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!