Since 2005 Ethiopia has been implementing an ambitious government-led low- and middle-income housing programme: The Integrated Housing Development Programme (IHDP). The initial goal of the programme was to construct 400,000 condominium units, create 200,000 jobs, promote the development of 10,000 micro – and small – enterprises, enhance the capacity of the construction sector, regenerate inner city slum areas, and promote homeownership for low-income households. As the five-year programme nears completion, documentation of the programme is timely. T his publication documents the IHDP and outlines how the project has been designed and implemented. T he purpose of this publication is to document the genesis of the programme and the country’s experience since its inception, focusing predominantly on events within Addis Ababa as this is where most efforts have been made. The publication is based on desktop studies, literature reviews and a field survey undertaken by UN-HABITAT under invitation from the Ministry of Works and Urban Development of Ethiopia.

Factors and decisions that contributed to the success of the programme have been examined, and some of its current shortfalls have been evaluated, all with an aim to increase global understanding of the use of such an integrated programme to solve an existing low-cost housing shortage and reduce poverty through housing production. It documents a case study of the Ethiopian experience so that other countries may be able to adapt and apply this logic to their own public housing systems. T he IHDP has been successful in many respects. Although the large-scale programme has not met all of its original targets, it has built 171,000 housing units to date, a significant achievement considering the previously limited capacity of the Ethiopian housing sector. The programme has greatly increased the number of homeowners that would never otherwise have owned a home within their lifetime, and, in parallel, has benefited the housing market by increasing the supply of owner occupied housing and rental units. The programme has also built the capacity of the construction sector, addressed the existing slums and been a significant generator of employment opportunities. T he Federal Democratic Republic of Ethiopia is a country of contrasts. Ancient rock-hewn churches sit alongside modern bustling cities. Cold mountainous regions counterpoint low-lying tropical monsoon climates. Eighty distinct ethnic groups and indigenous languages differentiate the ethnically diverse population. Small stable villages that are home to the majority of the population are distinct from the enormous and rapidly expanding urban areas.

The country boasts vast areas of cultivable land yet regular food shortages and famine are common, and while there are a select few Ethiopians with considerable wealth a substantial proportion of Ethiopians live in extreme poverty. Ethiopia is one of the poorest countries in the world. It is ranked 169th out of 175 countries in the United Nations Development Programme Human Development Index. Among other indicators demonstrating the massive developmental challenges facing Ethiopia, primary school enrolment is remarkably low at only 46 per cent, infant mortality is high at nearly ten per cent (98 child deaths per thousand), 53 per cent of the population is illiterate, and 40 per cent of the population lives below the poverty line1, 2. National unemployment is high at 16.7 per cent3, although in the capital city of Addis Ababa it is even higher at 32 per cent4. With a population of 79 million, Ethiopia is the second most populous country in Africa. It is growing rapidly; the annual growth rate is 2.6 per cent, equating to two million births per year5.