Affordability and Living Condition of Condominium Housing in Addis

Ababa, Ethiopia

SHEGER COLLEGE OF GRADUATE STUDIES

MBA PROGRAM

By: -------------------------

A PROPOSAL SUBMITTED TO DEPARTMENT OF BUSINESS

ADMINISTRATION IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE DEGREE OF MASTERS OF ART IN BUSINESS ADMINISTRATION.

Advisor: ----------------------
Mar 31, 2024
Addis Ababa, Ethiopia
 APPROVAL SHEET
SHEGER COLLEGE OF GRADUATE STUDIES MBA PROGRAM

“Affordability and Living Condition of Condominium Housing in Addis

Ababa, Ethiopia”

By ---------------------------------------- Signature---------------------------------
Approved by Board of Examiners Date--------------------------------------

Internal Examiner Signature Date

External Examiner Signature Date

Advisor Signature Date

1
 Acknowledgment
First and for most, I would like to give my glory and praise to the Almighty GOD for his
invaluable cares, supports throughout the course of my life and helped me since the
beginning of my education to its completion and enabled me to achieve my career.

It also gives me pleasure to extend my gratitude to different department heads and

directorates in Housing Construction Corporation and also Condominium residents in the
city administration of Addis Ababa for their kindness and willingness in providing me
information that can be used as an input for the study. And I am indebted to the officials of
housing development of Addis Ababa city Administration; who provided me with the
relevant information to complete this dissertation.
Also I would like to forward my special gratitude to my family, specially my spouse, for
her moral support during the entire duration of the course.

2
 List of abbreviations

AU- African union

IHDP- Integrated housing development program

UNECA- United nation economic commission foe Africa

UN- United nation

USD- United states dollar

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Table of Contents
Item Page
Acknowledgment ...................................................................................................................................................................... 2

List of abbreviations ................................................................................................................................................................. 3

CHAPTER ONE ....................................................................................................................................................................... 7

1. INTRODUCTION ................................................................................................................................................................ 7

1.1 Background of the Study ............................................................................................................................................ 7

1.2 Statement of the Problem ........................................................................................................................................... 9

1.3. Research Questions .................................................................................................................................................. 10

1.4. Objectives of the Study ............................................................................................................................................ 11

1.4.1. General Objective ............................................................................................................................. 11

1.4.2. Specific Objectives ............................................................................................................................ 11

1.5. Significance of the study .......................................................................................................................................... 12

1.6. Scope of the Study ................................................................................................................................................... 12

1.7. Methodological Limitation of the study ...................................................................................................................... 13

1.8. Definition of Terms ......................................................................................................................................................... 14

1.9. Organization of the Paper......................................................................................................................................... 14

CHAPTER TWO .................................................................................................................................................................... 16

2. LITRATURE REVIEW ..................................................................................................................................................... 16

2.1. Definitional Issues.................................................................................................................................................... 16

2.2 Urbanization and housing affordability .................................................................................................................... 16

2.3. The integrated housing development program (IHDP) ............................................................................................ 18

2.4. Housing affordability and policy objectives ............................................................................................................. 18

2.5. Housing Policy in Ethiopia ...................................................................................................................................... 19

2.5.1. The Pre-1974 housing policy ............................................................................................................ 19

2.5.2. Post-1974 Housing Policy................................................................................................................. 20

2.5.3. The Housing Policy of the Current Government ............................................................................... 20

2.6. The low cost housing program and basic features of the program ........................................................................... 21

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 2.7. Low cost housing program types ............................................................................................................................. 22

2.8. Empirical Literature ................................................................................................................................................. 22

2.9 Conceptual Model of the Study .................................................................................................................................... 25

CHAPTER THREE................................................................................................................................................................. 28

3 Research Methodology ........................................................................................................................................................ 28

3.1. Study Area ............................................................................................................................................................... 28

3.2 Research Design ........................................................................................................................................................... 29

3.3 Research Approach Adopted for this Study .................................................................................................................. 29

3.4. Target Population and Sampling Design ..................................................................................................................... 29

3.4.1. Target Population .................................................................................................................................... 30

3.4.2. Sampling Design ...................................................................................................................................... 30

3.5. Sample Size determination .......................................................................................................................................... 30

3.6. Sources and methods of Data Collection Method ........................................................................................................ 31

3.6.1. Source of Data ......................................................................................................................................... 31

3.6.2. Tools of Data Collection .......................................................................................................................... 32

3.7. Instrument Variables and Measurement ...................................................................................................................... 32

3.8. Ethical consideration ................................................................................................................................................... 33

CHAPTER FOUR .................................................................................................................................................................. 34

4. WORK AND BUDGET PLAN .......................................................................................................................................... 34

4.1. Time plan ................................................................................................................................................................. 34

4.2 Budget break down ....................................................................................................................................................... 35

References .............................................................................................................................................................................. 36

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 List of figures and table
FIG 1: Conceptual Framework of the Study modified from E.O. Ibem et al (2015) .............................. 26

FIG 2: Administrative Map of Addis Ababa

TABLE 4.1. Work plan ------------------------------------------------------------------------------------------34

TABLE 4.2. Budget breakl-down--------------------------------------------------------------------------------35

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 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the Study

Housing condition of a nation manifests the country's socio-economic development level. It also bears
upon the maintenance of privacy, health and the development of normal family living conditions. On
the other hand, it influences fertility by encouraging or discouraging family formation and affects
mortality through health problems (Gebeyehu, Marco and Behailu, 2001).
Housing forms an indispensable part of ensuring human dignity. Adequate housing encompasses
more than just the four walls of a room and a roof over one’s head. Housing is essential for normal
healthy living. It fulfills deep-seated psychological needs for privacy and personal space. It also,
physical needs for security and protection from inclement weather. In many societies, a house also
serves an important function as an economic center where essential commercial activities are
performed (Felix, 2000).
The stagnant nature of economic development and rapid population growth of most of the developing
countries makes effective and efficient service delivery difficult for governments, to satisfy the need
of their residents. Housing is one of the basic necessities for human survival; despite it remains for a
long period as a critical problem of most of the cities of developing countries (Azeb). Housing is one
of the basic necessities for human beings. However, it is a critical problem for millions of poor people
in developing countries, and Ethiopia is no exception (Bihon, 2007). Ethiopia’s urban centers are
characterized by poorly developed economic base. Like most urban centers of developing countries,
most cities and towns in Ethiopia face a plethora of problems, including an acute and ever-worsening
housing shortage (Solomon & McLeod, 2004).
The housing situations of Ethiopian cities are a manifestation of the interplay of urbanization and
demographic factors. Over-crowding of dwelling units and growing of squatter settlements, resulted
from high rates of population growth and migration to urban areas. Insufficient housing productions
have become distinguishing characteristics of Ethiopian cities. Although the extents of such problems
differ from one urban area to another e.g. high density, sanitation problems, unsafe living

7
Conditions and insecurity of tenure are some of the common constraints of urban areas (UN-
Habitat, 2007; Tebarek, 2013).
Despite global recognition of the importance of housing to human welfare and survival, it is
estimated that over one billion people live in inadequate housing while over 100 million people are
homeless (UNHCHR,1996). The majorities of urban houses in Ethiopia are below the standard and
lack adequate space. The provision of water supply, electricity, and drainage is very minimal. The
lives and health of people living in housing of such poor quality and with such inadequate provision
for water, sanitation, and drainage are under continuous threat (Engelman, 1997; Gebeyehu, Marco
and Behailu, 2001).
Ethiopia’s housing deficit is between 900, 000 and 1,000,000 units in urban areas, and an estimated
225, 000 housing units are required a year to meet the Millennium Development Goals by the 2015.
The youth Ethiopia’s population, who accounts more than 50% under the age of 18, coupled with a
high population growth rate that could see Ethiopia’s population reach 100 million by 2020, is
putting considerable pressure on demand for rapid housing provision. It is estimated that only 30%
of Ethiopia’s total housing stock is in fair condition, while the remaining 70% is in need of total
replacement. As a result, Addis Ababa city administration has started an ambitious of housing
construction and inner city up grading program (UN-Habitat, 2011).
Sustained high urbanization and population rates in Ethiopia will put extra pressure on already
failing and deteriorated urban infrastructure, services, and housing stock. The massive housing
needs are unlikely to be met by the small scale housing cooperative, government, and upgrading
approaches prevailing from the late 1970s until the mid-2000s, especially considering the high by
the low-income sector of the population for affordable housing. In response to this challenge, the
Ethiopian government outlined an ambitious vision for low-income urban and housing
development, formulated as the Integrated Housing Development Program (IHDP), since 2005, for
all slums to be cleared within ten years and for Ethiopia to be a middle income country by 2025. In
particular, the IHDP envisages the utilization of housing as an instrument to promote urban
development, create jobs, revitalize the local urban economy through MSE (micro and small
enterprise) development, encourage saving and empower urban residents through property
ownership, and develop the capacity of the domestic construction industry (Mehader,2013).

8
 1.2 Statement of the Problem

The rapid process of urbanization in developing countries accompanied with lack of adequate and
affordable housing is one of the 21st century’s main development challenges. The United Nations
projects that the world’s urban population will increase by 2.6 billion people, up from 3.6 billion in
2011 to 6.3 billion in 2050 (United Nations, 2012). Despite this, almost 1 billion people are thought
to live in urban slums without proper housing and amenities (UN, 2002). By 2025, nearly half of
Africa’s population will live in cities as a result of sustained urbanization, putting pressure on the
formal housing supply. The 1948 United Nation Universal Declaration of Human Rights identified
housing, along with food and clothing, as a basic requirement for achieving an adequate standard of
living.

Inadequate housing in informal settlements (or slums) is known to be an obstacle to economic

growth in cities. In recent years, policy has increasingly focused on providing in-situ, incremental
slum-upgrading in conjunction with land-titling programs (Galiani and Schargodksy, 2010) as a
best practice response to improving housing. Relocation to new housing, as opposed to in-situ
upgrading, is thought to impose significant costs on households as it takes them away from
employment opportunities (Banerjee et al, 2012; Sato and Zenou, 2015)

To alleviate the housing problems of low income groups, the current government used Integrated
Housing Development Program (IHDP), initiated by the Ministry of Works and Urban
Development in 2005. Through the construction of durable, fully-serviced housing units the
program greatly improves their living conditions and their access to basic services. However,
though the condominium housing program has become an increasingly important way for lower
income people to own houses of good quality with affordable price (Mahder, 2013). The
condominium housing program is being used to reduce the housing problem of urban low income
people, among others. This program increases the access of the poor households to better quality
housing at an affordable price.

This program increases the access of the poor households to better quality housing at an affordable
price. The program targets only middle and lower income households. It allows low-and-middle
income households, who typically live in ‘precarious’ housing situations to access improved
housing (UN-Habitat, 2011). However, to what extent the affordability of the housing units to the
urban poor is still questionable.

9
 The condominium housing program is designed to serve the middle and the low income groups who
live in slum of inner city for those who are being challenged by housing shortage. However people
argue that the program was design for the low and middle income earners but mostly the middle
and higher income peoples are beneficiary.

Therefore, the main target of this dissertation is to examine the adequacy, affordability and supply
pattern of condominium housing in Addis Ababa and the central research question aims to answer
whether the condominium houses are affordable, adequate and satisfying the middle and low
income earner? And also it provides emphasis on the effectiveness of supplying the house and
provision procedure followed by the city administration in achieving the stated target i.e. supplying
adequate and affordable housing for low and middle income households. Investigation of factors
affecting housing affordability as well as the factors affecting the price of condominium housing
provided by government provides vital weight to form bases for urban development policy
formulation. Additionally this research answered the determinant factors affecting price of
condominium housing. To achieve the above stated problem the researcher raised the following
research questions.

1.3. Research Questions

This research paper will try to address the following research questions:
1. What are the challenges encountered by the city government of Addis Ababa to supply
Adequate and affordable houses for low and middle income group in the existing housing
Program: specifically in Addis Ababa?
2. What is the adequacy of condominium housing and the factors affecting the adequacy of
Condominium housing on the residential environments?
3. What are the level of satisfaction by the owner of condominium on the housing and the
Determinants factors affecting the satisfaction of the condominium residents on the residential
Environments
4. What are the determinant factors affecting public housing (condominium) price in Addis Ababa
(Using hedonic pricing model) and its association with affordability of housing?
5. What are the determinants factors affecting affordability of housing (condominium) in Addis
Ababa?

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 1.4. Objectives of the Study
In this dissertation the researcher will raise two types of objective i. e general and specific
objectives that will be achieved throughout the dissertation through data collection and analysis.
1.4.1. General Objective

The main objective of this research will: To examine the affordability and living condition of
condominium housing in Ethiopia: case from Addis Ababa city administration
1.4.2. Specific Objectives
The researcher will raise the following specific objectives that will be achieved through data collection
and analysis:

1. To examine the challenges encountered by the current government of Ethiopia particularly by the
City government of Addis Ababa to supply adequate and affordable (condominium) houses for
Low and middle income group
2. To examine the adequacy of condominium housing in the city administration
3. To examine the satisfaction of the condominium residents on the residential environments
4. To identify the determinant factors affecting public housing (condominium) price in Addis Ababa
(Using hedonic pricing model)
5. To identify the determinant factors affecting housing (condominium) affordability in Addis
Ababa

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 1.5. Significance of the study

The result of the study conducted by the researcher will have immense benefit for the stakeholders
who are interested in condominium housing project in Addis Ababa city administration.

At its very basic level housing can be seen as a consumption item for satisfying basic human shelter
needs. However, housing also fulfills other important roles, such as contributing to people‘s sense of
stability and security and providing them with an operative base for engaging in family life and with
the rest of society. Therefore, studying the adequacy and affordability of housing sector (public
housing) is very crucial.
 This study concentrates on condominium housing characteristics, supply pattern in the city
Administration, challenges of implementing condominium housing, adequacy, affordability
And the satisfaction of residents
 This research will assessing the adequacy; supply and affordability of urban housing
(Condominium housing) sector; satisfaction of residents on condominium housing and also Identified
the determinant factors affecting condominium housing price and affordability By Investigating the
contributing factors for supply and affordability, the result will contribute for The policy makers to see
and if needed to revise the existing public urban housing policy.
 This study will provide more information to the city administrator that is responsible to Facilitate
the formulation of operational plans and strategies based on the existing realities in Order to
facilitate supplying of adequate and affordable housing to meet the needs of the Majority low and
middle income people. The study will also create awareness among housing Supply agents
especially for federal and local governments and public housing agencies about the adequacy and
satisfaction of the residents on the residential environment.
 This study will add to the body of knowledge on the factors affecting housing affordability
And adequacy of housing, which will be beneficial to prospective homeowners, policy makers,
Academicians, housing financiers, learning institution, instructors and other stakeholders. It Also
provides a basis for further research on housing adequacy and affordability in Addis Ababa and the
larger of Ethiopia. Thus, contributes to the literature on determinants of Housing affordability, adequacy
and also satisfaction of residents.
1.6. Scope of the Study
As it is strongly argued by Cresswell (2009) delimiting a research project using specific time frame,
location, population or issue to be investigated and methodology to be used by the research address the

12
research problem and maintain the centre of the research in an efficient manner. Because of time and
financial constraint; it is very difficult to conduct a study by taking the large geographical area and also
by taking different issues in to account. Therefore, in a nut shell, this research study will delimited to
the following areas:
2 Topic: Examination of affordability and living condition of condominium housing in Addis
Ababa city administration. Even if there are different areas of discussion in housing policy;
this research concentrates on the adequacy, supply, affordability and also the satisfaction of
the residents on the housing environment.
3 Study area: The geographical scope of this study is delimited in to the boundary of Addis
Ababa city administration, Ethiopia. The study area is selected because there is rapid
population growth in Addis Ababa and also huge demand of housing in the city
administration. The increase of the population is because of rural urban migration and also
natural growth. This migration may increase the demand of the people towards social goods
principally housing. In addition it is expected that there may be income in equality between
the rich and the poor in the city and also majority of the residents are take part in the low
income providing economic activity.

4 Time covered: The research will undertake by considering the rounds of distribution in to
consideration. This dissertation will be considered first round to eleventh round.
1.7. Methodological Limitation of the study
The research wills some limitations as indicated below:
 The finding of the study will not applicable to any other housing scheme such as housing
Produced by the real estate developers; individuals housing providers and also housing Cooperatives.
 The second limitation of the study will its generalizability: The study was conducted by considering
only the city administration of Addis Ababa. Therefore, the result of the study will not be applicable to
any other condominium areas in any other cities. This is because of the difference of the socio-
economic characteristics of the residents in different urban centres in Ethiopia.
 Even if both primary and secondary data will important to provide a sound conclusion for the given
specific objectives; shortage of relevant and sufficient secondary data about public urban housing
(condominium housing) in the city administration will a serious challenge that is why the researcher
opted for extensive primary data to achieve the stated objective.

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 1.8. Definition of Terms

Condominium: means a building for residential or other purpose with five or more separately
owned units and common elements, in a high-rise building or in a row of houses, and includes the
land holding of the building (Condominium Proclamation No. 370/2003).
Condominium housing: is a name given to the form of housing tenure where each resident
household owns their individual unit, but equally shares ownership and responsibility for the
communal areas and facilities of the building, such as hallways, heating systems, and elevators.
There is no individual ownership over plots of land. All of the land on a condominium site is owned
by all homeowners (UN- Habitat, 2011).
Housing: a home, a store room and a show case for possessions; a mark of status; a base from
which everything else necessary for livelihood (Bethel, 2003).
Households: constitutes a person or group of persons, irrespective of weather related or not, who
normally live together in the same housing unit or group of housing units who have common
cooking arrangement (MoFED, 2008).
Housing Affordability: measure the financial outcome for a household of renting or purchasing the
dwelling they need or wish to occupy (AHURI, 2006).
Housing unit: is a separate and independent place of abode, either intended for habitation or not
but occupied as a living quarter by a household at a time of census (CSA, 2010).
Low income households: is a relative term to distinguish between those with high, middle and low
incomes. It covers those with the lowest and indeed negligible incomes. Low income households
are not necessary those below the poverty line, nor do those all have the same needs or express the
same demand (UN-Habitat, 1991)
1.9.Organization of the Paper

This paper will consist of five chapters. The first chapter discusses introductory part of the research.
Chapter two explains about the methodology of the research and description of the study area.
Chapter three provides the detailed review of concepts based on the existing studies on the matter
under investigation. The fourth chapter will contain results and discussion. The last chapter makes
conclusions and forwards some recommendations based on the findings.

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15
 CHAPTER TWO
2. LITRATURE REVIEW
2.1. Definitional Issues

The idea of affordable housing recognizes the needs of households whose incomes are not sufficient
to allow them to access appropriate housing in the market without assistance (Milligan et al 2004,
pi). Thus, the term ‘affordable housing’ describes housing that assists lower income households in
obtaining and paying for appropriate housing without experiencing undue financial hardship
(Milligan et al 2004, ). A range of publicly or privately initiated forms of housing may meet this
specification (Milligan et al 2007, p27). In fact, in recent years, the term ‘affordable housing’ has
been used as an alternative to terms such as ‘public’, ‘social’ or ‘low cost’ housing (Gabriel et al
2005, p6). Affordable housing is housing that is appropriate for the needs of a range of low to
moderate income households and priced so that low and moderate incomes are able to meet their
other essential basic living costs (PRWG 2006 in Milligan et al 2007, p26)
Dictionary definition: “Examination of prospective house buyer's finances: an appraisal of
somebody's ability to meet the financial obligations arising from buying a house or other asset,
taking account of the person's assets, liabilities, and expected income and expenditure” --
Microsoft® Encarta® 2009. ©
2.2 Urbanization and housing affordability

Housing is one of the three basic needs of mankind. After the provision of food, it is the most
important factor for the physical survival of man. It has been shown that housing is one of the best
indicators of a person’s standard of living and place in the society. The concept of adequate housing
implies more than just a dwelling, but includes all that is within the dwelling and the creation of a
conducive environment in which people live and grow (Jiboye, 2009). As a result of increasing
urban homelessness and the growth of slums, from the 1950s governments throughout the world
started to develop various strategies and intervene more directly in the procurement of urban
housing (Wakely, 1988). The two decades 1950-1970 saw the political independence of many
colonies in Asia, Africa and the Caribbean and a new economic independence, and these brought

16
about significant industrialization and dramatic urbanization in many Latin American countries
(Wakely, 1988; Wakely, 1988). In some countries, the government subsidy was redirected from the
low-income groups to low-middle income earners and then switched from individual householders
to the (profit-motivated) producers of housing -real estate developers and bankers (UN Habitat,
2003). Today, housing for low-income families is a major component of all towns and cities in
Asia, Africa, Latin America and the Caribbean, typically covering 60-80 percent of the developed
land area of towns and cities and accounting for 50-70 percent of the value of the fixed capital
formation of urban areas of which they are an integral part (UN-Habitat, 2003). Housing is also of
great importance to households in both developed and developing economies, because it is the
largest fixed capital investment that households make both in developed and developing
countries(Malpezzi, 2000).The United Nations states that every citizen of the world is entitled to be
sheltered. Yet, a great part of the world's population is housed in unfit and unhealthy dwellings and
physical surroundings. Thus, more than one billion of the world's city residents live in inadequate
housing, mostly in the sprawling slums and squatter settlements in developing countries (UNCHS,
2001). Like most urban centers of developing countries, most cities and towns in Ethiopia face a
plethora of problems, including an acute and ever-worsening housing shortage (Regassa 2015)
In Ethiopia, until recently, there was no specific legislation that recognized citizens’ right to
housing or which imposed a duty on the government to recognize that right. Nevertheless, there
were few national coordination policies regarding housing and urban development. During the first
half of the 20th century, land and housing in Ethiopia were controlled by a few individuals and
groups, where housing supply was mainly controlled by the landowning elite who constitute less
than one percent of the population but own more than 70% of the arable land (UN-HABITAT,
2007). Following the 1974 land proclamation(No. 47/1975), ownership of all urban land and extra
houses were transferred to the government in an effort to enforce a fair distribution of wealth across
the country (Teshome,2008). State sponsored urban housing construction has begun in the late
1980s (Mulugeta,1995). With emergence of the current government in 1991, Leasehold as a land
tenure system was introduced in 1993 and then revised in 2002 and 2011 (UN-HABITAT,
2010).Since year 2005, Ethiopia has been implementing an ambitious government led low and
middle-income housing program. The programme involves a radical shift from the single-storey
detached housing typology (government owned rental housing) to a new condominium typology
(private homeownership). According to the programme, all slums would be cleared within ten
years. To make the programme feasible, the state transferred the overall responsibility for the

17
housing sector to the regional administrative level. At the regional level, the Bureau of Works and
Urban Development (BWUD) is responsible for urban management and development issues.
(Regassa 2015)

2.3. The integrated housing development program (IHDP)

The IHDP is a large-scale program designed by the Ethiopian government to addressing the current
housing deficit, the poor quality of existing housing stock, and the future housing needs due to
continued rapid urbanization. Unlike prevailing piecemeal approaches to solving urban housing
problems in several African countries, Ethiopia’s housing program of the past ten years has been an
ambitious large scale project that integrates a number of complementary policy objectives such as
employment and saving mobilization. The program is primarily focused to addressing the
challenges of access to affordable housing by low- and lower middle-income urban households that
typically live in precarious housing conditions. Through the provision of low-cost housing units, the
IHDP is intended to greatly improve the living conditions and tenure security of low income
households. The IHDP, being implemented in the past ten years, marked a radical departure from
the previous government-owned rental housing approach to that of private homeownership
( Weldesilassie et al 2016) Affordable housing entails housing of an adequate basic standard that
provides reasonable access to work opportunities and community services and that is available at a
cost which does not cause substantial hardship to the occupants.
2.4. Housing affordability and policy objectives

The housing policy has two primary objectives. First, it aims to extend market for low-income
households that are not covered by the private housing market through increased supply of
affordable low-cost housing. In many developing countries, the great majority of lower income
households cannot afford the lowest priced houses in the formal housing market. This is particularly
problematic in developing economies where urban growth is predominantly driven by in-migration
by rural households that often lack the financial wherewithal to participate in formal housing
markets. In the present Ethiopian context, at prevailing housing price and financing mechanism,
only households above the 95th percentile of the income distribution can afford to become home
owners in the formal private housing market. The only choice open to most low income households
in such economies is to rent under precarious and uncertain tenure terms, double up with relatives,
or build some form of shelter in unauthorized sectors that exacerbate the proliferation of slum areas.

18
Consequently, lower-income households not only live in sub-standard housing conditions, but also
have limited access to basic public services as well as access to finances as they are often considered
not creditworthy either due to their employment, which is often in the informal economy and or lack
of collateral for mortgage lending when available. Second, the housing policy aims to stabilize rental
markets in urban Ethiopia through the increased construction of low-cost housing units that target
lower income households as well as by increasing the general housing stock. It is estimated that
Ethiopia’s current housing deficit in urban areas is about a million units, and that only 30 percent of
the current housing stock is in “fair” condition, with the remaining 70 percent in need of total
replacement. The housing deficit is even more severe in major urban areas like Addis Ababa, where
the deficit is set to increase concurrently with rapid population growth. Consequently, this has placed
significant upward pressure on the demand for rental housing in urban areas, which in turn is pushing
rental prices and creating affordability challenges to working class households. Housing affordability
challenges in the private market are occurring largely due to the limited rental housing options for
renters. To ensure stable and affordable rental housing prices, the supply of new housing stock has to
increase to match the rapidly growing urban housing need (Ibid).
2.5. Housing Policy in Ethiopia

Ethiopia has been experiencing various policy measures that have profoundly influenced the
national urban housing development sector, at least as of the first few decades of the 20th century
(UN-Habitat, 2007).
2.5.1. The Pre-1974 housing policy
Housing provision in pre 1974 was predominantly handled by the private sector and it can be said
that the government didn’t attempt to exert any effort in the provision of housing for low-income
people. The housing market during this period can be characterized as operating somehow on a free
market principle. Moreover, land lords were leasing urban land and constructing residential houses
to tenants, and there was no restriction as regards to the selling and buying of houses. No formal
housing policy was adopted during that period and most of the poor people in the city were lived in
extremely overcrowded areas (Esayas, n.d).
As cited in Ashenafi (2006) from Solomon and McLeod (2004), the Ethiopian government did not
have a housing department until the let 1950s. It was that substandard rental houses and personal
residents were built without the permission of the municipality. According to Helen (2010), during

19
this period only the high class of people who could produce as security their ownership and
benefited from the facilities provided by banks and insurance companies.
There were housing difficulty for the middle and the low income people to build residential houses.
Also no strong responsible institutions for the housing sector at all level of the government
(Tesfahans, 2001).The current slums and housing problems are the results of accumulated deficits
of policies and practices for several years. The pre-revolutionary land tenure systems were
excluding substantial proportion of the middle and low income households from accessing urban
land and housing (Yewoineshet, 2007).
2.5.2. Post-1974 Housing Policy
The issue of land was one of the motive forces before the February 1974 revolution in Ethiopia
(UN- habitat 2007). According to Tarekegn (2004), the measures taken in 1975 had a particular
impact on urban areas; all land became state property. Proclamation No.47/1975 in July, 1975 had
served as an over-riding policy instrument to urban land and housing for 11 years. This had,
resulted in a 15-50% reduction of rents on nationalized dwellings and private housing construction
discouraged by the prohibition of private renting.
Following the nationalization of urban land and extra houses in 1975, the government was working
towards a complete control of the housing sector by pursuing centralized economic policy (Esayas,
n.d). Indeed under Derg rule, all cities in Ethiopia, including Addis Ababa, went through acute
housing shortages and ever-deteriorating housing conditions. During 1986, the government
introduces some corrective policy measures. The most notable move in that regard probably was the
housing policy. However, the housing policy failed due to loosed tight of government control on
urban housing provision. As a result, rapid proliferation of squatter settlements began to spread to
cities like Addis Ababa (UN- Habitat 2007).
2.5.3. The Housing Policy of the Current Government
After 1991 the transitional government of Ethiopia has introduced market based economic policy,
which indicated housing policy line. The housing policy has been based on the Decree No.15/1990.
However, denationalization of houses renounced and ownership of land remained under
government hand (Tarekegn, 2004).
One important step in the urban development sector is enactment of the proclamation on urban
development policy by the federal government of Ethiopia (Teshome, 2012).The government

20
adopted a land lease policy (proclamation 80/1993), which regulates the right to residential land
through lease bases for a maximum of 99 years (Esayas, n.d). This policy gave emphasis to the
alleviation of the chronic housing problems in urban areas (Teshome, 2012).The housing
development policy directions is mainly focusing to enhance the saving culture, overcoming the
problems of decayed urban areas through urban renewal and upgrading , increasing the density of
developed area, developing the construction industry, through the implementation of IHDP
(Tameru,2009).
Another milestone regarding Addis Ababa housing development is the 2004 five years housing
development program developed by the city administration. It had an ambitious target of reducing
housing problem of the city by 50% during the plan period. The five year program put the
alleviation of housing problem of low income households as its priority. As a strategy of
minimizing the cost of building, the program promoted multi story (up to G+4) condominium
buildings with a minimum built up area of 22 m2. This was believed to benefit low income families
(Azeb, n.d).
2.6. The low cost housing program and basic features of the program

The low cost housing program targets the provision of low-cost housing in order to ensure
affordability by those households whose needs cannot be met through mainstream real-estate
markets. Low-cost housing generally consists of bare minimum housing facilities and other basic
community facilities and services. In order to keep cost down, low cost housing tends to consist of
smaller dwelling units often located in neighborhoods with relatively low commercial values. These
factors tend to be less attractive to higher income households but are acceptable to low income
households, whose housing budget is limited and often competing with other basic expenditures for
food, education and healthcare. In Ethiopia, since the introduction of condominium housing about a
decade ago, the dominant housing topology has changed from single to multi-storey (up to G+4) to
maintain the population density of the core areas of major cities, particularly Addis Ababa where
the site of multi-storey condominium buildings has become common. The design of each
condominium block constitutes various typologies. The design characterizes vertical development
and densification in order to accommodate more households per hectare in multi-storey buildings.
The unit types are distributed evenly across each storey, rather than each storey having only one
type to encourage a mix of income groups. The design of the condominium units ensures both
compound and neighborhood mixed income ratios. Government allocates land which includes land

21
 for the construction of the condominium units, common space within compound, and to provide
space for community and social purposes. Even though there are some variations from site to site,
the low cost housing program promotes low cost condominium housing units that have common
features such as Standardized design, only basic amenities, Government contracted and highly
subsidized unit sizes
2.7. Low cost housing program types

The low cost housing program has three types of housing schemes, categorized based on the minimum
requirement for down payment: 10/90, 20/80 and 40/60 schemes. The beneficiaries for the 10/90
housing schemes are required to pay 10% of the transfer price upon owning the house, and the rest
90% will be paid on installment in 25 years. Those eligible for 20/80 and 40/60 are expected to pay
20% and 40% as down payment, and the rest in 15 to 20 years. These schemes are expected to suit
households of different income levels. Except for 10/90, which has only a studio, the design of each
condominium block constitutes various typologies that integrate in to studio, one bedroom, two
bedroom and three bedrooms units with mixed function commercial units at ground floor. The studio
unit of the 10/90 program is targeted at the lowest income group, with an average monthly income of
ETB 300 (USD 23) at the time of the program design in 2004. The 20/80 scheme targets the middle
incomers, while the 40/60 scheme targets the upper middle-class that can save quickly or pay upfront.
The features of the low cost housing are designed to contain private access to basic amenities such
water, sewerage, and electricity connections and also a bathroom, which includes a shower, flush-
toilet, and hand basin, and a kitchen (UN Habitat, 2011)
2.8. Empirical Literature
In this part of the dissertation the researcher will summarize the findings of different researcher related
to the subject matter i.e. affordability as well as living condition of condominium housing in Addis
Ababa. The empirical literature summarized and arranged by considering the specific objectives as a
thematic area. It will be summarized as follows: the first part of the literature presents the provision of
housing and housing supply problems, the second part related to affordability of housing; the third part
discussed housing price determination using hedonic pricing model and the fourth part discussed about
housing adequacy and residential satisfaction.
The issue of urbanization is not a problem only but also a resource of the state development both in
developed as well as developing countries. But there are different requirements demanded by
government to establish conducive urban center in the country. Of the critical requirements that is
demanded by the people in different urban centers is to live and own. To justify the issue stated above
the research conducted by Ethiopia (2011) on her master‘s thesis titled as rapid urbanization and
22
housing shortage in Africa: the opportunity within the problem for Ethiopia to find ways on how best to
direct rapid urbanization in Ethiopia towards becoming a resource rather than a source of chaos.
According to the study Ethiopia has one of the highest proportions of urban population living in slums
and housing deficit is at an all-time high. The government has introduced a number of policies and is
trying to provide housing for low-income people while the private sector in the real estate industry is
mainly meeting the needs of high-income people. The study found that this division in task will
eventually lead to the segregation of the city into rich and poor neighborhoods that will ultimately make
matters worse. The study also showed that with the adaption of policies that allow for the integration
and collaboration of the government, the private sector and the people; opportunities of creating a
conducive living environment for all income groups.

Lack of relevant housing policy in the urban centers forces the people to reside in the slum areas at a
poor standard housing in Ethiopia in general and Addis Ababa in particular. The issue is further justified
by Nahiduzzaman Kh. (2012) conducted by the Royal Institute of Technology (KTH); department of
urban planning and Environment division of urban and regional studies. According to the study
perspectives on change are analyzed in order to comprehend the obstacles and challenges rooted within
the housing organizations of Dhaka city. Within the local governance paradigm, the concepts of
deliberative interchange and partnership are explored with the aim to reveal both the resources rooted in
informal ‘low-income housing practices, and the resources at stake for the formal ‘housing gatekeepers.
Different land tenure security options are explored in order to understand their compatibility with the
informal nature of low-income housing.

The theory of social business is critically reviewed, and used to examine whether low-income affordable
housing could be seen as a product resulting from partnerships between vested actors, for whom the
low-income community could be considered to be both a beneficiary and a partner. The study suggests
that outside the boundary of formal‘ housing, there is an unexplored and functional informal‘ housing
market where de facto owners purchase business tenure security‘ from the slum lords, while de facto
tenants buy house rental tenure security‘ in exchange for regular rental payments. Within this
informality, an innovative financial organization (the Jhilpar Cooperative) has emerged as a creative
platform for business investment.
The study will be adopted quantitative survey research design and data collected using primary and
secondary sources; Primary data collected through structured interviews/interview guide, self-
administered questionnaires (Delivery and collection questionnaires), observation and check list.
Secondary data will be collected from national development plans, research publications, internet
among others. Quantitative data summarized categorized, interpreted and analysed using tables and

23
percentages. Simple random sampling used in this study In order to make the analysis correlation
analysis done on both dependent and independent variables with supply of electricity as the control
group. Findings revealed that housing has never been a core area of government interest, the
government does not drive and guide regional and local action on housing, lack of attempt by the
government to widen focus on housing policy and integrate it with wider economic, social and
environmental goals, lack of good policy/subsidy mix and balance, lack of effective implementation
strategies, poor promotion of Security of tenure, inadequate housing finance system, inadequate supply
of affordable land and infrastructure, poor utilization of local building materials and technologies, lack
of support to small scale – construction activities/contractors, poor research and lack of public/private
partnership on low-cost housing development and inappropriate standards and legislation and
inadequate participation of communities in low-cost housing development. Additionally,
Recommendations for policy action included review of the current national housing policy and
implementation strategies and further research on urban planning, land tenure system, infrastructure and
services, housing finance mechanism, small scale construction activities, community participation,
municipal budgetary base and experimental pilot projects.
Eskedar Birhan (2012) also identified that Bahir Dar is one of the major cities of the region that has
been facing a shortage of of severe housing. To address housing shortage since 2003 land was made
available through leasehold system. Nevertheless, the policy failed to solve housing problem at large
scale. Thus, since the year 2006 the compulsory the regional government instead of directly availing
serviced land to the poor- has opted out to undertake an ambitious regional wide Integrated Housing
Development Program (IHDP) to address the shelter needs of the lower income households. In Bahir
Dar city the five-year programme has already finished. Therefore, the study empirically examines the
practice of addressing shelter need of urban poor and women through leasehold policy and IHDP. The
study also based on desktop studies, literature reviews, land and housing policy review, interview and
field observation. With all these, the study found that the Amhara regional urban land policy by default
excludes right of access to land for development of housing because land is allocated through auction in
which this group of the society cannot afford. The study also reveals that in implementing IHDP many
urban poor and women households are excluded because they cannot afford the down payment or
monthly mortgage and service repayments. The results show that leasehold policy and IHDP are basic,
but require proper interpretation in terms of the context of urban poor and women needs. If the policy
documents are not clear, it is very difficult for implementation and providing adequate housing that
satisfy the residents.

24
It is strongly argued that the existence of appropriate and sound housing policy in the urban centers will
create satisfaction of residents as the housing units are consistent with expectation and aspiration of the
residents. According to the study conducted by Ibem E.O. et al (2015) Housing adequacy and residential
satisfaction are two ideas used to evaluate residents‘needs, expectations and aspirations are satisfied by
the housing. The objective of this study was to the differences and similarities in occupants‘ perception
of housing adequacy and residential satisfaction by concentrating on the dimensions of housing
adequacy and residential satisfaction evaluation; and the factors that are affecting the adequacy of the
house and residential satisfaction. The necessary data that were collected from a sample of 517 residents
in public housing in Ogun State, Nigeria were considered; and the collected data were analyzed using
descriptive statistical, factor analysis and categorical regression analyses as necessary. As per the
analysis given by Ibem E.O. et al (2015) the three strongest predictors of housing adequacy given are
residential satisfaction, income and tenure emerged while housing adequacy, employment status and sex
of the respondents were the three strongest predictors of residential satisfaction. But, it is indicated that
age of the respondents was the only predictor of both housing adequacy and residential satisfaction in
the study area.
One of the questions this research seek to answer is how home buyers change in their preference for
certain housing characteristics in a good economy versus a bad economy. There is little debate that
property values have declined during the course of the most recent recession. Their research also
attempt to understand if there are certain identifiable characteristics of housing that tend to make the
greatest impact in terms of which houses depreciate in a declining market and which houses do not.

2.9 Conceptual Model of the Study

In undertaking research the development of conceptual model is very important because conceptual
framework is very important to show the relationship among and between variables of the study. The
conceptual framework of the study displayed in (Figure 1) proposes that whereas housing adequacy
measures the sufficiency of housing attributes, residential satisfaction measures the extent to which
residents are happy with their housing attributes and affordability measures the capacity of the residents
to pay the monthly mortgage requirements by the residents of condominium in Addis Ababa.
The intention of conceptual frame work is to indicate the critical components considered to be a critical
elements to be considered in a housing project such as: objective housing characteristics; residents
socio-economic characteristics; assessment of housing characteristics; housing adequacy, affordability,
residential satisfaction by considering the dimension of housing adequacy and residential satisfaction
considering that the housing is meeting users ‘needs, expectation and aspirations. Additionally, the
25
conceptual framework indicates there must be feedback by evaluating the performance of the housing
policy in the state.
Feedback Feedback
Post Occupancy Evaluation of Public Housing Projects

Objective Housing Characteristics

Residents‘ Socio-economic

Assessment of Housing Characteristics

Housing Adequacy Housing Affordability Residential Satisfaction

Dimensions of HADQ and RSAT and Affordability Evaluation

Feedback Feedback
Performance of Housing in meeting Users‘ Needs and Expectations

FIG 1: Conceptual Framework of the Study modified from E.O. Ibem et al (2015)

As it is indicated in the conceptual framework given above; meeting the needs and expectations of the
users is the result and the outcome of the designed housing policy both in developing and developed
countries. In order to examine the attainment of the user‘s needs and interest; examination of housing
adequacy, affordability as well as residential satisfaction is important. But to examine the stated issues
(adequacy, affordability and satisfaction of residents) better to examine objective of the housing policy
designed by the government and socio-economic aspects of the residents. The evaluation of the housing
policy (condominium project) must be examined with respect to the target of the policy and socio-
economic aspects of the people. It must be noted that past occupancy evaluation of public housing is
important to modify the design, material, price as well as any other elements of public housing. Because
based on the feedback forwarded government must make different adjustments and modifications. From
the conceptual framework given above it is noted that the Performance of Housing in meeting Users‘
Needs and Expectations as well as aspiration is the result of the consideration of housing adequacy and
Post Occupancy Evaluation of Public Housing Projects Objective Housing Characteristics Performance
of Housing in meeting Users ‘Needs and Expectations Assessment of Housing Characteristics
Residents‘Socio-economic Housing Adequacy Housing Affordability Residential Satisfaction
Dimensions of HADQ and RSAT and Affordability Evaluation Affordability. Additionally to achieve
26
the requirements of affordability, adequacy as well as the satisfaction of the residents there must be
critical examination on the socio economic characteristics of the residents must be assessed. Therefore,
the housing program must be evaluated and also there must be periodical evaluation (post occupancy
evaluation). The feedback given collected given must be incorporated in the future housing programs
developed by government.

27
 CHAPTER THREE
3 Research Methodology
3.1. Study Area
The study will entitled examination of the adequacy and affordability of condominium housing in
Addis Ababa will be conducted by taking Addis Ababa city administration as a target research area.
The capital city of Ethiopia, Addis Ababa is the seat of the African Union (AU) and the United Nations
Economic Commissions for Africa (UNECA). Its area covers an area of 540 sq. km. It is located
between 8055' and 9005' North Latitude and 380 40' and 380 50' East Longitude in the central highland
of Ethiopia. The city Addis Ababa is founded by Ethiopian king Emperor Menelik II and his wife
Empress Taitu in 1887 (Teshome, 2012). Besides, its political and administrative reasons, the city is
made to be structured at three tiers: City Government at the top, 11 sub cities Administrations in the
Middle, and one hundred twenty six Woreda administrations at the bottom.

Figure 2: Administrative Map of Addis Ababa

Source: http://en.wikipedia.org/wiki/Addis_Ababa

Addis Ababa is the capital city of the Federal Democratic Republic of Ethiopia and it is a self-
governing, chartered city with its own council, elected every five years and accountable both to the city
electoral and the federal government. It has the status of a special self-directed region within the
federal system of government. The city has three layers of government-the city itself, 11 sub cities and
126 weredas-the lowest level of city administration.
As it is indicated in BoFED (2015) Addis Ababa is the largest as well as the central political,
economic, cultural and historical city of the country established in 1887 by Emperor Menilik II. It is

28
the head quarter of African Union, the United Nations Economic Commission for Africa (UNECA)
and other continental and international organizations. It is also a primate city in Ethiopia. Given that
the city is opening up opportunities in terms of education, and employment the number of residents
congested together is increasing on worrying rate. The stated reason is the base for selecting Addis
Ababa as a study area and also the concern of the study is examination of adequacy and affordability
and also satisfaction of the residents of urban housing in Ethiopia and Addis Ababa in particular.
3.2 Research Design

In this part of the research, the researcher will decide the appropriate research design by considering
the specific objectives in to consideration. As it is indicated in different literatures research designs are
procedures for collecting, analysing, interpreting and reporting data in research studies. Rigorous
research designs are important in undertaking a study because they guide the methods and decisions
that researchers must make during the study and set the logic by which interpretations are made at the
end of the study (Creswell and Plano Clark, 2007). The basic reasoning behind the research design is
the concept of Analytical Generalization (Yin, 1989). In analytical generalization, a study is conducted
in a typical case study area, and the general conclusions reached are applied to other areas with similar
situations.
3.3 Research Approach Adopted for this Study

In order to achieve the research objectives regarding the topic identified that is examining affordability
and adequacy of public urban housing (condominium) in Ethiopia taking Addis Ababa city
administration the researcher will used mixed approach. As it is indicated in different literature a mixed
method is the general term when both quantitative and qualitative data collection techniques and
analysis procedures will use in a research design. It is subdivided into two types. Mixed method
research uses quantitative and qualitative data collection techniques and analysis procedures either at
the same time (parallel) or one after the other (sequential). In addition using mixed methods allows the
researcher to undertake triangulation in an appropriate manner.
Therefore mixed methods are used when both quantitative and qualitative data collection techniques
and analysis procedures are used in a research design. It is subdivided into two types. Mixed method
research uses quantitative and qualitative data collection techniques and analysis procedures either at
the same time (parallel) or one after the other (sequential) but does not combine them.
3.4. Target Population and Sampling Design
29
 3.4.1. Target Population
In this study the residents in condominium will be considered as a target population. In addition
officials at Addis Ababa housing bureau and also commercial bank officers will included collecting
data using interview. To support the primary data the researcher will concentrate on different
secondary data documents found in housing agency and commercial bank related to mortgage.
3.4.2. Sampling Design
The sample relates to the larger population on the characteristic(s) of interest i.e. condominium
residents in Addis Ababa city administration. In that case, the researcher's will conclusions from the
sample are probably applicable to the entire population and among the different purposes of selecting a
sample the critical goal of sampling design is to select a set of elements from a population in such a
way that descriptions of those elements accurately represent characteristics of the population
(parameters) from which they will selected. Additionally different researchers and writers justified that
the important goal of sample design is to yield maximum precision (i.e., minimum variance) per unit
cost. Selecting a sampling design involves making a series of decisions not only about how many
individuals to include in a study and how to select these individuals, but also about conditions under
which this selection took place. To determine the appropriate sample size for this dissertation; the
researcher followed the following procedures. The procedure includes from identification of target
population to determination of sample size. Thus, appropriate sampling strategies were used to select
representative samples from the target population.

3.5. Sample Size determination

In order to select the appropriate sample the researcher will concentrates on Addis Ababa
condominium users (residents). Addis Ababa is the capital city of the Federal Democratic
Republic of Ethiopia and it is a self-governing, chartered city with its own council, elected
every five years and accountable both to the city electoral and the federal government. It
has the status of a special autonomous region within the federal system of government. The
city has three layers of government the city itself, 11 sub cities and 126 woredas - the
lowest level of city administration. The sample selected from the households of Addis
Ababa city administration by using stratified sampling. Condominium were given to the
beneficiaries in 11 (eleven) rounds. The researcher will be used the rounds as the main base
of stratifying the population to determine the appropriate sample size.
Accordingly, to minimize sampling problems and to keep the representativeness of target
respondents selected from the population, the proposed study employed the appropriate
30
formula. To determine the needed sample size the formula proposed by Krejcie and Morgan
(1970) used. The formula can be stated as: Formula
𝑋 2 𝑁𝑃(1−𝑃)
S=
𝐷2 (𝑁−1)+𝑋 2 𝑃(1−𝑃)

3.841(17366)0.5(1−0.5)
S=
0.052 (173662−1)+3.841∗0.5(1−0.5)

166758.94
S= = 384
435)

Where:
2
S = required sample size; X = the table value of chi-square for 1 degree of freedom at 0.05 confidence
level (3.841); N = the population size; P = the population proportion (assumed to be 0.50 as this would
provide the maximum sample size); and D = the degree of accuracy expressed as a proportion (.05). By
using the above stated formula the researcher select 384 samples from the total 173,662 target
population To compensate the expected non response rate expected from the respondents; the
researcher will considers additional 12% i.e. (384*12%) = 46 additional respondents included in the
sample and the total sample size considered by the research a total of 430.
After identifying the appropriate sample size by using the formula stated above; the researcher will be
used stratified sampling. The base for stratification is the 11 (eleven) rounds. Therefore the researcher
will consider eleven strata. Additionally to select employees from Addis Ababa housing administration
office; and officials from commercial bank of Ethiopia the researcher will be used purposive
judgmental sampling. Those employees that have connection with housing supply and also employees
from commercial bank were considered as a principal target. Because housing is implemented by using
the two institutions i.e. housing agency and commercial bank of Ethiopia because the financial issues
were given to commercial bank of Ethiopia.
3.6. Sources and methods of Data Collection Method
3.6.1. Source of Data
The researcher will use primary and secondary as well as qualitative and quantitative data. Both
primary and secondary sources of data will be collected to achieve the objective set. Primary data
sources collected by well-designed and administered structured questionnaire on individual

31
Households, interview with key informant groups and focus group discussions employed together with
observation.
Secondary source will be collected from review documents and manuals, and records information on
housing, annual reports and also government housing directives.

3.6.2. Tools of Data Collection

In order to achieve the objective of the study, both quantitative and qualitative data will gathered from
primary and secondary sources. Saunders et al (2009) stated that mixed method research combines
quantitative and qualitative data collection techniques and analysis procedures as well as combining
quantitative and qualitative approaches. Qualitative data will collected by the researcher and analysed
based on their theme and will analysed qualitatively; quantitative data will collected and converted in
to numerical codes. And it will analyse statistically. For triangulation purpose, this research will
utilized a variety of data gathering tools like questionnaire and interview as a tool of primary data
collection and different sources of secondary data. So therefore, the following specific techniques will
employed to collect the relevant data and to achieve the objectives set and also to answer the research
questions raised.
The methods of data collection will designed to collect in-depth responses sufficient in addressing the
stated objectives. The primary data will collect from respondents through formal and well-designed
questionnaires and interview methods of data collection will use.
3.7. Instrument Variables and Measurement

The data will analyse using the specific objective as a thematic area. Then the researcher will be used
different methods of analysis to achieve the stated objectives or to answer the research questions raised.
For every specific objective the researcher employed independent methods of analysis. But generally
the researcher will be used both qualitative and quantitative analytical techniques for analysing the
collected data.
Saunders et al (2007) discussed that the nature of the qualitative data collected has implications for its
analysis. The quantitative techniques employed both descriptive and econometric tools depending on
the information obtained. SPSS software (Version 20) taken for processing and analysis of data. Data
analysis in this study necessitated the use of mixed analysis methods due to the nature of the study.

32
However, for non-numerical data coding of the data done first Thereafter, the data arranged in
homogenous categories (based on the thematic areas in to consideration) i.e. considering the basic
items in the specific objectives in to account for ease of interpreting it. Nevertheless, before its analysis
the data gathered checked for errors and genuineness (Creswell, 2012).
Observation and open-ended questions analysed through narrative analysis based on content and
theme. Here the researcher considered specific objectives as a thematic area

3.8. Ethical consideration

In this study all the necessary ethical issues will be taken into account in all step of the study. The
culture, norm, belief, attitude of the people of the study area is respected. Acting politely, to ensure
what is expected of me at the time of data collecting, the confidentiality and willingness of
respondents will be taken in to account throughout the processes of study.

33
 CHAPTER FOUR
4. WORK AND BUDGET PLAN

4.1.Time plan

The work plan that the important phases that will be undertaken for this study

No Time Of activity in month

Remark

Feb Marc April May June July

h
1 Problem identification


2 Literature search(read)

3 Writing research Proposal

4 Preparation of research design 

5 Feedback from the advisor 

6 Submission of the final proposal


7 Data collection 
8 Data analysis & interpretation 

9 Report writing 
10 Submission of first draft 

11 Feedback from Advisor 

12 Submission of final report


13 Senior Presentation 

Table 4.1. Work plan

34
 4.2 Budget break down

The expected cost to be incurred in the process of accomplishing the study is as follows.

Items Unit frequency Price(single) Total price in

birr
Research data Day 60days 100.00 5000.00
collection,
analyzing&
Interpretation
Stationary 1 team - 120.00 120
Pen and pencil 4 - 5.00 20.00
Printing 40 - 5.00 200
Photocopy(reference 135 - 0.5 67.5
e-books, research
questioners)
Binding research 3 - 12.00 36
Contingency 100 - 100.00 100.00
Transportation Day 6 100.00 600.00
Share experience Day 4 50.00 200.00
Total - 70 492.5 6343.5
Table 4.2. Budget break-down

35
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38