Expanding Adequate and Affordable Housing in Hawassa City Through Localized Land and Housing Policy Implementation


Amount Raised


Total Investors

Project Overview

The project aims to implement the structural plan of Hawassa over a three-year period. Its primary goal is to strengthen localized policy and strategy frameworks for land value capture mechanisms. This will increase municipal revenue sources, facilitating affordable housing production and urban development. The project also seeks to enhance the effectiveness of the city administration. The structural plan has presented the following key tools:
  • Redevelopment of old dilapidated areas – Urban infill of under-utilized land
  • Implementation of land readjustment, land pooling mechanism
  • Informal settlement regularization upgrading
  • Sustainable conversion of rural land for urban expansion
  • Free land and infrastructure for public houses


  • Affordable Housing
  • Informal Settlements Upgrading
Funding Goal


  • To create institutional arrangements responsible for enacting land value capture regulations and their enforcements fully.
  • Modelling development, redevelopment or land readjustment project based on the land value capture tools and the application of cross subsidization in the production of affordable housing production.
  • Preparation of localized laws, regulations and manuals for the full application of the tools.
  • Piloting one redevelopment project to test the limitations and potentials of the proposed models. An initial project on inner-city neighbourhood redevelopment has been prepared as part of the structural plan.

Progress Tracker


  • Phase 1

    Design new institutional structure, create a board for accountability, establish a dedicated agency for policy implementation, and mobilize human and logistical resources.

  • Phase 2

    Build capacity through training and experience sharing, develop manuals and regulatory frameworks for housing development based on land capture tools, and design new laws and frameworks.

  • Phase 3

    Temporary or permanent relocation, construction of social housing on block 1, allocation of newly constructed houses, and development of social services and public spaces.

Current Stage



3 years

Project Milestones


ESG Impact

The urbanization of all slums and informal settlements in upgradable areas and the participatory resettlement of slum in risk areas to ensure access for all adequate, safe and affordable housing for low and middle-income groups.


  • Low and middle-income inhabitants of Hawassa.
  • City administration and relevant stakeholders.

SDG Goals

SDG 1: No PovertySDG 2: Zero HungerSDG 3: Good Health and Well-beingSDG 4: Quality EducationSDG 5: Gender EqualitySDG 6: Clean Water and SanitationSDG 7: Affordable and Clean EnergySDG 8: Decent Work and Economic GrowthSDG 9: Industry, Innovation and InfrastructureSDG 10: Reduced InequalitySDG 11: Sustainable Cities and CommunitiesSDG 12: Responsible Consumption and ProductionSDG 13: Climate ActionSDG 14: Life Below WaterSDG 15: Life on LandSDG 16: Peace and Justice Strong InstitutionsSDG 17: Partnerships to achieve the Goals


More than half of the city’s population lives in crowded and poor-quality informal dwellings. The project will enable the city to meet its adequate and affordable housing shortage for low and middle-income inhabitants. Affordable housing is crucial to escaping the poverty cycle, and thus the project will reduce inequalities present in the city, and provide skilled jobs for the construction sector leading to sustainable communities.


Track 2

Risks and Limitations

What are the key risks, constraints and dependencies related to the project?

  • Limited capacity in local governments to implement and operate the project.
  • Central-local political dynamics may hinder resource mobilization.
  • Regulatory and policy frameworks are still under development.

Risk mitigation and continuity


Funding Goal


Type of Investment


Financing Structure

Public-Private Partnership

Secured Investment


Committed Government Funding


National and Subnational Investors


Committed Private Funding



Technical Support Required

Technical, advisory, and capacity development support from federal government and non-governmental organizations.


Governmental Buy-in

Hawassa city administration
Sidama Regional State;
Sidama Region Urban Development and Construction Office;

Other Forms of Governmental Support

National Ministries Involved

Ministry of Urban Development and Construction (MUDCo);
Ministry of Finance and Economic Development (MOFED);

SubNational Ministries Involved

Other Entities Involved

Ethiopian Investment Commission (EIC),
Commercial Bank of Ethiopia (CBE), Hawassa Industrial Park (HIP);
Industrial Parks Development Corporation (IPDC);

Licenses and Permits

Compliance with local and national regulations for land use, housing, and urban development.


Supporting Documents

No supporting documents included.