Abstract

In Ethiopia, since 1993, urban land lease policy has been in place to facilitate land transfer for residential, commercial and industrial purposes. As a result, many cities, including Addis Ababa, have witnessed enormous boundary expansion mainly through farmland conversion. Over the past two decades, though Addis Ababa experienced rapid spatial boundary expansion, very little is known about urban land use efficiency (ULUE) of the city. This paper analysed ULUE using remote sensing data. Emphasis was given to the assessment of spatiotemporal land use changes since 2004. Satellite imagery analysis was done using ArcGIS software. Besides, quantitative and qualitative data from secondary sources were studied. Moreover, field observation was conducted. Research findings showed that in almost all expansion frontiers (Bole and Akaki-Kaliti sub-cities) there is a prevalence of urban land use inefficiencies, i.e. pervasive practices of land hoarding and land use fragmentation. Urban sprawl is rampant with a significant part of the land transferred being left vacant or underutilised for years. The problem of ULUE in the country could be mainly attributed to institutional weaknesses, i.e. urban land lease policy gaps, particularly, in areas of lease policy implementation. To improve land productivity, limit eviction and ensure sustainable urban growth, the city should emphasise on improving ULUE. This study highlighted that a mere policy formulation is not enough to ensure efficient urban land use. To achieve land lease policy goals, strengthening institutions, working towards improving institutional functionality, is what policymakers should focus on.

Highlights

  • The land is an engine of economic development

  • In Ethiopia, the land has been used as a policy instrument to attract domestic and foreign direct investment (FDI) (Lavers, 2012)

  • This study focused on analysing urban land use efficiency (ULUE) in Addis Ababa, Ethiopia

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Summary

Introduction

The land is an engine of economic development. In countries where land is under state ownership, it has become a major driver of economic growth and a tool for macroeconomic stabilization (Lian et al, 2016; Rithmire, 2017). The contribution of land for eco­ nomic development is substantial, mainly in developing countries. Studies showed that land and real estate assets account for 45%–75% of wealth in developing countries (Yusuf et al, 2009). In Ethiopia, the land has been used as a policy instrument to attract domestic and foreign direct investment (FDI) (Lavers, 2012). Ethiopia’s urban land lease policy, according to the 2011 urban land lease proc­ lamation, is formulated to attract both domestic and foreign direct investment. Investment attraction is to stimulate economic growth and reduce poverty

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