1. Urban and Regional Development Policy
Urban and Regional Development in Ethiopia Presented by Martha Bisrat Policy, Research and Planning Bureau Ministry of Works and Urban Development (MWUD)
Training on
Urban and Regional Development Policy
August 21- September 5, 2007

2. General Background
Ethiopia’s total population was estimated to be 81.2 million in the year 2007 and is projected to reach million in 2050 which will make Ethiopia the 10th largest nation in the world
There has been significant GDP growth over the last 4 years (on average 4.8% & 2.2% for PCI)
The highest share in the GDP is agriculture (~48%)
There are 9 Regional States and 2 City Governments
Its political system before was a Military Dictatorship
Post 1991 Federal Democratic System was established

3. Background
Despite long history of urbanization Ethiopia is among the least urbanized country
Current urban population is about is 13 million (16% of the county’s total population).
Urban growth rate is 4%
The capital city Addis Ababa is the primate city with a population of over 3 million and is 10 time larger than the second largest city (Dire Dawa)

4. Background …
Addis Ababa contains about 25% of the country’s urban population
There are a total of 925 Urban settlement in Ethiopia, of which 84 have been granted status as Urban administrations (as of Feb. 2007)
The vast majority of centers classified as urban have population of less than 20,000 (or 89%).
With the exception of new Urban centers including the capital Addis Ababa the remains towns are closely linked with activities in their respective hinterland

5. Background … Characteristic of Ethiopian’s urban centers
Poorly developed economic base
High level of unemployment (estimated to be 16.7% and up to 28.6% in Addis Ababa)
A worrisome incidence of poverty and slum dwelling
Prevalence of informal economy
About 70% of the urban population is estimated to live is slum areas especially is in Addis Ababa

6. Critical Challenges Urban population living in extreme poverty (~40%)
Urban unemployment
Higher in bigger cities
Worse for youth and women
Low productivity and economic growth
Increasing growth of slums in cities (~70%)
Critical housing shortage
Weak infrastructure & municipal services
Poor governance & weak institutional capacities
Weak municipal finance
Weak R-U Linkage & Planning Challenges

7. Urban Policies, Strategies & Programmes
The short, medium and long term intervention areas are:
The Federal Urban Development Policy
Plan for Accelerated and Sustained Development to End Poverty (PASDEP) – Five years plan
Urban Programmes
Urban Development Program
Urban Good Governance Program

8. Urban Development Policy
The Policy underlies
The Federal Government System of the FDRE
Rural and Agricultural Development Strategy
Industrial Development Strategy
Promotion of Rural Urban Linkages

9. Urban Development Policy
The Policy Aims to
Enable cities and towns become centers of growth and thereby increase their role in rural and national economic development
Improve the income and livelihood of urban residents
Empower urban residents and ensure good governance

10. Urban Development Policy - Principles
Promoting interlinked development of rural and urban, as well as urban-urban centers
Increasing growth opportunities for all urban centers by promoting balanced development
Promoting interlinked development of urban centers with different economic roles by ensuring decentralized urbanization
Orienting urban development endeavors towards poverty reduction
Promoting active public participation
Establishing partnership with the private sector
Pursuing decentralized governance system and thereby empowering cities and towns with self-governance

11. Urban Development Policy – Key Urban Tasks
Ensuring Accelerated & Sustained Development
Promoting MSE development
Promoting Housing Development
Improving Urban Land and Infrastructure Delivery
Improving Social Infrastructure and Services
Improving Urban Planning and Environment
Ensuring Democracy and Good Governance
Promoting democratization
Promoting good governance
Building urban capacities

12. PASDEP Urban Development Program Contains mainly two programs
Integrated Housing Program
Micro and Small Enterprises Development Program
Other issues addressed by PASDEP
Land, Infrastructure, Services
Urban-Rural and Urban-Urban linkages

13. Integrated Housing Development Program
Major Targets
Construct ~400 thousand housing units (~61 thousand in 2006/07 in 33 towns).
Develop 3200 hectares of land for the Program.
Create ~200 thousand Jobs.
Promote the Development of 10,000 MSEs
Capacity Building of Contractors, Consultants, Engineers and Foremen.
Construction Materials Capacity Building.

14. Beneficiaries Mainly Low and Middle Income Urbanites (~360 thousand).
– At least 20-30% Women.
200 thousand Jobs to daily labourers, semi-skilled labour and highly skilled labour engaged in the construction industry.
10 Thousand Micro and Small Business Operators.

15. Integrated Approach to Housing Development
The Strategy
Integrated Approach to Housing Development
Job creation & developing private sector
Developing competitive construction industry
Linking with slum reduction
Mobilize savings & wealth creation through home ownership
Linking with finance sector development
Creation of better functioning housing markets
Promotion of affordable houses: Low-cost and labor intensive technology, cost-saving designs and construction methods, economical land use & use of local materials
Mobilization of All Actors: Private Sector, Housing Cooperatives and Government

16. Role of the Government
Provision of land and Infrastructure
Capacity Building
Technology (low cost)
Facilitating finance
Project Management - 100% Construction by private sector.

17. MSE Development Program
Major Targets
Reduce Unemployment
Promote Private Sector Development
Create 1.5 Million jobs
The Strategy
A One-Stop Services for MSEs
Train >2500 Extension Workers.
Working Premises for 820 thousand MSE Operators– Mainly Clustering Approach.
5.2 Billion Birr Loan for 1.2 Million MSEs (Via MFIs).

18. The Strategy
Improving policy, legal, institutional & regulatory environment through One Stop Services
Extension services
Provision of clustered production premises and serviced land
Increased financial access to MSEs
Increased training & business development support
Improving Marketing and sales outlets
Technology

19. Beneficiaries 1.5 Million Urban Residents Existing MSE Operators
MSEs Involved In Government Programs (e.g. IHDP)
New TVET Graduates
Unemployed Youth.
At least 50% Women.

20. Land and Infrastructure
Major Targets
Investment in Urban Infrastructure to Develop 3800 ha/a of land
Emphasis on critical urban infrastructure: water, sanitation, access roads, drainage, etc
Addressed in Detail in Governance Package

21. Urban-Rural & Urban-Urban Linkages
Major Targets
Small Towns Development Program (<20,000 pop.)
Planning and Development Needs of 600 Small Towns Identified and Implemented
Addressed in detail in Governance Package

22. The Urban Good Governance Program
Objective
To provide the basis for the implementation of good governance practices in Ethiopian towns to facilitate accelerated &sustained urban development

23. The Urban Good Governance ….
Guiding Principles
Subsidiarity-Administrative &Fiscal Decentralization
Sustainability &Participations
Efficient & Effective Service Delivery
Transparency & Accountability
Rule of Law& Security
The principles and practices are cross-cutting they are applied to the development & implementation of all programs

24. The Urban Good Governance …
The seven specific sub-programs resulted because:-
Required focus on the major urban issues identified in the urban development policy, lessons learned in urban centers
Key findings & recommendations of different studies
A need to empower local urban government authorities
To implement the urban development policy principles of promoting participatory democracy
To reform the civil service at local level

25. The Urban Good Governance …
Urban Good Governance Subprograms:
Land Development And Administration Systems Reform subprogram
Urban infrastructure and service reform subprogram
Urban Finance & Financial Management Reform Subprogram
Organization& Human Resource Management Reform Subprogram
Urban planning reform subprogram
Justice reform subprogram
Public participation reform program

26. Thank You