Selling the Soul of the City: The Real Cost of Addis Ababa’s Modernization

As Addis Ababa strides towards modernization, the human toll of this progress becomes starkly visible. The ongoing conflict between development and preservation leaves behind a trail of disrupted communities and demolished homes, echoing the hardships faced by the city’s most vulnerable populations. In the outskirts of the capital, within the Oromia region, the Ethiopian government has initiated a controversial demolition campaign, targeting what it claims are illegally constructed homes.

Evelyn Waugh’s novel “Scoop” 1938 piassa

Authorities have announced plans to demolish 12,000 houses, citing unauthorized construction on government land since 2021. Contrarily, residents in many areas that are being displaced have argued they have been dutiful taxpayers on these properties, challenging the government’s justification. This large-scale displacement is not isolated. In Shaggar City, on the capital’s fringes, nearly 100,000 residents were compelled to relocate. These expansive demolitions, managed by the Oromia regional administration, have left many to question the balance between urban planning and residents’ rights.

Particularly poignant is the demolition in Piassa, where, experts assert, the destruction contravened Ethiopia’s heritage laws and urban planning standards. This area, known for its historical buildings, saw 36 of its 42 heritage sites either demolished or slated for removal. Mayor Adanech Abiebie’s administration aims to redevelop these lands as part of the expansive Corner Development Project, which promises urban renewal but at the cost of erasing historical neighborhoods like Piassa, Doro Manekiya and Arat Kilo.

Demolition of Piassa

The city officials argue these projects address the needs of Addis Ababa’s rapidly expanding population, a challenge previous administrations failed to manage effectively. Girma Seifu, head of the Addis Ababa Investment Bureau, notes a housing deficit nearing 1.5 million units. City leaders, including Tilahun Worku and Abebe Tekebe, emphasize the importance of community involvement and the provision of secure, completed replacement housing prior to any relocations. However, the ground reality tells a different story. Displaced residents, like those from Piassa, find themselves in underdeveloped outskirts, far from their original neighborhoods. Videos shared by relocated citizens reveal incomplete new homes, lacking basic amenities like roofing, flooring, electricity and plumbing.

The international community, including U.N. Special Rapporteur for Adequate Housing, Liliana Farha, has voiced concerns over these forced evictions, highlighting them as severe violations of housing rights. The additional challenge of managing publicly funded mega projects looms large, with empirical evidence suggesting that these initiatives often suffer from cost overruns, delays, and corruption. These projects, driven more by political motives than economic benefits, tend to result in economic and cultural exclusions, outweighing their potential positive impacts.

Concurrently, Ethiopia faces severe economic hardships, including soaring inflation and a pressing foreign currency shortage. The nation is also shouldering a massive reconstruction bill of nearly $23 billion resulting from the two-year Tigray civil war, which concluded in 2022. Amid these struggles, the humanitarian response plan, crucial for millions depending on food aid, was only 34% funded last year. Ethiopia’s currency, the birr, trades at about 50% below the official rate against the U.S. dollar on the black market. This disparity has led to discussions about potentially devaluing the birr to meet conditions favored by the International Monetary Fund (IMF) for support, which typically prefers flexible, market-determined exchange rates.

Data from International Monitory Fund (IMF)

Financial negotiations are particularly fraught. Ethiopia has not received IMF funding since 2020, and its last lending arrangement with the fund derailed in 2021. Nevertheless, Ethiopia’s financial needs have been “broadly” agreed upon with the IMF, involving discussions about a potential $3.5 billion loan. Additional talks with the World Bank are aiming for another $3.5 billion in support, with plans to secure an equivalent amount through debt restructuring. These financial maneuvers are crucial as Ethiopia was the third African nation to default on its debt in recent years.

Data from International Monitory Fund (IMF)

In light of these challenges, Prime Minister Abiy Ahmed’s administration is contemplating legislative changes designed to lure foreign investment, such as enabling foreign ownership of real estate. While this policy might boost the economy on paper, it stirs profound concerns about its repercussions for local residents. There’s a looming fear that this move will prioritize high-value real estate development over the welfare of the community, potentially displacing residents from their homes in the heart of the city to make way for international investors willing to pay in hard currency. Which is what we are currently witnessing across large part of Addis Ababa.

The urban transformation currently unfolding in Addis Ababa paints a vivid picture of a city at a crossroads between progress and preservation, revealing the stark realities of a development strategy that could strip the city of its soul. The government’s strategy to demolish central urban areas under the guise of illegality, only to sell these prime locations to the highest foreign bidders, casts a shadow over the integrity of urban planning. This approach not only sidelines the well-being of its citizens but also paves the way for government officials to potentially enrich themselves amidst the turmoil.

The sorrow of displacement is compounded by the recent memories of a devastating civil war in the regions of Tigray, Amhara, and Afar regions, which claimed countless lives and left deep scars across the nation. Now, the people of Addis Ababa are bracing themselves as the government wields its power to reshape the city, threatening to displace thousands under the harsh guise of development. This action raises alarms not just about the loss of homes but also about the erosion of community ties and the essence of what makes Addis Ababa vibrant and unique.

The ongoing situation in Addis Ababa underscores a critical need for transparent, equitable urban planning that genuinely considers the well-being of all its citizens. It calls for a reevaluation of development strategies to ensure they do not sacrifice the heritage and homes of many for the benefit of a few. In this pivotal moment, the city’s future hangs in the balance, demanding a thoughtful approach that respects both the rights of its residents and the historical significance of its landscapes.


Categories: