People have been flocking to Mekele from other parts of the country and landlords have responded by increasing rental prices as much as 70 percent.
People living in Mekele told Capital that a 175 square meter plot of land which would have cost 1.5 million birr three years ago now goes for over 3 million birr.
In some locations such as Hawleti, 18 kebele, and Adi Shenhun landlords have increased their rental prices by at least 100 percent. One room that is five by four meters could cost 2,700 birr per month.
Residents who were paying 2,000- 3,000 birr for two room for residential housing are now finding landlords demanding 5,000 birr. Villa houses are going for 10,000 compared with 7,000 birr previously.
The city which had less than 400,000 people two years ago has seen its population skyrocket to 600,000 thus increasing housing demand.
Solomn Tadesse a public relations officer at the Tigray Urban Development and Trade and Industry Bureau told Capital that the increase is happening as people come to Mekele because of instability elsewhere.
“Due to the instability in some parts of the country many people who born in Tigray are coming to Mekele to secure a safe place for them and their family, this has led to an increase in housing prices as a government we have a plan, we are trying to register people for land and housing.”
Residents fear housing prices will continue their sharp rise if something isn’t done soon.
A young man who requested anonymity said:
“With the growing population and lack of a proper housing strategy to meet the demand, Mekele’s rental market is not a level playing field. The majority of renters struggle to keep up with the pace and spend thousands birr in rent to secure a roof over their heads.”
“As far as we know it is the basic law of economics wherever demand outstrips supply, the price of the commodity including houses rises and this is what happening. We always advise them to settle for what people can afford to pay,” he said.
In the past three years the Mekele City Administration gave land to over 18,000 people who wanted to build a G+1 house on 74 square meters of land.
Mekele sees spike in housing prices
City to use public banks for service payments
The Addis Ababa City Administration is going to include private banks as optional financial service providers in its public service operation.
About two weeks ago the management of private banks and city administration talked at the mayor’s office of Addis Ababa City Administration on various issues, according to sources.
Sources told Capital that one of the area’s at the meeting held on July 22 that the private bank leaders raised was desiring the city administration to see possibilities of working with the private banks and the public financial firms, particularly the state giant Commercial Bank of Ethiopia (CBE).
In the evaluation meeting of the reforming process to improve the ease of doing business held July 23 at the Office of the Prime Minister Takele Uma (Eng), Mayor of Addis Ababa, who is member of the ease of doing business committee that was chaired by PM Abiy Ahmed and now transferred to Fetlework Gebreegziabher, Minister of Trade and Industry, stated that in the meeting with private bank leaders the issue of working as partnership was raised.
He said that the city administration wants to work with private banks on services like tax collection and other service payments under the city. However he claimed that the Federal Finance Administration Proclamation is a barrier that should be considered for the city or to be revised or give a mandate for the city administration to work with private banks.
Collection tax via financial firms is considered one of the ways to improve doing business in a given country and Ethiopia is expected to expand it and use a direct system in the settlement of the tax at the bank account instead of coming with a receipt or CPO.
Mid this week Takele told Capital that the city administration is working to include private banks in the payment system of services of the city administration.
“Our people are working to include them we understand that the federal proclamation would not be applicable to the city administration due to that we have started to include private banks,” he added.
Recently the city administration has transferred its municipality fees like water service and fines including traffic fines under CBE from the former operator Lehulu.
In the committee meeting Abiy has been advised National Bank of Ethiopia, whose governor is also member of the committee and on the committee meeting appreciated on its so far achievements to improve the easy of doing business, to see the way to use private banks on tax collections.
Ethiopia has new plan to stop contraband
Even though work has been done over the past year to stop the illegal flow of foreign currency and contraband trade the problem is causing major distress, including instability. Now the government has announced an organized campaign to tackle the problem with to regional administration at a ceremony held on Wednesday August 6 in the presence of Deputy Prime Minister Demeke Mekonnen.
Contraband is becoming an issue of sovereignty, besides its adverse effects on the economy. The joint efforts and commitment of stakeholders at all levels are crucial for the success of the plan to curb the problem, Demeke said.
Rail rakes in 20m USD
The Ethio-Djibouti Railway has secured more than 20 million USD in revenue from its freighter and passenger train services over the past eight months.
The passenger rail has transported 39,000 commuters between the two nations.
During a media open-tour last Wednesday , the Chinese Ambassador to Ethiopia Tan Jian said the railway is important because landlocked Ethiopia’s 95 percent import and export passes through Djibouti.“We see this railway not only as a line of transportation, it is the artery, it is the life line and the economic corridor. This railway is related to your industrialization and to your development,” he added .
The 750 kilometer Ethio-Djibouti standard gauge Railway, which was built jointly by Ethiopia and Djibouti, started operation on January 1, 2018.
