6 and 133.9 USD
10
Housing for the Poor in Addis Ababa
respectively. This means that with making no change in the above payment
arrangements, the category of beneficiaries has to be changed to those who earn a
monthly income of 49.2 and 86.04 USD respectively.
The above data shows that even with a subsidized price and interest rate, it is clear
those households who earn a monthly income of less than 87.00 USD could not
afford to build one bed room type of dwelling and those who earn less than 50.00
USD have no opportunity to be beneficiaries of the program. Besides these income
groups have no access to acquire loan from formal financial institutions for the
reason that an individual has to be able to pay 20% of down payment and pay back
the remaining with in 20 years at 7% interest rate to qualify for bank loan. This
affects a broad income category of the residents.
On the other hand the data collected by housing agency in 2005 to assess the need
of the residents for dwelling, indicates that of the total 449,271 applicants registered
to buy residential houses 44.6% had applied for one bed room type of unit. But an
individual has to be able to make at least a monthly payment of 21.5 USD and earn
more than 87.00 USD per month, so as to finish the unpaid amount with in 20 years
at 2% interest rate to buy a one bed room type of dwelling with an average area of
35 m2.
This means that about 45% of the residents need to build one bed room type of
unit, never the less, more than 80% of the household have no their own financial
capacity and loan opportunity to build or purchase the type of unit they need.
The situation is going to be worse unless a way is devised to minimize
construction cost, because price of construction materials is growing rapidly.
Proposal for Change and Improvement
Housing which constitutes a living space with physical structure and basic
infrastructure facilities is not only one of the basic necessities but also a right for
human being survival. The housing situation of Addis Ababa in spite indicates that
housing shortage, poor quality of housing and poor living and working environment
have remained as a critical problem of the majority of the population for more than
30 years.
Measures taken to alleviate the problem by public and private sectors could not
bring about a solution especially from the need of the poor. The city administration
had difficulties to supply standard housing, in quantity as well as in quality terms,
and basic services. Scarcity of financial resource is the main factor for its inefficient
11
Azeb Kelemework Bihon
performance in the sector. Housing production of the private sector was also
unsatisfactory for the reason that the construction cost of the units is unreachable to
the low income group of the city.
The issue of successful housing supply for low income households of the city
there fore rests mainly on strategies applied to increase availability of financial
resource and reduce construction cost. So the question is what are the possible
strategies that can enable the low income of the city to build decent dwelling?
In view of this short paper, the cause of the problem can not be treated separately
since the level of economic development affects the level of household income and
government revenue. The on going municipal housing supply approach is relatively
much better than the ones carried out earlier. Tough scarcity of government financial
resource has not yet found a solution. Moreover allocating a greater proportion of the
budget for a single sector could affect service delivery and investment activities of
other sectors. Therefore in the long run, it is difficult to ensure equitable distribution
of resources and optimum development in all sectors given the limited capacity of
generating financial resource. As a result, housing problem may not be alleviated
with out an improvement in shelter related infrastructure services development. It is
thus advisable for the city administration to concentrate on infrastructural
development of the city as well as motivate and create conducive atmosphere to
increase the participation of real estate developers and non-governmental
organizations in low income housing production.
In addition to this the planned housing selling price of the municipality indicates
that the beneficiaries of the program for studio type of unit and one bed room are
expected to be those families who have a monthly income of more than 50.00 and
87.00 USD respectively. In other words though the houses are highly subsidized
more than 80% of the residents could not afford to buy or build one bed room house
type which is the need of about 45% of the residents. These figures could even rise
upper as a result of increase in housing selling price and interest rate. Hence the
question is how shelter can be delivered for this great proportion of the city’s
inhabitants? There fore in the view of this short paper the critical shelter problem of
Addis Ababa is how to enable poor residents of the city to acquire decent dwellings.
Efficient utilization of resources from the international sources to cover part of the
cost of the housing development program for the poor is mentioned as one of the
strategies to attain at the objective of the formulated program, though it is not yet
implemented. Thus it is necessary for the city administration to give attention for
alternative strategies for low income households and exploit potential housing
12
Housing for the Poor in Addis Ababa
financial sources and other forms of assistances for successful implementation of the
program and bring about a change in the living standard of the low income families.
Therefore, in addition to the currently adopted payment arrangements, it is
necessary to look for aid, soft loan and other forms of assistances from internal and
external sources. This has to be also accompanied by saving and credit activities to
build or improve own dwelling. The existing community based associations have to
be encouraged to involve in finance for housing activities. Besides organized self
help housing approach has to be promoted to minimize construction cost of houses
and bankruptcies in construction management.
These strategies would enable households those could not benefit from the
program implemented by the city administration, especially those whose monthly
income is between 40 and 90 USD to build or improve their shelter. Because it is
possible to enable this category of the residents build their shelter with their income
and assistance. Here constructing studio and one bed room type of units are
considered eligible for these income groups, since two and three bed room type of
houses are beyond their affordability, and the minimum area of studio type can be
reduced to 20 m2 to help families who earn 40 USD per month. Meanwhile the
following mechanisms can be used to attain at the objective of the proposal.
Establishing formal entities that would be responsible for raising, provision and
managing of housing finance and facilitating organized self help low cost housing
for low income households.
Promote organized saving and credit service exclusively for housing
development and improvement programs.
Create relationship with internal and external governmental and non-
governmental organizations to acquire financial, material and technical assistance
in the form of aid, soft loan, machineries, construction materials, design and
trained manpower.
Enhance the participation of beneficiaries in the process of formulating rules and
directives, planning, construction work and property administration.
Obtain financial, material and technical assistances, from the city administration,
in the form of loan at subsidized interest rate, low cost construction materials,
appropriate housing design, quality control and consultancy services, preparing
legal framework and establishing formal entities.
Apply progressive housing development scheme.
13
Azeb Kelemework Bihon
The actors who are expected to be involved in the process of implementing the
proposal will have the following main responsibilities.
Community
1 Participants selected from different parts of the society will be legally
organized to form cooperatives, so as to make financial and labor
contributions.
2 The cooperatives will play a great role in formulating directives and bylaws,
planning and managing construction activities and property administration.
3 Raise and implement innovative ideas to minimize housing construction cost.
Most of the beneficiaries would be selected from the inner part of the city, 80%
of which is stated as slum, and a great attention will be given to women headed
households.
Federal government
1 Facilitating the way to acquire and mobilize aid and soft loan especially for
low income group from internal and external sources.
2 Formulate housing policy that would enable non governmental Organizations,
to involve in housing development
3 Encourage regions to implement urban development policy to minimize
migration, from relatively small urban and rural areas of the country.
Addis Ababa City Administration
1 Develop rules and directives that can facilitate housing development for low-
income group.
2 Establish legal entity that would facilitate organized housing finance and self
help housing development.
3 Search financial assistance and soft loan for housing development.
4 Prepare and make available serviced plots for the construction of houses.
5 Construct the main infrastructural facilities (water, electricity, road and
sanitation facilities).
6 Provide financial, material and technical assistances, in the form of
discriminatory subsidized interest rate, low cost construction materials,
appropriate design, quality control and consultancy services and preparing
legal framework to establish housing cooperatives.
14
Housing for the Poor in Addis Ababa
Non governmental organizations
1 Provide assistance in the form of giving aid, soft loan, machineries,
construction materials, appropriate design, trained man power, consultancy
services and the like.
2 4.2. Build dwellings for low-income households
SWOT ANALYSIS
Strength Weakness
The proposal enables to reduce the problem of Expecting the idea of change only from the
housing finance and construction management. upper management level.
It also enables low income families that could Lack of organizational structure.
not benefit from housing development program Scarcity of financial, material and human
of the city, to build their dwelling and improve resource.
their living standard.
The attempt of the proposal is that to implement
the approach in an organized way.
The duties and responsibilities of the project
preparation and fund searching organ of the
housing Agency has been formulated and
submitted to pertinent authority for approval.
Opportunity Threat
The availability of urban development policy Highly dependent on municipally financed
and housing development program. housing development.
Political commitment to alleviate housing Rapid price escalation of construction
problem materials.
Good experience in community based
associations and Micro and Small Scale
Enterprises.
Developed experience in constructing
condominium houses.
References
Addis Ababa City Government Finance and Economic Development Bureau. (2005).
Partial Report on Developing Urban Indicators, Addis Ababa.
Addis Ababa City Government Finance and Economic Development Bureau. (1997-
2006). Annual Performance Reports, Addis Ababa. (Amharic version)
Addis Ababa City Government. (2004). Integrated Housing Development Program,
Addis Ababa. (Amharic version)
Addis Ababa City Administration. (2006). 2006/07 Budget Year Plan, Addis Ababa.
(Amharic version)
15
Azeb Kelemework Bihon
Addis Ababa City Government ORAAMP. (2002). City Development Plan 2001-
2010. Executive Summary. Addis Ababa
Addis Ababa City Government ORAAMP. (2002). Assessment of Addis Ababa’s
Housing Sector. Key Areas of Intervention, Strategies and Policy Measures for a
Housing Policy. Addis Ababa.
Addis Ababa City Government ORAAMP. (2002). Structure Plan, Housing
Component, Improvement and Development Strategy: Guidelines, Regulations,
Norms and Standards, Addis Ababa.
Addis Ababa City Administration. (2006). Performance Report (Jan/2003 -
September /2006). Addis Ababa
Addis Ababa Housing Development Project Office (2005). A study conducted
around the utilization of a condominium building by those residents, who are
dwelling at the Gerji model houses.
CSA. (1999). The 1994 Population and Housing Census of Ethiopia: Results for
Addis Ababa, Volume II Analytical Report, Addis Ababa.
Esrael Tesfaye. (2005). Illegal Land Sub division in Addis Ababa city Cause and
Practice: the case of Kolfe Keranyo Sub City. Addis Ababa.
Graciela Landaeta (1994) Strategies for Low- income Housing, Lund University-
Sweden.
Ministry of Education. (2005). Education Statistics Annual Abstract. 1996 EC
(2003 - 04). Addis Ababa.
Ministry of Finance and Economic Development, Welfare Monitoring unit (2002).
Development and Poverty Profile of Ethiopia, Addis Ababa.
National Urban Planning Institute, PADCO, (1996). Housing Sector Overview,
Addis Ababa.
National Urban Planning Institute (2004). Reappraising the urban planning processes
to confront the current urban development challenges in Ethiopia, Proceedings of the
4th National Conference. Addis Ababa.
The Addis Ababa Investment Authority.(2004). Addis Investment, Yearly Bulletin /
No.1.Addis Ababa. (Amharic version)
UN-Habitat. (2002). Report on Urban Inequities: The Case of Addis Ababa, Addis
Ababa.
16


Use: 0.0787