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The Addis Ababa City Administration (AACA) is discussing with relevant stakeholders to amend the property compensation

directive as a direct result of cost hikes in construction materials. The directive that introduced a new method of calculating the value of private properties that AACA demolishes for various development projects  is expected to be approved after presented to the City’s cabinet in the coming few months.
The City Administration is currently holding discussions with stakeholders to amend the directive and address grievances from the public at large. City residents have been complaining for a long time about the inadequate property compensation, indicating that the existing directive doesn’t take into account current market values. This issue has been a major problem in the relocation of residents with land deeds and even with those who don’t have legal documents. Due to compensation claims, especially government projects have been delayed.
Kassim Fit’e, head of Land Administration at AACA  said that a series of discussions are currently being held to include inputs from various governmental institutions and the public. However, he refrained from giving details of the discussion saying that the directive is at its early stage. “We are holding discussions with concerned stakeholders; therefore, it would be inappropriate to provide details without reaching a conclusion,” he commented. He confirmed that the need for amendment is the result of the ever increasing costs of construction materials. “Issues that hadn’t been addressed by the current directive, which came into effect in 2009 and amended in 2010, will be given due attention,” Kassim added. 
According to experts, the new directive on compensation matter will greatly contribute to the timely completion of scheduled projects.
In the past decade, the construction boom has been a major cause for the relocation of a considerable number of residents to the outskirt of the city.