SYNOPTIC REFLECTION ON URBAN SYNOPTIC REFLECTION ON URBAN LAND ADMINISTRATION ISSUES LAND ADMINISTRATION ISSUES

IN ETHIOPIA 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 URBAN Challenges and TrendsTrends

Urban population ~ 16%Urban population ~ 16%Fast Urbanization rate ~4.3% (up to 8%); urban Fast Urbanization rate ~4.3% (up to 8%); urban population about 12 Million, by the year population about 12 Million, by the year 2020~25Mill2020~25Mill

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 Urban un-employment ~26% (~40% in bigger cities)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 FinanceWeak Municipal FinanceLow Governance & Institutional capacityLow Governance & Institutional capacity

Opportunities Opportunities

Urban Development Policy in place , principles of Urban Development Policy in place , principles of good governance and urban land allocation good governance and urban land allocation defined.defined.

Increased Recognition of Urban AgendaIncreased Recognition of Urban Agenda Institutions for urban Sector –MWUD establishedInstitutions for urban Sector –MWUD established PASDEP and Urban Packages preparedPASDEP and Urban Packages prepared Urban Good Governance Package is preparedUrban Good Governance Package is prepared DDTA (CBDSD) studies being completedDDTA (CBDSD) studies being completed The Legal & Institutional conditions for the The Legal & Institutional conditions for the

Establishment of IULIS &RPRS drafted Establishment of IULIS &RPRS drafted

PART ONEPART ONEURBAN LAND OWNERSHIP URBAN LAND OWNERSHIP

and TENUREand TENURE

Land ownership & Tenure Land ownership & Tenure ( Historical perspective)( Historical perspective)

Under the Emperor (pre-1975) there was Under the Emperor (pre-1975) there was freehold freehold titletitle. Private land ownership by individuals was . Private land ownership by individuals was encouraged, although the number of people who encouraged, although the number of people who were actually able to own land was very restricted.were actually able to own land was very restricted.

Under the DERG (1975-1993) all land was Under the DERG (1975-1993) all land was nationalized.nationalized. Private land ownership outlawed. Right Private land ownership outlawed. Right to use property and own to use property and own buildings buildings were possible were possible but no private ownership of but no private ownership of land.land.

The current government maintained the public The current government maintained the public ownership of land but allowed for land to be held by ownership of land but allowed for land to be held by individuals and companies by way of a individuals and companies by way of a lease.lease.

Objectives of the Land Lease Objectives of the Land Lease Policy Policy

Market value to LandMarket value to Land Encourage InvestmentEncourage Investment Control the undesired expansion of Control the undesired expansion of

cities cities Provision of housing and infrastructureProvision of housing and infrastructure Combating speculation & non-Combating speculation & non-

transparent system of land allocationtransparent system of land allocation

Main challenges in Land Main challenges in Land lease Implementationlease Implementation

The existing land tenure system in cities is The existing land tenure system in cities is complicated and resource draining. 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 The absence of an independent system of

registering real estate transactions;registering real estate transactions; The detail requirements of land right The detail requirements of land right

registration system;registration system; A lack of street addressing system;A lack of street addressing system;

PART TWO PART TWO LAND ADMINISTRATION AND LAND ADMINISTRATION AND

LAND MANAGEMENTLAND MANAGEMENT

Summary of Main issues On Summary of Main issues On Land Markets Land Markets

Market demand is not considered in Market demand is not considered in Land allocationLand allocation

Increasing informal occupation of Increasing informal occupation of land (Active informal market)land (Active informal market)

Majority of property acquired with Majority of property acquired with out mortgageout mortgage

Main Issues of Land Main Issues of Land AdministrationAdministration

Urban planning poorly related to rapidly evolving Urban planning poorly related to rapidly evolving situation situation

Exhaustion of available land for urban expansionExhaustion of available land for urban expansion Problems and costs related to existing and new Problems and costs related to existing and new

urban infrastructure services urban infrastructure services Problems with the Leasehold and Permit Land Problems with the Leasehold and Permit Land

regimes regimes Not all lands are titledNot all lands are titled Land administrations devolved at the city level Land administrations devolved at the city level

but,swamped by petty routinesbut,swamped by petty routines (time taking land transfer (time taking land transfer procedures)procedures)

Weak Land Records Weak Land Records (existing land records management systems (existing land records management systems are inefficient; In some cities only about 20- 30% are registered )are inefficient; In some cities only about 20- 30% are registered )

……Main issues on Land Main issues on Land AdministrationAdministration

Land Rents and taxesLand Rents and taxes• Difficult to collectDifficult to collect• Data demanding, complex unclearData demanding, complex unclear Land SurveyingLand Surveying• Constraining cadastre projectsConstraining cadastre projects• Causing boundary conflictsCausing boundary conflicts• Map exists but generally inaccessibleMap exists but generally inaccessible ICT & Geographical information SystemsICT & Geographical information Systems• Unsustainable due to financial & human resource Unsustainable due to financial & human resource

constraintsconstraints• Data collection driven by master planning & property Data collection driven by master planning & property

valuationvaluation

Proposed actions for Enhanced Land Proposed actions for Enhanced Land Administration and Management Administration and Management

SystemsSystems

streamline administrative routines,streamline administrative routines, Introduce strategic spatial analysis, land Introduce strategic spatial analysis, land

budgeting, and associated capacity building: budgeting, and associated capacity building: Set up an improved, multipurpose land grading Set up an improved, multipurpose land grading

system in municipalities;system in municipalities; Introduce new parameters and standards for Introduce new parameters and standards for

residential subdivisions with pro-poor objectivesresidential subdivisions with pro-poor objectives

Main Proposals…Main Proposals…

Institute a Progressive Reform of the Leasehold Institute a Progressive Reform of the Leasehold Regime, including increasing ratesRegime, including increasing rates

Raise permit regime land rents to improved Raise permit regime land rents to improved leasehold rent levels leasehold rent levels

Improving Land Records and Associated Billing for Improving Land Records and Associated Billing for Revenue EnhancementRevenue Enhancement

Establish municipal land servicing funds in the Establish municipal land servicing funds in the medium termmedium term

National standards, norms and procedures for land National standards, norms and procedures for land registration, But with local objectivesregistration, But with local objectives

More secure and efficient real property registration More secure and efficient real property registration systemsystem

Better and more accessible land information Better and more accessible land information

Implementing ProposalsImplementing Proposals

Apply over 5 to 10 years through “learning by Apply over 5 to 10 years through “learning by doing”doing”

Municipal land administration capacity Municipal land administration capacity improvements must be mainly “on the job” improvements must be mainly “on the job” trainingtraining

Based on priorities (Economic analysis) Begin Based on priorities (Economic analysis) Begin implementation first in pilot ULGAsimplementation first in pilot ULGAs

Provide practical technical assistance Provide practical technical assistance imbedded at municipal level in pilot ULGAsimbedded at municipal level in pilot ULGAs

Launch pilot digital mapping initiative urgentlyLaunch pilot digital mapping initiative urgently Institutional capacity to address land Institutional capacity to address land

administration issuesadministration issues