The Condominium Scheme as a Strategy for Housing Slum Dwellers: the case of Gofa Mebrat Hail Condominium, Addis Ababa, Ethiopia

Abstract

Ethiopia, like other developing nations, is striving to improve the life of its urban dwellers and Addis Ababa, the capital city, is receiving special attention to bring it up to standards in the continent. At 125 years old, the city suffers from severe housing shortage and is characterized by poor housing, infrastructural and neighborhood conditions. Considering the housing agenda as uppermost of the urban development challenge the city administration initiated a program to build several thousand homes based on the condominium concept for different categories of income groups. The initial target of the program, though, was the low income and lower middle income groups. Eleven years have passed since the program commenced in 2004. Needless to mention, even though home ownership has grown phenomenally, the price of a unit of condominium house has risen dangerously over the period. This article is based on ongoing doctoral study and looks at the affordability challenges of the condominium housing scheme, particularly regarding the poor slum dwellers and considers possible alternative means to tackle the issue. The specific study site is the Gofa-Mebrat Hail Condominium in Nefas Silk-Lafto Sub-city of Addis Ababa. The article gives a background account of the procedures followed by the researcher in the study: descriptive and analytical research methods employed, numerical and non-numerical data collected, questionnaires deployed for the household survey, interviews conducted, and relevant observations made. Moreover, secondary sources of information were available to aid analysis and corroborate findings. The most critical finding of the study was that the affordability challenge was, barring free offers or heavy subsidization, beyond prudent financial amelioration and that the only way to keep the poor slum dwellers housed was for them to pay a monthly housing mortgage installment dictated, largely, by a formula based on their ability-to-pay.

Key Words: Condominium Scheme, Housing, Slum Dwellers, home finance,