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Mekonnen Yimer (Captain), 60, is a retiree who for
31 years served Angolan Airlines and the local
national carrier, Ethiopian Airlines. With his
accumulated wealth, he established a company that
manufactures an energy-saving stove, Eco-Yehulunesh,
with a capital of one million Birr hoping to tap
the increasing demand in the country.
According to Mekonnen, the stove that he invented
would produce energy for homes, hotels and
industries using inexpensive kerosene thus
decreasing deforestation. Especially, in countryside
residences, large volumes of wood from felled trees
are used for household cooking.
His anticipation, however, does not seem to be
materialising as getting what he considers
indispensable to undertake the project on a large
scale is elusive. Mekonnen requested the Addis Abeba
Land Development and Administration Authority to
grant him a plot to manufacture the stoves to no
avail. He then rented a house on the road from Gerji
to Imperial Hotel at a monthly cost of 5,500 Br as
an alternative.
“This extra cost included, I cannot supply the
stoves at cheap prices to residents,” says Mekonnen.
Mekonnen is one of the over 2,000 investors who are
expecting to be granted investment land after
receiving a license from the Addis Abeba Investment
Authority. Though many submitted their request five
years ago, for many nothing has transpired yet as
the plots designated as part of an industrial zone
have yet to acquire infrastructural facilities. As a
result, the City Administration has lost what it
would get in revenues from investors.
Addis Abeba has a total land area of 54,000hct, of
which 30,000hct is covered by various structures.
The remaining plots are held by farmers, illegally
constructed homes and industrial zones.
The former four industrial zones – Akaki, Akaki Dry
Port, Kilinto and Jomo-Repi - lie on 687hct.
However, this figure has declined of late by 200hct
following the decision of the City Administration
Cabinet re-demarcate the Jomo-Repi Industrial Zone
for condominium constructions.
According to a senior official at the City
Administration, this landmark switch would change
the master plan of the city. Nonetheless, he argues
that it is the right move.
“The biggest challenge in the city is shortage of
houses,” he said. “Industrial developments can be
carried out in the neighbouring Oromia regions.”
Five years ago it was the City works and urban
Development Bureau that used to facilitate
investments in the city. However, after its
liquidation, the former Addis Abeba Land Development
Administration Authority began handling the
administration while the Addis Abeba Land
Development Agency took responsibility of developing
the investment plots.
The Addis Abeba City Administration distributed
35hct in Akaki Industrial Zone in 2005 and 42hct of
land in Mekanisa Lebu the following year for
investors engaged in textile as well as pulp and
paper production and steel manufacturing. These
industrial sites were equipped with infrastructures
(water, power, road and telephone) by the Agency.
By the time the former provisional administration
led by Mayor Arkebe Oqubay took office in 2002, it
merged the Agency with the Authority and structured
them as the Addis Abeba Land Development and
Administration Authority.
The city Administration made the decision claiming
that the two separate entities have similar
responsibilities, a former cabinet member told
Fortune.
Since then, though, the Authority has drifted
towards administering plots rather than equipping
plots with infrastructures.
According to an official at the Authority, the
responsibilities to develop plots were given to the
land development and administration bureaus of
districts.
“Due to human resource limitations, these districts
could not undertake the development sufficiently,”
he said.
Though the City Administration had budgeted 152
million Br for the 2006/07 budget year for land
development, the year ended without the utilisation
of the budget.
One of the reasons raised by authorities is lack of
adequate manpower in the Authority, which they say
is overburdened with responsibilities. An official
at the Authority argues that the problem is
intensified with the apprehension of officials from
districts for alleged misuse of power.
The Federal Ethics and Anticorruption Commission had
arrested over 60 district officials for allegedly
distributing plots illegally to investors. This move
has stunned the remaining officials who currently
are hesitatant to make decisions related to land,
sources disclosed.
The infrastructure installation on 62hct of the
Akaki Industrial Zone was launched a year ago.
Though the road construction has been completed this
month, investors could not take plots in this Zone
as no other infrastructure has been laid, sources at
the Investment Authority told Fortune.
Although, the City Administration has yet to approve
it, a directorate set up by the City Cabinet has
recommended the re-establishment of the Addis Abeba
Land Development Agency on its own.
Headed by Feleke Yimer, deputy general manager of
the city, the directorate, which is established to
study service delivery and issues related with land
and construction in the city has nine members.
Taking sample surveys in Bole and Lideta districts
for its study, the directorate made recommendations
pertinent to the 10 districts.
One of the participants of the study told Fortune
that the recommended Agency would be responsible to
evict settlers from industrial zones with
compensation, furnishing the plots with
infrastructures and transferring them to the Land
Administration Authority. This proposal has been
tabled for the Cabinet one month ago and is
expecting approval.
Investors that are held up in Addis Abeba, however,
are moving to the regional states to satisfy their
demand.
Mekonnen, has now leased a 3,000sqm plot in Dukem in
the Oromia Regional State to manufacture stoves in
large quantity.
“I will also produce improved farming tools in
addition to the stoves,” Mekonnen told Fortune,
satisfied with the speed with which he acquired the
plot.
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