The FDRE Policy Studies Institute (PSI) held an internal validation workshop on the characteristics of urban land lease markets in Ethiopia at the main hall of PSI on August 9, 2023.
Participants of the Internal Validation Workshop
Researchers Eyoual Tamrat, Dereje Abegaz, Tefera Asefa, and Gebeyehu Ayenew conducted a study on the characteristics of urban land lease markets in Ethiopia. The study's presenter, Dr. Eyoual Tamrat, provides an overview of the study, its objectives, and research questions, the data collected, and the findings and discussions.
The researchers emphasize that land is an important natural resource and a driver of economic growth, and an important source of wealth in developing countries. They emphasize the need for appropriate use of land and a well-functioning land market. According to the Ethiopian Constitution, urban land is the property of the state, and transfer is only allowed through the lease system, according to Proclamation 721/2011. The researchers emphasize the importance of land lease proclamations and the land tenure market in ensuring efficient land use and achieving equitable and transparent land transfers.
Dr. Eyoual Tamrat
The presenter of the study, Dr. Eyoual Tamrat, said the overall objective of the study is to conduct a comprehensive analysis of the urban land lease market in Ethiopia. The specific objectives include identifying key drivers on the part of land developers, identifying key issues on the part of urban land providers, examining irregularities, analyzing spatial heterogeneity, and proposing policy recommendations.
Dr. Eyoual Tamrat explained that the data for the study includes auctioned land, land transferred through allotment, and information collected through key informant interviews. The primary data consists of responses from 636 participants, specifically targeting the top three bidders. The data analysis provides insights into the characteristics of the bidders, such as the nature of their employment and the distribution of sectors.
Dr. Eyoual Tamrat discusses various aspects related to urban land lease markets, including planning practices, documentation of land-related information, land lease prices, provision of auction information, and land bidding. He highlights the challenges and issues associated with these aspects, such as poor documentation, outdated lease prices, incomplete auction information, and land availability constraints.
During the internal validation workshop, participants raised several questions about the study. One participant asked for clarification on the definition of "poor documentation" as it was unclear. He also questioned how the regression results of two findings could both be significant. Participants also pointed out that the researcher seemed to view the auction in terms of government revenue, which could lead to trade-off effects that should be critically examined.
Another participant also requested a justification for the allocation of land and a clarification of who receives it. He also wanted the researchers to specify the samples used in the regression and explain the reasons for the challenges mentioned. Participants wondered why the researcher did not make pro-poor recommendations and inquired about the origin of the land earmarked for allocation or auction. They also expressed concern about the affordability of land in Ethiopian cities and asked for recommendations on the use of land as collateral for borrowing from banks.
The lack of digitization and bureaucratic procedures for land auctions was also raised, as was the need to align policies for land allocation and auctioning and to create incentives for businesses. Participants sought long-, medium-, and short-term recommendations. They suggested centralizing the administration of the land issue to reduce bureaucracy. In addition, participants wanted an explanation of whether the land policy in Ethiopia or its implementation has more problems. They also asked for a convincing and representative methodology and an explanation of why some auction winners have not been able to develop the land.
Participants asked for information on the percentage of land allocated through auction and allotment. They wanted clarification on the focus and impact of the study, particularly with regard to the relationship between prices in the city and the allocation of land in other cities. They also wondered why the study focused on land issues related to real estate. They called for a clear study of the differences in the allocation and assignment of land in different cities and the alignment of land policies between the federal and regional governments.
Participants also called for clarity on the specific auction year used in the study and an investigation into the preparation, management, and transfer of land in different cities. They acknowledged that land is a political, social, and economic asset and asked when the balance between land allocation and auction occurs. They also inquired about the policy objectives of land allocation and auction in the context of housing services. Participants wanted to know from the researchers to what extent benchmark services are considered low. Participants also called for the identification of the supply and demand side of land allocation and auction.
H.E. Prof. Beyene Petros suggested the researchers improve the title of the study and criticize land speculation. Prof. Beyene raised the question of whether Ethiopia has a uniform land policy across the country or not. He also asked the researchers to explain the meaning of "National Significance " and its relationship to housing. Finally, Prof. Beyene also stressed the importance of making the methodology of the research acceptable.
The researchers then thanked all the participants for their participation, questions, and comments and promised to revisit the suggestions to improve the research.