Obstacles to sustainable urbanisation in Ethiopia

Urban land management involves coordinating various actors and activities to optimise the use of urban space, ensuring that cities grow sustainably and function properly.

Urban land use efficiency (ULUE) measures how efficiently and responsibly urban land is used. It's often assessed by comparing urban area growth to population growth. Unsustainable urban expansion leads to urban sprawl and inefficient land use, which can weaken essential services and contribute to environmental degradation.

Effective urban land management is crucial to addressing these challenges. However, like many developing nations, Ethiopia struggles with inadequate governance and weak institutional frameworks.

Study area

Ethiopia has experienced rapid urbanisation - especially over the past two decades. Although the state owns all land and allows leasing for various purposes, weaknesses in land institutions and policies have created loopholes that make urban land management less effective.

The country's cities struggle with ongoing issues like land hoarding, urban sprawl, an inefficient land transfer market, tenure insecurity, and informal settlements. ULUE is generally low across Ethiopia's cities.

ULUE index of major Ethiopian cities – between 2007 and 2019, most cities’ ULUE index is greater than 1, indicating low ULUE. Source: Koroso et al. (2021)

Research method and objectives

The study used document analysis based on the Institutional Analysis and Development (IAD) framework and the Institutional Credibility thesis to evaluate urban land policies in Ethiopia.

The IAD framework helps to identify key actors and their interactions, while the Institutional Credibility thesis focuses on assessing the effectiveness of institutions.

The researchers wanted to understand why urban land policies haven't led to efficient land use in Ethiopia. Three concrete research objectives were addressed:

• assessing the existing urban land policies in Ethiopia and their implications for ULUE;

• analysing factors impeding effective urban land management and utilisation;

• investigating whether empty institutions may have been a contributing factor.

Inefficient urban land policy

In Ethiopia, the state holds a monopoly over land, resulting in a formal land market that excludes low- and middle-income individuals. A combination of high land prices and bureaucratic obstacles further complicates access to urban land.

Despite attempts at policy reform, implementation has been weak, and ULUE has remained unsatisfactory. Overall, Ethiopia's urban land policies require a revaluation to improve efficiency, support sustainable urbanisation, and address the needs of the growing population.

Lack of land tenure security

Land tenure security is essential for sustainable urban growth, especially when it comes to protecting the rights of the poor and vulnerable. In Ethiopia, existing land policies tend to create tenure insecurity for people living on the outskirts of cities. As urban expansion threatens land rights, residents face evictions and cannot sell or mortgage land. Additionally, compensation for expropriated land is inadequate, with local authorities valuing land far below market rates.

Land banking

The Ethiopian land banking system allows the state to expropriate land. While supposedly serving public interest, this practice often leads to long-term land stockpiling. Agricultural land expropriated for urban development can remain unused for years. In addition, weak land administration has led to illegal land capture.

Gaps in legal frameworks

Ethiopia's weak institutional frameworks and vague land policies make urban land management less effective. Current land laws don't protect many residents' rights, resulting in informal settlements and unwarranted expropriations.

Customary land rights are often overlooked, causing friction between formal and traditional systems. The study suggests that Ethiopia needs clearer policies that balance urban expansion with environmental protection.

Capacity limitations

In Ethiopia, limited human and technical capacity stands in the way of effective land policy implementation. Municipalities don’t have enough resources to manage leases, set fair prices, and maintain accurate records. Additionally, outdated and unreliable land information systems stand in the way of effective land management.

Ineffective spatial planning

Spatial/land use planning is supposed to make cities better organised and more productive. However, in Ethiopia, unrealistic regulations often ignore local contexts. High building standards exclude low-income residents from formal housing, promoting informal settlements and inequality. More sustainable urbanisation would require adaptable, locally informed spatial planning that balances development goals with residents’ needs and capacities.

Weak land governance

Effective land governance relies on clear regulations, inclusive processes, and strong enforcement of land policies. In Ethiopia, urban land governance faces serious issues, including limited stakeholder participation and weak coordination. Enforcement is hindered by low commitment. These challenges require a decentralised, participatory governance approach with committed enforcement to enable sustainable urban growth.

Corruption

Land corruption in Ethiopia involves misuse of power by officials in managing public land. Weak institutions and lack of accountability enable bribery and manipulation. This leads to illegal land transfers, speculation, and informal settlements and has a disproportionate impact on the poor and vulnerable.

Corruption also undermines trust in governance. Effective control measures are essential to stop these practices and protect land rights.

Empty institutions

The study shows that certain elements of Ethiopian urban land policies appear as empty institutions, due to insufficient institutional capacity or a lack of commitment to enforce. As a result, speculators have free reign. Addressing these challenges is crucial for effective land management.

Conclusions

The researchers conclude that gaps in policy formulation and implementation of urban land policies have adversely impacted ULUE in Ethiopia. The main factors contributing to Ethiopia's low ULUE are the ineffective land market, tenure insecurity and land banking.

Urban land policies are neither effective nor result in efficient urban land use, mainly due to gaps in the legal framework, institutional capacity limitations, unrealistic spatial/land use planning, weak urban land governance, and corruption. Certain land laws are empty institutions, and there's a lack of capacity or commitment to enforce them.

Recommendations

In closing, the researchers note that Ethiopian policymakers can use the findings of their study to refine existing policies and develop new strategies that better align with the dynamic and complex nature of the country's urban environments.

To improve urban land use efficiency (ULUE), land policies should focus on creating an effective land transfer market, ensuring tenure security, and discouraging land stockpiling. Addressing gaps in the legal framework and enhancing institutional capacity are crucial.

Challenges related to land governance should be tackled through increased participation and commitment to enforcement. Urban land policies should be pragmatic, pro-poor and fit for purpose.

To summarise, Ethiopia should prioritise measures that enhance institutional effectiveness to promote sustainable urbanisation.

This story is an adaptation of a published journal article: Koroso, N. H., & Zevenbergen, J. A. (2024). Urban land management under rapid urbanization: Exploring the link between urban land policies and urban land use efficiency in Ethiopia. Cities, 153, 105269. It has been adapted in accordance with the CC BY 4.0 license.

The read the original paper, follow the link below: