Booming Addis Ababa

No one visiting the Ethiopian capital Addis Ababa can fail to be impressed by the ongoing metamorphosis of the city. During a visit last October, I noted that the cityscape had again changed tremendously - within only one year. The place looks like one big building site, with new and often spectacular structures of all kinds appearing in no time. Addis Ababa, with a population of almost 6 mln. people and high annual increase (3.8% in 2024), is not only the capital of Ethiopia but also of Africa - with the seat of the African Union, the United Nations Economic Commission for Africa (UNECA), and many other international organisations - and is massively working on its image. We see rapid and unprecedented rehabilitation, expansion and improvement of the city.

Dynamic entrepreneurial spirit
The flabbergasting changes make it often appear like a new place even for many of its own inhabitants. They are faced, from one day to the other, with new structures: futuristic high-rise, new broad lanes, underground passes, new park spaces, bike and pedestrian roads, broad city light decorations, hundreds of new buildings (from hotels, big banks, luxury apartments to malls and high-end consumer shops).There is also a notably dynamic entrepreneurial spirit among many of the inhabitants. This spirit is reflected in the ambitious plans designed and carried out by the Federal Government and Addis Ababa’s City Hall, but also by the numerous private and public-private investment projects, some of them set up with some government coercion. Remarkable here also is the substantial number of diaspora Ethiopians that are investing in the capital. I met several of them in hotel lobbies, and when I asked what they were doing they answered: ‘I am in the real-estate business’.

New museums
The most important public projects of the last few years have been the Science Museum and the large Abrehot public library, but in the past year, another museum - the Adwa Museum - was built, with record speed. It is a modernist, well-designed and huge building, occupying a central space in the city centre, and meant to commemorate the 1896 victory of Ethiopian imperial troops over the invading Italian army. In the eyes of the ruling party - under PM Abiy Ahmed, in power since 2018 - it symbolises both the unity of Ethiopia’s diverse peoples, resisting ‘as one’ the foreign invader, and African solidarity. Ethiopia was the first African country to defeat an encroaching European army and keeping its political independence, thus setting an example.

Another interesting feat is the remarkable rehabilitation of the environment: the cleaning up of the previously highly polluted rivers, terracing the river banks - with the help of invited specialists from the (southern Ethiopian) Konso people - to avoid flooding, installing water purification plants, proclaiming laws that forbid the unfiltered pollution of the urban rivers and streams and also, in a more problematic fashion but part of the process of urban rehabilitation, ‘slum clearance’: the removing of old, poor, popular neighbourhoods and the move of its inhabitants elsewhere.

Urban renewal and expansion had been going on also under the previous regime of the EPRDF (1991-2018), and is well documented by researchers. But the nature and speed of today’s process is unmatched. This is a new phase of urban development, including the new multi-million euro ‘corridor development’ project announced only one year ago – and immediately implemented. It is described glowingly on the official website.

Speed of change
Undeniably, vision, energy, and plentiful budgets underlie the nature and speed with which the city is being renovated and revamped. The current transformative urban momentum has aspects of ‘contagion’: the general idea across town is that all must change and be renovated and expanded, and everybody must participate. The federal government under PM Abiy Ahmed and the city government under mayor Ms. Abebech Adane (both of the ruling Prosperity Party, which has a very large majority in the parliament) are the drivers of the change.

Critical debate: who finances it, who wins or loses?
At the same time, it is undeniable that there are shadow sides and problems, e.g. in the Addis Ababa urban fabric. People ask themselves how this remarkable city metamorphosis and ‘rehabilitation’ process is even economically possible in a country marred by budgetary problems, costly armed conflict in three regional states[1] and deep economic inequalities. What is the economics of it and who finances it? What is the ‘stakeholder’ line-up and how do ordinary locals perceive and participate in this ‘Addis boom’?

No doubt there are winners and losers. Although, it is neither fair nor productive to only focus on the bright sides nor only on the dark sides. In-depth research on these issues is worthwhile and is in progress. Obviously, to get a full picture one must speak with a wide range of inhabitants: the policymakers, business people, diaspora visitors and foreigners, but also the displaced people, manual labourers, the micro-business people, underpaid academics and doctors, the unemployed, the beggars, etc. One certainly hears many stories of disadvantaged people or victims, indicating problems with inclusivity of the process. There is the demolishing of old neighbourhoods, thousands of people and businesses displaced and relegated to distant new suburban areas, lack of fair compensation for lost homes and business precincts (and the accompanying break-up of social networks), and often a disregard for historical city architectural heritage. There is some critical debate in the local press on the process of gentrification, imposed from above. Old neigbourhoods and buildings, like in Piassa or Kazanchis, with historical, late 19^th-century structures, were often destroyed. But not all. One of the old Addis Ababa landmarks retained was the 1900-built residence of Haile-Giorgis Wolde-Michael, a high official during Emperor Menilik’s reign (1889-1913). It was renovated by private initiative and now has a public function as the Ṭaytu Cultural and Education Centre.

Sensitivities
The underlying political sensitivities of this urban transformation phenomenon need attention but are discussed with caution. Of course, Addis Ababa citizens from all walks of life show the proverbial ‘resilience’, but serious socio-economic problems persist; even institutions like the World Bank already in 2015 spoke in careful terms about problems and on the need for balanced, remedial development for the city’s less fortunate inhabitants. One aspect of the capital’s overhaul is the strongly raised taxes for the inhabitants. Few commentaries, however, try to weigh the pros and cons and are either unduly laudatory or harshly critical.

Ethiopia still has the trappings of an authoritarian ‘developmental state’ (as under the previous, EPRDF regime) whereby the national government is the main driving engine of the economy, and not the private sector. It also has the drawbacks of authoritarian policymaking, yes: but as many local people say, the advantage is that ‘things are getting done’. Despite the serious problems, Addis Ababa shows notable dynamism, carried by the substantial and growing middle class, a large number of well-educated people, a smaller but extremely rich upper-middle and upper class. They are globally well-connected and entrepreneurial, despite the political, bureaucratic, and juridical obstacles. The lower classes of poorer, less-educated people or people with rural backgrounds - the day-labourers, nightwatchmen, unemployed, irregular migrants, IDPs, beggars, female firewood sellers – are the ones whose options are limited.

The massive transfer of the inner-city poor inhabitants and small (often informal) businesses to the remote outskirts is often glossed over. Indeed, politicians would say: one cannot make an omelet without breaking the eggs. But vulnerable people need more compensation, social support, and opportunity. Recent estimates in the World Bank’s Poverty and Equity Brief state that national poverty rates in Ethiopia are rising again. And legal cases against home removals and displacement are rarely even tried. In the country as a whole, peace is not established. Addis Ababa seems a relative ‘island’ of growth and prosperity vis-à-vis an unruly and precarious countryside.

Remedial measures
In considering the issue of ‘remedial’ measures and social support initiatives, the problems of displacement, lack of fair compensation, insufficient new job creation, and absence of meaningful legal redress of abuses in the implementation of rapid urban restructuring, are to be addressed. Several mitigation measures were indeed taken, like SafetyNet initiatives, public kitchens for poor displaced and elderly people, and compensation schemes for new housing and business support. But much more is needed in terms of inclusivity in addressing the problems of the urban population. Based on interviews I had in October in Addis Ababa, many people from the popular neighbourhoods in the city centre were pressured to leave or be removed, losing businesses, jobs and income, and the distance to new suburb locations that they were offered was up to 1,5 to 2 hours by public transport, and financial bridging support was limited. So, the poorer ‘stakeholders’ should be consulted and compensated more seriously.

Despite these serious social and economic challenges, the removing of people, and the faults in public service provision, we do see positive urban rehabilitation, investment, thriving economic activity, and an urban dynamic that many inhabitants are proud of. The perceived promises of possibility and growth have created a kind of tangible ethos of ‘this is the place to be’. Certainly, that is also the idea of most Ethiopians outside Addis, though it is impossible for all to realise. A problem point for the future is that the city is distinctly bordered and is literally surrounded by another city, called Sheger, an administrative conglomerate of twelve previous ‘sub-cities’ and smaller towns founded in 2022. So Addis Ababa cannot just expand into or absorb Sheger. How Sheger and Addis Ababa relations will evolve vis-à-vis the inevitably growing need of Addis to expand, both demographically and economically, stands to be seen.

So, the visually impressive and far-reaching infrastructural and social make-over of Addis Ababa invites both easy praise and scrutiny, and research projects are in progress to study how this unfolds. Hopefully, the policymakers and city administrators will overcome their sensitivity to criticism and take the findings of such research into account to improve the urban transformation process.