How urban transformation affects the assets of

the poor in Addis Ababa

The Addis Ababa Integrated Housing

Development Program IHDP

Nigist Goytom, Architect

Conference on Sustainable Urban Growth

September 8,2015 University Zurich

• Facts on Ethiopia and Addis Ababa

Contents of the presentation

• Addis Ababa in pictures

• Introduction on the Addis Ababa IHDP project

• IHDP in pictures

• Funding and distribution system of IHDP and

how it directly related with assets and capital

• What do people say?

• Conclusion

• Population 96,506,000

Source: UN-Habitat, World Urbanization Prospects, UNESA 2014, Central Statistics Agency CSA Ethiopia| Housing for the poor in A.A., Azeb Kelemework Bihon, Urban Development & Construction Minister seven year report, 2013

Ethiopia & Addis Ababa Facts

• Annual urbanization rate 2010-15

• Urban population 2014 - 19%|2050 - 38%

(indicating massive rural-urban migration)

• Ethiopia 4.89%|Switzerland 0.1%

• Addis Ababa population 3.4 m (Primate city, 1/5

of the total urban population) • 70% of housing stock in need of total

replacement How can Addis Ababa cope with the challenges

of urban poverty and rural migration?

Addis Ababa in Pictures

Photo credit: Source: Transportation Challenges in a Booming City, A.A. City Government & Lyon Town Planning Agency

• Launched in 2005 with a target to build 50,000

condominium units/ year

Source: www.mwud.gov.et/web/guest/condominium-winners, UN-Habitat 2010,

Urban Development & Construction Minister seven year report, 2013

• 2013 more than 900,000 A.A. residents

registered for the program

Addis Ababa IHDP

• >110,000 condos built and transferred by 10

randomized lotteries in A.A. between 2005 &15

• Registration requirements:

• Resident of A.A.| withholder of Kebele ID

• Only one head of household/ family

• Individuals must be minimum 18 years old

IHDP in Pictures

Gelan I Site

Balderas Site

Balderas Site

Lideta Site

Registration

in kebeles

Commercial Bank of Ethiopia (partner

bank) borrows money to A.A city

administration

City Admin.

Construction

Random lottery

allotment

10-30% down-payment

+ Housing ownership

contract (CBE)

• Problem | Doesn’t consider the income of

inhabitants

Previous IHDP funding System| before 2013

• Solution | Introduction of flexible down-payment

and early saving system

Consequences on assets:

Downpayment

=

Contract signed

(Bank)

Sells title (makes money)

= housing right Precarious (5 years)

• Condo in the periphery | Condo in the centre

Lives in Condo |

Rents it out

Borrows money Down-payment

= Contract signed (Bank)

What do people say?

• Moving to Condominium Housing | Young Lives

2013 Agazi Tiumelissan & Alula

Pankhurst| Relocation sub-study, Survey result

of Menderin site

Young Lives, Moving to Condominium Housing? Views about the prospect among Caregivers and

children in Addis Ababa and Hawassa, Ethiopia,2013 | Agazi Tiumelissan and Alula Pankhurst,

Funded by UKaid ] Ministry of Foreign Affairs of the Netherlands

Yes No Do not

know

Desire to live in condominium

housing? 73.1 25.9 1.0

Moving away from areas lived in,

does it matter? 47.2 51.9 0.9

Afford down-payment 22.2 73.1 5.0

Conclusion

• Even though quality has been compromised in this

rapid urbanization it is by far the most effective

housing project in Ethiopia

• People valued better living conditions, a chance to

have capital and own assets than existing social

networks

• Contextual understanding of urbanization

Thank you!