ANASSESSMENT OF LAND SUPPLY FOR HOUSING

TOWARDS AN EFFICIENT URBAN LAND MARKET; IN CASE

OF SHISHO-ENDE WOREDA

MIZAN-TEPI UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ECONOMICS

BY: ADUGNA ALEMAYEHU

ID No: BES/025/09
ADVISOR: ENDASHAW (MSc)

A SENIOR ESSAY THESIS SUBMITTED TO THE COLLEGE OF

BUSINESS AND ECONOMICS OF MIZAN-TEPI UNIVERSITY IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE BA
DEGREE IN ECONOMICS

MARCH, 2022/23
MIZAN- AMAN
ETHIOPIA
 Declaration

I declare that this senior essay thesis work entitled “Assessment of land supply for
housing poor household in Shisho-Ende town.” is my original work, and that all
sources of materials used for the thesis have been duly acknowledged. I have
produced it independently except for the guidance and suggestion of my research
advisors

Name of advisor Signature Date

Mr. Endashaw (MSc) ________________ _________________

Name of Examiner Signature Date

1. _____________________ ____________________ ______________

2. _____________________ ____________________ ______________

3. _____________________ _____________________ ______________

 ACKNOWLEDGEMENT
First, I would like to thanks the almighty God for his support throughout my academic life. Oh!
My God please guides me to the straightway and keeps me on the right truck. And also I would
like to thank all the people who have lent me their continuous support, encouragements
and guidance throughout the period of doing this thesis. Secondly, I am grateful to my advisor,
Mr. Endashaw (MSc) for his support, supervision and valuable guidance in writing my
thesis. Thirdly , am grateful to my family for their continuous support, encouragement and
committing their resources towards my education this far. Their sacrifices and opportunities
accorded to me have enabled me come this far. Finally, I salute the entire Mizan-Tepi University
for giving me the conducive environment to thrive academically and for providing me with the
resources I need to see me through my graduate degree

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Table of Contents page
ACKNOWLEDGEMENT .............................................................................................................. ii

LIST OF ACRONYMS ................................................................................................................. vi

LISTS OF FIGURES .................................................................................................................... vii

LISTS OF FIGURES ................................................................................................................... viii

ABSTRACT..................................................................................................................................... ix

CHAPTER ONE ............................................................................................................................. 1

1. INTRODUCTION ................................................................................................................... 1

1.1. Back ground of the Study ................................................................................................. 1

1.2. Statement of the Problem ................................................................................................. 3

1.3. Research questions ........................................................................................................... 4

1.4. Objectives of the study ..................................................................................................... 4

1.4.1. The general objective ................................................................................................ 4

1.4.2. Specific objectives .................................................................................................... 4

1.5. Significance of the study .............................................................................................. 4

1.6. Scope of the study ............................................................................................................ 4

1.7. Limitation of the study ..................................................................................................... 5

1.8. Organization of the study ................................................................................................. 5

CHAPTER TWO ............................................................................................................................ 6

2. RELATETED LITERATURE REVIEW ................................................................................ 6

INTRODUCTION .......................................................................................................................... 6

2.1. Theoretical Literature ....................................................................................................... 6

2.1.1. The Urban Economy Comprises Three Basic Markets............................................. 6

2.1.2. Land Policy ............................................................................................................... 7

2.2. Empirical Literature Review ............................................................................................ 9

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 2.2.1. Causes of Inadequate Land Supply for Housing....................................................... 9

2.2.2. Effect of Inadequate Land Supply for Housing ...................................................... 11

2.3. Conceptual Framework .................................................................................................. 13

CHAPTER THREE ...................................................................................................................... 14

3. RESEARCH DESIGN AND METHEDOLOGY ................................................................. 14

INTRODUCTION ........................................................................................................................ 14

3.1. Description of the study area .......................................................................................... 14

3.2. Research design and approaches .................................................................................... 14

3.3. Sources of data ............................................................................................................... 15

3.3.1. Primary data sources ............................................................................................... 15

3.3.2. Secondary sources of data ....................................................................................... 16

3.4. Sample design ................................................................................................................ 16

3.4.1. Sampling unit .......................................................................................................... 16

3.4.2. Sampling techniques ............................................................................................... 17

3.5. Methods of data analysis and interpretation ................................................................... 17

CHAPTER FOUR ......................................................................................................................... 18

4. DATA ANALYSIS, PRESENTATIONS, INTERPRETATIONS AND DISCUSSIONS ... 18

INTRODUCTION ........................................................................................................................ 18

4.1. Socio- demographic data ................................................................................................ 18

4.1.1. Respondents by sex distribution ............................................................................. 18

4.1.2. Respondents by age distribution ............................................................................. 19

4.1.3. Respondents by marital status distribution ............................................................. 19

4.1.4. Respondents by Educational level distribution ....................................................... 20

4.2. Finding of the study concerning land supply for housing .............................................. 20

4.2.1. Respondents by income distribution ....................................................................... 20

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 4.2.2. Respondents with their own Housing ..................................................................... 21

4.2.3. Respondents with their own house respondents plot size ....................................... 22

4.2.4. Respondents way to obtained land for housing ...................................................... 22

4.3. Applications for land ...................................................................................................... 23

4.3.1. Land revenue from supplied plot in Shesho-enda woreda 2012-2013 ................... 23

4.3.2. Beneficiaries of land supply for Housing ............................................................... 24

4.3.3. Respondents’ options to get land for housing ......................................................... 25

4.3.4. Perceptions of land experts about the effects of in adequate land supply .............. 25

4.3.5. Resident’s perception on land speculation in Shisho-ende woreda land markets .. 26

4.3.6. Respondent’s perception of the preconditions to get land for housing ................... 27

4.3.7. Respondent’s perception on financial capability to get land for housing ............... 27

4.3.8. Respondent’s source of Money to get Land Parcel ............................................... 28

4.3.9. Respondent’s perception of unacceptability of plot Application ............................ 28

4.3.10. Respecting Land Policy Regulation ........................................................................ 29

4.4. Land Experts opinions on capital investment in land .................................................... 30

4.4.1. Shesho-enda woreda land Administration department Employed staff .................. 31

CHAPTER FIVE .......................................................................................................................... 32

5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ......................................... 32

Introduction ................................................................................................................................... 32

5.1. Summary and Conclusion .............................................................................................. 32

5.2. Recommendation ............................................................................................................ 33

REFERENCE ................................................................................................................................ 34

APPENDEX: QUESTIONARIORS ............................................................................................. 36

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 LIST OF ACRONYMS
AU: African union

AACCSA: Addis Ababa Chamber of Commerce and Sectorial Associations

ECA: United Nations economics commission or Africa

CIA: Central Intelligent Agency

CSA: Central statistical Agency

ESCAP: United nation economic and social commission of Asia and the pacific

UDD: Urban development Department

UN.HABITAT: united Nations Human settlements program

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 LISTS OF FIGURES
Table 1: Sex distribution of respondents ------------------------------------------------------------------ 18
Table 2: Age distribution of respondents ----------------------------------------------------------------- 19
Table 3: Martial status distribution of respondents ------------------------------------------------------ 20
Table 4: Education level distribution of respondents --------------------------------------------------- 20
Table 5: Income distribution of respondents ------------------------------------------------------------- 21
Table 6: Respondents with their own house respondents plot size ------------------------------------ 22
Table 7: Applications for land ------------------------------------------------------------------------------ 23
Table 8: Land revenue from supplied plot in Shesho-enda woreda (2012-2013) ------------------- 24
Table 9: Residents perception on land speculation in Shisho-ende woreda land markets --------- 26
Table 10: Respondents perception on financial capability to get land for housing ----------------- 28
Table 11: Respondent’s perception of unacceptability of plot Application -------------------------- 29
Table 12: Shesho-enda woreda land Administration department Employed staff ------------------ 31

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 LISTS OF FIGURES
Figure 1: Conceptual Framework showing that assessment of land supply for household towards
an efficient urban land market industry. ------------------------------------------------------------------ 13
Figure 2: Respondents with their own Housing ---------------------------------------------------------- 21
Figure 3: Respondents way to obtained land for housing ---------------------------------------------- 22
Figure 4: Beneficiaries of land supply for Housing ----------------------------------------------------- 24
Figure 5: Respondents options to get land for housing ------------------------------------------------- 25
Figure 6: Perceptions of land experts about the effects of in adequate land supply. --------------- 26
Figure 7: Respondent’s perception of the preconditions to get land for housing ------------------- 27
Figure 8: Respondent’s source of Money to get Land Parcel ------------------------------------------ 28
Figure 9: Respecting Land Policy Regulation------------------------------------------------------------ 29
Figure 10: Land Experts opinions on capital investment in land -------------------------------------- 30

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 ABSTRACT
This study assessed land supply for housing towards an efficient urban and market in Shisho-
Ende town. The study examined the accessibility of plots of land for housing by all residents. The
study focused on the current land policy and regulations, and institutional capacity of land
administration of Shisho-Ende town. The study drew respondents from households and land
experts of the land administration department in Shisho-Ende town administration using both
probability and non-probability sampling techniques, Questionnaires, interviews and secondary
sources of documents were used to collect relevant data pertinent to the study. The sampling
selection method is based on purposive sampling method or judgmental. The findings of the
study indicated that 73.33% of the respondents live in rented houses. Out of these, 56% of
respondents blamed this on inappropriate land policy and regulations. The study identified
causes of inadequate land supply for housing in Shisho-Ende town as constituting the land
market distortions, in adequate institutional capacity of land administrations and
implementation gaps of land policy and regulations. These cause led to shortages of housing.
The proliferation of sums and to the poor collection of land lease venue. The study recommends
a system of land supply that covers all income groups of the sub-city and building the capacity of
woreda land administrations. Study also suggests taking in to consideration of the poor
households in the implementation of urban land policy.

Key words; Land supply, land speculation, land policy, land lease revenue, proliferation of
slum and squatter settlement.

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 CHAPTER ONE

1. INTRODUCTION
1.1. Back ground of the Study

Now a day’s world total population increment is a dramatically changes. The urban population
number increase, rural to urban migration for work opportunities and the technological changes
is modify urbanization increment and as a shortage of adequate land supply for hosing. However,
adequate land supply for housing is only alternatives to Improves a good city and town standards
(AACCSA, 2016).

Globally, cities are growing physically and consuming land at a rate that exceeds population
growth. In developed countries, urban population grew 12 percent, while urban land use
increased by 80 percent, whereas in developing countries, population growth by 100 percent,
while urban land use by 350 percent. This indicates how fast cities are expanding physically and
consumed land which is not in a sustainable manner and calls for the need to increase the density
of development (World Bank, 2015).

In adequate land supply for housing is not the only problems of developing countries, also
includes developed countries, but a problem is exaggerated developing African countries/ Like
Zambia, Gahanna, Ethiopia. In Ethiopia estimated that around 17.6 percent of the Total
Population lives in urban center with the annual growth rate of 1.2 percent’s. The land market is
not functioning efficient and equitable to absorb not only future increase demand for housing of
poor households but also the current derived demand for land (AACCSA, 2016).

However, efficient and equitable land markets are prerequisite for well-functioning cities.
Therefore, it is essential to remove land market impediment such as land market distortion
through land speculative activities of land applicants as well as corrupt officials, in adequate
institutional capacity like inadequate skill man power and insufficient capital. In addition
appropriate land policy and regulations should be put in place towards efficient urban land
markets (AACCSA, 2016).

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During the period of monarchy (1907 up to 1974), According to MUDHCo. (2014).the holding
system was private. Individuals were entitled to have plot with no limit of size and shape the plot
size could reach as large as 50 hectares. The nobilities and clergy were the main owners of the
land excluding the middle and the low income from getting access to land (Tigabu, L. 2014).

During the socialist regime the private landholding system altered to public land owing system
through the nationalization of land and extra houses by the proclamation No 47/1975. The
intention of the proclamation will to achieve equity by giving the poor access to land and
housing in reveres with the previous regime. But, the central System coupled with lack of
management capacity result a serious housing deficient, particularly for the low income groups
which in turn led to further overcrowding and the growth of slums (Yirga, Z. 2014). This shows
that poor were not favored in the proclamation of nationalizing land and extra houses. And also,
after the transitional period land holding system is changed to lease holding system which
maintains public ownership of land that the poor households left behind of their derived demand
for land through lease holding system there are different forms of lease system to provide land in
Shisho-Ende town which includes auction, negation, lottery methods and through the forms of
award systems (Yirga Z. 2014).

In Ethiopia, land tenure system and housing development of the past relation with land supply
falls under different challenges. In past land supply was not the problem when the population
size did not out strip plots supplied in Shisho-Ende town. Unlike the past, today land supply in
Shisho-Ende town lagging behind the demand for land especially from the side of poor
households in the land market, left behind the demand for land has its own causes and effects
that implied for in adequate land supply in general (World Bank, 2015).

Therefore, from the main causes of inadequate land supply land policy and population pasta vital
role in the case of supplying adequate plot especially for housing poor households the land
policy and regulation of Shisho-Ende town a falls under different systems in the past more over
the past land markets of Shisho-Ende town were skewed to the ministry. According to Gossaye
2011 as cited Tison L. 2005 the history of tenure system summarized and reviewed in three
different periods, the first is a periods, the first is a period from 1907 to 1974 (monarchy), second
is a period from 1974 to 1991 (Derge) and third is a period after (1991 up to now) (World Bank,
2015).

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 1.2. Statement of the Problem
The land market most directly affects the urban environment and the quality of cities ESCAP
there is the response to the need of developing countries initiated a multi-disciplinary project for
research and applications of advanced satellite data for sustainable natural resource and
environmental management stated that the issue of speculation mentioned in relation with high
land and housing prices but other factor would also increase the price (Yirga, Z. 2014). The
study shows that in Shisho-Ende town there are people who cannot being their projects even
after they have been granted land parcel through auction forms of land lease. This implies that
they wait for a time of high price to sell the land parcel without any value add which against the
urban land policy. This is so, due to ineffective land regulations that the land administrations
capacity in Shisho-Ende town is not adequate enough to control the land market distortion
activities. This type of land market distortion coupled with poor land administrations and
implementation gap urban land policy leads to shortage of house for poor households, creation
slums and squatter settlements. Urban authorities do not always have the means to value the
social and spatial scope of slums or do they have the adequate land management instrument and
appropriate appraisal tools (Sietchiping, R. 2005).

Most local authorities do not have capacity to generate revenue and where meaningful revenue
base exists the collection mechanism has often been weak. Thus, inadequate institutional
capacities of land administration of Shisho-Ende town. Results in insufficiency collection of land
lease revenue (World Bank, 2015). However these studies missed critical points means that not
only insufficient land lease revenue in Shisho-Ende town in the year 2019 up to 2021 but also
there is no visible plan how to access poor households for housing visa of collecting more
revenue from the potential of supplying land parcels. Due to this market distortions like, land
speculation and corruption coupled with implementation gaps of urban land policy and
regulations, and poor land administrations result in adequate land supply for housing in Shisho-
Ende town. These problems of land market intern create shortage of houses especially for the
poor households, proliferation of squatter settlements and insufficient collection of land lease
revenue in Shisho-Ende town. Therefore, the study were set out assess the problem of inadequate
land supply for housing poor households and suggest the possible solutions for the concerned
stakeholder agencies and policy makers by filling the time and place gap (Shesho-enda woreda
Municipality office, 2022/2023)

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 1.3. Research questions
1. What are the causes of inadequate land supply for housing in Shisho-Ende town?
2. How the institution capacities of Shisho-Ende land administration affect land market
towards efficiency?

1.4. Objectives of the study

1.4.1. The general objective

The general objective of this study is the land supply for housing poor household in Shisho-Ende
Woreda towards the promotion of an efficient and equitable land market in the Shisho-Ende
town.

1.4.2. Specific objectives

 To identify the causes of inadequate land supply for housing in Shisho-Ende town.
 To assess the institutional capacities of Shisho-Ende land administration affect land
market towards efficiency.

1.5. Significance of the study

The study findings were serving as an input for the city government of Shisho-Ende town to
promote the efficiency of the municipal land markets through enhances adequate land supply for
housing poor households. The finding was also initiate insight to other researcher to conduct
farther investigations on the major objective or specific objectives of the study to overcome
challenges in relation with land supply. This study was contributions for the overall development
of Shisho-Ende town in general and the Residents especially the poor households in particular.

1.6. Scope of the study

This study was covers only the area of Shisho-Ende town which is within Shisho-Ende Woreda
area. In Shisho-Ende town the population and respondents land experts at both levels of Shisho-
Ende Woreda and Shisho-Ende town land administrations. The study was also assessing the land
supply for housing trends from 2019 upto2021. And although the causes and effects of the
inadequate land supply for housing. Among these causes some of them are land market
distortions such as land speculations and corruption, implementation gaps of land policy and
regulations, and poor land administrations with as shortage of skilled man power and insufficient
financial resources. These factors results in proliferation of squatters settlements, housing

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shortage, and insufficient collection of land lease revenue through creating inadequate supply of
land for housing in Shisho-Ende town.

1.7. Limitation of the study

This study was facing some difficulties that have negative implications on the results. Despite
the fact that the study was carry out for academic purposes with in the short period of time, the
results obtain need more and detail information so as to provide plausible solutions. The
difficulties arise from the reluctance especially of some officials to give relevant information.
The household’s sample units believe the research conduct was not able to bear a fruit or any
change for their life that they are decide not to forwards responses or being careless when they
respond. Moreover, there is a problem of availability of compile data which is relevant for the
study in a manageable form in the study area. However, the researcher was to come up with a
solution for theft or mentioned difficulties through awareness creations to each sample units and
through arranging proper time that is convenient to each respondent collect relevant in formation.

1.8. Organization of the study

The study was organized in to five chapters. It were begin with introduction section which
consists background of the study, statement of the problem, research questions, objectives of the
study, significance of the study, scope of the study and limitation of the study. The second
chapter’s deals about literature review of the topic in which different theoretical findings. The
empirical evidence also was being over viewed. The third chapter follows methodology which
contains description of the study area, source of data, method of data collection, sampling
technique and sample size and data analysis and interpretation. The fourth chapter deals with
data analysis and interpretation. And finally chapter five deals with conclusion and
recommendation based up on findings.

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 CHAPTER TWO

2. RELATETED LITERATURE REVIEW

INTRODUCTION
This section presents literatures, which are very pertinent for the study. Literatures in relation
with among others include land market, land policy, causes and effects of inadequate land supply
for housing. These were the main issue utilized extensively from the works of indifferent authors
for the purpose to develop the analysis sections.

2.1. Theoretical Literature

2.1.1. The Urban Economy Comprises Three Basic Markets

The urban land markets, the urban capital market, and the urban labor market. These market, are
inexorably linked and dependent on each other, of these markets the land most directly affects
the urban environment and the quality of life in cities (Dowall, 1993: ESCAP, 1997). However,
(Central Intelligent Agency world fact Book 2011) argued that nowadays in Ethiopia ,it is
estimated that around 17.6 percentage of the total population or 14,080,000 people live in urban
centers with the annual growth rate of 1.2 percent that it will reach 17 million or 20.5 percent
after a decade. Dawall, D. (1995) defined land market as framework through which applicants
for land for various used can acquired for it development in the required uses like commercial
residential and extra this statement implies that the land market affect many more market which
may have addressee effects up on the individuals as well as the society as a whole in urban areas.
In the same manner Sera, M. et al (2004) illustrated that efficient and equitable land markets are
perquisite for well-functioning cities.

Moreover, Alnaso (2004) said that if all urban dwellers were baled to acquire land to live and
work on, with adequate infrastructure at a price they could afford governments would not have to
intervene. The private sectors not typically cater to the shelter and land needs of poor people in
urban settings so interventions are necessary.

Land use in Korea is strictly regulated by the national government the government forecasts
among of land needed for various purpose based on forecasts of population and the pectoral and

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spatial distribution of people and economic activities it then changes permitted uses of land so as
satisfy spatial and sartorial needs. (Gondo T. 2008).

2.1.2. Land Policy

Land policy lies at the heart of economic and social life and environmental issue in all countries
the distribution of properties right between people has a term impact on both equity and
productivity. In equitable land distribution, land tenure problem and make land administration
can lead serve injustice and conflict changes to legislation, the distribution of prosperity rights,
and administrative structure are likely to have long term consequences positive of negative for
political economic and social development, similarly land policy is also crucial for
environmental sustainability as its can create in endives for sustainable land and environmental
management (EU, 2001). However, according to the constitution of the federal Democratic
republic of Ethiopia (1991) land is a property of the state and the people Ethiopia. This land
policy of Ethiopia articulates land in and around Shisho-Ende Town wend by the state and the
people of Ethiopia. But it is also true that in Shisho-Ende woreda land is still owned by the
private ownership and some vacancy lands owned commensally that they can be used for the
used interests of the communities. Therefore, the land policy could have a vital relation the
economic activities of urban areas.

2.1.2.1. The Goals of Land Policy

The basic goal of urban land policy is to achieve the socio-economic optimization of land use:
bringing the demand and supply of land to an equilibrium by providing land needed for urban
development in the appropriate location of the right time effectively and equitability. Therefore,
the goal of land policy is to achieve the equilibrium of demand for land and these supplies of
land insurance and effective land markets (Dowall D. 1996).

2.1.2.2. Addressing major problems of land policy

The rapid process of urbanization and the political change which are taking place in many
developed developing countries (Particularly at the end of the socialist era and the transition
towards the free market economy) has Greater an enormous problem of land scarcity and land
use inefficiency in their metropolitan areas. While the character and urgency of this problem and
its solution depends on the socio-economic political structure and the development level of a
countries. it said that the level of socioeconomic development, the political change, the rate of

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urbanization on the historical background to the physical and demographic characteristics of a
country, are some of the factors creating the problems which land polities seek to solve
(Abraham W.1995).

Based on this argument, there should have land physical which can solve the social, economic
and political problem in relation with land. As it was stated above the land market in South
bench woreda have a relation with other markets in the urban activities. To this end, a good
urban policy could play an important role in the development of Shisho-Ende woreda.

2.1.2.3. Criteria of a Good urban land policy

Doeble W.A (1983) shows that to assess whether any urban land policy is good or not uses three
criteria which includes efficiency equity, and compatibility.

A. Efficiency
This efficiency test used to find out whether the land policy encourages a smoothly fractioning
land market. It permits the maximum productivity of land as a resource, which is responsive to
rapid increase in demand allowing the assembly of land as needed to meet such demand and that
is responsive to major changes in urban form whether they result from market forces or
government policy (Dsebale, 1987).

B. Equity
This test is used to find out if the urban land policy provides reasonable access for all groups
(particularly those of low incomes) to land for housing, business, and other needs. In addition it
should enable the government to recapture increscent in land value when it is socially desirable
to do so (Doebele, 1987).

C. Compatibility
This tests how well the land policy is able to intergraded with other policy instruments dealing
with economic development and urban and such as federal, state and local government planning
taxation and the management of public service system (Dsebale, 1987).

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 2.2. Empirical Literature Review

2.2.1. Causes of Inadequate Land Supply for Housing

Memories, A. (2010) emphasis that, in Africa formal land markets are distorted and skewed
towards the minority high and middle income earners at the exclusion of the poor urban
majorities. Accordingly in distorted and skewed land markets, it is true that inadequate of land
supply on the side of excluded groups of the society.

Ads, that poorly managed urbanization reads to the marginalization of the urban poor which
increases that current cost of living and defers enormous future environment and social costs for
the next generation. Therefore, the majority of the urban poor legs behind of the land markets
that affects the environment and the social welfare of the society through the coping mechanisms
of the poor to have what left in the formal land markets. This is happened in Shisho-Ende woreda
due to land in accessibility for the poor households (UNCHS, 2000).

Dowall, D (1993) argued that in the absence of government intervention urban land markets low
income households may have difficulty for accessing land for housing. It is quite commons for
government to direct allocation land for housing these low income group (David E. Dawall
1993). Accordingly resident land delivery is also assumed to be conducted through two different
offices, which are urban development department (UDD) and lease Bureau. The UDD surveys
and prepare plots, coordinates the infrastructure redelivery and passes to the lease office for the
allocation. The lease office registers the applications who can afford to build the standard have
propended by the UDD. This creates so many bureaucratically oriented steps to pass through and
it is unthinkable to get land title before waiting for years (Woldgbrial, H. 2009).

Therefore the lands supply for housing is a duty of the government; it is no organized in a short
path deliver in addition to inadequate supply of plot for housing in Shisho-Ende. The major
causes for this inadequacy of land supply for housing in Shisho-Ende reviewed as follows.

2.2.1.1. Land Speculation

Land speculation can drive land prices beyond the productivity value of the land, causing”
bubble’ land and properly market. Land speculation occurs when the demand for land, at the
present time or in the near future, outstrips the supply of land. This can be caused by several
factors both on the demands side and on the supply side. In the demand side land speculation can

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be triggered by excess liquidity in the financial market caused either by rapid economic growth
or by a lack of opportunities for investors in other sectors of the economy, in slow group
economies.in either scenario investor invest in the land market, waiting for prices to increase
and sell the tenure at profit. Rampant land speculation can drive land prices beyond the
productive value of the land, causing a bubble land and property market where prices of kind and
property are overpriced (Woldgbrial, H. 2009).

Both the supply and demand sides of land market affected by activities of land speculation which
creates imbalance between the demand for land and supply of land by over pricing land above its
inputs value especially for the poor. In this manner land market has its own contribution for the
disequilibrium of the land market. On the supply side land speculation is caused by bottlenecks
in the availability of serviced land with access to basic infrastructure such as road, water,
electricity etc.), these bottlenecks can caused by several factors either in the land development
phases in the transaction phases. Bottlenecks in the supply serviced land are caused by slow
provision of infrastructure and services. Poor city planning, poor land records, and cumbersome
producers to buy and sell land. Bottlenecks can also occur in the transaction phase of land
development. Due to poor cadastral land records slow bureaucratic producers in can take using
time to buy and sell land in the market and to register such transactions with government
institutions (Essays A. 2007).

2.2.1.2. Poor Land Administration

According to the statements of Brennan, 1993 and Sietchiping. R (2005). Significantly. Urban
authorities do not always have the means to appreciate the social and spatial scope of slums. Not
do they have the adequate management instruments and appropriate appraisal tools. In addition
to Gondi T. (2008) said that most local authorities do not have capacity to generate revenue and
where a meaningful revenue base exists the collection mechanism has often been weak.
Consequently, acquiring more land for allocation as well as servicing has been difficult which
results in the supply land a ways to lag behind of demand for land. As a result of free rider
problem in case of non-private goods that the public sector need to finance and to have more
revenue through generating more money from potential resources. One of the potential resources
for the government is land resource with poor land administration it is difficult to collect more
revenue from land. Thus, the local governments have to have financial capacity to develop the

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activities in the ways which enables to invest more and more to assure powerful administration
all round of the land utilization to the maximum. The local government lacks administrative
capacity especially from the perspective of financial capacity.

2.2.2. Effect of Inadequate Land Supply for Housing

According to economic and social commission for Asia and the pacifistic (ESCAP, 1997). A
poorly functioning land market leads to several ills including land speculation, and squatter
settlements environmental deteriorations, and an inefficient urban development patterns which
increases the cost of doing business in the city, and adversely affects the urban economy. In
additions, Dowell, D (1993) stated that if the supply of land available for development is limited
demand pressures for sites will derive up save prices and rental rates and in turn increase the
residuals for land bids and profits. Therefore, such increases residual available for land bids and
profit the equilibrium of the land market negatively in the sides of supply through boosting up
the prices of plot which is accountable for intensifying the land supply challenges. Economic and
social commission for Asia and the pacific (ESCAP, 1997) argued that the land market most
directly affects the urban environment and the quality of life in cities. While the land market
affects the urban environment and the quality of life regarding poor regulations of land this could
result in a several environmental ills including, profanations of slums and squatter settlements,
environmental deterioration and in efficient urban development pattern.

2.2.2.1. Proliferation of Slum

According to UN Habitat 2003) about 90 percent of the demand for housing has been met by the
informal sector. This shows that the demand side over folds the supply side of normal housing
market that results in more demand for housing meet through informal market, which increase
slum in alarming rate .

UN Habitat (2008) estimate, 78.2 Percent of city dwellers with in Developing Counties (DC)
lives in slums. Moreover, UN Habitat 20011) reported that nearly 38 percent slums were in
Shisho-Ende woreda less than the other remaining Shisho-Ende town. Due to lack of resources
and inability to control land uses, metropolitan policy makers in most development countries
have not performed capital city relocation task very well (Richardson, 1993 as cited
Minwuyelet, M,2005). Even though capital city relocation plays an important role to minimize

Page | 11
the pressure of population growth in the primate city like Addis Ababa, it is not solution of the
challenges of land market.

2.2.2.2. Emergency of Squatter Settlement in Developing Countries

Government investments and formal housing construction largely serve the middle and high
income groups, leaving lower income population to address their housing needs through informal
means. As a result, the urban poor in most cities of developing countries have occupied land
illegally and have built their houses with their own resources, without following the building
codes and other governmental regulations. This has led to the proliferation of squatter
settlements (Woldgbrial, H.2009). However, Hardoy, etal (2001) stated that urban researchers
should s not forget that phenomena of illegality is not restricted to the urban poor. May more
privileged groups of the society are also observed in squatter settlements. Squatter settlements
are mostly concentrated in the peripheral areas of large cities, on steep hillside, river porgies, and
flood plains. The main reason for the expansion of squatter settlements on these fragile slopes
and hazards areas is that land is very cheap or can be occupied without payment, and also there is
less possibility of eviction from such sites (Woldgbrial, H. 2009)

Therefore, the expansion of squatter settlements core causes could be the less possibility of
eviction from sites in the peripheral areas of large cities. On steep hillsides, river gorges, and
flood plains areas and the cheaper prices of such sites. Thus, so as to attain land demand of the
poor well as privileged groups of the society were involved in the squatter settlements.

2.2.2.3. Loss of Land Lease Revenue in the Municipalities

The revenue generation from the land lease is far apart what could generate to provide
infrastructure and house for low income groups. Corruption in the land allocation process
encourages the use of land for speculative practices and reinforces the trend toward higher prices
and a resultant inaccessibility of land. As result of these land speculative practices, the
municipalities fail to collect the revenue from land lease. Therefore, in the speculative land
market, revenue from land resources divert partially to the advantages of speculates at the
expanse of the municipalities (Garba, 1993)

Supply and demand for residential properties are both at unprecedented high levels. While prices
are being driven higher by site and other development costs, the scale of demand is in excess of
the industry’s ability to supply at this point, thus driving prices higher. (Ireland business news).

Page | 12
So that many of the land demander are discouraged by the higher prices to have that they
demanded. In this case the municipality fails to generate revenue from demanded of land for
housing (Garba, 1993).

2.3. Conceptual Framework

Conceptual framework is a diagrammatic representation of variables in a study, and how they
interact in the study. The framework below is an illustration of possible underlying the
assessment of land supply for household towards an efficient urban land market.

Land policy Squatter settlement

Land speculation

Land supply

Land lease revenue

Proliferation of slum

Figure 1: Conceptual Framework showing that assessment of land supply for household
towards an efficient urban land market industry.
Source: Authors (2022)

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 CHAPTER THREE

3. RESEARCH DESIGN AND METHEDOLOGY

INTRODUCTION
This section presents Description of the area, research design and approach, and sample designs,
source of data, data analysis data interpretation and presentation.

3.1. Description of the study area

Shisho-Ende is one of the woreda in the Keffa zone, South-west Region of Ethiopia,. Shisho-
Ende is bordered on the south by the Chena woreda, on the west by Bita, on the north by Gewata,
on the northeast by Ginbo, and on the east by Decha.
Based on the 2007 Census conducted by the CSA, this woreda has a total population of 158,449,
of whom 78,150 are men and 80,299 women; 11,629 or 7.34% of its population are urban
dwellers. The majority of the inhabitants were Protestants, with 43.62% of the population
reporting that belief, 40.84% practiced Ethiopian Orthodox Christianity, 7.95% practiced
traditional beliefs, 3.9% were Muslim, and 3.09% embraced Catholicism.
In the 1994 national census Chena had a population of 153,646, of whom 75,745 were men and
77,901 women; 12,887 or 8.39% of its population were urban dwellers. The four largest ethnic
groups reported in this woreda were the Kafficho (75.76%), the Bench (16.19%), the Oromo
(3.5%), and the Amhara (2.73%); all other ethnic groups made up 1.82% of the population. Kafa
was spoken as a first language by 75.43% of the inhabitants, 18.36% spoke Bench, 3.6% spoke
Amharic, and 3.09% spoke Oromiffa; the remaining 5.6% spoke all other primary languages
reported.[2] Concerning education, 16.97% of the population were considered literate; 12.45% of
children aged 7–12 were in primary school; 2.77% of the children aged 13–14 were in junior
secondary school, and 2.13% of the inhabitants aged 15–18 were in senior secondary school.
Concerning sanitary conditions, about 69% of the urban and 12% of the total had toilet facilities.

3.2. Research design and approaches

This study was uses cross-sectional survey which includes analysis, measurement, and
assessment of both quantitative and qualitative data by using counts and presents. This is so, to
demonstrate implications by describing land supply for housing with in Shisho-Ende town. The

Page | 14
qualitative data was uses to show the implementation of land policy and regulations to supply
land parcel for housing at the Woreda administrations of Shisho-Ende town government. And
also, the qualitative data was uses to show the institutional capacity of Shisho-Ende land
administrations. This was done by swathing the employment performances of Shisho-Ende land
administrations. The quantitative data was uses to see the quantity of plot of land supplied for
housing and the amount of the revenue generated from the land lease with in the study area
during the year 2011 up to 2013.

This study was use descriptive research design to address the objectives of the causes and effects
of in adequate land supply though collecting primary and secondary sources of data us land
supply for housing in Shisho-Ende town.

3.3. Sources of data

The data on land supply for housing in Shisho-Ende town was collected from both primary and
secondary sources. Primary data in land supply was collected from Shisho-Ende town household
and staff member of land administrations by using data collections tools like, questionnaires’,
personal interview and observations. While secondary data on the land supply for housing was
collected from different scholarly literatures, official documents of Shisho-Ende town land
administration’s policy and regulations of urban land and on line information from internet.

3.3.1. Primary data sources

A. Questionnaires
A variety of data collection instruments were used to gather primary data among which one is
questionnaire. The study utilized both close-ended and open-ended questionnaires. The
questionnaires were provided to each categorical group of respondents simultaneously.

B. Interviews
Where to collect primary data through interviewing semi-structured questionnaires developed
and after pretest the questionnaires translated in to local language. The data was collected
through interviewing the respective land experts in land supplied department at both (Woreda
and town) level of land administrations and managing director of Shisho-Ende Woreda
administration.

Page | 15
 C. Observation
The study systematically and carefully observed what has been done on the parcel of land
supplied and the type of investment on the supplied plots of land in Shisho-Ende Woreda. This is
done based on selected terms of reference like weather the supplied plot used for intended goal
or not and who got the plot from the formal and markets through land lease to check whether
there was informal land market or not.

3.3.2. Secondary sources of data

Secondary data on the land supply for housing was collect from different scholarly literatures,
official documents of Shisho-Ende Woreda land Administrations, policy and regulations of urban
land, an on line information from internet.

3.4. Sample design

The study was draw sample from Shisho-Ende Woreda household by using probability sampling
and land experts of land administrations through no-probability sampling. In addition to the
sample representative and research findings relevant and accurate, the sample design was
structured as follows. To sample size determination is by Yamane formula;

n=

Where N = total population

n = Sample

= error tolerance

The researcher has decided to take the true margin of error 10% with confidence level 90%.
n= = 119.49 ≈ 120

3.4.1. Sampling unit

The sample unit of this study was 120 households of Shisho-Ende woreda land experts in land
administrations of the study area ware selected sample units was the source of relevant
information of the study that was affected by the land supply system of Shisho-Ende town either
in the supply side or in the demand side of land market.

Page | 16
 3.4.2. Sampling techniques
The sampling technique used in this study was probability sampling. Drawing 120 samples from
Shisho-Ende Woreda households and the staff members of land administration in Shisho-Ende
Woreda and Shisho-Ende town by using simple random sampling method. The study was
selected Shisho-Ende woreda from the administrations of Shisho-Ende town based on purposive
sampling together the relevant information on plot supply for housing.

3.5. Methods of data analysis and interpretation

Method of data analysis was descriptive analysis like table, percentage and other would be used
for the matter of easy understanding interpretation percentage was used to cooperation and
interferences tabulation and writing results used, since it is facilitate in easy interpretation.

Page | 17
 CHAPTER FOUR
4. DATA ANALYSIS, PRESENTATIONS, AND DISCUSSIONS
INTRODUCTION
This chapter mainly presents and discusses the data obtained from respondents related to the
existing situation of the supply of land for housing the poor in Shisho-ende woreda. To this end,
this part covers discussion of the trends of land supply and causes of inadequate land supply for
housing. The poor especially land speculation, corruption, and gaps implementation of land policy
and regulations, and inadequate institutional capacity of land administration in Shisho-ende
woreda. The discussion further examines the effects of inadequate land supply for housing the poor
such as slum proliferation, insufficient land lease revenue a collection, and shortages of housing.
100 percent of the respondents give response to the questions provided to gather information on
the supply of land for housing.

4.1. Socio- demographic data

Socio- demographic characteristics of respondents responded sex, age, and marital status presents
under this section that it indicates the demographic data of the respondents. This shows which
parts of the society in the study area involved as respondents.

4.1.1. Respondents by sex distribution

From 120 respondents, 52.5% were male, and 47.5% female. Sex is an important aspect of urban
land access that it is associated with differences in education levels, source and amount of money
to have parcels of land. Table 1 shows that there was significant number of female households
(48% of the respondents) who had applied for land for housing in Shisho-ende woreda, Kaffa zone.
Table 1: Sex distribution of respondents

Sex Freq. Percent (%)

Female 57 47.5
Male 63 52.5
Total 120 100
Source: Computed from Field Survey Data, 2022

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 4.1.2. Respondents by age distribution
As table 2 below depicts, the majority (44.17%) respondents were in the age category 24 and 50
years, 25.83% were in the age category of 51-64 years, 17.5% of respondents were below 24 years
of age and the rest 12.5% were above 64 years of age. The ages of households has paramount that
it provides an indication of the demand for plot for housing. In addition to these, it is a useful
factor for predicting the potential future demand for land in the woreda. In the study area, a
predominance of adult households who have not fulfilled their demand for land for housing would
normally suggest that the supply of land were not adequate enough to satisfy the demand for land.
Moreover, if predominance of young households who have demand for land would normally show
that the potential future demands for land in the woreda. Therefore, table 2 discuses 44.17% of the
respondents were in the age group of 24-50 years which means this age group revealed the highest
demand for land in the study area.
Table 2: Age distribution of respondents

Age Freq. Percent

Below 24 21 17.5
24-50 53 44.17
51-64 31 25.83
Above 64 15 12.5
Total 120 100.

Source: Computed from Field Survey Data, 2022

4.1.3. Respondents by marital status distribution

As the marital status table 3 below shows that, 36.67% were married 30% were single 20%
widowed and 13.33% were divorced more of the respondents were married (36.67%) that in can
be the case when people get married, households size increase due to the forth coming
generations. As a result of increased population the demand for land also increased

Page | 19
Table 3: Martial status distribution of respondents

Age Freq. Percent

Single 36 30
Married 44 36.67
Widowed 24 20
Divorced 16 13.33
Total 120 100.

Source: Computed from Field Survey Data, 2022

4.1.4. Respondents by Educational level distribution

As the education level table 4 depicts, 40.83% respondents were with elementary level of
education, both with diploma and degree and above respondents were 37.5% each, respondents
with secondary level of education were 13.33% and only 0.08% were with certificate. Thus,
more of the respondents (40.83%) were with elementary level. This shows residents of the study
area occupied land before the city expands out words.
Table 4: Education level distribution of respondents

Education level Freq. Percent

Primary level 49 40.83
Secondary level 16 13.33
Certificate 10 0.0 8
Diploma and above 45 37.5
Total 120 100

Source: Computed from Field Survey Data, 2022

4.2. Finding of the study concerning land supply for housing

Finding of the study concerning land supply for housing in Shesho-enda discussed under this
section as follows

4.2.1. Respondents by income distribution

Table 5 below shows that, 25.83% of the respondents earned less than 250 Birr per month.
Whereas, 44% of respondents earned in the income category of 251-850 birr per month, and 17%

Page | 20
earn 851-1400 Birr per month, While, 13% of the respondents earned above 1401 Birr per
month. This shows that there is high level low income group that in turn affects households’
access to land Shisho-ende woreda, Kaffa zone.
Table 5: Income distribution of respondents

Income Freq. Percent

<250 32 25.83
251-850 16 44
851-1400 10 17
>1400 45 13
Total 120 100

Source: Computed from Field Survey Data, 2022

4.2.2. Respondents with their own Housing

Figure 2 below depicts that, 73.33% of the respondents do not house and 26.67% own house.
This shows that the respondents without their own houses were twice as many as the respondents
who own their houses in the study Area. However, it is not denied for any one an ambition to
have houses, which is one of the human necessity goods. Thus, it is clear that there was an
ambition to have plots especially for housing whether it may be tied with paying ability or not.
120
120
100
100 88
73.33
80

60 Frequency
32 Percentage
40 26.67

20

0
own house not house Total

Figure 2: Respondents with their own Housing

Source: Computed from Field Survey Data, 2022

Page | 21
 4.2.3. Respondents with their own house respondents plot size
Table 6 below shows, out of 32 of respondents with their own house 22(68.75%) have plot size
in between 150 and 500m2, 7(21.87%) got plot size above 500m2, and only 3(9.38%)
respondents with their own houses got plots less than 150m2.
Table 6: Respondents with their own house respondents plot size

Plot size Freq. Percent

Less than 150m2 22 68.75
Between 150-500m2 7 21.87
Above 500m2 3 9.38
Total 32 100

Source: Computed from Field Survey Data, 2022

4.2.4. Respondents way to obtained land for housing

Figure 3 below shows that, majority of the respondents (43%) among those who obtained land
for housing purchased land informally, 31% obtained land through inheritance, 24% obtained
plot through formal purchased and only 0.02% obtained by gift according with figure of above.
This implies the majorities of respondents with own house purchased land for housing in
informal land markets.
100
100

80

60
43.75 Frequency
40 31.25 32 Percentage
21.8
14
20 10 7
1 3.2
0

Figure 3: Respondents way to obtained land for housing

Source: Computed from Field Survey Data, 2022

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 4.3. Applications for land
As the woreda was newly established since at the end of 2011 E.C. Table 7 below shows the
supplied plot for different actives of lease system in Shesho-enda woreda during the past two
years. During these two years residential plot were supplied in the year 2012 that was 3 in
quantity and 1352m2 in size. Also plot for residential 2013 year was 17 in quantity and 9864m2.
A given the above two years data presents the incremental position of residential plot. So that, in
year 2013 a good accessibility of both quantity and size compares with other plot supplied for
different activities. Although it was possible to see the supply of plot in quantity as well as in
size in the study area, it is impossible to see the demand pattern of plot except respondent’s
response. This was happened that the land administration of the study area was not accepting
application for plot in any means rather than participation in the lease systems.
Table 7: Applications for land

Years Residential commercial Residential and others

commercial
ss Plot ss Plot ss Plot size(m2) ss Plot size(m2)
size(m2)
size(m2)
2012 3 1352 8 6894 7 2815 - -
2013 17 9864 12 14271 9 5162 1 300
Total 20 11,216 20 21,165 16 7,977 1 300
Source: Shesho-enda woreda Land Administrations Department, (2014)

4.3.1.Land revenue from supplied plot in Shesho-enda woreda 2012-2013

The table 8 below indicates that how much have been collected the land administration of
Shesho-enda woreda from the plot supply for different uses through auction, negotiation and
assignments forms of land revenues in the previous years. During the past two years the city
administration of Shesho-enda woreda has been supplied 86 plots in number and 69,914m2 plot
in size with in Shesho-enda woreda. Although there is some progress, the municipality is still
weak in collecting revenues.

Page | 23
Table 8: Land revenue from supplied plot in Shesho-enda woreda (2012-2013)

Forms system of lease Plot No Plot size(M2) Prepaid manly Total payment of
lease (Birr) lease (Birr)

Auction 58 18,9 60 - -

Negotiation 22 48,954 3,45,206.54 2, 618, 638

Assignment 6 2000 Change free Charge free

Total 86 69,914 - -

Source: Shesho-enda woreda land Administration Department, (2014).

4.3.2. Beneficiaries of land supply for Housing

Figure 4 shows that 67.5% of the respondents responded the majority of beneficiaries of the land
supply was higher income group. 25% of the respondents agreed in which the activities of land
supply benefited the middle income groups of the societies. Whereas, 7.5% of the respondents
responded all income groups could be benefited from the land supply of the study area. From
figure 3 below, we can have in sight about the land supply that it favors higher income group
within the study area.

Percentage

7.5

25

Higher income group

67.5
Middle income group
Low income group

Figure 4: Beneficiaries of land supply for Housing

Sources: field survey, 2022

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 4.3.3. Respondents’ options to get land for housing
Figure 5 below shows that, 47.72% of the respondents waiting for appropriate land policy and
regulations to get plot for housing. While, 37.5% and 14.78% of the respondents forwarded the
option to get land is moving an area where no problems of plot availability and settled in squatter
settlements, respectively. This implied that households without houses tried to have house even
in squatting with a high probability of demolition. Even though in urban area land is scarce in
relation to population size for all income groups, poor often victimized and faced accessibility
problems in average time. To this end, poor lags behind of their demand for land which is
indispensable for wealth creation. Logging behind of land supplies plays its own part not uplift
the poor from vicious circle of poverty that it intensifies the environmental problems of the area.

100
100 88
90
80
70
60 47.72
50 37.5 42
40 33 Frequency
30
14.78 percentage (%)
20 13
10
0
Squatting Out going to Waiting Total
plot available approprate
Land policy
regulation

Figure 5: Respondents options to get land for housing

Sources: field survey, 2022

4.3.4. Perceptions of land experts about the effects of in adequate land

supply
As it is indicated in figure 6 below, from 12 land experts majority (42%) of the respondents
responded that the effects of the inadequate land supply forced people, who they did not have
access to plot, to rental house. 58% of the respondents suggested that the inadequacy of land

Page | 25
supply leads to increasing squatter settlements. Generally, this figure implies that the effects of
inadequate land supply leads people to live squatting and rental houses.

Percentage(%)

42
58 Squatting
Rental house

Figure 6: Perceptions of land experts about the effects of in adequate land supply.
Sources: field survey, 2022

4.3.5. Resident’s perception on land speculation in Shisho-ende woreda

land markets
As it is indicated in the table 9 below, 75% of the respondents would perceived that the land
market of Shisho-ende woreda affected by the land speculation activities which in turn affects
the poor not to get plot for housing. 25% of the respondents perceived that the land market of
Shisho-ende woreda not affected by the land speculation activities. Thus, majority of the
respondents perceived that the land markets of Shisho-ende woreda were affected by land
speculation activities in order not to have accessibility of plot for all income groups.

Table 9: Residents perception on land speculation in Shisho-ende woreda land markets

Land speculation Freq. Percent (%)

Present 90 75

Absent 30 25

Total 120 100

Source: Field Survey Data, 2022

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 4.3.6.Respondent’s perception of the preconditions to get land for housing
The urban households, especially the poor income groups often lack access to land, which is
indispensable for wealth creation, and means of income generations. As it is indicated in the
below figure 7, 50% of respondents perceived that the capability of financing the cost of
constructing house as to be a preconditions to get land for housing. Whereas, 26% and 24% of
respondents forwards to get plot for housing being residents of the area and having plots demand,
respectively.

60
60
50
50

40
32
26.67 28 Frequency
30 23.33
Percentage(%)
20

10

0
Residence Demand for plot Financial capacity

Figure 7: Respondent’s perception of the preconditions to get land for housing

Source: Field Survey Data, 2022

4.3.7.Respondent’s perception on financial capability to get land for

housing
Table 10 below shows that, 56.66% of respondent agreed on the financial capacity would have
been the case to get land for housing. The remaining respondents (43.44%) perceived in opposite
of the majority that financial capacity could not give due attention to have plot for housing. Thus,
the majority of the respondents agreed up on financial capability as a precondition to get land for
housing.

Page | 27
Table 10: Respondents perception on financial capability to get land for housing

Did you agree on financial capability to get land for housing? Freq. Percent (%)
Yes 68 56.66
No 52 43.44
Total 120 100
Source: Field Survey Data, 2022

4.3.8.Respondent’s source of Money to get Land Parcel

The below figure 8 indicated that 43.75% of the respondents would have saving habit to get
parcel. 34.38% of the respondents could have financial power by selling other asses if they got
the chance for a plot. The rest 18.75% and 3.12% of the respondents forwarded the sources of
money to finance the opportunities of plot access through loan and monthly income,
respectively.

43.75
45
40
34.38
35
30
25
18.75 Frequency
20
14 Percentage (%)
15 11
10 6 1 3.12
5
0
Monthly Selling other Saving Loan
income asset

Figure 8: Respondent’s source of Money to get Land Parcel

Source: Field Survey Data, 2022

4.3.9.Respondent’s perception of unacceptability of plot Application

The following table 11 shows that, 56.67% respondents said that lack of appropriate land policy
regulation and lack of attention for housing were the core problems of plot inadequacy. 31.67%
of the respondents were agreed up on the institutional problems of land administration which

Page | 28
bears inadequacy of plot for housing. Likewise, 8.33% and 3% of the respondents suggested that
the political influence of higher officials and lack of political commitment hinders residents from
processing land, respectively. Thus all the above limiting factors a factor were the problems of
land accessibility in Shesho-enda woreda.
Table 11: Respondent’s perception of unacceptability of plot Application

Perception respondents of unacceptability of plot Application Freq. Percent

Lack of appropriate land policy regulation and lack of attention for housing 68 56.67
Institutional problems of land administration 38 31.67
Political influence of higher officials 10 8.33
Lack of political commitment 4 3.33
Total 120 100

Source: Field Survey Data, 2022

4.3.10. Respecting Land Policy Regulation

As seen from the figure 9, majority (60%) of the respondents from the staff members agreed up
on the land policy regulation were been respected in due process of their job. About 22% of the
respondents strongly agreed with respecting land policy regulations. The remaining respondents
responded disagreed and undecided proportionally (18%). thus, this figure 8 shows us, majority
of the respondents were agreed up on respecting of land policy in due process of land delivery as
well as other activities.

Percentage (%)

18% Agreed
22% 60% Strongly agreed
Disagreed

Figure 9: Respecting Land Policy Regulation

Source: Field Survey Data, 2022

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 4.4. Land Experts opinions on capital investment in land
Although land scarcity is the problem everywhere in urban areas in relation to population size,
assigning capital for the development of plot for housing is low in contrary with the demand for
plot to this end, all income. Groups of the society lag behind of their demand for land.
Therefore, the figure 10 below depicts that 70% of the respondents disagreed with the amount of
capital assigned to deliver adequate plot for housing it is not comparable with the demand for it.
20% of the respondents had an opinion on sufficiency of capital assigned to land supply.
Whereas, 10% of the respondents responded that they had strong disagreement with capital
budget assigned to plot developments. Therefore, majorities of the respondents forwarded that
the capital budget assigned to plot development was not adequate enough to absorb the demand
for plot.

90 84

80 70
70

60

50 Frequency
40 Percentage(%)
30 24 20
20 12 10
10

0
Agree Disagree Strongly disagree

Figure 10: Land Experts opinions on capital investment in land

Source: Field Survey Data, 2022

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 4.4.1.Shesho-enda woreda land Administration department Employed
staff
As can be seen table 12, from the 20 employees in the staffing plan only of plots were covered
which 12(60%) achievement was. Hence, the limited capacity of manpower both in quality and
quantity highly contribute for the adequate land supply and other activities of the department as
well as the administration of Shesho-enda woreda.
Table 12: Shesho-enda woreda land Administration department Employed staff

No Departments of land Existing employees Expected Achievement

administrations in numbers employees in no in %
1 Land administration and 7 10 58.33
building
2 Land banks and revitalization 2 4 50
project
3 Urban planning 3 6 50
Total 12 20 60
Sources: personnel Department of Shesho-enda woreda Administration, 2014.

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 CHAPTER FIVE

5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Introduction
This chapter is organized into the following subheadings: summary of the study, conclusions of
the study, and recommendations of the study in line with the research questions.

5.1. Summary and Conclusion

The supply of land for urban activities in general and for housing in particular is the most deter
mental factors to the welfare of the local residents of Shesho-enda woreda especially for those
who were poor households. However, land supply for housing in Shesho-enda woreda was not
adequate to absorb the increased derived demands for land. Such supplies of in adequate plot of
land for housing puts a variety of challenges up on the Shesho-enda woreda developments.

The causes and effectives of the inadequate land supply for housing varied. But, the study
focused on the major causes and effects of inadequate land supply for housing. Among these
causes, some of them are land market distortions such as land speculations and corruptions,
implementation gaps of land policy and regulations, and poor land administrations with a
shortage of skilled man power and insufficient financial resources. These factors result in
proliferation of squatter settlements, housing shortage, and insufficient collection of land lease
revenue through creating inadequate supply of land for housing in Shesho-enda woreda.

In addition the land administration capacity is inadequate in terms of human, financial and
materials recourse in order to control the impact as well as the system of land supply in Shesho-
enda woreda.

Therefore, the government must under take measures to provide land supply for housing
specifically to low and middle income people who cannot afforded market housing terms of
human, financial and materials recourse in order to control the impact as well as the system of
land supply in Shesho-enda woreda.

Page | 32
 5.2. Recommendation
The study has identified certain problems that related to an assessment of land supply for
housing and insufficient urban land market for housing. The study has suggested solution to the
identified problems that can have a long term nature requiring both action programs and
research.

According to this study make the following recommendation based on identified the problems
and conclusion. The problems are land speculation, corruption, implementation of land policy,
poor land administration, shortage of skilled man power and insufficient financial resource.

 In order to avoid the above problems the stuff member of land administrations of Shesho-
enda woreda should be an expert on the policy of land supply for housing by avoiding the
concept of land speculation by using measurement of land; by implementations of good
land policy and correctly applied those policy and by creating awareness to the land
policy system to the people live in Shesho-enda woreda.
 In such way that reduced proliferation of squatter settlement, housing shortage and
insufficient collections of land lease revenue through creating inadequate supply of land
for housing in Shesho-enda woreda is deducted.

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REFERENCE
Abriham Workneh (1995) urban land transistor policy problem and prospect, the cause Addis
Ababa Nazareth Ethiopia. Brenna (1993) urban land and housing facing the third
world

Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA). (2011). Land Lease
Policy in Addis Ababa. Addis Ababa.

Addis Ababa Chamber of Commerce and Sectorial Associations (AACCSA). (2016). A Study on
the Impact of the Current Land Lease Law on Business and Investment
Expansion. Addis Ababa.

Ching, S., & Fu, Y. (2001). Examining Competition in Land Market: An Application of Event
Study to Land

Auctions in Hong Kong. Retrieved 4 26, 2017, from http://dx.doi.org/10.2139/ssrn.259927

Dowalld D. (1996) a frame work for reforming urban land policy in developing country

Farvacque, C., & McAuslan, P. (1992). Reforming Urban Land Policies and Institutions in
Developing Countries: Urban Management Program. Washington DC. World
Bank Publications.

Garba (1993) urban land management and low income housing

Gondo.T (2008) Ethiopians urban land delivery system and the poverty challenge

Sietchiping.R (2005) geographic information system and cellular automata-based model of

informal settlement growth

Tigabu, L. (2014). The Ethiopian Urban Land Lease Holding Law: Tenure Security and. Jimma
University Journal of Law-Vol. 6, 101-121.

UNCHS (1998) urban land management regulation policy and local development in Africa and
the Arabians

Page | 34
UNHAB (2003) the challenge of slums global report on human settlement 2003 London,
earthscan

UN-HABITAT. (2008). Secure Land Rights for All. Nairobi.

UN-HABITA and Urban Landmark. (2010). Urban Land Markets: Economic Concepts and
Tools for Engaging in Africa. Nairobi.

UN-HABITAT. (2011). Land and Property: A Policy Guide. Nairobi: UNON Publishing Service
Section.

World Bank. (2015). Ethiopia Urbanization Review: Urban Institutions for a Middle-Income
Ethiopia. Addis Ababa.

Woldgbrial, H. (2009). An Assessment of Urban Lease Policy implementation In Ethiopia: Case

Study of Bahir Dar, Ethiopia. Thesis, Enshede, the Netherlands.

Yirga, Z. (2014). Critical Analysis of Ethiopian Urban Land Lease Policy Reform since Early
1990s. FIG Congress 2014. Kuala Lumpur.

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 APPENDEX: QUESTIONARIORS
MIZAN-TEPI UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ECONOMICS
QUESTIONNAIRES

Dear respondent, this questionnaire is designed to gather data for assessing the ASSESSMENT
OF LAND SUPPLY FOR HOUSING TO WARDS AN EFFICIENT URBAN LAND MARKET
(THE CASE OF SHISHO- ENDE WOREDA) for the partial fulfillment of BA degree in
Economics. I would like to assure you that the information your provide will not be used for any
other purpose kindly request you to provide genuine information.

Instructions

 No need to write your name

 Put make tick (√) in the box and for opened question write on the space
provided.
 You are kindly requested to respond the whole questions.
Personal information

1, Sex a, male b, female

2, Age a, 15-30 b. 30-45 c, 45-60 d, above 60

3, Marital status a, single b, married c, divorce d, widow

4, Education level

A, Elementary b, secondary c, diploma d, degree

5 How many percent that owns a house and not a house _______________________

6 How much the income level per month?____________________________

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7 In what way that opened land for housing?

A, informally b, inheritance c, gift d, formally

8 What is the beneficiary of land supply for housing?

A, Higher income group b, middle income group c, all income groups

9. What is the option to get land for housing?

A. Squatting B. Out going to plot available

C. waiting for appropriate land policy D. Others _________________________

10. What is the pre-condition to get land for housing?

A. Residence B. Demand for plot C. Financial capacity

11. Did you agree on financial capability to get land for housing? A. Yes B. No

12. What is your source of money to get land parcel?

A. Monthly income B. Selling other assets

C. Saving D. Loan E. Other (specify)___________

13. What is your perception on unacceptability of plot application?

A. Lack of appropriate land policy regulation and lack of attention for housing

B. Institutional problems of land administration

C. Political influence of higher officials

D. Lack of political commitment

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14. Is respecting the land supply regulation?

A, agreed b, strongly agreed c, dis agreed

15. What are the factors that affecting land supply for housing?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

THANK YOU FOR YOUR COORPORATION!!

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