The Federal Housing Corporation (FHC) is claiming that they need the Addis Ababa City Administration to speed up the process of accessing land so that they can build more housing projects. FHC is arguing that it appears they own more land than they actually do.
FCH appeared at the Parliament to report on is half year performance to the Urban Development, Construction and Transport Affairs standing committee. They said delays in housing construction are being caused because the city administration is taking too much time to obtain land for housing development.
FCH went on to report that securing title deeds to begin new projects is also taking more time than expected.
FHC, which was restructured two years ago, was expected to begin building new houses and expand its business. They recently announced new housing projects in the pipeline to be located in Addis Ababa.
FHC plans to build apartments along with 1,968 houses and other villas. In its half year report it did not mention anything about these projects.
FHC reportedly has identified several plots from places its already owns, but it has not yet settled the title deed issue with the city administration.
The corporation stated that it has classified 8 hectares of land from its own land deed in addition to four other hectares in the stated period
“In the budget year the corporation has targeted to make available 17 hectares of land from its own land deeds and nine hectares from the Addis Ababa City Administration for housing development,” the power point report presented to the standing committee explained.
The five hectares of land from the former Building Equipment Supply Enterprise, which merged with the housing corporation during the recent reestablishment of FHC has already been made available for a new housing project.
The report indicated that they have already obtained 17 hectares of land planned to be facilitated during the budget year for construction from their own plots. The report indicated that FHC had a large amount of land under its jurisdiction however in reality there was less than expected.
For housing development in Dire Dawa, which is also a federal city administration like Addis Ababa, the corporation has secured 4.1 hectares of land.
The six-month report indicated that the design work started last budget year is expected to be fully accomplished, while the actual performance is only 80 percent because some of the sites are not available.
This year, FHC revised the housing lease rate for business houses, undertook property re-valuation and furnishing.
The corporation has re-valued 92.7 percent of its houses located in Addis Ababa and Dire Dawa. In total, 18,457 properties and 17,117 houses have been re-valued.
FHC planned to collect 178.6 million birr from rental fees, accrued rent fees, contract renewals and other revenue sources. The report indicated that it has achieved 91 percent or 162.2 million birr from these sources. Besides rent and related revenues FHC has also earned 6.7 million birr or 42 percent of the target from compensation of bulldozed houses by the city administration.
The report has also added that in the stated period the corporation has earned 107 million birr or 80 percent of the target from warehouse leasing, sales of building materials like bricks and other related activities.
“In six months the corporation has earned a total of 297 million birr, while the target was 360 million birr,” the report added. This is partially because compensation secured from the Addis Ababa City Administration is below the target.
Housing Corp. asks city for more land faster
Plastic shops for street vendors worsening congestion
In an attempt to reduce crowding, special shops have been built for street vendors in Addis Ababa. However, now pedestrians are complaining that they are blocking the sidewalks and casing people to walk in the street.
During a recent tour of the city, Capital observed new shops up and running in places like Cherkos, Kassanches, Autobus Terra, and Sidist Kilo and these shops were disrupting the pedestrian traffic flow. The shops are made out of plastic. They sell items like electronics, watches, sockets, electric wires and beverages like packed juices and soft drinks, clothing, and street foods like biscuits, chips, sweet candies snacks.
The Addis Ababa Trade Bureau randomly chose the sites for the shops to legalize the informal street vendors found throughout the city.
According to the trade bureau the shops were placed in such a manner so as not to affect movement of people and they will crack down on sellers blocking foot traffic.
However, some residents say not enough preparation was done before deciding on locations for the shops.
Yohannes Gobeze, 34 from Arada sub city says there are already problems with increasing traffic accidents so if people are clogging the main roads by selling items, the problem will worsen.
According to the city’s traffic management agency, not all of the new shops are operating legally.
“The places have been selected by a small division of the administration (the Werdas). We agreed that every shop must receive approval from the agency before they start working but honestly speaking a few shops brought a letter to us in an attempt to become legal after they had already opened, so we will discuss this with other agencies to solve this problem.’’
Anecdotal evidence suggests the number of street vendors is increasing. The most recent study was in 2014, which showed an estimated 87,000 street vendors. However, there seems to be almost double that amount now as poverty leads people to use this as a means of survival and it takes up a higher and higher proportion of the informal economy.
Informal Merkato, Akaki shops obtain legal status
For 20 years around 870 shops located in Merkato and Akaki had been operating informally but now they have finally obtained legal recognition.
The shops, 830 of which are in the Min Alesh Terra neighborhood of Merkato, along with around 40 in Akaki, Wereda 03, had been operating without title deeds or house numbers. However, they finally got a solution to the problem by obtaining legal status under the Keble House Administration.
Because they were not legally recognized the 3-4sqm shops had never paid rental or land tax fees.
Initially MinAlesh Terra was a Merkato dump site but through time people began building mini shops constructed of rod sheets. They would sell pottery, second hand clothes, shoes and metal products. The Addis Ababa Administration conducted a study on the shops and then set a rental fee of up to 15,000 birr per month but allowed the people in possession of the shops at the time of the investigation to rent them.
Million Kassa, Trade License Investigation head at the Trade Bureau told Capital that the shops were being sold from person to person without government supervision.
“When we started our investigation we understood that the people who first occupied the land were not in the shops, either they sold them many years or they were renting them out to others. The big problem concerning the shops was the lack of tittle deeds to renew their license. For a long time, the government tolerated this. We just required the people running the shops to have a proper address and to bring us a legal rental document. Now, however we have resolved everything and the shops are completely owned by the Kebele and have house numbers and rental agreements.’’
According toA Million from the 830 Min Alesh Terra shops 672 of them are obtaining a legal license and the rest are in the process. All of the shops in Akaki shops have completely obtained licenses.
Merkato which occupies MinAlesh Terra also is the largest open air market in Africa, covering several square miles and employing an estimated 13,000 people in 7,100 business entities. The primary merchandise passing through Merkato is locally-grown agricultural products. Prior to the current Merkato, there was an open market place in Addis Ababa near St. George Church at the site where the City Hall stands now, but it ended with the Italian occupation of the 1930s. The occupiers moved the market further west to the area around the premises of Fitawrari Habte Giyorgis Dinagde, which they named Merkato Indigeno. Thus, the present Addis Merkato was founded by the segregationist policies of the Italian occupational government.
City temporarily returns to older ID cards
The City Administration’s Vital Events Registration Agency has reversed course and is allowing city residents to obtain older identity cards.
The plan was for blood type to replace ethnicity in the new finger print cards but software problems and lack of coordination from stakeholders delayed the process.
Before the suspension of the old cards they cost five birr but now they cost 10.
The prices for the cards have risen slightly. Replacing an expired card has gone up from 10 birr to 25 birr. Replacing a lost card has risen from 10 birr to 30 birr.
According to an agency source the new cards are expected to be rolled out soon.
“We were planning to use the finger print technology which automatically printed the ID when someone put their finger on a computer. I believe that in a short period of time we will begin using the new ID.”
Currently the agency has more than 1,700 employees. There is high turnover because of the meager salary.
“New employees start at 2,000 birr per month which is not enough for housing and food so many leave for better opportunities and offices handling vital event registration work are understaffed,” the source said.
Births, deaths, marriages and divorces are recorded at the kebele civil status office and at the federal level, so there is less room for discrepancies and human rights crimes.
Since the enactment of the federal law on vital events registration, the Government of Ethiopia has made progress by establishing the Federal Vital Events Registration Agency, including a board of management and a national council. Government’s regional and city administrations also enacted regional vital events registration laws; established regional agencies and a board of management; adopted a national strategy; achieved national consensus to integrate vital events registration services into the health system and established administrative structures for managing and delivering registration services.
