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Ethiopia
Economy - Development | Society

Germans to build cheap housing in Ethiopia

afrol News, 30 November - The German development agency GTZ today announced it had been commissioned to construct at least 10,000 housing units a year by the city authorities of Addis Ababa, the capital of Ethiopia. More than 8,000 apartments on 19 construction sites around Addis Ababa are already finished or being built, GTZ said.

The German development agency last year already had signed contracts worth euro 8.8 million to construct social housing in the Ethiopian capital, a programme that now was nearing its completion. A new contract worth euro 32 million was now being commissioned by Addis Ababa authorities, according to GTZ.

The background for this enormous order is found in a regional component of the GTZ project in the Ethiopian province of Tigray, promoting housing construction with low-grade technologies, also termed "Low Cost Housing".

Arkebe Oqubay, the Mayor of Addis Ababa, had observed the GTZ project in Tigray and was convinced it would work in the Ethiopian capital. According to GTZ project leader Ruth Erlbeck, the German development agency could "offer construction costs that were up 50 percent lower than the average costs."

Consequently, the German Ministry for Economic Cooperation and Development got engaged in the large order by Addis Ababa city authorities, authorising GTZ's enlargement of its Tigray project. The Low Cost Housing Project is now engaged in counselling and training city authorities in low price constructions, including the training and promotion of small and medium scaled local companies.

The International Services department of GTZ meanwhile treats the commercial and technical aspects of the housing construction order in Addis Ababa. The whole operation aims at responding to the pervasive lack of housing in the Ethiopian capital, improve urban construction quality and at the same time create jobs in the city.

- The low cost housing technology represents low-price, high quality and enduring constructing, assures Ralph Trosse, the technical advisor of the project. "Anyone who wants to move in has to become an owner and pay 30 percent of the construction costs." The rest is down-paid on a 15-year credit.

The project emphasises on the responsibilities of the residents through making them owners. "In this way, the responsibility and ownership of the residents is promoted, also regarding repairs, maintenance and restoring of the construction," explains Ms Erlbeck.

The GTZ project already has achieved much recognition in Ethiopia. In mid-June, Ethiopian Prime Minister Meles Zenawi inaugurated the first pilot project together with GTZ Director Wolfgang Schmitt. According to the German agency, the Ethiopian government now is investigating whether GTZ's low cost housing technology may be used in all parts of the country.



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