ADDIS ABABA – City Administration of Addis Ababa has launched the construction of five thousands of prefabricated homes to address its residents’ growing housing demand.
The newly launched project is the first part of the administration’s plan to construct 10,000 prefab low cost houses in two phases.
The project was launched on Wednesday with top officials of the administration including city mayor Adanech Abiebie, in attendance.
The state-run Ethiopian Construction Works Corporation (ECWC) has been tasked to carry out the construction of the nine and four storey buildings that will house 5000 homes and shops.
CEO of ECWC, Yonas Ayalew said the ECWC has already finalized preparing inputs which are needed for the construction of the houses.
Their construction will be completed within a year, he added.
According to City Mayor Adanche, a total of 8 billion birr budget has been allocated for the 5000 houses.
The project is a part of her administration’s effort to address the rising housing demand in the capital, she said. Last year, the city signed an agreement with South Africa construction firm, Property 2000, to build 500,000 houses in five years.
The imbalance of the demand and supply of housing units in Addis Ababa city is well documented. The city has made huge investments in subsidized and affordable housing for its low- and middle-income residents fill the gap.
“These efforts, however, have been rendered less effective than anticipated as the housing offered is not affordable to the 20% of the city’s residents with incomes below the poverty line,” says a UN Habitat 2020 report.