APRIL5BUDAPEST HOUSING FORUM HOUSING …ecahousingforum.eu/PDF/Session-Materials/Track-A/Key...2011/04/05 · KEY HOUSING ISSUES IN ETHIOPIA CHALLENGES OF THE HOUSING SITUATION IN

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KEY HOUSING ISSUES IN ETHIOPIAKEY HOUSING ISSUES IN ETHIOPIACHALLENGES OF THE HOUSING SITUATION IN ETHIOPIA

&HfH ETHIOPIA’S APPROACH IN PROVIDING HOUSING

FOR LOW INCOME FAMILIES.

BY KEBEDE ABEBE

NATIONAL DIRECTORNATIONAL DIRECTORHABITAT FOR HUMANITY (HFH) ETHIOPIA

PRESENTED AT THE FIRST HOUSING FORUM EUROPE & CENTRAL ASIA

BUDAPEST, HUNGARYAPRIL 5, 2011

MAP OF ETHIOPIAMAP OF ETHIOPIA

1.0) INTRODUCTION� ETHIOPIA

� LOCATION : EAST / HORN OF AFRICA� POPULATION: 73 MILLION (2008)POPULATION: 73 MILLION (2008)� POPULATION GROWTH RATE:

� NATIONAL ; 2.3%URBAN : 4 0 %� URBAN : 4.0 %

� PROJECTED POPULATION 2050: 170 MILLION.� AREA: 1.1 MILLION SQUARE KILOMETERS� SEAT OF THE AFRICAN UNION & ECA.� URBANIZATION: 16 %� >90% OF THE URBAN AREAS ARE SLUM AREAS.

� HFH ETHIOPIA� HAS BEEN IN EXISTENCE IN ETHIOPIA SINCE 1990

� ABOUT THE PRESENTER� EDUCATION: CIVIL ENGINEERING (BSc.) & INFRASTRUCTURE

PLANNING (MSc )PLANNING (MSc.)� NATIONAL DIRECTOR OF HFH ETHIOPIA SINCE AUGUST 13, 2001

2.0) HOUSING DEMAND )

� HOUSING DEMAND� HOUSING DEMAND� NOT EASY TO FIND ACCURATE & TIMELY DATA.

ONE ESTIMATE (2004) SHOWED THE NEED OF 2 5� ONE ESTIMATE (2004) SHOWED THE NEED OF 2.5MILLION HOUSING UNITS (COSTING €5.0 BILLION) ONLY IN URBAN AREASIN URBAN AREAS.

� HOUSING RELATED NEEDS� ACCESS TO CLEAN DRINKING WATER

� URBAN: 81 %� RURAL: 11 %

� ACCESS TO IMPROVED SANITATION� URBAN: 19 %� RURAL: 4 %RURAL: 4 %

3.0) SOME KEY HOUSING ISSUES3.1) INCOME AND AFFORDABILITY3 2) ACCESS TO HOUSING FINANCE3.2) ACCESS TO HOUSING FINANCE3.3) POLICY ENVIRONMENT3.4) INSTITUTIONAL CAPACITY3.5) ACCESS TO LAND AND VERY HIGH LAND PRICES3.6) RECOGNIZING ROLES OF CITIZEN PARTICIPATION3 7) RECOGNIZING ROLES OF NGOS IN HOUSING3.7) RECOGNIZING ROLES OF NGOS IN HOUSING3.8) POTENTIAL BUT LEAST USED HOUSING

PROVIDERSPROVIDERS.3.9) ACHIEVMENTS OF & CHALLENGES

ENCOUNTERED BY THE EXISTING HOUSING PROVIDERS

3 1) INCOME AND AFFORDABILITY3.1) INCOME AND AFFORDABILITYA) INCOME

� PERCENTAGE OF PEOPLE WITH LESS THAN A DOLLAR A DAY (1-DAD) : 23 %.

� PERCENTAGE OF PEOPLE WITH LESS THAN TWO DOLLARS A DAY (2-DAD): 78 %

� PERCENTAGE OF PEOPLE WITH LESS THAN TWO DOLLARS A DAY (4-DAD): 85 – 90% (ESTIMATE)

� NOTES:� THE NEXT SLIDES GRAPHICAL LY ILUSTRATE THE FOLLOWING:

o HOUSE COSTS INCOMES & AFFORDABILITY ARE INTER RELATEDo HOUSE COSTS, INCOMES & AFFORDABILITY ARE INTER-RELATED.

o THE PRINCIPLES AND THE CALCULATIONS ARE THE SAME FOR ANY LOCATION IN THE WORLD; AND THE DIFFERENCES ARE ONLY IN THE PATTERN OF INCOME DISTRIBUTION & HOUSE COSTS AT ANY PARTICULAR TIME.

HOUSING LOAN AFFORDABILITY OF 1DAD, 2DAD 7 4DAD FAMILIES TO QUALIFY FOR LOANS TO BUILD BASIC HOUSE

120,000S

[BIR

R] [TOTAL LEAST COST = BIRR 25,000]

ONE DOLLAR A DAY (1DAD) FAMILY

100,000

L LO

AN

S ( )

TWO DOLLAR A DAY (2DAD) FAMILY

FOUR DOLLAR A DAY (4DAD) FAMILY

60 000

80,000

RIN

ICIP

AL THE MINIMUM CAPITAL NEEDED FOR VERY BASIC HOUSING

NB: ONE-THIRD OF INCOME GOING TO HOUSING LOAN REPAYMENTS.

40,000

60,000

AB

LE P

R

20,000

,

AFF

OR

DA

ONLY HFHE REACHES 1DAD FAMILIES.

-

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0NT

OF

A

5.00

6.00

7.00

8.00

9.00

10.0

0

11.0

0

12.0

0

13.0

0

14.0

0

15.0

0

16.0

0

17.0

0

18.0

0

19.0

0

20.0

0

AM

OU

INTEREST RATES ON HOUSING FINANCE (% PER YEAR)

3.1) INCOME AND AFFORDABILITY …..

B) AFFORDABILITYDictionary definition:y

“Examination of prospective house buyer's

finances: an appraisal of somebody's ability to

meet the financial obligations arising from buyingmeet the financial obligations arising from buying

a house or other asset, taking account of the

person's assets, liabilities, and expected income

and expenditure” -- Microsoft® Encarta® 2009. ©and expenditure Microsoft® Encarta® 2009. ©

3.1) INCOME AND AFFORDABILITY …3.1) INCOME AND AFFORDABILITY …

B) AFFORDABILITY ….� FOR FAMILIES LESS THAN 1-DAD OR 2-DAD, SPECIAL

CONSIDERATIONS & EFFORTS ARE NEEDED TO MAKE HOUSES AFFORDABLE. �PLANNING & IMPLEMENTATION OF SUBSIDIES.

� GENERALLY MONTHLY HOUSE LOAN REPAYMENTS INCREASE:GENERALLY MONTHLY HOUSE LOAN REPAYMENTS INCREASE:� WITH INCREASING INTEREST RATES

WITH DECREASING REPAYMENT PERIODS� WITH DECREASING REPAYMENT PERIODS

� IN MOST CASES, REPAYMENT PERIODS LESS THAN 10 YEARS WOULD MAKE ALL POSSIBLE CHOICES UNAFFORDABLE FOR 1WOULD MAKE ALL POSSIBLE CHOICES UNAFFORDABLE FOR 1-DAD & 2-DAD FAMILIES.

EXPERIENCES SHOW THAT GENERALLY GOVERNMENTS MAKE� EXPERIENCES SHOW THAT GENERALLY GOVERNMENTS MAKE

MISTAKES IN MAKING HOUSING SUBSIDIES.

3.1) INCOME AND AFFORDABILITY ….B) AFFORDABILITY ……..

� REPAYMENT PERIODS IN EXCESS OF 20 – 25 YEARSREPAYMENT PERIODS IN EXCESS OF 20 25 YEARSWOULD NOT HELP MUCH IN IMPROVING HOUSING AFFORDABILITY FOR LOWER OR EVEN FOR ALL INCOME GROUPS.

� SOME OF THE FOREGOING CONCLUSIONS ARE GRAPHICALLY ILUSTRATED IN THE FOLLOWING SLIDES.

� WHY ARE SUCH ARGUMENTS NEEDED?� GENERALY POLICY MAKERS, ARCHITECTS & ENGINEERS HAVE

ALWAYS BEEN PUSHING FOR HIGH COST & MULTI-STOREY BUILDINGS.

ECONOMISTS HAVE NOT BEEN ABLE TO PRESENT THE LIMITATIONS IN� ECONOMISTS HAVE NOT BEEN ABLE TO PRESENT THE LIMITATIONS INCLEARER & MORE POWERFUL WAYS.

� EVEN RECENTLY, THE IDEA OF BUILDING “VERTICALLY” HAS BEEN ACTIVELY ADVOCATED FOR.

� AT THE MOMENT, EVEN HFH ETHIOPIA HAS BEEN “ENCOURAGED” TO BUILD MULTI STOREY BUILDINGS IN ORDER TO “CONSERVE” ORBUILD MULTI-STOREY BUILDINGS IN ORDER TO CONSERVE ORMORE EFFECTIVELY USE LAND.

MONTHLY HOUSE PAYMENTS FOR TWO ROOM HFH ETHIOPIA HOUSES IN ICHs [DEBRE BERHAN -FEB. 2011 COST @ BIRR 30,000].

800

900Monthly repayment at n = 5 yearsLOAN REPAYMENTS ARE

A THIRD OF INCOME

700

800

AYM

ENT Monthly Repayment

at n = 10 years

Monthly Repayment

500

600

OA

N R

EPA at n = 15 years

Monthly Repayment at n = 20 years

400

500

NTH

LY L

O


200

300MO

N Monthly Repayment at n = 30 years


100

200 at n = 50 years

ONE DOLLAR A DAY FAMILY

-

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

2 DOLLARS A DAY FAMILIY

FOUR DOLLARS A

INTEREST RATES (% PER YEAR)FOUR DOLLARS ADAY FAMILY

MONTHLY HOUSE PAYMENTS FOR TWO ROOM HFH ETHIOPIA HOUSES IN SSB

1 800

2,000[DEBRE BERHAN -FEB. 2011 COST @ BIRR 65,000].

Monthly repayment at n = 5

LOAN REPAYMENTS ARE A THIRD OF INCOME

1,600

1,800

ENT

years


1,200

1,400

REP

AYM

E Monthly Repayment at n = 15 years

Monthly Repayment at n =

800

1,000

Y L

OA

N R Repayment at n =

20 years


400

600

800

MO

NTH

LY Monthly Repayment at n = 30 years

Monthly

200

400M Repayment at n = 50 years


-

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0


FOUR DOLLARS AINTEREST RATES (% PER YEAR)

FOUR DOLLARS ADAY FAMILY

MONTHLY HOUSE PAYMENTS FOR TWO ROOM HFH ETHIOPIA HOUSES IN HCB [DEBRE BERHAN -FEB 2011 COST @ BIRR 84 000]

2,500

BERHAN FEB. 2011 COST @ BIRR 84,000].

Monthly repayment at n = 5 years

LOAN REPAYMENTS ARE A THIRD OF INCOME

2,000

MEN

T



1,500

REP

AYM at n 15 years


Monthly Repayment

1 000LOA

NR Monthly Repayment

at n = 25 years


1,000

NTH

LY L Monthly Repayment

at n = 50 years


500

MO

N


FOUR DOLLARS A

-

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

DAY FAMILY

Linear (Monthly repayment at n = 5 years)2

INTEREST RATES (% PER YEAR)y )

EFFECTS OF REPAYMENT PERIODS & INTEREST RATES ON FAMILY INCOME

3,000

RED

/REQUIREMENTS TO QUALIFY FOR HOUSING LOAN OF BIRR 30,000.

AT 4 % ANNUAL INTEREST RATESAT 10 % PER ANNUAL INTEREST RATE

2,500

B] R

EQU

I

AT 20 % ANNNULA INTEREST RATE1 DAD FAMILY2 DAD FAMILY4 DAD FAMILYINTEREST FREE FINANCE

2,000

ME

[ETB

INTEREST FREE FINANCE

1,500

LY IN

CO

00

1,000

UM

FA

MIL

500

MIN

MU

-

50 60 70 80 90 100

110

120

130

140

150

160

170

180

190

200

210

220

230

240

250

260

270

280

290

300

REPAYMENT PERIODS IN MONTHS

3.1.1) FACTORS THAT AFFECT HOUSING AFFORDABI ITYAFFORDABILITY

A) SOME IMPORTANT NOTESA) SOME IMPORTANT NOTES� HOUSING AFFORDABILITY IS KEY TO HOUSING SUPPLY & SUBSIDY

PLANNING.PLANNING.

� ORGANIZATIONS LIKE HABITAT FOR HUMANITY WERE CREATED TO MITIGATE AFFORDABILITY CHALLENGES.

� HOUISING SECTOR PLAYERS USUALLY SEEM TO GIVE LESS ATTENTION TO HOUSING AFFORDABILITY. IN OTHER WORDS, USUALLY HOUSING PROJECT PREPARATIONS ARE DONE WITHOUT GIVING ADEQUATE ATTENTION TO AFFORDABILITY.

O S O S G O S S� THERE ARE NO USER-FRIENDLY HOUSING AFFORDABILITY ANALYSISTOOLS ACCESSIBLE TO PROJECT PLANNERS & PEOPLE IN THE FIELD.

� AFFORDABILITY ANALYSIS & SUBSIDY PLANNING SHOULD BE COMPLETED� AFFORDABILITY ANALYSIS & SUBSIDY PLANNING SHOULD BE COMPLETEDBEFORE STARTING CONSTRUCTION OF HOUSES.

3.1.1) FACTORS THAT AFFECT HOUSING AFFORDABILITY……..AFFORDABILITY……..

B) FACTORS THAT AFFECT HOUSING AFFORDABILITY � FAMILY INCOME.

� INTEREST RATES ON HOUSING LOANS.

� LENGTH OF LOAN REPYMENT PERIODS.

� HOUSE COSTS, WHICH IN TURN ARE DEPENDENT ON:TYPE & DESIGN OF HOUSES� TYPE & DESIGN OF HOUSES

� MATERIAL CHOICES � CULTURAL & SOCIAL FACRORSCULTURAL & SOCIAL FACRORS� ARCHITECTURAL & ENGINEERING . REF LINK � REF. FIG

� LOCATION

� MATERIAL AVAILABILITY,� FOUNDATION STABILITY, ETC.

� TIME� USUALLY COSTS INCREASE AT A FASTER RATE COMPARED TO

INCOME OF THE PEOPLE. LINK � REF. FIG

3.2) ACCESS TO HOUSING FINANCE� CONSTRUCTION & BUSINESS BANK (CBB)

� LIMITED FINANCE FOR LOANSLIMITED FINANCE FOR LOANS� HOUSING LOANS ARE GIVEN INTERMITTENT LY� HOUSING LOANS ARE GIVEN TO VERY LIMITED SECTIONS OF

THE SOCIETY – ONLY IN ADDIS ABABA AND SOME OTHER BIG TOWNS.

� HMF & FOREIGN BANKS� NO (TOO FEW) MFIs THAT GIVE HOUSING LOANSNO (TOO FEW) MFIs THAT GIVE HOUSING LOANS� NO ACCESS TO FOREIGN CAPITAL� NO FOREIGN BANKS & MFIs

� NGOsNONE EXCEPT HFH ETHIOPIA� NONE EXCEPT HFH ETHIOPIA.

NOTE: GENERALLY, THERE IS NO OR TOO LITTLE HOUSING FINANCE FOR HOME BUILDERS / HOMEOWNERSFINANCE FOR HOME BUILDERS / HOMEOWNERS.

3.3) POLICY & ENVIRONMENT

THERE IS NO HOUSING POLICY� THERE IS NO HOUSING POLICY

� HOUSING IS AN AREA THAT IS GIVEN LEASTHOUSING IS AN AREA THAT IS GIVEN LEAST

ATTENTION DESPITE SOME INTERMITTENT

RECOGNITION OF THE PROBLEM.

ABSENCE OF HOUSING POLICY SEEMS TO� ABSENCE OF HOUSING POLICY SEEMS TO

BE THE SOURCE OF ALL THE OTHERSOU C O O

HOUSING PROBLEMS.

3.4) INSTITUTIONAL CAPACITY

� THERE IS NO INSTITUTION SUCH AS FEDERAL

MINISTRY / COMMISSION / AGENCY OF HOUSING.

� HOUSING ISSUES ARE HANDLED BY THE MINSTRY OF

CONSTRUCTION AND URBAN DEVELOPMENT.

� THE FOCUSES HAVE BEEN DIRECT BUILDING OF

HOUSES WITH PROJECT OFFICES:-� THAT EXISTED DURING THE WHOLE OF OR PART OF THE PROJECT

LIFE TIME.

� THAT DID / DO NOT HAVE ADEQUATELY QUALIFIED MANPOWER.

3.5) ACCESS TO LAND & “HIGH” LAND PRICESPRICES.

� SOME EARLIER STUDIES SHOW THAT LAND PRICES IN

ADDIS ABABA WERE HIGHER THAN THOSE IN BIG CITIES OF THE WORLD SUCH AS ROME, LONDON, NEW YORK,, , ,TOKYO, ETC.

GOVERNMENT IS THE ONLY PROVIDER OF LAND� GOVERNMENT IS THE ONLY PROVIDER OF LAND.� MONOPOLY SITUATION [ ADVANTAGES & DISADVANTAGES]

� CITIZENS CAN SELL ONLY THE HOUSES BUT NOT THE LAND WITH THE HOUSES.� SINCE THE NUMBER OF INDIVIDUAL SELLERS IS USUALLY VERY

LIMITED, THE HOUSE PRICES ARE VERY HIGH. [LOW SUPPLY]

� LOCATIONS AFFECT LAND PRICES / VALUES.

� AT THE MOMENT, SALES OF PARTIALLY COMPLETED HOUSES ARE NOT ALLOWED. (NOT BY LAW BUT ADMINISTRATIVELY…)

3 6) ROLES OF GREATER CITIZEN PARTICIPATION3.6) ROLES OF GREATER CITIZEN PARTICIPATION

� THE ROLES OF CITIZENS IN HOUSING.� IF EFFECTIVELY MOBILIZED, CITIZENS CAN & SHOULD MAKE

OWN EFFORTS TO IMPROVE SUPPLY OF HOUSES & SHELTER.

� SKILLS OF TRAINED CITIZENS CAN BE MOBILIZED IN THE

FORM OF VOLUNTARISM – IN DESIGN, SUPERVISION OFFORM OF VOLUNTARISM IN DESIGN, SUPERVISION OF

CONSTRUCTION ACTIVITIES.

� FINANCIAL & LABOR CONTRIBUTIONS (EQUITIES) CAN BE� FINANCIAL & LABOR CONTRIBUTIONS (EQUITIES) CAN BE

MADE BY HOMEOWNERS AS IT IS DONE IN HFH.

RESEACH & DEVELOPMENT EFFORTS CAN & SHOULD BE� RESEACH & DEVELOPMENT EFFORTS CAN & SHOULD BE

ENCOURAGED & RESULTS APPLIED.

� CITIZENS SHOULD BE FREELY ENCOURAGED TO ENGAGE IN

POLICY DIALOGUES.

NB: BUT THE ABOVE ARE RARELY SEEN IN PRACTICE AS MUCH AS

DESIRED.

3 7) ROLES OF NGO / CSO3.7) ROLES OF NGOs / CSOs

� NGOs / CSOs :NGOs / CSOs :� CAN PLAY CRITICAL ROLES IN FACILITATING

FAVORABLE CONDITIONSFAVORABLE CONDITIONS .� CAN ASSIST IN CAPACITY BUILDING TOWARDS MORE

EFFECTIVE CONSTRUCTION PROCESSESEFFECTIVE CONSTRUCTION PROCESSES.� CAN ASSIST IN PROVIDING HOUSES AS HFH IS DOING.

GENERALLY THERE ARE NO MEANINGFULLY SUSTAINED SUPPORTS & ENCOURAGEMENTS MADE TO NGOs.

3 8) POTENTIAL BUT LEAST USED HOUSING3.8) POTENTIAL BUT LEAST USED HOUSINGPROVIDERS.

� HOUSING COOPERATIVES

� EMPLOYERS

� NGOs SUCH AS HFH ETHIOPIA

3 9) ACHIEVMENTS & CHALLENGES OF SOME OF3.9) ACHIEVMENTS & CHALLENGES OF SOME OFTHE EXISTING HOUSING PROVIDERS

� GOVERNMENT

� INDIVIDUAL FAMILIES

REAL ESTATE HOUSING DEVELOPERS� REAL ESTATE HOUSING DEVELOPERS

� NGOs SUCH AS HFH ETHIOPIA� NGOs SUCH AS HFH ETHIOPIA

3.9.1 ) GOVERNMENTGOVERNMENT IN THE HOUSING SECTOR

DEVELOPMENTDEVELOPMENT� CREATION OF ENABLING ENVIRONMENT � ENSURING ADEQUATE HOUSING FINANCE� PROVISION OF LAND� PROVISION OF DIRECTIVES & MONITORING� PROVIDING TITLE DEEDS AND OWNERSHIPPROVIDING TITLE DEEDS AND OWNERSHIP

RIGHTS� BUILDING HOUSES AS A DIRECT PROVIDER� BUILDING HOUSES AS A DIRECT PROVIDER.

NOTE MORE FOCUSSED DISCUSSION IS MADE ON THE LASTNOTE: MORE FOCUSSED DISCUSSION IS MADE ON THE LASTONE AS THE REST ARE ROUTINE ACTIVITIES

3.9.1) GOVERNMENT RESPPONSE TO HOUSING DEMANDDEMAND ….

� IN 1999 / 2000, SUPPLY OF OVER 20,000 PLOTS OF

LAND IN ADDIS ABABA.

� SIMILAR EFFORTS IN OTHER URBAN AREAS.

� IN 2004/05 BUILDING OF CONDOMINIUM HOUSES

STARTED IN ADDIS ABABA, WHICH LATER

EXPANDED TO OTHER CITIES / TOWNS.

� EFFORTS WERE VERY MUCH FOCUSED ON BUILDING

OF THE CONDOMINIUM HOUSES & LESS OF

INSTITUTIONALIZATION FOR SUSTAINED

CONTINUATION.

3.9.1) GOVERNMENT RESPPONSE TO3.9.1) GOVERNMENT RESPPONSE TOHOUSING DEMAND ….

� FOUR YEARS’ PERFORMANCE “REPORT “ ON� FOUR YEARS PERFORMANCE REPORT ON

INTEGRATED HOUSING DEVELOPMENT (2006 – 2010)

� GOAL:

“TO MEANINGFULLY SOLVE HOUSING PROBLEMS ANDTO MEANINGFULLY SOLVE HOUSING PROBLEMS AND

IMPROVE THE LIFE OF URBAN DWELLERS THROUH

CREATION OF EMPLOYMENT BY BUILDING LOW COST &CREATION OF EMPLOYMENT BY BUILDING LOW COST &

LAND-USE-EFFICIENT RESIDENTIAL HOUSES.”.

� THE FOLLOWING WERE OBSRVED DURING THE

CONSTRUCTION IMPLEMENTATION OF THE PLANSCONSTRUCTION IMPLEMENTATION OF THE PLANS.� ACCELERATED CONSTRUCTION PACE.

LARGE SIZE IMPORTS OF CONSTRUCTION MATERIALS� LARGE SIZE IMPORTS OF CONSTRUCTION MATERIALS.


� FOUR YEARS’ PERFORMANCE “REPORT “ ON� FOUR YEARS PERFORMANCE REPORT ON

INTEGRATED HOUSING DEVELOPMENT (2006 – 2010) …..

� RESULTS:

� EMPLOYMENT CREATION FOR 175,000,

� SUBSTANTIAL COMPLETION OF ABOUT 150,000 (80,000 IN AA),

WHICH IS ABOUT 38 % OF THE TOTAL PLANNED 400 000WHICH IS ABOUT 38 % OF THE TOTAL PLANNED 400,000

HOUSES.

� THE NUMBER OF HANDED OVER HOUSES� THE NUMBER OF HANDED OVER HOUSES

o IN ADDIS ABABA : 68,000 HOUSES.

IN REGIONS 20 200 HOUSESo IN REGIONS: 20,200 HOUSES.

S


PHOTOGRAPHIC ILLUSTRATION

OF

THE PROGRESSES MADE.

CONDOMINIUM HOUSES IN MAKANISA AREA

CONDOMINIUM HOUSES IN MAKANISA AREA

CONDOMINIUM HOUSES IN JEMU AREA

CONDOMINIUM HOUSES IN JEMU AREA

CONDOMINIUM HOUSES IN LEBU AREA

3 9)) ACHIEVMENTS & CHALLENGES OF SOME OF THE3.9) ACHIEVMENTS & CHALLENGES OF SOME OF THEEXISTING HOUSING PROVIDERS ….

SINDIVIDUAL FAMILIES� THIS IS VERY LIMITED MAINLY TO HIGHER AND SOME

MIDDLE INCOME FAMILIES.

� ACCESS TO LAND & HOUSING FINANCE MAKES IT� ACCESS TO LAND & HOUSING FINANCE MAKES IT

VERY DIFFICULT FOR THE INDIVIDUALS.

� INFLATION IN THE COST OF HOUSES USUALLY

RESULTS IN SERVING HIGHER INCOME FAMILIS.

� POOR PLANNING, INADEQUATE ENGINEERING &

FINANCIAL DECISIONS, ETC. CAN ADVERSELY

AFFECT HOME BUILDERS.

TACHIEVMENTS & CHALLENGES OF SOME OF THE

EXISTING HOUSING PROVIDERS ….

INDIVIDUAL FAMILIES ……INDIVIDUAL FAMILIES ……

� HORIZONTAL EXPANSION (Advantages)� GIVES A CHANCE TO MAKE HOUSES MORE AFFORDABLE.

� CULTURAL ACCEPTANCE OF THE HOUSES.

� HORIZONTAL EXPANSION (disadvantages)� CONSUMES MORE USEABLE AGRICULTURAL LANDCONSUMES MORE USEABLE AGRICULTURAL LAND

� REQUIRES MORE DIRECT INFRASTRUCTURE COSTS SUCH AS INVESTING INTRANSPORATION SYSTEMS.INVESTING INTRANSPORATION SYSTEMS.� ROAD BUILDING

� VEHICLES: initial cost, fuel), repair…., ), p

� Etc.

NB: THE ABOVE POINTS ARE JUST CONCLUSION WITHOUT EVIDENCES AND SPECIFIC CALCULATIONS. TRAFFIC CONGESTION ETC. COSTS ARE IGNORED.

ACHIEVMENTS & CHALLENGES OF SOME OF THE EXISTING HOUSING PROVIDERSHOUSING PROVIDERS ….

INDIVIDUAL FAMILIES ……• VERTICAL EXPANSION (“GROWTH”) /

(Disadvantages) LINK �( g )– DOES NOT GIVE A CHANCE TO MAKE HOUSES

AFFORDABLE FOR THE MAJORITY OF PEOPLE.

– MUCH LESS CULTURAL ACCEPTANCE OF THE HOUSESHOUSES.

• VERTICAL EXPANSION (Advantages)

– CONSUMES LESS USEABLE AGRICULTURAL LAND

– REQUIRES LESS INFRASTRUCTURE COSTS SUCH AS TRANSPORATION .

ACHIEVMENTS & CHALLENGES OF SOME OF THE EXISTING HOUSING PROVIDERS ….

INDIVIDUAL FAMILIES …INDIVIDUAL FAMILIES …� THE CONSEQUENCES OF PREFERENCES OF THE VERTICAL

EXPANSIONS OVER HORIZONTAL ONES.� CAPACITY OF BENEFICIARIES HAS NOT BEEN CONSIDERED. WIDE

RANGE OF INCOME GROUPS PUT TOGETHER LEADING TO :-� ISSUES OF AFFORDABILITY.� ISSUES OF STRUCTURAL DESIGN & CONSTRUCTION.

� PLANS ASSUME FLAT LAND IN SLOPY PLACES LIKE ADDIS ABABA� PLANS ASSUME FLAT LAND IN SLOPY PLACES LIKE ADDIS ABABA.� INITIATIVES WERE NOT WELL STUDIED AND DISCUSSED. � IF IMPLEMENTED RESULTS WOULD RESULT IN CONGESTED� IF IMPLEMENTED, RESULTS WOULD RESULT IN CONGESTED

LIVING SITUATIONS.� THE HOUSES WOULD BE HIGHEST COST AND LEAST MARKET

VALUE HOUSES.� ULTIMATELY BENEFICIARIES ARE THE MAIN VICTIMS OF THOSE

MULTI-STORY HOUSES.

3 9) ACHIEVMENTS & CHALLENGES OF SOME OF3.9) ACHIEVMENTS & CHALLENGES OF SOME OFTHE EXISTING HOUSING PROVIDERS ….

SINDIVIDUAL FAMILIES ….

PHOTOGRAPHIC DESCRIPTION

G+2 HOUSES FOR MIDDLE INCOME FAMILIES.

IN THE INTEREST OF VERTICAL GROWTH,SUCH G+2 STOREY HOUSE PLANS

WERE DEVELOPED AND ROLLED OUT TO PEOPLE FOR IMPLEMENTATION.WERE DEVELOPED AND ROLLED OUT TO PEOPLE FOR IMPLEMENTATION.

GENERALLY THESE HOUSES ARE EXPECTED TO BE BUILT AT THE SAME TIME.

THIS IS PARTICULARLY IMPORTANT IN CONSTRUCTING THE REINFORCED

CONCRETE (RC) ELEMENTS SUCH AS FOUNDATION

FOOTINGS, COLUMNS, BEAMS & SLABS.

CAN THE TARGET PEOPLE REACH THEIR DESTINATION, I.E, COMPLETE THE HOUSES?

G+2 HOUSES FOR MIDDLE INCOME FAMILIES.

FLOOR PLANFLOOR PLAN

TYPICAL G+2 HOUSES WHOSE PLANS WERE ROLLED OUT ABOUT 4 EARS AGO CONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGOAGO. CONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGO.

TYPICAL G+2 HOUSES WHOSE PLANS WERE ROLLED OUT ABOUT 4 EARS AGO CONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGOAGO. CONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGO.

TYPICAL G+2 HOUSES WHOSE PLANS WERE ROLLED OUT ABOUT 4 EARS AGO. CONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGO.

Better off families struggling to move forward. Can the design allow this? The answer is no!design allow this? The answer is no!

TYPICAL G+2 HOUSES WHOSE PLANS WERE ROLLED OUT ABOUT 4 EARS AGO. CONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGO.

BETTER OFF FAMILIES STRUGGLING TO MOVE FORWARD. CAN THE DESIGN

ALLOW THIS? NO, NO,…..

TYPICAL G+2 HOUSES WHOSE PLANS WERE ROLLED OUT ABOUT 4 EARS AGO. CONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGOCONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGO.

TYPICAL G+2 HOUSES WHOSE PLANS WERE ROLLED OUT ABOUT 4 EARS AGO. CONSTRUCTION WAS ALSO STARTED 3 4 YEARS AGOCONSTRUCTION WAS ALSO STARTED 3 - 4 YEARS AGO.

Plans v.s Actuals(Septic Tanks under Floors)

In most cases, communal septic tanks andmunicipal sewage disposal s stems aredisposal systems areexpected to be much better option.

� Economies of scale.

THE QUESTIONS ARETHE QUESTIONS ARE….

� CAN THE TARGET FAMILIES COMPLETE THE HOUSES?

� WHAT HAPPENS NEXT SINCE THE OWNERS OF THESEWHAT HAPPENS NEXT SINCE THE OWNERS OF THESE

HOUSES (IN –PROGRESS) ARE NOT ALLOWED TO SELL

AWAY THE HOUSES?AWAY THE HOUSES?

� NEITHER MOVING FORWARD NOR BACKWARD SEEMS TO

BE POSSIBLE. IT IS LIKE NO RETURN TO INVESTMENT.

� THE MONEY INVESTED IN THESE HOUSES DOES NOT GIVE

RETURNS AS QUICKLY AS DESIRED, GIVES RETURNS AT

ALL IT GIVES ?

3.9)) ACHIEVMENTSS && CHALLENGESS OFF SOMEE OFF 3.9) ACHIEVMENTS & CHALLENGES OF SOME OF THE EXISTING HOUSING PROVIDERS ….

REAL ESTATE HOUSING DEVELOPERSREAL ESTATE HOUSING DEVELOPERS

� HAS ADDRESSED MAINLY THE NEEDS OF THE DIASPORA AND THE TOP ABOUT “5 – 10 %” OF THE SOCIETY.

� CHARACTERIZED BY HIGH PRICES FAR BEYOND THE CAPACITIES OF ETHOPIANS.

� INITIAL ONES WERE LOCATED FAR AWAY FROM JOBS AND THE CITY BUT RECENTLY MOVING TOWARDS THEAND THE CITY. BUT RECENTLY MOVING TOWARDS THECITY CENTERS.

LIMITED TO VERY FEW CITIES (ADDIS ABABA BAHIR� LIMITED TO VERY FEW CITIES (ADDIS ABABA, BAHIRDAR, …)


REAL ESTATE HOUSING DEVELOPERS ….

� SOME OF THEM HAVE QUALITY ISSUES� SOME OF THEM HAVE QUALITY ISSUES.

� SOME NEWS OF CORRUPTION AROUND LAND

GRABBING.

� IT IS HARD TO TELL WHAT THE PROBLEMS ARE AS� IT IS HARD TO TELL WHAT THE PROBLEMS ARE AS

THERE WERE NO SPECIFIC LAWS RELATED TO

REAL ESTATE HOUSING.


NGOs / HFH ETHIOPIA AS AN EXAMPLE


GO / O SNGOs / HFH ETHIOPIA AS AN EXAMPLE …..

TYPESS OFF SERVICESS OFFEREDD TOO HOMEOWNERSS && TYPES OF SERVICES OFFERED TO HOMEOWNERS &

BENEFICIARIES

FULLL HOUSES• FULL HOUSES

• KITCHEN IMPROVEMENT

• WATER & SANITATION

• DISTRIBUTION OF MOSQUITO NETS

• CAPACITY BUILDING

• & SOCIAL TRANSFORMATION


GO / O SNGOs / HFH ETHIOPIA AS AN EXAMPLE …..

TYPES OF SERVICES OFFERED TO HOMEOWNERS & BENEFICIARIES ….

FULL HOUSES

TYPICAL SITE LAYOUT AND HOUSE PLANS

SAMPLE HOUSES BUILT IN AFFILIATESSAMPLE HOUSES BUILT IN AFFILIATESDEBRE BERHAN



SAMPLE HOUSES BUILT IN AFFILIATESSAMPLE HOUSES BUILT IN AFFILIATESDESSIE

SAMPLE HOUSES BUILT IN AFFILIATESSAMPLE HOUSES BUILT IN AFFILIATESBAHIR DAR

BAHIR DAR

SAMPLE HOUSES BUILT IN AFFILIATESSAMPLE HOUSES BUILT IN AFFILIATES

BAHIR DAR

NUMBER OF NEW & FULL HOUSES BUILT BY HABITAT FOR HUMANITY ETHIOPIA [JULY 1, 1993 - JUNE 30, 2010]

312

350

L[ , , ]

250

300312

300

R F

ISC

AL

184200

250

ILT

PER

123145

170

150

SES

BU

IYE

AR

56 5750

100

OF

HO

US Y

15 15 15 15 15ANNUALTOTAL, FY1998, --

1325

-

50

3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0MB

ERO

FY19

93

FY19

94

FY19

95

FY19

96

FY19

97

FY19

98

FY19

99

FY20

00

FY20

0

FY20

0 2

FY20

03

FY20

04

FY20

05

FY20

06

FY20

07

FY20

08

FY20

09

FY20

10

NU

M

FISCAL YEARSFISCAL YEARS

INNOVATION IN HFH ETHIOPIA� HFH ETHITOOPIA’S SUCCESS IS MAINLY DEPENDENT� HFH ETHITOOPIA S SUCCESS IS MAINLY DEPENDENT

ON INNOVATIVE APPROACHES TO PROBLEMS AND

CHALLENGES IN HOUSING SOLUTIONS.

� ONE OF THE NOTEABLE EXAPMLES IS INTRODUCTION

OF IMPROVED CHIKA HOUSES (ICHs) TO MITIGATE THE

CHALLENGES OF AFFORDABILITY.

INNOVATION IN HFH ETHIOPIA

� BRIEF HISTORY OF ICHs.� IN 2004, HFHE DID A PILOT ON “IMPROVED CHIKA

HOUSES.”� ICH PILOT WAS ROLLED OUT IN 2005.� CHANGE WAS DONE MAINLY IN CHOICE OF MATERIALS

USED.� THE SECOND MAJOR CHANGE WAS METHOD OF� THE SECOND MAJOR CHANGE WAS METHOD OF

CONSTRUCTION.DEVELOPMENT OF A NEW HOUSE DESIGNS & LAYOUT PLANS� DEVELOPMENT OF A NEW HOUSE DESIGNS & LAYOUT PLANS.

� THE PROPORTION OF ICHs HAS EXCEEDED OVER 70% OF TOTAL HOUSES BUILT BY HFH ETHIOPIATOTAL HOUSES BUILT BY HFH ETHIOPIA.

INNOVATION IN HFH ETHIOPIA ….� BENEFITS AND RESULTS OF ICHs� BENEFITS AND RESULTS OF ICHs.

� SIMPLER, MORE FLEXIBILE, CHEAPER, EASY TO BUILD HOUSES.

� CAN BE BUITL ANY WHERE & AT ANY TIME OF THE YEAR, ETC.

� ICHs HELPED IN MAKING THE FOLLOWING SAVINGS ONLY IN

CEMENT COMPARED TO THE SECOND BEST CHOICE – SSB

HOUSESHOUSES.� FY06 – US $ 50,000 � FY07 – US $80,000� FY08 – US $150,000 � FY09 – US $175,000 � FY10 – US $192,000,

INNOVATION IN HFH ETHIOPIA ….

� BENEFITS AND RESULTS OF ICHs….

� BRIEFLY HFHE SAVED OVER 70,000 BAGS OF CEMENT

UNTIL THE END OF FY10 (JUNE 30, 2010) IN BUILDINGUNTIL THE END OF FY10 (JUNE 30, 2010) IN BUILDING

HOUSES.

� ICHs ALSO ENSURED BETTER USES OF DONOR FUNDS.

� ICHs ENSURED CONTINUED EXISTENCE IN THE COUNTRY.

INNOVATION IN HFH ETHIOPIA ….

BENEFITS AND RESULTS OF ICH� BENEFITS AND RESULTS OF ICHs….

…… compared to:…… compared to:

SSB = STABILIZED SOIL BLOCKS

HCB – HOLLOW CONCRETE BRICKS (G+0)

HCB – HOLLOW CONCRETE BRICKS (G+1)HCB – HOLLOW CONCRETE BRICKS (G+1)

…………… please see next slide�

� OTHER INNOVATIONS ARE THINGS LIKE

USE OF SAVING GROUPS

AFFORDABILITY OF A TWO ROOM HFHE HOUSE IN HCB (G +1 & G+0), SSB & ICHs (BOTH IN G+0) – [NB: ALL ARE OF SAME SIZES BUT DIFFERENT MATERIALS / CONSTRUCTION]

3,787

4,000

ON

TH) [ ]

3,787

3,402

3,000

3,500

IN E

TB /

M

2,632

2,840

2,551 2,500

,

UIR

EMEN

T

1,328

1,974

1,500

2,000

OM

E R

EQU

HOUSE COST MIN. MONTHLY INCOME REQUIREMENTS_25%

1,328

996

500

1,000

FAM

ILY

NC HOUSE COST MIN. MONTHLY INCOME

REQUIREMENTS_ 33%

-

500

ER +0)

+0)

+0)

MIN

.F MOVE TO LOWER INCOME FAMILES

THROUGH SAVING GROUPS. ETC.

B (G

+1 )

PEFL

OO

R

HC

B (G

+

SSB

(G+

ICH

s (G

+

HC

FINANCIALL PERFORMANCE90%

FINANCIAL PERFORMANCE[SOURCES ARE AUDITED FINANCIAL REPORTS]

70%

80%EN

SEAN NGO CAN BE VERY EFFICIENT

EXAMPLE OF HFH ETHIOPIA

60%

70%

L EX

PE

40%

50%

CTU

AL

TIO

s

30%

40%

OTA

L A

RAT

10%

20%

ECT-

TO

0%

10%

8 9 0 1 2 3 4 5 6 7 8 9 0

DIR

E

FY9

FY9

FY0

FY0

FY0

FY0

FY0

FY0

FY0

FY0

FY0

FY0

FY1

FISCAL YEARSFISCAL YEARS

HFH ETHIOPIA NATIONAL REPAYMENT LEVEL [%]

100

HFH��ETHIOPIA_�NATIONAL�REPAYMENT�LEVEL�[%](July�2005�� DEC.�2010)

80

90

PER�CE

NT

60

70

MEN

T�RA

TE�IN

�P

40

50

IONAL�RE

PAYM

REPAYMENT RATES WITHOUT ANY WRITEOFFs

20

30NAT

REPAYMENT RATES WITH ONE WRITEOFF

0

10

MONTHS

REVOLVING FUNDREVOLVING FUND

REVOLVING FUND

VOLUNTEERR ENGAGEMENTT ASS AGENTSS OFF VOLUNTEER ENGAGEMENT AS AGENTS OF TRANSFORMATION

VOLUNTEERR ENGAGEMENTT ASS AGENTSS OFF VOLUNTEER ENGAGEMENT AS AGENTS OF TRANSFORMATION

CHALLENGES BEING FACED BY HFHE AS A HOUSING PROVIDER

� FUNDING

� LAND AVAILABILITY

� INFLATION & DECLINING REAL INCOME OF� INFLATION & DECLINING REAL INCOME OF

THE TARGET FAMILIES.

� UPWARD CREEP.

� MORE FUNDS PER FAMILY SERVED.

� ENVIRONMENTAL SITUATION.ENVIRONMENTAL SITUATION.

40000

HOUSE COST INCREASE _ CASE OF HFHE HOUSES - FY03 -11

35000

40000

RR

BAHIR DAR

DEBRE BERHANE

DEBRE MARKOS

25000

30000

TS I

N B

I

DESSIE

DEBRE ZEIT

JIMMA

20000

SE C

OST

JIMMA

10000

15000

HO

US

0

5000

0

FISCAL YEAR

CONCLUSIONS� THE FOLLOWING ARE KEY IN HOUSING DEVELOPMENT� THE FOLLOWING ARE KEY IN HOUSING DEVELOPMENT.

� ETHIOPIA IS ONLY 16 URBANIZED WITH OVER 90 % BEING SLUM AREAS.

� ACCESS TO URBAN LAND FOR HOUSING IS ONLY THROUGH THE GOVERNMENT.

� INCOME & HOUSING AFFORDABILITY IS A CRITICAL ISSUE IN ETHIOPIA.

� HOUSING FINANCE REMAINS EXTREMELY INADEQUATE AND ONLY INTERMITTENTLY AVAILABLE.

� ABSENCE OF NATIONAL HOUSING POLICY & REGULATORY BODY SUCH AS MINISTRY OF HOUSING REMAINS A BIG CONCERN BECAUSE IT HAS NOT BEEN POSSIBLE TO:� ENGAGE IN CONTINUED POLICY DIALOGUES.

� ENSURE PROPER PLANNING & IMPLEMENTATION OF HOUSING PROJECTS� ENSURE PROPER PLANNING & IMPLEMENTATION OF HOUSING PROJECTS.

� CARRY OUT MEANINGFUL & PRACTICAL RESEARCHES, PILOT TEST AND TIMELY EVALUATIONS TOWARDS MORE EFFECTIVE HOUSING SUPPLY.

� PUT IN PLACE LEGAL FRAMEWORKS FOR REAL ESTATE HOUSING DEVELOPMENT.

CONCLUSIONS ….

� IT HAS NOT BEEN POSSIBLE TO ENSURE PARTICIPATION OF STAKEHOLDERS SUCH AS CITIZENS, CSOs, DONORS, NGOs, FINANCIAL INSTITUTIONS, HIGHER LEARNING INSTITUTIONS, ETC. TO MOBILIZE RESOURCES:� FINANCIAL RESOURCES

� LABOUR POWER

� HOUSE BUILDING MANAGEMENT & TECHNICAL SKILLS.HOUSE BUILDING MANAGEMENT & TECHNICAL SKILLS.

� NEW RESEARCH FINDINGS

THANK YOU FORFOR

YOUR ATTENTION!!

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