The Impact of Development-Induced Urban Resettlement Schemes on Relocated Households: The Case of Sheraton Addis Hotel Project,. Addis Ababa

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


The central part of Addis Ababa in characterized by the predominance of unplanned neighborhoods and slums. These inner city areas are predominantly occupied by low income households since most of the economic and public activities are located in the inner city that provides a multitude of formal and informal income earning opportunities. Since May 1991 the country has been introduced to a free market economic system and this new policy environment resulted in the private real estate developers becoming involved in urban development activities. At present more than 400 project proposals have been submitted to the Local Government requiring inner city land to redevelop for other purposes in accordance with the 1984 Master Plan. As a result, a sUbstantial number of inner city residents have been displaced and more are expected to be displaced in the near future. Therefore this thesis examines the consequences of such urban development on the livelihood of the inner city slum dwellers taking a case study of the Sheraton Addis Hotel Project. The sample size consisted of 86 relocated households (12%) drawn from a total population of 718. The sample households were selected randomly and proportionally from the housing units stratified into different housing types. The findings of the study indicated that the resettlement scheme has resulted in providing decent housing units among which 99% of the households were highly satisfied. It was also identified that there was a significant improvement in toilet, and kitchen facilities. However, the public facilities and the infrastructure provided in the new site lagged far behind. The study demonstrated that the resettlement scheme has resulted in a dramatic increase in the unemployment rate from 1.2 percent in the previous settlement to 11 .1 percent in the new site. Among the factors that brought about this change lack of potential clients and markets was the major one. In addition to this the study revealed that the partial resettlement scheme led to problems in social integration manifested in the breakup of former neighborhood ties. The locational preference of the relocatees was raised and it was identified that their preference depends upon the type of employment and location of working place. Hence among those who were involved in temporary and casual work 73 percent preferred to live in the inner city. Among those who were permanent full-time workers only 50 percent would prefer to go back to the inner city. The disadvantages of moving from the inner city were the increase in transport costs, disruption of former neighborhood ties and the reduction of monthly income of some household heads. The study also demonstrated that the majority of the households have remained in the resettlement area by overcoming the problems resulting from the resettlement scheme.



Development-Induced Urban