The Ministry of Urban Development and Housing which is concerned about skyrocketing rents is set to implement a new procedure which would prevent landlords from raising rents over a certain period.
The ministry proposed the idea last year but the then Prime Minister Hailemariam Desalegn, rejected the idea fearing that forcing the landlords to set a price could incite price inflation in the rental housing market.
But the new Prime Minister, Abiy Ahmed (PhD) is bringing back the proposal to ease the burden of tenants struggling with high rents.
The lesser and lessee regulation which is part of the real estate marketing development regulation aims to save tenants from unreasonable rental fees and rights violations.
The regulation is expected to be ratified by the Ministers of Council by September and is expected to improve the relationship between tenants and landlords.
The Prime Minister’s office fears government involvement in the rental market could lead to other problems.
Jantirar Abay, Minister of Urban Development and Housing told Capital that discussions will be carried out with landlords before the regulation changes go into effect.
“For everything there must be a line that keeps us from falling in to an unfair market, we know that some landlords raise rent every two or three months but tenants have no choice because there is no framework to protect them. We are in the final stages of applying the lesser and lessee regulation and we will meet with landlords to address concerns and clarify the rules.’’
With the low condo construction pace and the increasing population of Addis Ababa, house rents have skyrocketed over the last ten years. A three by three room which used to rent out for 300 birr ten years ago now rents for 1,000 to 1,500 birr in the outskirts of the city. According to studies landlords often violate tenant’s rights.
The Ministry is also planning to call in foreign companies to build more houses.
“Our great priority is to local contractors but if we can’t fill the gap we will bring in foreigners’’ the Minister said.
Currently more than one million people in Addis are in great need of housing but the government has delivered around 150,000 condo houses in the past 10 years.
Government to introduce rent control
THE TIMES THEY ARE A CHANGING
The ways of the world used to be somewhat predictable. With all the powerful global institutions employed as formidable tools (particularly after WWII), the modern world system looked invincible. Changes that were effected on the global scale during the last eight decades were, for the most part, still predicated on the anchoring logic of this overbearing system, i.e., accumulation! The aberration of the various ‘Sovietisms’ did not last long. We say aberration because behind the USSR’s grandstanding there wasn’t much in the way of sustainability, both in the realm of the natural as well as the social. Understandably, the main overriding concern of ‘Sovietism’ was the protracted project of ‘catching up’ (with the West). Because of this, the system became rigid with many built-in undesirable features. Around the time of the USSR’s collapse, Maoism endorsed the accumulation logic with gusto, and tried to outdo the west, without much qualm about potential consequences, social or otherwise!
The triumph of ‘liberal democracy’ conjoined with the ‘free market’ ideology did not bring much to the global sheeple (human mass). What this conundrum affected, amongst other things, was the visible diminishing of states’ power. Actual political power shifted in favor of monopoly capital and its subsidiaries, human or otherwise. Attendant results are now coming in droves! Persistent economic polarization is giving rise to political populism. The visibly rising movement of global populism is deemed dangerous by the power that be (TPTB). To counter this worldwide movement, the ‘deep state’ is devising new ways of controlling the aspirations of the sheeple. From the look of things, the transition to a more egalitarian and a more democratic world order might not be all that smooth. For example, in the sphere of trade alone, long established entities such as the WTO (world trade organization) NAFTA, etc., are undergoing serious reversal, surprisingly, by the very same powers that set them up in the first place! Trade wars have already ensued between major operators of the world system (US vs. China, US vs. EU, etc.) Please note: going from trade war to shooting war is not a strenuous project to the walking ape. All in all, things are progressing not as planned, at least from the point of view of entrenched interests. The system is on the verge of nonreversible bifurcation. This will spell trouble to all and sundry, not only to those who had it good for a long time so!
The military alliance of the Atlantic-ists, NATO (Europe + North America) is also encountering challenges, mostly from the sheeple and their ascending politics of populism. See Meijer’s article next column and others on page 41 & 44. The current US administration feels the Europeans states are not contributing enough to sustain the organization. The US is even threatening to close down some of its bases in Europe. The German sheeple is taking this threat rather positively. A good portion of the German sheeple prefers the US to completely shut down its military bases in Germany and Europe. On top of that, the ‘Russian Bogeyman’ doesn’t seem to be working; at least as planned. A number of the newly emerging ‘populist’ parties in the West seem to have quite different views in regard to Russia, the wars in the Middle East, etc. Unless western politicos fall back to prudence and experience to manage the delicate global situation, the South China Sea might well see military engagement between the two super powers of our world system (between the fast declining hegemon, USA and the fast rising economic power, China). The Persian Gulf, Gulf of Eden, the Hormuz Strait and all the other critical naval routes might also see some actions between major powers.
The Italian populists in power are contemplating to institute a number of new policies/ideas during their reign. For a start, they want to create new media outlets that do not depend on revenues from advertisers (read monopoly capital and subsidiaries). Not surprisingly, (at least to us) this is one of our long- standing proposals. We have been purveying this idea, free of charge, for years! Since this same idea is now coming back to Africa by way of the Mediterranean (from the North), it might finally gain some currency on our continent. In addition, the Italian populists in power do not want Brussels/EU to dictate their major policies. The mavericks are even flirting with the idea of creating their own local currency, to have some leeway to alleviate their dire economic situation. Even NATO is not something they look at favorably. Incidentally, this is also true with a good portion of the European sheeple. Surprisingly, even leaders of the UK’s Labor Party have expressed the same negative sentiment towards the belligerent Atlantic military alliance. To the perceptive, BREXIT is just one more populist expression directed against the heavy handedness of the elites and their institutions, like EU. Unlike Greece or even Spain, Italy is a major economic power. Italy is still a member of the G7 countries. Whatever Italy decides to do, will have major repercussion, not only in Europe. Expectedly, the global mainstream media, or what we regularly call the ‘paid media’, is not willing to sufficiently cover what is cooking in Italy and in some of the other countries of Europe where populism is gaining ground. Beware! The European sheeple, just like its brethren elsewhere, is clearly in a rebelling mood!
The 2016 Nobel Price winner in literature, (the most prestigious prize of the global establishment) who actually refused to accept the award in person, (because of prior arrangement, probably with his regular shoeshine boy, ha, ha) saw it coming way back in the early 1960s:
‘The line it is drawn
And the curse it is cast
The slowest one now
Will later be fast
As the present now
Will later be past
The order is rapidly fadin’
And the first one now ‘ll later be fast
For the times are changing
Bob Dylan. Good Day!
Lost loves reunited
President Isayas Afewerki arrived in Addis Ababa to a cheerful crowd that Addis have never seen in its recent history. Addis Ababans have never lined up on the streets of Addis to greet another head of state but yesterday was another scene. Last week Prime Minister Abiy Ahmed was also greeted in the same manner at Asmara after the two leaders broke the deadlock.

A few weeks ago, Ethiopia and Eritrea were enemies, as they had been for the past two decades, yet now they are behaving as if they are the best of friends.
Thousands turned out in the streets of Addis under tight security to welcome President Isaias Afwerki, whose three-day visit is the latest step in ending a long state of war. “Welcome home President Isaias!!” the Ethiopian prime minister’s chief of staff Fitsum Arega said on Twitter.
Since the 42-year-old Abiy broke the ice last month by fully embracing a peace deal that ended a 1998-2000 border war that killed tens of thousands and left families separated, the two countries established the direct connection of long lost telephone lines and daily flights were said to be resumed next week.
Telephone links have opened, with some Ethiopians calling complete strangers in Eritrea just to say hello, and the first scheduled Ethiopian Airlines flights to Eritrea begin on Wednesday.
A journalist at Eritrea weekly wrote that when he was going to go out of office the telephone rang and have to answer callers from Ethiopia. “The office’s phone rang out of my expectation. I picked the phone to hear a group of people screaming merriments in Amharic. I roughly understood their greetings, but still, replied in my language. We were using the little we know of our respective languages to say peace –selam and love you. And just like me, many more Eritreans have been getting random calls from Ethiopian people and vice-versa.”
A series of diplomatic breakthroughs quickly followed as one of Africa’s longest-running conflicts neared an end.
The international community has embraced the warm reunion as a welcome development in a critical and often unstable region along one of the world’s busiest shipping lanes and across from the Arabian Peninsula.
The old Eritrean embassy in Addis Ababa has undergone a rapid renovation and is expected to open during Isaias’ visit. The two leaders also are expected to attend a concert of about 25,000 people on Sunday featuring local artists.
President Isaias also received a surprise gift of a horse, a shield and a spear from Oromia Regional President Lemma Megerssa during his visit on Saturday at the National Palace.
Cash register paper shortage slows business
The hard currency shortage is now causing a lack of paper for cash register machines. It has been about ten years since the country announced the use of cash register machines at selected businesses, the practice has widely spread throughout different parts of the country and businesses.
According to users that Capital spoke, the absence of the cash register machine paper is affecting their daily business.
One of the sources, a businessman, that Capital interviewed said that he is unable to buy products from the market due to lack of the machine paper.
“For my service business I buy bulk products from Addis and sell in other parts of the country, but in the past few weeks I have been struggling to buy products,” he said.
According to cash register machine law, sellers have to issue a receipt on every sale. If the machine is down or there is a power interruption they can use a manual receipt and inform the relevant tax office.
Experts at the Ethiopian Revenue and Customs Authority (ERCA) said that they have not heard about the paper shortage affecting business.
Ephrem Mekonnen, Public Relations Head of ERCA, told Capital that the business community is trying to connect the issue to the hard currency shortage.
“It is known that the hard currency shortage affects the economic activity, but it is an exaggeration to say the market is being slowed down by a of machine paper,” he added.
Besides the imports local producers are also engaged in the production, while the hard currency shortage may affect the usual supply, he says.
There are importers of the paper, but it is also produced locally by Haron Computer Plc.
Kedir Hashim, Chief Operation Head at Haron, told Capital that his paper factory is also affected by the shortage of raw material which is imported.
“We have tried our best to supply the paper for clients directly as opposed to providing it to distributers,” Kedir said. “We are providing the paper to distributors at the micro level but our priority is direct users to harmonize the market and maintain a reasonable price,” he added.
Haron is also one of the major cash register machine suppliers authorized by ERCA. The company stated that its paper distribution covers wide areas in Oromia and SNNP regions in addition to the capital.
According to Kedir, the Association of Machine and Software Suppliers has tried to work with the authority closely to solve the challenge. He said that ERCA is helping suppliers to get the hard currency from banks, while public banks are not giving priority to them like private banks are. “If we have a support letter from ERCA the private banks are relatively collaborative, which is not the case at public banks,” he said.
He advised that the government should give prior attention for the sector since it is directly related with the government revenue.
As of the first nine months of the past budget year that ended a week ago 172,088 businesses use 188,416 cash register machines throughout the country. Every year the number of users is increasing significantly. For instance, for the first nine months of the stated budget year 9,295 new users were included on the system. Thirteen companies are actively engaged in supplying the machine.


