SYNOPTIC REFLECTION ON URBAN LAND ADMINISTRATION ISSUES IN ETHIOPIA Abuye Aneley Alemu Decision Makers Meeting On Good Administartion of Lands Polytechnic Hotel School, Windhoek, Nambia 7-8 December 2006

URBAN Challenges and Trends Urban population ~ 16% Urban population ~ 16% Fast Urbanization rate ~4.3% (up to 8%); urban population about 12 Million, by the year 2020~25Mill Fast Urbanization rate ~4.3% (up to 8%); urban population about 12 Million, by the year 2020~25Mill Growing youth Population (<30 years) Growing youth Population (<30 years) Urban dwellers living in extreme poverty~40% Urban dwellers living in extreme poverty~40% Urban un-employment ~26% (~40% in bigger cities) Urban un-employment ~26% (~40% in bigger cities) Cities are essentially slums (~70% are slums) Cities are essentially slums (~70% are slums) Critical housing shortage (2.25 million in ten years) Critical housing shortage (2.25 million in ten years) Weak, lagging urban infrastructure; Weak, lagging urban infrastructure; Weak Municipal Finance Weak Municipal Finance Low Governance & Institutional capacity Low Governance & Institutional capacity

Opportunities Urban Development Policy in place, principles of good governance and urban land allocation defined. Urban Development Policy in place, principles of good governance and urban land allocation defined. Increased Recognition of Urban Agenda Increased Recognition of Urban Agenda Institutions for urban Sector –MWUD established Institutions for urban Sector –MWUD established PASDEP and Urban Packages prepared PASDEP and Urban Packages prepared Urban Good Governance Package is prepared Urban Good Governance Package is prepared DDTA (CBDSD) studies being completed DDTA (CBDSD) studies being completed The Legal & Institutional conditions for the Establishment of IULIS &RPRS drafted The Legal & Institutional conditions for the Establishment of IULIS &RPRS drafted

PART ONE URBAN LAND OWNERSHIP and TENURE

Land ownership & Tenure ( Historical perspective) Under the Emperor (pre-1975) there was freehold title. Private land ownership by individuals was encouraged, although the number of people who were actually able to own land was very restricted. Under the Emperor (pre-1975) there was freehold title. Private land ownership by individuals was encouraged, although the number of people who were actually able to own land was very restricted. Under the DERG ( ) all land was nationalized. Private land ownership outlawed. Right to use property and own buildings were possible but no private ownership of land. Under the DERG ( ) all land was nationalized. Private land ownership outlawed. Right to use property and own buildings were possible but no private ownership of land. The current government maintained the public ownership of land but allowed for land to be held by individuals and companies by way of a lease. The current government maintained the public ownership of land but allowed for land to be held by individuals and companies by way of a lease.

Objectives of the Land Lease Policy Market value to Land Market value to Land Encourage Investment Encourage Investment Control the undesired expansion of cities Control the undesired expansion of cities Provision of housing and infrastructure Provision of housing and infrastructure Combating speculation & non-transparent system of land allocation Combating speculation & non-transparent system of land allocation

Main challenges in Land lease Implementation The existing land tenure system in cities is complicated and resource draining. The existing land tenure system in cities is complicated and resource draining. The conversion of “permit” land to lease; The conversion of “permit” land to lease; The current system of mass land allocation; The current system of mass land allocation; The absence of an independent system of registering real estate transactions; The absence of an independent system of registering real estate transactions; The detail requirements of land right registration system; The detail requirements of land right registration system; A lack of street addressing system; A lack of street addressing system;

PART TWO LAND ADMINISTRATION AND LAND MANAGEMENT

Summary of Main issues On Land Markets Market demand is not considered in Land allocation Market demand is not considered in Land allocation Increasing informal occupation of land (Active informal market) Increasing informal occupation of land (Active informal market) Majority of property acquired with out mortgage Majority of property acquired with out mortgage

Main Issues of Land Administration Urban planning poorly related to rapidly evolving situation Urban planning poorly related to rapidly evolving situation Exhaustion of available land for urban expansion Exhaustion of available land for urban expansion Problems and costs related to existing and new urban infrastructure services Problems and costs related to existing and new urban infrastructure services Problems with the Leasehold and Permit Land regimes Problems with the Leasehold and Permit Land regimes Not all lands are titled Not all lands are titled Land administrations devolved at the city level but,swamped by petty routines (time taking land transfer procedures) Land administrations devolved at the city level but,swamped by petty routines (time taking land transfer procedures) Weak Land Records (existing land records management systems are inefficient; In some cities only about % are registered ) Weak Land Records (existing land records management systems are inefficient; In some cities only about % are registered )

…Main issues on Land Administration Land Rents and taxes Land Rents and taxes Difficult to collect Difficult to collect Data demanding, complex unclear Data demanding, complex unclear Land Surveying Land Surveying Constraining cadastre projects Constraining cadastre projects Causing boundary conflicts Causing boundary conflicts Map exists but generally inaccessible Map exists but generally inaccessible ICT & Geographical information Systems ICT & Geographical information Systems Unsustainable due to financial & human resource constraints Unsustainable due to financial & human resource constraints Data collection driven by master planning & property valuation Data collection driven by master planning & property valuation

Proposed actions for Enhanced Land Administration and Management Systems streamline administrative routines, streamline administrative routines, Introduce strategic spatial analysis, land budgeting, and associated capacity building: Introduce strategic spatial analysis, land budgeting, and associated capacity building: Set up an improved, multipurpose land grading system in municipalities; Set up an improved, multipurpose land grading system in municipalities; Introduce new parameters and standards for residential subdivisions with pro-poor objectives Introduce new parameters and standards for residential subdivisions with pro-poor objectives

Main Proposals… Institute a Progressive Reform of the Leasehold Regime, including increasing rates Institute a Progressive Reform of the Leasehold Regime, including increasing rates Raise permit regime land rents to improved leasehold rent levels Raise permit regime land rents to improved leasehold rent levels Improving Land Records and Associated Billing for Revenue Enhancement Improving Land Records and Associated Billing for Revenue Enhancement Establish municipal land servicing funds in the medium term Establish municipal land servicing funds in the medium term National standards, norms and procedures for land registration, But with local objectives National standards, norms and procedures for land registration, But with local objectives More secure and efficient real property registration system More secure and efficient real property registration system Better and more accessible land information Better and more accessible land information

Implementing Proposals Apply over 5 to 10 years through “learning by doing” Apply over 5 to 10 years through “learning by doing” Municipal land administration capacity improvements must be mainly “on the job” training Municipal land administration capacity improvements must be mainly “on the job” training Based on priorities (Economic analysis) Begin implementation first in pilot ULGAs Based on priorities (Economic analysis) Begin implementation first in pilot ULGAs Provide practical technical assistance imbedded at municipal level in pilot ULGAs Provide practical technical assistance imbedded at municipal level in pilot ULGAs Launch pilot digital mapping initiative urgently Launch pilot digital mapping initiative urgently Institutional capacity to address land administration issues Institutional capacity to address land administration issues