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In Search of Shelter the Case of Hawassa, Ethiopia

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In Search of Shelter the Case of Hawassa, Ethiopia In search of shelter The case of Hawassa, Ethiopia Emma Grant, Gemechu Desta, Yeraswork Admassie, Faraz Hassan, Sophie Stevens and Meheret Ayenew Working Paper Urban Keywords: January 2020 Urbanisation, Informal Settlements, Urban Poverty, Housing About the authors Emma Grant, senior expert, Social Development Direct Gemechu Desta, executive director, Econvalue Consult Yeraswork Admassie, former associate professor of sociology, Addis Ababa University Faraz Hassan, senior urban specialist, Social Development Direct Sophie Stevens, principal consultant, Social Development Direct Meheret Ayenew, senior public policy researcher Acknowledgements With special thanks to Kussia Bekele, senior civil society advisor and research assistant. All photos were taken by members of the Ethiopia research team. The research was funded by the UK Department for International Development’s East Africa Research Fund (EARF) and contributed to the EARF’s research programme: Shaping East African Cities as Systems to Work Better for All. This material has been funded by UK aid from the UK government. However, the views expressed do not necessarily reflect the UK government’s official policies. Produced by IIED’s Human Settlements group The Human Settlements Group works to reduce poverty and improve health and housing conditions in the urban centres of Africa, Asia and Latin America. It seeks to combine this with promoting good governance and more ecologically sustainable patterns of urban development and rural-urban linkages. About Econvalue Consult Econvalue Consult offers advanced policy research expertise on a range of social and economic topics. About Social Development Direct Social Development Direct (SDDirect) provides high-quality, innovative and expert social development assistance and research services. Published by IIED, January 2020 Grant, E, Desta, G, Admassie, Y, Hassan, F, Stevens, S and Ayenew, M (2019) In search of shelter: the case of Hawassa, Ethiopia. IIED, London. https://pubs.iied.org/10875IIED ISBN 978-1-78431-739-3 Printed on recycled paper with vegetable-based inks. International Institute for Environment and Development 80-86 Gray’s Inn Road, London WC1X 8NH, UK Tel: +44 (0)20 3463 7399 Fax: +44 (0)20 3514 9055 www.iied.org @iied www.facebook.com/theIIED Download more publications at http://pubs.iied.org IIED is a charity registered in England, Charity No.800066 and in Scotland, OSCR Reg No.SC039864 and a company limited by guarantee registered in England No.2188452. IIED WORKING PAPER The city of Hawassa is growing fast, driven by the recent construction of a flagship industrial park which is expected to attract up to 60,000 workers by 2021. As the population expands, Hawassa’s shelter needs are becoming ever more acute: existing housing stock and government housing programmes and policies do not match demand. While informal settlements expand to absorb increasing demand from migrant workers and others, sustainable housing solutions are urgently needed for the city’s hundreds of thousands of residents. This working paper presents findings of recent research into the shelter challenges faced by low-income and vulnerable groups in Hawassa and provides policy recommendations for relevant stakeholders across government, local communities, business and the donor community. www.iied.org 3 IN SEARCH OF SHELTER | THE CASE OF HAWASSA, ETHIOPIA Contents Acronyms and abbreviations 5 5 Understanding shelter from a gender perspective 39 Summary 6 6 Further key issues for housing provision 42 1 Introduction 9 6.1 Access to finance for shelter and infrastructure, 1.1 The overall research project and its objectives 9 including for low-income groups 42 1.2 Conceptual framework 9 6.2 Safety and security 43 1.3 The rationale for the study in Hawassa 10 6.3 Regulating the rental market 44 1.4 Methodology 10 6.4 Improving infrastructure development and access to basic services 46 2 General overview 12 6.5 Case study: infrastructure provision in 2.1 National overview 12 Philadelphia and Dato settlements 48 2.2 General overview of Hawassa 13 2.3 Housing typology in Hawassa 15 7 Conclusions 51 3 Political settlements and access to shelter 18 8 Recommendations 53 3.1 Evolution of the policy and legislative framework 18 8.1 Recommendations for the Ethiopian government 53 3.2 Key legislation 19 8.2 Recommendations for the international community 3.3 How Ethiopia’s land markets work — formal and and donors 54 informal practices in Hawassa 22 8.3 Recommendations for civil society 55 3.4 The role of the state in shelter and land delivery: 8.4 Recommendations for the private sector 55 past interventions 24 8.5 Recommendations for all stakeholders 55 3.5 Other actors involved in local housing and land markets 25 References 56 3.6 Political engagements on shelter 27 4 Current state of housing provision 30 4.1 Demand and supply 30 4.2 Housing development strategy 31 4.3 Low-income housing: the Integrated Housing Development Programme (IHDP) 31 4.4 Housing cooperatives 35 4.5 Sidama Microfinance Institution-supported housing 36 4.6 Informal settlements 37 4 www.iied.org IIED WORKING PAPER Acronyms and abbreviations AWSAD Association for Women’s Sanctuary and Development BOWCYA Bureau of Women, Youth and Children’s Affairs CBE Commercial Bank of Ethiopia CSOs Civil society organisations EIAF Ethiopia Investment Advisory Facility EPRDF Ethiopian People’s Revolutionary Democratic Front ETB Ethiopian birra FDRE Federal Democratic Republic of Ethiopia FGD Focus group discussion FHHs Female-headed households GBV Gender-based violence GDP Gross domestic product HDI Human Development Index HIP Hawassa Industrial Park HMF Housing microfinance IFC International Finance Corporation IHDP Integrated Housing Development Programme IIED International Institute for Environment and Development IPDC Industrial Parks Development Corporation KII Key informant interview MFI Microfinance institutions MUDHCo Ministry of Urban Development, Housing and Construction NGO Non-governmental organisation PPP Public–private partnership SACCOs Savings and credit cooperatives SDGs Sustainable Development Goals SNNPR Southern Nations, Nationalities and Peoples’ Regional State TECS Trends in Ethiopian Civil Society UN United Nations UN-Habitat United Nations Human Settlements Programme UN-Women United Nations Entity for Gender Equality and the Empowerment of Women www.iied.org 5 IN SEARCH OF SHELTER | THE CASE OF HAWASSA, ETHIOPIA Summary Recent reforms offer a major opportunity to involve Findings communities and civil society organisations (CSOs) This research has explored how and why state housing in oversight and accountability mechanisms that schemes have had a limited contribution to deliver could generate innovative and effective solutions, as housing solutions at scale in Hawassa. Although well as contribute to potential resource mobilisation. different Ethiopian government housing schemes Formalised structures for engagement are more likely (including the Integrated Housing Development to have traction than ad hoc arrangements and give Programme or IHDP condominiums, cooperative scope to ensure that marginalised and hard-to-reach housing and the Sidama Microfinance Institute scheme) groups are involved — leaving no one behind. However, have contributed to the existing housing stock to some Ethiopian CSO capacity has been severely weakened degree, none have generated sufficient or affordable over the last ten years and will require significant housing at scale. Demand outstrips supply by a huge support over a period of time in order to provide an differential — exacerbated by the arrival of thousands effective accountability function. Other cities’ and of Hawassa Industrial Park (HIP) workers since 2017. countries’ experiences regarding engagement and co- Moreover, although existing schemes were intended to production models could provide useful learning. provide housing for low-income people, they are largely Scarcity of land for building in a highly centralised beyond the reach even of middle-income groups. system is leading to unaffordable plots prices. Residents of government-supported housing Processes to service and prepare land for lease within schemes frequently complain of poor infrastructure the municipal boundaries are lengthy, sensitive and and a lack of accountability with regards to service expensive, forcing people to look for options outside provision. This is linked to the approach to installing the formal land allocation system — perpetuating buildings or improving infrastructure (rarely given informal settlements and informal deals which are adequate oversight by municipal authorities, and potential grounds for land-related conflict. Inadequate thus left to homeowners to find their own solutions). compensation was creating perverse incentives for Residents organise only around very specific and urgent farmers to transfer leases privately, and sometimes common needs rather than an organising themselves at informally.1 a neighbourhood level to stand for common and longer- The study found that government technical and term interests — such as for advocacy or oversight financial capacity constraints are compounded regarding affordable housing, sustainable utilities, by a lack of accountability. On the one hand, the security and waste-management policy. lack of staff, limited understanding of/access to new Female-headed households, divorced, separated technology and lack of financial resources are resulting and widowed women, elderly women and women in an inability to
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