The Addis Abeba City Administration officials have sanctioned plot allotments for various developers, comprising sectors from banking to hospitality. The move made three weeks ago, authorised by Girma Beka, head of the City Cabinet Affairs, represents a substantial increase in the city's developmental agenda, with a selection of 168 developers — a threefold rise from the previous year. Among the beneficiaries are notable entities such as Sidama Bank and the culinary establishment Mama's Kitchen.

The decision is part of the City Administration's ambitious plan to see the construction of four commercial bank headquarters, 16 five-star hotels, 46 malls and residential apartments, 15 places of faith, 26 industries, and 47 project extensions. The plan also includes provisions for six plots earmarked to compensate farmers. City officials say the projects align with the Administration's vision of urban development and economic growth.

Despite the apparent progress, the city's land policy has been subject to criticism from various quarters. Academics and urban planning experts frequently question these policies' effectiveness and transparency. The municipality receives an average of 700 requests for allocations annually, revealing the high demand for land in the capital. A recent study by a trio of urban planning experts calls for the exploration of alternative strategies for land allocations, stressing the need for a more equitable and transparent approach.

Critics point to the prioritisation of commercial and recreational developments over the dire need for residential housing in the city.

Worku Nega, a researcher in the land administration and surveying department at Debre Markos University, advocated for comprehensive studies on the feasibility of allocation policies. He argued for a balanced approach that considers the potential for employment opportunities and services that benefit the broader public, pressing the importance of societal benefits in investment returns.

“Return on investment should consider the rest of society,” he said.

Beginning last week, developers have already begun the process of  transferring land from the Land Development & Administration Bureau. The allotment terms require developers, except religious institutions, to deposit up to 20pc of the total lease price in advance.

Tesfaye Tilahun, head of the Land Preparation Directorate, disclosed that the selection criteria focused on the purpose and developers' financing source, chosen from a pool of applicants who have submitted requests over the past few years. Tesfaye said the thorough evaluation process preceding approval shows the Administration's commitment to prudent land allocation.