Process of informal land transaction: A case study in the peri-urban area of Addis Ababa

Abstract

Addis Ababa attracts many people creating need for land. But, formal land delivery is hopelessly inefficient. As a result, many people opt for buying urban fringe land informally. The aim of this article is to understand informal land transformation process in Kolfe Keranyo, a sub city of Addis Ababa. Observation, interviews, focus group discussions and a questionnaire survey were used to obtain the empirical data. This study has also benefited from various secondary sources. As the results of the study shows, the process of informal land transformation passes through different stages. These include identifying a land for sale, negotiating on land size, bargaining on land price, demarcating the land to be sold, and finally, documenting land right transfer though traditional letter of agreement (contract of sale). Land brokers, local residents, gatekeepers, local laborers, friends/relatives and local officials serve as sources of information about availability of land for sale. Elders, leaders of traditional social institutions, community leaders, neighbors, and relatives/friends play important role in regulating informal land transformation. Informal land delivery is a response to inefficient formal land delivery. It is, thus, important to create efficient formal land delivery system to suit the requirements of all for whom it is intended and make state rules and regulations appropriate to the situations they are meant to mediate. It is also necessary to give a space for informal actors in urban management and incorporate positive innovations in policy formulation.