Promoting well-functioning land markets for sustainable growth in Ethiopian Cities - Assosa case study

This case study examines the challenges and constraints in the land and property market in Assosa town, Ethiopia, focusing on supply- and demand-side issues. The research evaluates land-related policies, laws, and institutional frameworks at federal, regional, and local levels, assessing their impact on market performance. Key findings reveal significant limitations in land administration, valuation, and taxation systems, compounded by overlapping rural and urban land laws, ineffective compensation mechanisms, and insufficient municipal revenue. On the demand side, rapid urban growth, limited access to credit, and a thriving informal market highlight unmet demand for land. The study underscores the need for improved governance, streamlined land policies, and enhanced private sector engagement to address these challenges and promote sustainable urban development. Recommendations are provided to improve institutional capacity, enhance market transparency, and optimize land use practices to support Assosa’s economic growth.