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CHAPTER SIX

6. SOCIO-ECONOMIC CHANGES: A STUDY OF LAND

EXPROPRIATION, LIVELIHOOD TRANSFORMATIONS AND

IMPACTS IN THREE SETTLEMENTS OF FRINGE OF FINFINE CITY

6.1. THE LEGAL FRAMEWORK: LAND TENURE POLICY OF ETHIOPIA AND ISSUES

OF EXPROPRIATION AND COMPENSATION

6.1.1. The Concept of Land Tenure

Land tenure refers to the complex relationship between categories of individuals, groups

and the government with respect to land and related resources. According to FAO (2002), the

relationship could be defined legally or customarily and land tenure is an important part of social,

political and economic structures. It is multi-dimensional, bringing into play social, technical,

economic, institutional, legal and political aspects that are often ignored but must be taken into

account. Land tenure relationships may be well-defined and enforceable in a formal court of law

or through customary structures in a community. Land tenure is often categorized as private,

communal, open access and state. Land right; on the other hand, refers to rights held to land and

other natural resources. More than one person may hold rights to a parcel of land which gives

rise to the concept of a “bundle of rights”.

An important concept related to land tenure issue is the concept of security of tenure.

Security of tenure is the certainty that a person’s rights to land will be recognized by others and

protected in cases of specific challenges. People with insecure tenure face the risk that their

rights to land is threatened by competing claims, and even loss as a result of eviction. Without

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security of tenure, households are significantly impaired in their ability to secure sufficient food

and to enjoy sustainable rural livelihoods.

Tenure security as defined by Girma (2011) refers to the situation in which farmers

practically enjoy full rights of use and appropriation of the returns from the land through being

protected from different impositions and interferences from others. It is a state of affairs in which

farmers are guaranteed to exercise their holding rights freely without any hindrance from any

quarter and thus tenure security requires guaranteeing use rights, which include permanent,

exclusive enjoyment as well as free transferability.

The concept of holding right is also very important part of the land issue in Ethiopia.

Holding right refers to the right any peasant shall have to use rural land for agricultural purpose

as well as to lease land, while the right remains in effect, bequeath it to his family members and

includes the right to acquire property thereon; by his labour or capital and to sell, exchange and

bequeath same [Proclamation No. 89/1997, 2(3)]. With the above brief overview of what tenure

and tenure security means, the following section presents the nature and experience of land

tenure policy of Ethiopia.

6.1.2. Assessment of Land Tenure Policy of Ethiopia

The multi-faceted and complex concepts in the above paragraphs can be analysed in terms

of sets of rights, responsibilities and restrictions held by categories of people or bodies with

regard to access, control, management and transfer of specific land rights (Noronha, 1985).

In light with the definition and concept, an attempt is made to briefly survey the complex

land policy of Ethiopia before the 1974 revolution, during the Derg regime and the period of

EPRDF since 1991 to to-date. In connection with the federal land tenure policy, Oromia

Regional State’s context is also assessed in order to link it to the policy of land expropriation and

its impact on the tenure security.

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There is diverse literature in Ethiopia regarding land tenure policy and its challenges and

implications. Girma (2011), for example, studied the law and practice of land expropriation in

Ethiopia and in Oromia region in particular and he assessed the land tenure policy of Ethiopia on

his way. He explained that land is the basic socio-economic asset in Ethiopia and his assessment

covered the past land tenure in the country and the present policy and its trajectories.

This survey is aimed to connect land tenure policy, the land expropriation laws and

proclamations in Ethiopia and the specific practices in the study area in particular so as to

understand the impact of the implantation of laws and proclamations on the livelihood of the

community in the fringe of Finfine (Addis Ababa).

Ethiopia experienced a very complex history of land tenure system in which land was once

under the landlords before the Derg regime and later it was transformed to a mixed one and

presently the government fully retains all the land. In all those periods the peasantry was hugely

suffering and to the extent through the government’s action of eviction, dozens of people were

left landless and affected by food insecurity.

Since the beginning of the 20th

century, the pattern of land tenure policy and property rights

farmers have are dependent mainly on policy exercised by three different political regimes.

Within each of these political regimes there were and are a number of reforms and amendments

which have affected the farmers’ access to land and ownership or holding rights.

The Pre-1974 Land Tenure System

Until 1974, Ethiopia’s land tenure system was mixed and complex where the nature of the

tenure arrangement comprise private, state, church land and other forms. The preceding two

successive regimes of Emperor Menelik II and Haileselassie made extensive land grants to

members of the royal family and the nobility and, members of the armed forces and other

officials closer to the state. In such system only very few individuals owned almost all land

available in the country. Eviction of farmers, especially in the southern region, was also one of

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the typical characteristics of the period. The eviction of those days is similar to the contemporary

land grab for investment in different parts of the country.

The land tenure system from 1974 to 1991, the Socialist Derg Regime

The socialist Derg regime overthrew the imperial regime of Haileselassie in 1974, the

regime which had affected the vast majority of Ethiopian peasantry for long period of time. The

Derg immediately introduced a land reform by 1975 by which the older tenure system was

destroyed, creating changed land ownership pattern. Landlords of the imperial regime lost their

land rights and land was distributed to individual Ethiopians. By the Proclamation No.31/1975,

all rural lands were nationalized and private ownership of rural land was totally abolished, public

ownership of land came in to being. In fact, there were a number of problems in the actual

practices in the land tenure system during this regime, but for the time being this shall not be

accommodated in this thesis.

Post- 1991 Land Tenure System

In 1991, the Ethiopian People’s Revolutionary Democratic Front (EPRDF) assumed power.

The new government announced continuation of the land policy of the Derg - ‘state ownership of

land’ through Article 40 of the 1995 Constitution which states that the right to ownership of rural

and urban and as well as of all natural resources is exclusively vested in the state and in the

people of Ethiopia. The Constitution guarantees the right of the peasants and pastoralists of free

access to land and the right of individuals to claim compensation including the right to bequeath,

transfer or remove such improvements when the right to use the land expires (Article 40:7 and

8)“The farmers have the right to use the land indefinitely, lease it out temporarily to other

farmers and transfer it to their children but cannot sell it permanently or mortgage it”.

The Constitution also provides the right that every Ethiopian shall have full right to the

immovable property he/she builds and to the permanent improvements he/she brings about on the

land by his/her labour or capital. This right shall include the right to alienate, to bequeath and

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where the right of use expires, to remove this property transfer his title or claim compensation for

it (Article 40:7). It is clearly indicated in the Constitution that the users’ rights exclude the right

to sell or mortgage the land so as to protect the rural peasants from selling off their land to

wealthy individuals leaving them landless and without source of livelihood.

6.1.3. Expropriation and Compensation Laws in Ethiopia and Oromia Region:

An Overview

Ethiopia has laws contained in its Constitution regarding land. The Constitution states that

the Federal government shall enact laws for the utilization and conservation of land and other

natural resources. The first Federal Land Administration and Use law was enacted in July 1997

which is referred to as “Rural Land Administration and Use Proclamation No. 89/1997”.

The main laws addressing land related issues are for example, the Constitution (regarding

ownership and control), the leasing proclamation (regarding land delivery) and the expropriation

proclamation (regarding re-acquisition of land). Article 51(5) of the Constitution of the Federal

Democratic Republic of Ethiopia empowers the Federal Government to enact laws regarding the

utilisation of land. All such enactments are benchmarked on the fundamental premise of total and

complete state ownership and control of land. Article 40(8) of the Constitution, provides for

private property, expropriation for public purposes and for the payment in advance of

compensation (Djik, 2013).

In similar manner the government issued expropriation of land holdings for public purposes

and payment of compensation as stated in Proclamation No 455/2005 for the land to be

expropriated whenever needed for development purpose to be undertaken by the government

subject to payment in advance of compensation.

The constitution of the FDRE 1995, Article 40 states “land is a common property of the

Nations and Nationalities and peoples of Ethiopia and shall not be subject to sale or other means

of exchange”. However, such public ownership of land has undergone a series of reforms since

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the start of the current government when it started to move towards a market economy, resulting

in separation of land use rights from land ownership where land is still publicly owned while use

rights to such land are allocated to private individuals (Belachew, 2012).

The 1995 Constitution of Ethiopia entrenched state ownership of land, rendering its

reversal more difficult and impracticable. Article 40 Sub article (3) states that land “is

exclusively vested in the State and in the peoples of Ethiopia”. It goes further that “Land is a

common property of the Nations, Nationalities and Peoples of Ethiopia and shall not be subject

to sale or to other means of exchange”. This is as extreme as land nationalisation can go. A

remarkable feature of the present constitution is the upholding of the philosophy of private

ownership of property. Sub article 1 of Article 40 states: “Every Ethiopian citizen has the right to

the ownership of private property”. Unfortunately, the right to holding land was, categorically,

excluded from the constitutional definition of private property and in many regards this exclusion

is sufficient to conclude that private land rights are not tenable in Ethiopia. Theoretically, this

view can and should be disproved by the simple fact that there is much misunderstanding and

misapplication of concepts in land, land ownership and estate (private property) in the country

(Djik, 2013).

6.1.3.1. Foundation and Concept of Expropriation

In discussing about the system governments use to take land from the people for the sake of

public purpose, different terminologies and approaches have been used. Such systems are in fact

global in coverage but different in the name used practically to country or regional specific. Land

expropriation, compulsory acquisition of land, compulsory purchase, eminent domain, public

domain and others are some of the terminologies that characterize the system of taking land or

other properties from the owner (from the person who has legal right to that property). Here, to

make things clear, issues related to land than other properties is the main interest of this paper.

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Expropriation is a very old concept used in law in Ethiopia. It is believed that the concept

of expropriation was introduced in Ethiopia, at least in law, during the Menelik II period. Land

remains to be a subject of critical social, economic, legal and political question in Ethiopia. That

is why the concept of expropriation has again come to be one of the hot topics in land studies in

Ethiopia since recent years. Land expropriation involves taking or depriving a property of owner

or his/her legal rights to a piece of land or some other properties. Expropriation occurs when a

government confiscates a person’s land for use by the general public though the phrase ‘general

public’ is still vague and difficult phrase and deliberately been used by governments.

Compulsory land acquisition which is commonly used in most of African countries and

others involves the power of government to acquire private rights in land without the willing

consent of its owner or occupant to benefit society. Eminent domain, dominantly used in the

USA, refers to the government’s right to acquire private property for public use. The

governmental entity may be a federal, state, county or city government. As can be seen from their

definition, the three terminologies do not have much basic disparity.

When briefly defined, expropriation refers to a means of land acquisition for public

purpose. But this definition is not adequate enough to describe the issue of how land is taken

from the users and appropriated for public use. Many people also define it from their own point

of view and the concept lacks a universally accepted single definition. However, John Lewis and

Black’s law dictionary have tried to define from their own context. For instance according to

John Lewis, expropriation refers to “the right or power of a sovereign state to appropriate

private property for particular use for the purpose of promoting the general welfare”.

Some researchers also use ‘expropriation’ to refer to eminent domain or compulsory land

acquisition where in all the cases the state has the right to take private property (land) for public

purpose.

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The concept of Expropriation in Ethiopian context

Daniel (2009) and Girma (2011) quoting the Ethiopian Civil Code Art.1460, assert that

conceptually the issue of expropriation was introduced in Ethiopia in 1908 (during Menelik II

period) land related legislation which provides expropriation proceedings are proceedings

whereby the competent authorities compel an owner to surrender the ownership of an immovable

required by such authorities for public purpose. The researchers indicate that the meaning of the

definition given here shows the idea of the taking of private land by the state or authorities

without the consent of the owner for public purpose.

In this sense, expropriation can be defined as;

“ the right of the nation or states or of whom the power has been lawfully delegated to

condemn private property for public use ,and to appropriate the ownership and possession of

such property without the owner’s consent on paying a due compensation to be ascertained

according to law (Daniel 2009 citing Francis, Amndola, Williams, John, and Kennel).

6.1.3.2. The Concept of ‘Public Purpose (Public Interest)’

In the definition of expropriation, the phrase ‘public purpose’ is put indicating that

expropriation is justified by the public right to land. But does it really represent the expropriation

currently widely been exercised in Ethiopia? It only seems that “public purpose” stands for the

justification offered for taking private land against the wish of the owner of the property. But, the

ultimate user of that property (e.g. land) is not the public but individuals, corporate or others who

access the land through lease window and do whatever they like. The practice in Ethiopia,

especially in Oromia shows some capitalists purchase the land on lease basis and the revenue is

rarely put to public purpose. So, the concept of ‘public purpose’, the purpose for which land is

expropriated, is a pretext government at all levels is using the so called ‘land is of the state’.

On the other hand, the Constitution of Ethiopia, Article 40 (8) contains the issue of ‘public

purpose’ and describes;

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Without prejudice to the right to private property, the government may expropriate private

property for public purposes subject to payment in advance of compensation commensurate to the

value of the property.

However, no detail and specification is given as what constitutes a public purpose, which

adds ambiguity to its concept.

The same issue was underlined in the Oromia Rural Land Administration and Use

Proclamation No. 70/2003 which amended Proclamation No.56/2002. The proclamation

authorizes the government to take away the holdings of peasants or pastoralists and grant

leasehold for investors if the land in question is found to be important for public purpose.

6.1.4. The Law in Oromia Regional State

Give the definition and purposes of expropriation explained above, the Constitution of

FDRE in it Proclamation No.455/2005 (expropriation of land holdings for public purposes and

payment of compensation) provides the state the power to expropriate landholding under Art.

3(1) which reads;

A woreda or urban administration shall upon payment in advance of compensation in

accordance with this proclamation have the power to expropriate rural or urban land

holding for public purposes where it believes that it should be used for a better

development projects to be carried out by public entities, private investors, cooperative

societies or other organs, or where such expropriation has been decided by the

appropriate higher regional or federal government organ for the same purpose.

Therefore, it is possible here to deduce that expropriation takes the form of forced sale

(without the consent of the holder of right where there is some form of compensation either in

cash or in kind (land-for land).

Despite the existing policies and legal measures, land related problems such as tenure

insecurity, restriction on transfer and lack of adequate land administration system still the major

bottleneck in the country as a whole and in the Oromia region in particular.

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6.1.5. Legal Valuation Systems and Compensations

6.1.5.1. Valuation Systems

In the above section an attempt is made to briefly assess the laws and proclamations the

government uses to expropriate property holding of individuals in Ethiopia when the government

needs it for public purposes or development. In this section it is also important to see the

valuation method and compensation payment approaches for at least the properties or holdings

for which the people are legible to get compensation payments.

Valuation is roughly defined as the process of valuing real property, the value of which

usually sought being the property’s “market value” (dictionary meaning). It should be noted that

market value and price are quite different things in that what the property is really worth is

market value and what it cost to buy it refer to price.

In Ethiopia the federal government enacted a proclamation entitled “A proclamation to

provide for the expropriation of land holding for public purposes and payment of compensation”

in its Constitution Article 40(8), the FDRE states;

Without prejudice to the rights to provide property, the government may expropriate private

property for public purposes subject to payment in advance of compensation commensurate to the

value of the property.

These are critical questions that need to be focused on. In many case the laws and policies

designed in Ethiopia including land laws and land policy are smart and attention-grabbing when

seen on paper but seriously lacks efficient and adequate implementation and practicality.

In the expropriation law it is mentioned that after the right of compensation is recognized

as a constitutional right, the method of fixing the amount of compensation, the time and the mode

of payment are the remaining assignments to be accomplished. Not only in Ethiopia but also in

many other countries of the world valuation of the property to be compensated is a difficult task

and subject to bias and misunderstanding, especially when there is no standard to depend on.

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However, experiences from other countries show that there are three valuation approaches or

methodologies used in order to arrive at the fair market value of the rural property taken by the

way of expropriation.

The comparable sales approach - this approach requires searching for similar properties

that have been sold in the market place within a reasonable time period preceding the taking date,

and then adjusting the sales price of those comparable properties to reflect differences between

the comparable and the subject property. This method is considered the preferred method of

ascertaining the fair market value of the land taken by expropriation.

Income capitalization approach - this approach gives value to the land in relation to the

income it produces. The capitalization of income approach is generally used to value income

producing property when it is completely taken. It usually consist of arriving at an independent

value of the underlying land taken, and adding to it the value of improvements, by converting

reasonable or actual income at a reasonable rate of return into the indication of the value. The

land and improvements may be capitalized together in a single process. The capitalization of

income is not used to project future profits or to compensate the owner for lost profits but rather,

to calculate the fair market value of the land at the time of taking.

Replacement cost approach - the replacement cost approach values the expropriated

property by determining the replacement or reproduction cost of improvements, less

depreciation, plus the market value of the land. This predominantly is good to value buildings

and utilities than the land itself. But this method is preferred for determining a utility’s fair

market value.

In discussing issues related to valuation of properties lost to expropriation, the practice is

haphazard for reasons related to the fact that there is no standard in Ethiopia to depend on, there

is no certified individual or institution for this purpose and the government possesses the land

means everything is determined by the government’s best will than the concept of fair valuation

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and fair compensation. But the law assumes that there is certified professional who is carrying

out valuation in a standardized manner (Proclamation No.455/2005, Art.9: 1).

Therefore, experiences in Ethiopia itself show that there is no standardized and scientific

valuation system for properties all in all in the country. It is with these limitations that so far

dozens of rural and urban households are expropriated in Ethiopia with meagre and unjust

compensation the condition of which is also true in areas considered for the current study.

6.1.5.2. Compensation Payments: The concept

Dictionary defines ‘compensation’ as the act of compensating or the state of being

compensated something such as money, given or received as payment of reparation, as for a

service or loss. Some define compensation from the point of view of employment and salary and

wage “…the process of providing adequate, equitable and fair remuneration of the employees”.

In the context of this research the definition of compensation may comply with the

following definition; compensation is defined as “full indemnity or remuneration for the loss or

damage sustained by the power of the property taken or injured for the public use”. This

definition is the most commonly used one but it is not comprehensive and some of the phrases in

the definition are vague and ambiguous. The very idea of compensation is that the expropriator

reimburses or replaces the expropriated for the property, interest taken. Some authors argue that

compensation is important to be paid as a means to keep the balance of social justice stating that

compensation protects the rights of the politically under-represented groups (Ndjovu, 2003).

If expropriation is inevitable anytime the government re-acquires land for public purpose,

as stated in the law or in the Constitution of FDRE, Art. 40(8), there shall be compensation that

has to be paid to the people who surrender their land holding back to the government. The

amount of compensation for property situated on the expropriated land shall be determined on

the basis of replacement cost of the property.

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Article 40(8) of the FDRE states that, “without prejudice to the right to provide property,

the government may expropriate private property for public purposes subject to payment in

advance of compensation commensurate to the value of the property”.

Another important law or proclamation that states the government’s right or power to

expropriate land holdings with compensation indicates the organ of the government who is

entitled to expropriate. Thus, the competent authorities of the government, district and urban

administration or higher regional or federal appropriate organs are given this responsibility.

A woreda or an urban administration shall, upon payment in advance of compensation in

accordance with this Proclamation, have the power to expropriate rural or urban

landholdings for public purpose where it believes that it should be used for a better

development project to be carried out by public entities, private investors, cooperative

societies or other organs, or where such expropriation has been decided by the

appropriate higher regional or federal government organ for the same purpose

(Proclamation No.455/2005 Article 3(1).

The law itself assures that compensation must be paid during expropriation. The major

challenge with payment of compensation, however, rests on for which properties compensation

should be paid and what amount has to be paid. These issues are usually a point of confrontation

between the land holders and the government and its organs.

Regarding the properties for which compensation should be paid, Article 7 and 8 of

proclamation No. 455/2005 and the implementing regulations reveals that the interests or rights

to be compensated includes the property situated on the land, permanent improvements to the

land and permanent or temporary loss of the land (details for the compensation payment of these

rights is indicated under Art.7 (2) of Proclamation No. 455/2005 and Regulation No. 135/2007)).

In Ethiopia ownership of rural and urban land is obviously vested in the hands of the state

and the Ethiopian people and, hence, it is not subject to sale, exchange or mortgage. However,

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rural farmers and pastoralists are guaranteed a plot of land free of charge while urban residents

can secure the same through lease arrangements. During expropriation and when it necessitates

the government to re-acquire the land for public purposes, the Constitution prohibits eviction of

holders of land and other properties without just cause and payment of compensation. Under

Article 40 (8), the Constitution provides for payments of “commensurate” amount of

compensation during expropriation of property.

The other important point regarding compensation payment is related to the amount of

compensation to be paid. Words and phrases like “fair compensation”, “commensurate”, “market

value” are included in the laws and proclamation and are always open to interpretation and create

ambiguity for effecting compensation payments. As indicated under the above proclamation and

article for compensation, the word ‘commensurate’ shows that compensation must be equal to

the loss sustained. But is it really possible to do that in Ethiopian context?

Different countries use phrases like “just compensation”, “fair compensation” and others to

refer to compensation that has to be paid for the property acquired by the government. The

phrase “just compensation” is used in the Fifth Amendment of the United States constitution. It

provides in its relevant parts that “private property shall not be taken for public use without just

compensation”. This provision does not prohibit the taking of private property; rather it

designated to secure compensation in the event of expropriation. Then what does “just

compensation” mean?

The fundamental principle that guides valuations under expropriation laws in all Western

countries and the developing countries is the payment of “fair market price” or market value. Just

compensation is the market value of the property taken, or so the courts have held; the owner

ordinarily receives nothing for inconveniences and sentiment. In America, compensation as a

principle paid in money while market value is generally taken as a test for the existence of just

compensation. Market value” is defined as;

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The most probable price, as of a specified date, in cash or in terms of equivalent to cash,

or in other precisely revealed terms, for which the specified property right shall sell after

reasonable exposure in a competitive market under all conditions requisite to a fair sale,

with buyer and seller each acting prudently, knowledgably, and for self-interest, and

assuming that neither is under undue duress (Appraisal Institute 2001).

In Ethiopia, however, the word “commensurate” which may be synonymous with

‘corresponding compensation’ is used without further explanation.

Fixing the amount of compensation is not an easy task in Ethiopia due to a number of

reasons. One of the problems is related to the fact there is no clear standard in all regions, or

cities and dependence of local circumstances of regions, woredas (districts) or towns/cities.

Subjectivity could be very high in such situations where mandate is given to local administration,

as was seen from the three study areas that the compensation rate for farmland for the same

period, same size of land differs significantly.

One lawyer and independent researcher writes regarding the laws and the practice of land

expropriation (confiscation) in Ethiopia as follows;

The regime change in 1991 and the subsequent ratification of the Constitution (1995) failed

to restore any tangible land ownership right. Articles of the new Constitution complicated

the problems of alienation and powerlessness experienced by the people for so long. In the

FDRE (the Federal Democratic Republic of Ethiopia) Constitution, the rights of citizens to

possess farming land are maintained (Art.40.4). Proclamation No. 89/1997 (Art. 2.3)

provides for the right to lease one’s holding. In line with the provisions of the decree, the

Oromia State issued a Directive (No. 3/1995), which states that any farmer may rent a

maximum of half of his holding to anyone at any rate for a maximum of three years (Art.

23.2). But contrary to all these pillars and precedents, Proclamation 455/2005 gives

authority to the Woreda and urban administration, not to defend and protect, but to

confiscate and expropriate land for any purpose the higher authorities believes are for

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“public purpose and/or investment. Farmers are expected to evacuate from their ancestral

land with a short notice of 30 days, as per Article 4(4) of the same proclamation in

discussion. Failure to comply with this short notice will entitle authorities to use police

force to forcefully evict farmers from their land. This very proclamation clearly marked the

end of land right of farmers and opened big door for land grabbers (Hunde, 2012).

Still another very important thing in the study of compensation is that only the land or

including the properties on the land that is being compensated? This question seems silly but it is

good to evaluate as per the law so that sometimes we are saying people are compensated/not

compensated for their land. The researcher thinks that this issue is one of the points of confusion

among many of us, we Ethiopians.

In Ethiopia in general and Oromia region in particular the right to compensation for

termination of use rights is controversial. The controversy arises partially from the provision of

the Constitution itself which states that “government may expropriate private property for public purposes

subject to payment in advance of compensation commensurate to the value of the property”. (FDRE Constitution,

1995 Art. 40(8).

As private ownership of land is clearly prohibited by the Constitution, it seems to exclude

land from the sphere of compensable interest (as Girma, 2011 has also commented on this issue).

Despite this the Constitution gave rural land holders the right against eviction both by federal and

Regional state Constitution Art. 40(4) and (5). Not only this but also the duration of land use

right is also included in the Proclamation No.455/2005 which reads “the rural land use right of

peasants, pastoralists and semi-pastoralists shall have no time limit”. So what is compensable?

Even if controversy prevails between what is written and what is being practiced in

Ethiopia, as it is common in others affairs than land issues, it requires the researcher to assess the

rights that should be compensated and the laws governing it.

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Article 40(8) of the 1995 Constitution and Proclamation No.456/2005, Articles 7&8 of

Proc.No.455/2005 and Oromia Rural Land Administration and Land use Proclamation No.

130/2007 presents that the following rights or interests shall be compensated (a property situated

on the land, permanent improvements to the land and termination of permanent or temporary loss

of use right over the land). What is the amount of compensation to be paid?

According to the federal Expropriation and Compensation Proclamation No.455/2005 and

the practice in the Oromia Regional State, the amount of compensation is fixed at ten (10) years

annual income, based on the average annual income of the previous five (5) years. This method

is neither scientific nor has any logical explanation as to why the previous income value is

considered for estimating the present value. Many writers on the same issue question this thing

and it is simply arbitrary and there is no law or legislature ordering this system. The concept of

current market price is not acceptable by the Ethiopian government and actually there is no

expropriation and compensation law for the regions and they fully adopted the federal system.

It seems that in Ethiopian government thinks in a way that land use for residential

development or other urban uses is much more profitable than the land use for agriculture. The

prices paid to farmers for urban land use or other non-farm purposes is over hundred times than

those paid for agricultural purpose. With such disparities in urban land use it continues to

invariably displace agriculture.

An anticipation of urban development on an area of land increases its values. If this

expectation is strong, urban developers or speculators may purchase the land from the farmer,

and be content to leave the land unused until it is developed, reaping capital appreciation rather

than steady income. Agricultural land use may, therefore, be discontinued, modified or

disintegrated ahead of actual urban encroachment.

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6.2. LAND EXPROPRIATION AND LIVELIHOOD CHANGES AND IMPACTS:

THE CASE OF GALAN, LAGATAFO-LAGADADHI AND BURAYYU

SETTLEMENTS IN THE FRINGE OF FINFINE

6.2.1. Introduction

Urban expansion and land acquisition for investment and development generally resulted in

the conversion of agricultural lands in the fringe areas to non-agricultural purposes. Such

developments and programs are often associated with positive and negative effects on the

farming community in the fringe areas.

In this connection, the interlocking relationship between expansion of Finfine city and the

spill over of population and activities to the surrounding SZOSF, land expropriation for

investment purpose by the Oromia Regional State has changed the landscape of the fringe areas

of the city where the three study sites of Galan, Lagatafo-LagaDadhi and Burayyu settlements are

belonging to. The following sections, therefore, presents the situations in the study sites and, of

course, land expropriation for investment and urban development and its impact on the livelihood

of the indigenous farming community.

6.2.2. Socio- economic Profile of the Study Area

The special Zone of Oromia Surrounding the city of Finfine is the most dynamic region

where both urbanization and industrialization are rapidly growing and in contention with small-

holder agriculture. The surrounding rural areas are gradually falling under these pressures where

recently the smaller towns emerging as one of the most important population and economic

agglomerations. In addition to the urban growth pressure which is related to residential and

commercial expansion to the special zone, the government’s land acquisition through

expropriation policy for investment motive is changing massive and significant rural agricultural

land to urban and industrial use. In order to facilitate this transformation and anticipating the spill

222

overs from Finfine the Regional government of Oromia has made an administrative restructuring

whereby the settlements and rural agricultural land found surrounding the city of Finfine is

reorganized into special zone. This action actually contradicts the very objective of creating the

Special zone of Oromia as fringe areas of Finfine city (as indicated in chapter three above, the

special zone surrounding Finfine is created in order to check horizontal expansion of Finfine city

to the surrounding areas).In the objective of the creation of the SZOSF, it is clearly mentioned

that there is a threat of the horizontal expansion of the capital where always the settlements

belonging to the Oromia region in the fringe are annexed to the urban territory (for example in

the year 2001 about 23 peasant associations in the Oromia region bordering the city of Finfine

were incorporated into the city’s master plan and there was huge devastation that happened to the

livelihood of these community). Therefore, the Special zone is a zone established in 2007/8

containing six districts which surround Finfine in all directions. The city of Finfine and the newly

repositioned SZOSF are in competition over the land which for centuries has been used by the

rural agricultural Oromo community. The formation of the special zone temporarily kept the city

in the cage amidst the loss of space in the city for residential development and industrial

establishments.

However, contrary to its prime objective of protecting the land found surrounding the city

from informal settlements and squatting, the regional state of Oromia, under the federal

government guidance and supervision, is expropriating agricultural land from the farmers in the

districts of the special zone in the name of ‘investment and development’. This does prevent

neither the expansion of settlements nor commercial and industrial establishment in the special

zone. The three settlements taken for case study are much affected by such developments and a

number of farmers who were users or holders of agricultural land are dispossessed for the sake of

investment. In the SZOSF, in almost all directions agricultural land is in transition to non-

agricultural uses a situation which affected the livelihood of farming communities. Farming

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received a heavy blow in the process of urbanization and land expropriation for investment.

There is rapid growth of towns and villages due to population and industrial establishments.

Regarding the functions of the emerging small and intermediate towns in the vicinity of

Finfine, much of it is related to hosting the rural urban and urban to urban migrants and became

the most preferred location for manufacturing industries too.

Some of the towns in the Special zone were established long years back during the Italian

occupation as garrison towns. Akaki Basaka of the Finfine administration, Holota and Sandafa

are some examples of such towns which are currently growing fast providing

manufacturing/industrial, service and residential facilities for the migrants and local

communities. There are newly establishing towns like LagaTafo, and one of the existing small

villages, Galan which emerge to be among the most demanded areas for residential real estate

and manufacturing investments by the private sector. These areas on the other hand, are

agriculturally the most fertile and productive part of the region on which the population of

Finfine has depended since its establishment. The region supplies everything it produces for the

population and industries in the city.

A brief survey of the socio-economic profile and development trends of the three

settlements is presented below.

6.2.2.1. Galan Town

The name “Galaan” came from an Oromo name which belongs to one of the largest clans

in an Oromo descent called the Daaccii of Tuulamaa branch. Galan was the eldest Son of this

clan and the name for the locality is given from this fact. The descendants of the clan lives in the

Southern, southwest, and south eastern part of the city of Finfine and have historical relationships

with the early foundation of Finfine city (Galan town administration 2007). Galan as a settlement

actually emerged during and after the short stay of the Italians in Ethiopia who connected the

railway line from Galan to the city of Finfine (Addis Ababa). The post-Italian occupation

224

industrial development in the Southern Finfine (Addis Ababa) has given rise to the locality called

Akaki Basaka and the closest village, Galan. Due to administrative restructuring made by the

Regional State of Oromia in 2007/08, Galan became one of the 8 newly re-classified towns of the

SZOSF. The town is located at 8050’45” north latitude and 38

049’45” east longitude, 25

kilometres southeast of Finfine along the Finfine-Adama Highway.

Its location along the Finfine - Bishoftu - Adama Development Corridor made it an

important area for industrial investment both by the domestic and international investors.

According to the OWWDSE (2011) a land use of high mixed development with more emphasis

on manufacturing and storage is planned for the town.

Demography:

The population of the town was very small in size before the 2007/8 and it was just a very

small town where only few residents and recreational places were found on the either sides of the

road. The number of industries established long years back was very small in number. Later six

(6) out of 29 peasant associations found surrounding the town were repositioned as part of

planning boundary of Galan town and became one of the targets for investment in different

sectors. Even with this new development in place the size of population of the town is still

smaller (see table 6.1) than the other towns in the SZOSF. As the majority of the land use is

proposed for industries than residential areas only limited number of households stay in the town.

Land use:

Location wise Galan is found close to the Akaki Basaka industrial area and has got

industrial development experiences even before the new structure plan is in place. Investments

before the establishment of Galan town are mainly located along Addis Ababa-Adama highway.

These investments have large blocks ranging from 1.7 hectares (Adal industrial Plc.) to 7.6

hectares (KOSPI). These large blocks of investments create problem of accessibility to land uses

at the back.

225

The urban pattern of Galan shows the character of transit oriented urban development

including the residential areas which are located along the road and some of it being a bit away.

Before the restructuring of the area came in 2007, open spaces, agriculture and forest dominated

the area (covering 65.5 %) and followed by industrial and warehouses (15.5 %). The structure

plan prepared for the town shows that the dominant land uses in the future will be devoted to

manufacturing industries and warehouses.

The major recreational land use along highway is also established before Galan town is

established with new plan. They also have large block size that ranges from 0.5 hectares (Galan

recreational centre) to 5 hectares (Atlas Resort Centre). In between these extremes are the wood

lands with an area of 4 hectares and RAMSA 2 hectares are found. The majority of investments

before the establishment of Galan were import inputs. This includes Trackon Trading, KOSPI,

DH Gada Plc, Dot Pencil, NOVA Star garment Factory and Mesfin Industrial Engineering

(Habtamu, 2011). In the post 2007 repositioning, the area of the town has increased much as the

surrounding rural areas are included in planning boundary. The growth of the town is mainly

along the road to Finfine and the closest town of Dukam. Based on the previous investment trend

and anticipating the future development potential of the area, the OWWDSE (2011) in its

structure plan indicated that the dominant land use type in the town is devoted to manufacturing

industries.

226

Figure 6.1: Proposed Land use Map of Galan Town

Source: Extracted from OWWDSE (2011)

6.2.2.2. LagaTafo – Laga Dadhi Settlement

This settlement or town is one of the target investment site selected both by the federal and

regional governments of Ethiopia. The town emerged from the earlier rural villages of Laga

Dadhi and a small settlement of LagaTafo, a town located closer to the capital only at 21

kilometres in the North eastern part from Finfine (Addis Ababa).

Before the 2007/8 administrative reclassification and creation of this settlement the area

was under the Barak- Alaltu district with Peasant Association status. Later the two settlements

became merged as there are only few kilometres of distance separating the two and settlement is

laterally expanding between the two centres following the regional outlet from Finfine to Dabra

Berhan.

227

Demography:

Demographically, the neighbourhood of Lagatafo-LagaDadhi town has undergone huge

transformation. Its location very closer to the city and on the main rural-urban migrant route

made it a destination of commuting population and rural-urban migrants from the remote regions

of the northern part of the country. Lagatafo-LagaDadhi has two major administrative sub-

divisions, Kebele 01 which is the oldest settlement and investment area and Kebele 02 which

includes the settlements found at LagaDadhi.

The size of population of the twin towns was very small and it had the rural settlement

pattern before the new structure came into being (table 5.1). The population of LagaTafo has

long experience of displacement and dispossession of land for urban development and housing -

The ROPAC INTERNATIONAL real estate developments has displaced and dispossessed rural

agricultural households before the recent land expropriation came. At some few of distance to

southwest of Lagatafo settlement, there was a locality called ‘Yaka Tafo’, which is incorporated

under the city boundary of Finfine for the Ayat Real estate development during the 1999/2000.

Land use:

According to the land use assessment made by the Oromia Water Works Design and

Supervision Enterprise, an Enterprise the land use type before 2007/8 shows that Lagatafo has

the land use inclined to manufacturing industries compared to other land uses types. But later

residential land use development became fast growing and dominant one with the largest real

estate projects being located there. Lagatafo was one of the major agricultural areas in the

Special zone of Oromia. However, the proximity factor to the city of Finfine made it to be one of

the most important investment centres. Urban impact of Finfine city is also clearly visible and in

a very short period of time the neighbourhood became among the highly populated towns in the

special zone.

228

LagaTafo continues to be one of the demanded areas to host the highest number and size of

real estate companies in the country like the CCD which occupied more than 20 hectares of land.

The land use Lagatafo-Laga Dadhi, unlike the case of Galan, is dominated by residential

development and mixed use than Industrial development. But there are some food processing

industries (example, NAS Foods) which were established before the recent land expropriation.

Figure 6.2: Proposed Land use Map of Lagatafo-LagaDadhi town

Source: Extracted from OWWDSE (2011)

229

Figure 6.3: Proportion of the proposed land use for Lagatafo-LagaDadhi town

Source: Constructed from OWWDSE (2011) data

6.2.2.3. Burayyu Town

Burayyu is one of the fastest growing towns in the SZOSF and the Oromia region at large.

It is located within few kilometres (10 kilometres) from the centre of city, Finfine. Burayyu town

has expanded to the western and southern part while the older settlement of Burayyu is found

smoothly continuing from the boundary of Finfine city. Thus, it is bounded in the east and

southeast by the Finfine city, in the western direction by Managasha, in the northern by the rural

villages of Walmara district and the thick forests of Entoto ridge, and in the southern part by

Sabata-Hawas district of the Oromia Regional State. Its proximity to the city of Finfine help

many of the population to commute for work to the city centre and thus Burayu town’s

population settlement is largely crowded like that of the main city.

Currently Burayyu town has six kebeles which includes Burayyu Kattaa, Lakkuu Kulee,

Gafarsa Burayyu, Gafarsa Gujee, Gafarsa Noonnoo, and Malkaa Gafarsaa. Except Gafarsa

Gujee, the other settlements are highly urbanizing largely serving as residential and mixed land

uses. In real sense Burayyu’s rugged topography and gently sloping land is not convenient for

Service 10%

Green Area 19%

Industry 4%

Mixed Use 10%

Residential 56%

Water body 1%

LagaTafo-LagaDadhi Land use Plan

230

settlement. But housing shortage in the main city forced people to cross the boundary of Finfine

and settle in the closest city called Burayyu in north western part of the city on the way to Ambo.

Burayyu town’s structure is somehow fragmented due to its landscape characterized by hilly

areas in the north, valleys in the southern direction and there are a number of ups and downs. The

existing urban structure was clustered around the boundary of Finfine city and few patches of

settlements around Gafarsa reservoir and Tatek industrial zone. The opening of new road from

Finfine to Ambo that passes through Kolfe, Malka Gafarsa, Gafarsa Nonno and meets the old

road at Gafarsa Gujee has attracted huge settlement and investments in industries.

The structure plan of Burayyu town administration has proposed the major part of the town

for residential purpose. On the other hand, the investment trend of Burayyu town shows that

Agro-based industries and commerce are the major investment sectors, Tatek Industrial Zone

becoming an emerging industrial quarter of the city.

Figure 6.4: Proposed Land use Map of Burayyu town

Source: Extracted from OWWDSE (2011)

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Table 6.1: Population Growth pattern of the sample towns in the Special zone of Oromia

Surrounding Finfine

Towns in

(SZOSF)

District Year

established

EC/GC

Area

(Hect.)

2009

Population size (2007- 2015)

2007/8 2009/1

0

2011/1

2

2013/14 2015

Burayyu Walmara 1954 (1954) 6650 66526 72180 78333 85030 88598

Galaan Akaki 1978 (1986) 750 - 9686 10598 11595 12128

L/Tafo-

L/Dadhi

Barak 1998 (2007) - - 13270 14518 15885 16616

Source: OWWDSE, 2011

Figure 6.5: Population growths of the three study sites (Galan, LTLD and Burayyu towns)

Population of the eight towns in the special zone of Oromia surrounding Finfine shows a

positive increase from the year 2007/8 to 2015. Due to the proximity of these towns to Finfine

and land lease to real estates, industries and other investments, people are very much interested to

flock to these towns.

0

20000

40000

60000

80000

100000

2007/8 2009/10 2011/12 2013/14 2014/15

Poplation Growth of the study sites (2007/8- 2014/15)

Population size (Burayyu) Population size (Galan)

Population size (Lagatafo-LD)

232

The establishment of these towns also facilitated the pattern of commuting population due

to the presence of transportation facilities between the towns and the main city. With growing

trends in investment and demand for residential houses by the growing population, there is a

growing prospect in the size of population of these towns in the coming few years.

6.2.2.4. Investment Trend, Specializations and Types in the Study Towns

Oromia Water Works Design and Supervision Enterprise (OWWDSE 2011), has prepared

one of the first land use planning for Oromia Regional State in the year 2011. In the plan it is

found that every town in the Special Zone found surrounding Finfine, has specialized in the land

use and hence investment potentials .One of the most important factors that helped in identifying

the potential for specialization in specific land use or mixed land use is the already specialized

development trend. Even though most of the towns are restructured after 2007/8, it does not

mean that they are totally new settlements and lack of any industry or other activities. Rather the

some of the new developments proposed are based on the previous trends.

The location of Finfine city in the geographic centre of the surrounding towns an

settlements helped to have strong linkages already established by default with almost all of the

towns because the towns are located on the edge of the city boundary. Land and other resources

like water related demands from Finfine city are very high and it is the basis for having strong

linkages though not formal and institutional linkage. The towns selected as case study for the

current study are one of the preferred destinations for investments. Proximity to the city and

market related factors are the main incentives for the investors to settle in the special zone.

The structure plan prepared for every town, the previous land use before 2007, and the

investment trends have in some cases caused conflicts in implementation phase. However, the

potential of resources in each town, the trend factor and other criteria are also used to identify the

speciality for the towns in the Special zone of Oromia. Mixed land use is in fact compulsory and

is found in all the three settlements. Below is the figure showing the investment trends and

233

specializations for the towns in SZOSF. The proposed land use specialization (for investment) of

the towns/settlements in the fringe of Finfine city.

N

NE

Source: OWWDSE (2011)

In sum, the southern towns with respect to Finfine are preferred for manufacturing

industries, while the districts and settlements found in the north, northwest and northeast are

planned for Agro-based industries and recreational facilities. In fact, all the towns have a kind of

mixed residential and commercial land uses though their dominant land use specialization is

given weight.

FINFINE

(A.A)

SULULTA

Hotel and

tourism; Agro

processing

HOLOTA

Dairy farm ,Hotel and

tourism

BURAYYU

Agro Industry Commercial

GALAAN

Manufacturing SEBETA

Manufacturing,

Agro-industry

LAGATAFO_LD

Manufacturing &

Storage, Real estate

Figure 6.6: Major Functions of Towns in Investment Trend Analysis

234

Table 6.2: Proposed Role of the Towns in the SZOSF

Town Investment Trend Proposed Role

Holota Dairy farm Agro based industries, recreation

Sululta Hotel ,tourism Agro based industries, recreation

Burayyu Agro industry Agro based industries, recreation

Sabbata Mixed Agro based industries Manufacturing

and storage

Galan Manufacturing Manufacturing and storage

Dukam Mixed Manufacturing and storage

Lagatafo Manufacturing, food

processing

Storage(dry), Agro-based industry

and real-estate

Source: OWWDSE, 2011

When practically seen the developments currently going on in the towns selected for the

study, the majority of land is occupied by settlements and other heavy industries and there is the

fact that investors after leasing the land for certain development, they shift their investment plan

from one to the other based on their wish and there is very poor control from the land

administration of each municipality. During the field work and interview made with the

municipal land administration, it is understood that there is violation of the structure plan once

lease agreement is made in some of the industrial establishments in Lagatafo-Laga Dadhi town.

In the study of investment situations in the Special zone of Oromia, it is also necessitates

the volume of the investment as it has implications on the amount of land to be allocated for that

and the land expropriated from the farming community in the fringe zone. The numbers of

investors coming to the towns of the Special zone being increasing from time to time, the three

case study towns are also not exceptional. Many investors have already purchased land on lease

contract basis though only very few of them have started operation to their capacity. The

235

investments range from mall commercial activities to the higher industrial complexes like the

Eastern Industry Zone. The distribution and type of industries already located in the three case

study areas as of August 2012 is presented in table 6.3 below.

Table 6.3: Investment Projects underway in the study towns of Galan, LTLD and Burayyu areas, as

of August 2012

Investment

category

Study Sites Total Percentage

of total Galan LTLD Burayyu

Manufacturing

Industries

170

40

175

385

46.00

Agro-industry 53 8 96 157 18.75

Social services 4 7 40 51 6.09

Hotel and tourism 6 20 57 83 9.91

commercial 18 17 106 141 16.84

Real Estate 2 8 10 20 2.33

Total 253 100 484 837 100.00

Total land (in M2 ) 2,818,800 3,469,879 3,650,535 9939214 -

The table above (table 6.3) shows that 385 (46.0 per cent) out of 837 investment projects

in the study area are devoted to small and large scale manufacturing industries and followed by

agro-based industries. Compared to the other investment sectors, investment in real-estate

industry is very small both in per cent (2.33 per cent). Galan town has the smallest number of

real estate investors when compared with Burayyu and Lagatafo-Laga Dadhi towns. This is

mainly because of the fact that the town of Galan and its surroundings is planned largely for

manufacturing industries of different scales and types.

6.2.3. Socio - demographic Characteristics of Sample Respondents

6.2.3.1. Respondents by Sample Area (Study Area)

This study is conducted in the Central Oromia, the Special Zone of Oromia Surrounding

Finfine (SZOSF). As it is indicated in the introductory section of the first chapter, samples for

this study are taken from three neighbourhoods or settlements located surrounding the city

236

boundary of Finfine (Addis Ababa) and chosen on the basis of the rapid transformation or

transition taking place in the area due to the combined forces of urban settlement expansion and

land expropriation for private investments. The three areas selected are found in the northwest

(Burayyu), north east (twin towns of Lagatafo and LagaDadhi) and the south-eastern (Galan).

Table 6.4 below presents the respondents location (source) including the district in which the

towns are located.

Table 6.4: Locations (Source) of Sample Respondents

A sample of 405 dispossessed farming households are taken from the three sites (135

households from each) in order to study the socio-economic changes brought to the area and the

people because of the current practices of urban expansion and expropriation of holdings of the

farmers in the fringe of the city. The same size of samples is taken from the three towns in order

to compare and contrast the responses of the households in certain questions from the same

sample size of three different places. Data for the socio-demographic characteristics of

respondents is analysed and tabulated in table 6.5 which is placed in the annexure part.

6.2.3.2. Age and Gender (Sex) of Respondents

Age and sex (gender) are among the most important demographic variables as in many

cases the analysis of other variables could be made age or sex-wise distributions. In the current

study the age and sex (gender) distribution of respondents is presented in table 5.5(see

Sampling Locations/sites Number of Respondents District the town

is located Number (N) Per cent

(%)

Burayyu 135 33.3 Walmara, SZOSF

Galan 135 33.3 Akaki, SZOSF

Lagatafo-LagaDadhi 135 33.3 Barak, SZOSF

Total 405 100.0 SZOSF

237

appendices section). Thus, in the study area there are both male and female headed households

who are contacted during household survey on the subject under discussion. There are more male

headed households (68.4 per cent) than female headed ones because unless the man is not alive

or not available during the survey, women do not usually appear to respond to interviews.

The age distribution of respondents as presented in the table shows that the majority (31.3

per cent) of respondents are found within age range of 36-45 years of age and there are few

number of respondents whose age are between 15-25 years (2.2 per cent) of age and those

respondents with more than 65 years of age (12.8 per cent), respectively.

6.2.3.3. Marital status

As indicated in the table 6.5 in appendices section, the vast majority of respondent

households (86 per cent) are in marriage during the survey period and there is also significant

number of household found divorced/widowed. Very few of them are single (6.9 per cent).

6.2.3.4. Ethnic Background

The area chosen for this study is located in the Oromia regional State where except the

Oromo who are the indigenous or native of the region; other ethnic groups are less in number

except in towns and cities. In this study it is found that the majority (about 85 per cent) of the

respondents are the Oromo. There are some households who are from Amhara ethnic group (11.6

per cent) while 3.5 per cent of them reported that they are from other ethnic groups who

primarily accessed agricultural land through gift or through informal purchase.

6.2.3.5. Family Size

As can be seen from the same table 6.5 under the annexure section the majority (about 44

per cent) of respondents are found to have 7 to 10 family size followed by those with a family

member of 4 to 6 (36 per cent). Rural Oromia is known to have relatively larger family size as

compared to the people in the urban areas. Compared to the national average, family size in the

study is very high. About 8 per cent of the respondents also reported that their family size

238

exceeds 10 members. Here it is good to notice that many of the households have dependent

people who are out of the family but due to some reasons stay with the family.

6.2.3.6. Educational Background (Literacy Status)

As one of the important socio-demographic variable the literacy status of the households is

also studied. Literacy plays an important role in such situations where there is agricultural land

expropriation and dispossession which pushes the households to forcefully search for alternative

jobs and livelihoods other than agricultural activities.

As the information presented in table 6.5 shows, more than half (59 per cent) of the

respondent households lack at least basic education. This figure complies with the general fact

that the majority of rural households of the country are uneducated and illiterate. Very

insignificant (only 1.2 per cent) of the respondents have a literacy status of tertiary education and

most probably these group of households are those who are educated and employed and who are

also carrying out agricultural activities in their part-time. It is very difficult for the uneducated

farmers to take up new or technical jobs. Traditionally, even it is very tough for them to work on

daily labour works than agriculture.

6.2.3.7. Occupational (Employment) Status

Employment categories in urban fringe areas are wide relative to the rural areas even

though it is too hard for dispossessed farmers to grasp certain job opportunity easily. In the study

area it is found that 41.7 per cent of the respondents have reported that are may be shifting their

occupation from farming to either secondary or tertiary occupations as the value or fate of

farming is not promising in the future. But still there are so many farmers (35.3 per cent)

struggling with agricultural livelihoods on the limited farmland left to them or some of the

farmers have purchased alternative farm land from remote rural areas. The proportion of those

households who abandon agriculture and joined the different dimensions of daily labour works

239

are in the construction and other petty trading in the area. Only few of them have employed in

government office (2.5 per cent).

6.2.3.8. Manner of Access to Land

Different people have differing experiences as to how they first accessed land. Some of

them were given as a gift, some purchased and others inherited from family. In this connection,

the majority of sample households in the study area (near to 45 per cent) have accessed land

through inheritance from family. About 29 per cent of them have reported that the governments,

the previous or the current, have given them land they are using in the form of reward or

allocation. From focus group discussion held with senior citizens and some genuine people it is

found that government allocation of land in different period benefited much of the residents

while others have informally occupied long years back and later government gave them use right.

Even if the information portrayed above shows some of the basic demographic data of

respondents, there is also socio-economic profile of respondents collected on the issue of income,

landholding size and amount of crops production by each household per year before and after

land expropriation which are used in the next sections in the analysis.

6.2.3.9. Length (Duration) of Residence in the Area

The duration of stay or simply the length of residence in certain area determines the type

and amount of asset (resources) that a person is thought to produce and possess. It, for instance,

implies the condition of tenure status of the person.

In the study area an attempt is made to approach the households on the issue of how long

they stayed in that locality. Thus, 74 per cent of the households mentioned that they have been in

the locality since their life time and totally dependent on the land of their fathers and forefathers.

Very small number or about one per cent of the respondents has lived in the study area for less

than ten years.

240

6.2.3.10. The Year land is taken (Expropriated)

Land expropriation in Ethiopia began very long time and some sources indicate that it was

there even during the Menelik period. Because of the complex land tenure system in the country,

different regimes have been sometimes distributing and the other time expropriating land on

which the farmers depend for their subsistence. The very recent one has begun from 1997 and got

intensified since then. The current government in power has intensified land expropriation for

urban development and expansion of investment especially in Oromia region surrounding the

major city/towns.

From the year 1997, two years after the FDRE Constitution is ratified to the present, the

government has been acquiring land in different parts of the country for the two main reasons

mentioned above, both in the inner city and outskirt of urban areas and remote rural areas for real

estate, industries and large sized plantation farms like flower farm. The current study, however,

is concerned with land expropriation taking place surrounding the city of Finfine, SZOSF in the

towns of Burayyu, Galan, Lagatafo-Laga Dadhi areas which started couple of years back.

During the household survey conducted in the three case study areas it is found that there

are some periods during which land expropriation was very intense with very meagre

compensations implemented. Thus, for the matter of simplicity the researcher put the periods in

three categories; before 2005 (7.9 %), 2005-2009 (36.0 %) and 2010 to 2012 (56.1 %).

6.2.3.11. Average Annual Income (in Ethiopian Birr)

This is one of the most important variable for analysing the impact of developments in

increasing or decreasing the income level of households. However, farming households usually

face difficulty of estimating the amount of income they are getting in months or even in years.

They rather estimate the amount of produce they get which can be converted to monetary value.

Thus, this approach was used in the study area and the majority (47.1 %) of them reported that

before their land is taken they have been getting between 40000 – 60000 ETB per year.

241

Significant number (26 %) of them has also reported that they have been earning at least between

20000-40000 ETB per year. The number of the farmers who have been earning more than 80000

ETB per year are very small (6.5 %). (Refer to table 6.5 for details in the appendices section).

6.2.4. The process of Land expropriation in the Study Area

Different studies across the world revealed that in many cases land expropriation,

dispossession and displacement for development purpose that often takes place in fringe areas of

cities largely affect those occupants who have no authorized land documents and such group of

people are the squatters. However, when population in the city grows more and the demand for

land for investment and other purposes increases with urban boundary expansion forceful taking

of land from surrounding farming community now becomes a norm. This issue is dealt with in

many African and Asian cities where the associated process of rural-urban migration, population

growth and urban horizontal expansion is highly a happening situation.

Farmers in the fringe areas who were very happy for their presence in proximity to the city

for market and other services now scared of being there due to the negative pressure of urban

encroachment to their farm lands. Land loss to urbanization and industrialization are the two

interconnected processes which threatened the farmers. The situation that is going on in the

fringe of Finfine city is not an exception to such processes. Continuous expansion of the city of

Finfine particularly, in the southern, eastern and south eastern part relative to Finfine has

engulfed a number of rural agricultural land and farming community by absorbing land for

detached and single family residential houses and real estate market. Between 1986 and 2010, the

size of the city has grown more than double from 250 square kilometres to 540 square

kilometres. In this process rural land has been in supply for both formal and informal housing in

the periphery of the city and farmers’ land in Lagatafo, Burayyu and Galan remain to be target

places for such further expansions.

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6.2.4.1. Notification for Land Expropriation

Land expropriation process, though dictated by the government, is not an easy task. It may

involve a number of procedures and need abundant time to smoothly pursue it. In fact, some

governments enter into the action with very less care and in short period of time neglecting the

right of the landholders. Such approaches put the farmers in tensions and stress; it may even lead

to conflicts and resistances.

Experiences in some countries, like India, shows that a notification is issued in a newspaper

and in state gazette for land is to be expropriated though details are not that much clearly stated.

This is just a kind of information delivery and scanning the rumours among the farmers based on

which again the responsible bodies of the government agencies design another means of

approaching and forcefully convincing.

One of the critical issues that need to be studied in connection with land expropriation for

public purpose is the way governments first communicate the plan to the farmers or landholders.

It is important because it provides the government to know whether the people accept the

proposal or reject it. The law also cautiously stated the procedure of land expropriation. This

stage is a crucial stage for the success or the failure of the project or the program.

The Ethiopian legal system i.e., the 1960 Civil Code, Article 1465(1) generally prescribes

about the importance of clarity on the side of the government in considering the public interest

and consultation before the project is executed. In the same Article sub-article (2) it is stated that

any interested party may in the course of such consultation express his/her view or even criticize

the complete project. Inclusion of such statements encourages the role of public interest in the

prospect of the project.

With regard to notifying the public that land expropriation for public purpose is a must and

necessary one, Article 1466 explicitly explains such issues and particularly sub-article (2) states

243

that the land owner shall be personally notified of the complete expropriation. In addition,

expropriation order shall be served on the holder concerned.

The Ethiopian Civil Code provided some procedural requirements in the form of steps so as

to strengthen the fundamental rights which are recognized by the Supreme law of land and the

steps or procedures are briefly presented as under.

The first step is concerned with making public inquiry which assures transparent way of

consulting people on the importance of the project which constitutes expropriation. The second

step deals with the prospect that renders expropriation is necessary should be declared to serve

the public interest by the competent authority. The third one is determining which immovable

resources are required to be expropriated. In this connection the holder and other parties must be

notified individually by the competent authority. The fourth step is issuance of expropriation

order and finally fixing the amount of compensation to be paid in advance for takeover of any

rights of the immovable by the authority.

The Ethiopian Civil Code is not the only one dealing with how expropriation has to be

carried out, especially during the first phase when informing or notifying the land holders that

expropriation of land for other public purposes is a must thing and a necessary one. Article (4),

Proclamation No. 455/2005 of the FDRE Constitution has also contains a statement about the

issue mentioned above. It urges that expropriation must be notified to the landholder beforehand.

According to this proclamation a district (woreda) or an urban administration decides to

expropriate a landholding, must notify the landholder, in writing, indicating the time when the

land has to be vacated and the amount of compensation to be paid to them.

In Ethiopian experience, notification order deal with neither negotiations nor bargains nor

serving the consent of the landholder, rather it is simply to notify that the holding of the person is

to be expropriated. In such condition there is no room for respecting importance of public

244

participation in development proposals. This, in fact, is an abuse by itself because the law on the

other hand recommends public participation is the backbone of the success of such projects.

In line with the above laws and proclamations, in the current study, an attempt is made to

probe into the reality or the practice in the study sites on how the farmers were notified that their

farmland is going to be expropriated for the purpose mentioned above under the regional

government order. Actually, there is no success story in Ethiopia regarding land expropriation

through mutual understanding between the government and the farming community on the issue

of giving government land with no objection and opposition.

The following table presents the source of information for farmers regarding the fact that

their land is to be expropriated. The government used couple of methods to inject information

into the community, the most common and widely used method being information dissemination

through local leaders (government cadres).

Figure 6.7: Information Source about Land Expropriation

Source: Household survey (July – September 2012)

0

10

20

30

40

50

Multipleresponses Percent (%)

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Figure 6.4 above shows that the households in the study area have got information from

multiple sources (local leaders, friends, during meetings, media and others). Local leaders took

the initiative to inform the farmers as identified from respondents. Respondents also indicated

that there were series of meetings conducted for informing that the government needs land for

development purposes. However, they did not make reservations from explaining that the

meetings were no more than warning the farmers not to object the development project that the

government is doing for the benefit of the farmers. Regardless of the meetings conducted in

different occasions there is no farmers representation in the design of the program before

expropriation is launched.

6.2.4.2. Feeling and Perception of the Households about Expropriation

The farmers know that the issue of land is the issue of life and losing land means losing life

as their major source of income and livelihood. Therefore, one can expect how furious they were

when first informed. Once they are informed through one or more of the means, they tried to

discuss amongst themselves as what to do. The decisions, in many cases are similar, but they also

start to think what to do individually. Those farmers who have information prior to land

expropriation, took the advantage of such information and decide on their own, for example there

were farmers in Lagatafo area who sold the land to be expropriated on informal market collecting

only some amount of money. They believe it would be better to sell for some amount than

handing over the land to the government for meagre compensation. Others explained that they

have their objection against such move by the government.

246

Table 6.5: Responses (feelings) of farmers when first heard about land expropriation

Feelings and perceptions when first

heard about land expropriation

Multiple responses

Number(N) Per cent

(%)

Felt sad and hopeless 386 45.9

Felt happy 41 4.9

Disappointed and became furious 381 45.3

Did not believe it will happen 33 3.9

Household Survey (July-September 2012)

More than 90 per cent of farmer households felt sad and disappointed when they first heard

about land expropriation. They were worried much about future occupation (livelihoods),

relocation and resettlement, and compensation. In fact there are some households who never

believe that expropriation will never be materialized. Whatever they felt about such a move the

first thing they had to do was to ask the local leaders to cancel this program mentioning how is

that the government plans to expropriate the land that their family had depended on for life time.

Very few of them (4.9 per cent) responded that they felt happy with government’s plan of land

expropriation and probably these households are those who have political affiliations to the

government.

6.2.4.3. Objections and Resistances during Land Expropriation

When information provided regarding land expropriation is not adequate and lacks some

transparency and participatory decision making, it is likely that farmers may resist the

expropriating body. Thus, in order to make the purpose smooth it is always important to clearly

inform the landholders who have no other option of livelihood than land. They should know that

land will be taken for public purpose and making them part of the project will be more effective

247

than ignoring them during decision making on such sensitive issues like the expropriation of land

from farmers.

In order to probe into the decision of the farmers once they have explained their

disappointment towards the expropriation, further questions are posed to them regarding what

they have immediately decided knowing that their resistance was not acceptable. The following

table (Table 6.6) shows their immediate decisions on this matter.

Table 6.6: Immediate decisions taken by the farmers once expropriation became a happening issue

Decision taken by the dispossessed

farmers

Study sites Total

Galan Lagatafo -

LagaDadhi

Burayyu

Agreed and positively accepted 7 15 4 26 (6.4%)

Objected but forced to agree 101 108 123 332(82%)

First objected but convinced to agree 27 12 8 47(11.6%

Total 135 135 135 405(100.0)

Household survey (July – September 2012)

Majority of the farmers objected and forced to agree when they first heard that land

expropriation to take place (82 per cent). Another 11.6 per cent of them have objected but finally

convinced by the government to agree on leaving the land for government project. Only a small

number of farmers (6.4 per cent) have agreed and positively accepted the government’s policy of

land acquisition from the farmers.

In addition to the above information presented in table 5.8, an attempt is also made during

household survey to know whether resistance was made against the expropriation.it is found that

there was strong resistance and opposition against land expropriation. Very few of the farmers

did not make any resistance and such farmers are may be having some information before the

other ones or they are simply not opposing because of the fear of the government (there are

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farmers who are pro-the government policy of land expropriation). Those people who did not

resist the land expropriation even lobe the other people to give their land.

Table 6.7: Households’ Resistances during Land Expropriation

Study site Resistance during first phase Total

Yes No

Burayyu 122 13 135

Galaan 106 29 135

Lagatafo-LagaDadhi 103 32 135

Total 331 (81.7 %) 74 (18.3) 405

Household survey (July – Sep. 2012)

Responses of the households indicated in table 5.8 above reveals that nearly 82 per cent of

the respondents have, in one way or another made resistances to land expropriation practices of

the government. The remaining 18 per cent have either not resisted or are not interested to reflect

their actions.

6.2.4.4. Farmers’ Representation in Decision Making of Land Expropriation

From planning stage to the final successful implementation of any project that is thought

for the public benefit, involvement in and participation of community is one of the key

requirements for developments.

Both the survey result and focus group discussion in the study area revealed that the

farmers whose land is to be expropriated are not invited to participate in any decision making,

whether it is related to incorporating their opinion during plan preparation or determining the

amount of compensation to be given for the disruption happened to their assets.

One senior respondent (name remains synonymous due to security reason) in Lagatafo site

speaks about the situation as;

249

Not only land but also we [the people] are of government; the government should have

respected our say in what is planned to be done in our area. But only those closest persons

to the administration were participating than the concerned households. Only those few

people who always act as government appointed representatives of their locality pass false

reports to the officials saying that all the farmers agreed to give their land. Such approaches

are creating lack of trust between the government and the people. That is why the

government complains always that the farmers in Lagatafo are protesters and are not

willing to do what they are told to do so (Anonymous, 2012).

Different experiences in this respect witness that public participation in development

projects when the project is just for them enhances the condition that the people not only trust the

project but also develop a sense of ownership and belongingness to such activities.

6.2.4.5. Final Convincing Mechanism Used by Government Officials

Government’s aggressive move for expropriating holding of farmers does not have time to

listen for genuine appeals and complaints of the farm community. Sometimes the competent

authorities try to confuse the holders by misinterpreting the laws and proclamations stated in

Ethiopian Constitution which by itself became open to interpretation.

Regarding what has actually happened in the study areas of Galan, Lagatafo and Burayyu

towns, the affected farmers have clearly explained some of the mischiefs and mismanagement of

the genuine complain of landholders’ right from the time of notification to the payment of

compensation. On the other hand the investors who are ready to take the land under the

sponsorship of the government try to approach some of the farmers through the cadres using

bribing approach so that these few people would lobby the farmers to vacate the land for the

development that is at their door-steps ( from Focus Group Discussion).

Local officials including those people who the government trusts take the initiative of

convincing the farmers to give their land for the development and urbanization of the area by

saying “we need to abandon agriculture and get modernized for which employment in non-farm

250

activities are in our door-steps even for our children”. It is using such techniques that the

government officials and other agents tried to cheat farmers in order to take their land and sell it

on lease market both domestic and foreign investors.

Knowing the fact that the government is surely expropriating their land, some of the

farmers communicate indicated that they tried to think of what their future will be. The decision

in fact is individual. Some of them have decided to give the land for compensation and others

have decided to sell informally a portion of their holdings for very cheap price and still others

were thinking forward in how to shift their occupation from farming to others.

When the government officially declares land expropriation, the final decision that each

landholder takes may vary from one another. Some of the farmers may think that informal land

selling is a good option for them at least than losing their land freely or with meagre amount of

compensation. Others may accept the expropriation and wait only for the compensation money

(if any). Some others may think forward on what to do next and how to sustain their living than

perish. In this regard the experiences from the study area reflected the same thing where different

farmers took different options. The table below presents what they have decided in the final

when they were certain that they would be losing their farmlands.

Table 6.8: Final Decision taken by the farmers

Final decisions taken by farmers Multiple Responses

Number Per cent

(%)

Selling a portion of their land on informal market 47 4.7

Providing land for compensation 366 36.7

Change occupation to non-farm activities 339 34.0

Migrate to other places 47 4.7

Purchasing agricultural land from rural areas 197 19.8

Source: Household survey (July- Sep. 2012)

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Information presented in this table reveals that there are different decisions the land holders

have taken once they became sure that their land nears expropriation. The majority of the

respondents decided to give the land for compensation (36.7 per cent).The other significant

proportion of sample households decided to change their occupation from farming to non-farm

activities as a result. Some of them have replied that they have no option than searching for

alternative agricultural land from rural areas through informal purchase though they were in

confusion about the continuing threat of expropriation. Those farmers who were largely

pressurized by the actors to sell their land on informal market seems benefited because they

fragmented their agricultural land into plots and sold it out before expropriation takes place. They

were not bothering whether the buyers will be asked for their illegal purchase. In doing this they

have deposited some important amount of money that may have helped them began some

alternative business or purchase another farmland deep in the rural area. There were farmers who

decided to migrate to other places when the government is to expropriate their land. But they

have not explained whether to migrate to rural or urban areas.

6.2.4.6. Benefit Packages Promised and Executed by the Government

(A) Benefits Promised

One of the many strategies used by authorities to convince landholders and expropriate

their holding rights is through making a kind of “sugar-coated” promises in the form of benefit

packages. It was found from the experience of the dispossession and displacement happened to

the households in the city boundary of Finfine for the sake urban expansion that the government

at all scales made a number of promises for the affected households before the onset of the

program. It really seemed very promising because it is so easy for government to meet such

promises. But what actually happened and of course what is again repeated in the study area for

the last couple of years is that the same promises were made and a number of benefit packages

were made. But except paying some compensation in cash for the properties lost because of the

land expropriation there are no promises met by the government. Then the community realized

252

that all the promises made were fake promises and they felt as if they were cheated by the

authorities. This raised a number of complaints on the government and it reduced the trust the

people have in government. In order to supplement this information the dispossessed households

are interrogated as to what promises the government has made for them before taking their land

(see Table 6.9 below).

Table 6.9: Benefit packages Promised by Government before Expropriation

Benefit packages promised Multiple responses

Number Per cent

(%)

Paying ‘adequate’ compensation 359 25.1

Arrange employment opportunities in

governmental and non-governmental organizations

357 24.9

Organize series of trainings on skills development

for business operations

346 24.1

Organizing them under Micro-and Small

enterprises

346 24.1

No promise was made 25 1.7 Field survey (July –Sep.2012)

The above table portrays that the majority of respondents provided multiples of responses

regarding what the government has promised them before the expropriation takes place. As can

be seen from the table quarter of sample respondents indicated that the government promised to

pay them adequate compensation for the properties located on the land. In similar manner

significant proportion of the respondents replied that both the local authorities and higher

officials were promising them to be employed in the non-agricultural activities (in industries)

where they will be earning an income that is better than they used to get from agriculture.

Significant proportion of respondent households also reported that one of the promises the

government made is providing then series of trainings on skills development whereby they will

be engaged in business activities and properly manage the compensation money to be given to

them so that they will invest the money in worthwhile investment (24.1 per cent). One of the

astonishing promises made by the government was on how to organize them under micro and

253

small scale enterprises which is relevant to their previous work, which is expansion of agro-based

industries and organizing the dispossessed households under such enterprise (24.1 per cent of the

respondents remarked). Many of the respondents underscored that when they first heard such a

promise they were very happy for the fact that this type of work is far better than the previous

agricultural work they used to engage in.

There were few infuriated respondents (1.7 per cent) who responded aggressively that the

government never promised to give them any benefit for the properties lost. Probably these

groups of respondents could be those who are very much disappointed at the mechanisms the

government used to take their land. Expansion of infrastructures and social services to the area is

one of the promises made by the government. The investors themselves also made a number of

promises such as creation of ample job opportunities, expansion of electricity, drinking water,

health services and other social services. But, no more than compensation payment (which is

calculated based only on the government officials’ interest) is effected so far.

(B) The Benefits or Promises Fulfilled

In the above paragraphs, the promises made by the government authorities to the

expropriated households are presented. The majority of them reported that the authorities

promised to pay them ‘adequate’ compensation. Others also reported that there were a number of

other packages promised. However, it is possible to understand from the households that the

government is too late and reluctant to keep his words in serving the promises. The respondents

reported that only compensation payments for the expropriated properties were effected so far.

Much of their properties like the livestock and other domestic animals are not compensated while

livestock are one of the basic sources of income and livelihood for the farmers. An attempt is

made to assess the major assets or properties for which these households got compensation (see

Figure 6.9 below).

254

6.2.4.7. Compensation Packages Served in the Study Area

As it is mentioned in the above paragraph, of all the benefit packages promised for the

dispossessed households it is only the compensation package that was implemented. In Ethiopian

Constitution Article (7) and (8) of the Proclamation No. 455/2005 it is indicated that there are

properties to be compensated and the implementation regulations show that the interests or rights

to be compensated includes the property situated on the land, permanent or temporary loss of the

land. On the other hand with regard to how much should be compensated (rate of compensation)

which is always point of conflict between the authorities and the affected people. There is

subjectivity and lack of uniformity in the procedure as are observed from experiences of the last

couple of years.

Therefore, it seems relevant to bring in to the scene the previous compensation payment

experiences served in the Oromia regional state and Finfine. There were three remarkable periods

during which compensation payment was serves for people who were displaced or dispossessed

due to urban development projects undergoing in the boundary of Finfine city and the fringe

areas like LagaTafo since 1997.

From 1997-2002

Oromia National Regional State had enacted directives and guidelines for the procedures

that should be used for the payment of compensation for evicted or dispossessed households due

to urban development in the fringe of Finfine city. According to the directives, once the

households are entitled for compensation, the base of estimation was made to consider

agricultural productivity of the land in monetary value. Thus compensation amount was

computed by taking the previous five years of average production from the land multiplied by 10

(ten years). During this period people evicted from Yeka Tafo area for Ayat Real estate project

were one of the best examples. This guideline served until 2002 when another significant change

has taken place.

255

From 2002 - 2006

Keeping all other things constant, the year factor was reduced from 10 years to 5 years

following the decision made by the Oromia Regional executive. The compensation paid during

this period was unacceptable and was not fair for two things. First, the reduction of the year

factor from 10 to 5 and the fact that compensation payment process did not consider any

properties that are located on the land and improvements made by the land holder.

From 2006 to the present

Inconsistency and lack of standard for compensation payment is reflected again during the

2006 when the Oromia National Regional state has revised the compensation payment in

accordance with the amendments of the proclamation No. 455/2005. This ‘revised’ compensation

rate saw the year factor again determined to be increased from 5 to 10 years and the

compensation procedure was made to consider properties situated on the land and improvements

made on the land by the land holder. The ‘revised’ directive also increased the rate (the amount

of money to be paid per square meter of land) from 0.7 Birr/square meters to 5.5 Birr/square

meters of land from the year 2006.

In recent times SZOSF administration of the Oromia Regional State expropriated huge

amount of land from the peri-urban areas for massive projects like the establishment of industrial

zones, real estates and for other land uses in Galan and Dukam as well as Burayyu and Lagatafo

areas for which larger expanses of land is expropriated from farmers. The construction of Finfine

- Adama highway (Express Toll) is one factor for the dispossession of farmland and other

properties.

According to the survey made in the year 2012 in the study areas mentioned above

including some other places in the surrounding areas of Finfine it was found that land

expropriation is becoming a big business deal between the government agencies and both foreign

and domestic investors. Land is indiscriminately been in transition under the sponsorship of the

256

authorities of Special zone of Oromia. Figure 6.8 below presents the survey result of sample of

dispossessed farmers from the three study areas and the information shows that farmers were

compensated for the productions they have on the land and for the grazing lands and plantations

(most commonly recognized plant found in the backyard of the people is the eucalyptus tree) and

housing for very few farmers whose houses were affected by the road construction and other

developments. There are various response groups observed during data collection where some of

the households reported that they have received compensation in cash only for farmland. Other

group of respondents argue that they were not compensated for grazing land as the local

authorities sometimes abuse their power and say there is no rule that says the government should

pay compensation for grazing land.

Figure 6.8: Proportion and Category of Assets Compensated for the Dispossessed Farm

Households

Household survey (July – September 2012)

Farmland (Quintals of produce per

hectare) 38%

Grazing land 25%

Plantations (eucalyptus tree)

32%

Housing (for fences and

other properties affcted)

1%

Others 4%

Promises executed (Compensation payments)

257

As can be seen from the above figure (Figure 6.8), the vast majority of households (38 per

cent) interviewed regarding the properties for which they were given compensations responded

that the government of the municipalities have paid compensation only to their farmland (in

reality it means they are paid only for the crop produce they are getting from the farm land as per

the rate determined by the government). The other major category of respondents (32 per cent)

indicated that they are paid compensation for plantations they have on the expropriated land.

Large number of the sample respondents (25 per cent) have also reported that they were paid

compensation for grazing land but with the minimum rate of compensation than it is for the

farmland. In connection to this compensation, one of the major assets of the rural and urban

fringe households, the livestock, is not compensated for the reason that it is not included in the

expropriation and compensation regulations. The households argued that this is very

disappointing thing that the government made against them. But how is the rate of compensation

fixed and what is the formula used?

Even if there is no fixed and standard formula in the expropriation and compensation laws,

like it was fluctuating for the last one decade, the compensation rate used and served in the study

area depended on the arbitrary formula indicated below. The rate or amount of compensation

payment for square meter of land varies from one year to the other but with no adequate

explanation given by the municipalities and the Regional government of Oromia. However, for

the areas surveyed for this research the following formula is used.

Based on this rate dispossessed farm households in the three study areas are asked to

comment on the rate used and how much compensation is paid to them by their respective

municipalities. The survey result of an assessment of compensation payments conducted in 2012

at the three sites shows that there is significant variation between districts in paying the

258

compensation amount. For instance, in Galan area of the Akaki district there are 27 out of 135

households who were paid 18 Birr for square meters of land and for the same type of land during

the same period only 1 out of 135 household is paid in that rate at Burayyu town. This variation

probably happens because of the fact that the farmers who lost their land due to the highway

under construction between Finfine and Adama are paid relatively better compensation amount

than the others. The majority of surveyed households received still with significant variations,

between 5 and 15 Ethiopian Birr per square meter of land. This value (rate) is in any standard

very small and it undermines the importance of land for the farming community in the area. The

formula used to compensate the production that could be collected from the expropriated land for

the coming ten years with the price computed from the last five years annual income is an

arbitrary valuation for that farmers do numerous things on land that substantiate their livelihood

than merely depending on crop production. Rearing livestock is an Oromo community’s cultural

value than simply the economic benefit. It is a source of pride among the Oromo community and

the loss of livestock with at least no cash compensation is a worrisome one.

Table 6.10 below presents the distribution of households who received compensation

payments for farmland with the rate of payments in Ethiopian Birr (ETB).There is variations in

the rate of compensation payment as clearly observed from the responses (about four categories

being created).

Table 6.10: Compensation Benefits served for Households and the rates used (Birr/m2)

Compensation served per

square meter(ETB)

Study sites

Total N (%)

Galan Lagatafo-

LagaDadhi

Burayyu

Less than 5 10 30 6 46 (11.3)

5 - 10 52 61 101 214(52.9)

10 -15 46 42 27 115(28.4)

More than 15 27 2 1 30(7.4)

Total 135 135 135 405(100.0)

Household survey (July –September 2012)

259

The data analysed and presented in this table (Table 6.10) shows that 52.9 per cent of the

surveyed households reported that they have received compensation payments for their

expropriated farmland at the rate of 5 to 10 ETB per square meter of land. This category is the

dominant one. Another 28.4 per cent of the respondent households received compensation money

at the rate of 10 to 15 ETB. There are also households who have given their land for a

compensation rate of less than 5 ETB per meter square. Very few of them (7.4 per cent) received

more than 15 ETB for a square metre of agricultural land they lost to the government’s project.

But what is reason for the variation? To answer this question, given the gap in the

implementation of the rules, the year land is taken is a n important indicator used to approach the

reason for the variations for the rate of payments though this indicator alone cannot be the

reason.

When evaluating the year land is taken and the rate of compensation during the time, the

majority of the households contacted during interview are found to be those who are expropriated

very recently between 2010 and 2012. A small number of the farmers reported that they were

expropriated before the 2006 when the compensation amount was less than one Birr and the

majority of those households being those displaced and dispossessed from Lagatafo area. The

recent expropriation used the arbitrary formula developed by the district/regional authorities to

compensate the farmers and thus relatively the amount of money for a square meter of land

varies from 5 Birr to 20 Birr which still is very inconsistent one.

Table 6.11: A cross - tabulation of year land is taken and compensation rate used

Year land is

expropriated

Compensation Rate per meter square Total

less than

5 Birr

5-10

Birr

10-15 Birr 15-25

Birr

Before 2005 23 9 0 1 33(8.2)

2005-2009 10 74 40 20 144(35.6)

2009-2012 13 131 75 9 228(56.3)

Total 46 214 115 30 405(100.0)

Household survey (July – September 2012)

260

When referring to the law, Article 7(2) of Proclamation No. 455/2005 which states that

“the amount of compensation for the property situated on the expropriated land shall be

determined on the basis of the replacement cost of the property”, it seems that the farmers are not

adequately and properly compensated for the property they have lost once and for all. This is

supported by the response of the dispossessed households in which all of the surveyed farmers

indicated that the compensation is inadequate and unfair.

6.2.4.8. Farmers’ Utilization of Compensation Money

Once land expropriation is certain and they became absolutely sure, the farmers started

contemplating what to do next. As it is indicated in table 6.10 of sub-section 6.2.4.5 above some

of them might have decided to sell their holdings informally, or surrendered the land for a given

amount of compensation or think how to shift to non-farm activities almost losing hope in

agriculture. Even if the compensation money given to them is inadequate, some of them have

already started a small business and others have used it for different purposes. There could also

be some farmers who do not have any skill and know-how on how to invest in a worthwhile

business. As already the money given to them is liquid money (cash) it can easily be misused. An

attempt is made to approach them to know how they are using their compensation money. The

responses are indicated in the table below.

Table 6.12: Distribution of the responses of farmers on utilization of compensation money

Utilization of compensation money Multiple Responses

Number Per cent (%)

Started new business with 282 29.4

Purchased another farmland 155 16.1

Deposited in bank for saving 145 15.1

Used for compensation and other

expenses

339 35.3

Others (construction of houses, etc…) 39 4.1

Household survey (July – September 2012)

261

The table reveals different categories of investments made by the expropriated and

compensated households. Accordingly, the majority (35.3 per cent) of them used the liquid cash

for consumption purpose which shows that because they lack the orientation and follow-up in

how to invest the money into worthwhile investment which can sustain their livelihood. The

government also did not meet the promises made before the expropriation started. The vast

majority of the farmers are uneducated and did not have any one to guide and help them to

reconstruct their lost livelihood by engaging in other non-farm activities. Some of them have

made a wise decision in that they have immediately started new business (29.4 per cent).

Significant number of them being still interested in farming purchased another farmland from the

rural land (16.1 per cent).

There are also some who saved the money in a bank so as to use it during some harsh times

when shortage happens and others reported that they used the money for constructing extra

rooms on plot land left to them for rental purposes and get some income. Households who

extravagantly spent on food and drinks have now exhausted the money with no future prospect of

reconstructing their livelihood. Many of them actually became frustrated and hopeless and in

such cases in order to survive and support the family they joined the day labour works which still

seems not sustainable. Therefore, the situation indicates that these households are prone to food

insecurity.

6.2.4.9. Reflections on the Overall Process of Expropriation and Compensation

The importance of land in general and agricultural land in particular for farmers is

unquestionable. Land, more than any time in human history is becoming more and more wanted

not only by the farmers but also the urban community. That is why rural land is now becoming a

scarce commodity highly demanded by investors as urban areas are no more accommodating the

growing population and economic agglomeration. The situation that is observed in Finfine and its

surroundings is not an exception. The agricultural lands in the fringe areas and in the remote rural

areas become targets of investment in commercial agriculture, housing and real estate

262

development for the urban population, industrial establishments and others. Land in those areas

was under farmers’ free holding rights given by the Constitution and they have been using the

land for generations as source of livelihood and everything. When the importance of land

increases and pressures mounts from the urban areas the government declares that land

expropriation is an alternative solution as it is already contained in the Constitution.

In such cases when land expropriation is the only option, the law must be respected and the

expropriation should be effected safely without scarifying the farmer’s livelihood and life as a

whole. The projects planned to be established also must be based on the common interest of all

(for the benefit of the public as it is stated in the law).

When evaluating the process of land expropriation that took place in the study areas in line

with the expropriation law, it is really blatant that the law and the practice are quite different.

More than anything else the rural farming community are innocent and so that they do not

deserve a kind of cheating, lack of transparency and false promises especially from the likes of

government authorities. What is stated in the Constitution and in the law should have been

balanced and they should have also been part of the project from the very inception to the final

implementation. They should not be the ones who simply accept the decision made against their

Constitutional right. It is when they are interested and developed trust only that the project

should have been implemented. Forceful taking of hand without the will of the holders may

create a problem someday. The coercive action of government and other agents do not bring

lasting solution rather such actions are one of the major factors for conflicts.

As found from the study on the nature of compensation payment the very problem lies in

thoroughly identifying the properties and resources the landholders produced and that need to be

compensated. The farmers have a number of properties that they have produced on the land, and

land supports their living in many ways than only for crop production.

263

Secondly, the valuation system lacks clarity and is arbitrary and usually done by common

sense. For that the authorities reason the gaps in the expropriation law. It all depended on the best

will of the authorities (urban administration and district officials). The proclamations (the law)

prescribe that the dispossessed farmers should be compensated in line with what is indicated in

proclamation No.455/2005 (‘commensurate’ compensation).

The other problem with compensation payment served is that it never considered that the

loss of land means loss of basic sources of livelihood and life. A compensation payment that is

calculated for the coming 10 years only cannot substitute the advantage that the farmers would

have collected from their land. The compensation rate authorities are using to pay for

expropriated farmers also affected the households in that it is inconsistent and with no standard

where some of the households complained that they received 5 ETB and others 18 ETB per

square meter during the same period.

In the study areas, especially in Galan and Lagatafo-Laga Dadhi towns, the local

authorities and technical or professional staff have been highly corrupt and misbehaving during

valuation and payment of compensation. Some of the farmers even report that there is an

experience of paying double compensation for a single farmer in which later the farmer and the

other person(s) who valued the land will share the money paid as compensation in the second

round. However, the farmers are not able to justify the situation further.

It is quite amazing that the government expects the dispossessed farmers to use the small

and meagre compensation money for investment in new livelihoods and homes with at least no

follow-up and advise given to them from any government officials. They do not have anyone to

advise them on how to manage the liquid money given to them. That is why the money is divided

among the family members and unwisely spent for consumption and temporary entertainment

like spending for drinks and others. This condition has led some family members to

disintegration of the family as the money is getting dwindled. The implication is not only limited

to the family but it has a bigger connotation on the nature of population dispossession and

264

disrupting the livelihood of the poor community by the government in the name of land for

‘investment and development’ and driving the formerly self-sufficient households to poverty and

food aid seekers.

6.2.5. Impact of Land Expropriation and Dispossession on the Livelihood of the

Community in the Study Areas: Adapting the Sustainable Livelihood Approach

Expropriation and dispossession of land from farming community now becomes one of the

major options many countries took as a strategy to find space for the newly emerging

developments and pressures coming from the global restructuring of capital in urban fringe areas.

There is a general move towards replacing the small holder agricultural lands and other land uses

with housing, real estate and industrial activities. Such a move is triggered by governments’

interest for boosting development at the cost of the other major source of employment for the

majority of poor people in developing countries like Ethiopia, which is a case in point in this

study.

The expansion of cities beyond their limits on the one hand and expropriation of

agricultural landholdings of farmers for public purpose in the urban fringe on the other, have

caused significant transformations in land use and livelihood of the indigenous residents in the

area. The expansion of the city in the form of sprawling and continuous spread of built-up areas

encroach the agricultural land thereby creating land conversion. Governments’ desire for land

lease to the industrial and housing projects brings the most serious threat to land resources in the

fringe areas. In this manner the size of agricultural land and agriculture as a livelihood strategy is

decreasing at the cost of the expansion of built-up areas which directly affects the living

condition of the community. The fringe areas also became potential locations for new

developments in which informal land market dominates the formal one as everyone and every

activity is looking for more space than what is available. This situation created huge blow for

265

agricultural community in the fringe of Finfine city where the rural agricultural lands are eaten

away by non-agricultural activities putting the livelihood of the farming community at stake.

This section, therefore, is devoted to assessing how land expropriation policy of the

government has created an impact on the livelihood of farming community in the case study

areas in the fringe of the Finfine namely Burayyu, Galan and Lagatafo-LagaDadhi areas located

in the Special Zone of Oromia Surrounding Finfine city.

Forced transformation and changes in the livelihood of farming community due to

changing importance of the area for non-agricultural activity is evaluated with the existing model

or framework called the Sustainable Livelihood Framework. The sustainable livelihood

framework treats land as a natural asset central to rural livelihood. Linkage between land loss,

livelihood and vulnerability is a key issue in studying the impact of projects on the farm

households as a long-term effect. Impact assessment in such cases as expropriation and

dispossession of asset bases of communities is usually conducted using a model called

sustainable livelihood framework. Therefore, before presenting the major impacts of land

expropriation in social, economic and other aspects or simply the impacts on the livelihood

assets, it is imperative to see the sustainable livelihood framework applies to the local level

studies like the study area under investigation.

The sustainable livelihood framework presents the main factors that affect people’s

livelihoods and typical relationships between these. The framework is people centred and used in

assessing the contribution to livelihood sustainability made by the existing activities. What is

Livelihood? There are some approaches in defining the concept of livelihood but in the context

of this study the definition given by Chambers and Conway (1992) is considered and they

defined livelihood as a means of living which comprises the capabilities, assets (stores, resources

,claims access) and activities required for a means of living. A livelihood is sustainable when it

can recover and cope with stress and shocks maintain or enhance its capabilities and assets and

provide sustainable livelihood opportunities for the next generation.

266

Livelihood assets is an important concept in this framework in that the livelihood approach

seeks to gain accuracy and realistic understanding of people’s strengths (assets or capital

endowments) and how they endeavour to convert these into positive livelihood outcomes. In the

context of this approach people require a range of assets to achieve positive outcomes.

Source: Reconstructed from the DFID (1999)

Dispossession of land which is central to rural livelihood stands out as one of the most

important issues in the peri-urban areas (Mallik, 2011). Those groups dependent on land-based

livelihoods are posited with the challenge of sustaining themselves which goes through a

transition which requires adjustment in terms of means of livelihoods. On the other hand, those

Abject

Poverty

Urbanization & Other

Forces

- High Pressure

/demand for urban

space (Non-

Agricultural activities)

Vulnerability context

-Demographic changes

-Change in economic

structures

-Integration into urban

space and activities

Urban Fringe

Transformations

-Demographic

change

-Transition from

agricultural to

Non-agricultural

(Land and

Occupation)

-Increased land

market

-Change in

traditional social

structure

Transforming

structures

&Processes

-Policies: Land

expropriation,

change in land

policy, both at

national and

Regional

governments

levels

Livelihood

outcomes

Employment-

Increased

household

income,

improved

wellbeing

H

S

N F

P

Livelihood

Strategies

-Diversification

(Non -farm

income) - Urban wage

employment

If successful

Reconstruct

livelihood

assets

If not

successfu

l

Key:

H= Human capital S = Social Capital

N = Natural Capital P = Physical Capital

F = Financial Capital

Figure 6.9: The Sustainable Livelihood Framework

267

capable of taking advantage of the emerging opportunities of work created as a result of

urbanization and investment growth could be drawn within the fold of non-agricultural work,

while others will be kept aside or marginalized from productive works and will negotiate a

deterioration of livelihood leading to poverty.

As many scholars argued, the extent of access to livelihood assets plays a decisive role in

enabling the peri-urban population to translate spatial characteristics of the fringe developments

into opportunities rather than constraints.

As can be seen from the framework above, the sustainable livelihood framework developed

by Scoones and presented by the DIFD is adopted to see the applicability of the approach in the

local level regarding the impacts brought about by urbanization and land expropriation for other

non-agricultural activities. In this regard the livelihood of the farming community in the three

neighbourhoods has been affected by the two processes actively in operation in the fringe of

Finfine city. There is a damage happened to their source of livelihood and living (assets) in

general. Therefore, an attempt is made to evaluate this situation using the framework on how the

loss of livelihood dictated the search for other strategies and what has happened as an outcome.

The model adopted and used in the context of this study is all about analysing the drivers,

impacts of urban expansion and land expropriation for investment on the livelihood of the rural

and fringe community through land conversion and forced transformation of livelihood of the

residents.

As to the drivers, it is obvious that urban expansion is not something that happens

overnight. There are factors for the rapid urbanization and demand for urban space over times.

The combined pressure from urban expansion and land expropriating for investment leads to

consumption of agricultural land transitions and change in the livelihood source of the people.

The search for space for urban settlement expansion and land leasing for investment purpose in

the close proximity to the main city leads to the formation for urban fringe areas with definitely

268

an urban character and with significant number of population and economic agglomerations

concentrating in the newly created space at the cost of displacing agriculture.

The formation and transformation of the landscape in the fringe areas of Finfine has

dictated forced change in the livelihood of the agricultural community who used to stay there for

years and generations. Livelihood assets have also changed.

A change of livelihood assets caused change in livelihood strategies whereby the residents

abandon the original lifestyle and search for other strategies of managing the change. This shows

the strategy through which households are assumed to reconstruct their livelihood assets (human,

natural, physical, social and financial). Households respond to changes in the quality and

quantity of these assets by adopting new livelihood strategies. For example, shifting from

agriculture to non-farm wage employment, there is a wide opportunity to involve in other income

generating activities like petty trading, if they have initial capital, they can diversify their

employment and income sources.

Change in livelihood strategies brings change in livelihood outcomes. The change in

livelihood strategy may be followed gradually by change in the livelihood outcome i.e. income,

employment and the ability to meet the basic needs. In other words, those who are able to adopt

more rewarding livelihood strategies experience improved quality of life.

6.2.5.1. The Framework and the Practice in the Study Area

Detailed analysis of effects of land expropriation and urbanization on the livelihood assets

of the dispossessed households in the fringe of Finfine city i.e., Burayyu, Galan and Lagatafo -

LagaDadhi areas of the SZOSF is presented below.

In the preceding chapters, it is explained that the nature and magnitude of urban settlement

expansion to these localities for the last couple of years and the action of government in

expropriating agricultural land in the name of ‘investment and development’ which still

continued. Dozens of farming community in the three study areas have already abandoned

269

agriculture which was the main sources of their livelihood for generations. They are deprived of

their free holding rights of land and are in a state of confusion and stress regarding their future

living. Investors, using the lease policy of the government as an opportunity, purchased the land

on which thousands of families have been living. The investors immediately dislodged farming

activity and dispossessed the livelihood assets. In this way thousands of rural farming families

are deliberately and forcefully driven into poverty and misery. Empirical evidences are collected

and presented hereunder.

I. Impact on Livelihood Assets

Basically the livelihood framework identifies five core asset categories which are

commonly known as types of capital upon which livelihoods are built. These are natural capital,

human capital, financial capital, social capital and physical capital. Access to or the right to use

these assets (capital) determines the sustainability of livelihood of the households. The

sustainable livelihood thus focus on impact of different policy and institutional arrangements on

the households’ livelihood and how the households struggle for opportunities to cope with the

constraints in order to sustain or reconstruct livelihood. According to Scoones (1998), livelihood

strategies can be identified at different levels, ranging from the individual, household, and village

level, to regional and even national levels.

A) Impact on Natural capital: Natural capital (asset) represents the quality and quantity of

natural resource stocks such as land, water, minerals, soils and others on which people

depend to extract their livelihood. In this particular analysis emphasis is laid on land

resource which farmer landholders have been using for their entire livelihood source and

now expropriated for other purposes. The importance of land for farming households is

explained in different ways by different researchers and the farmers themselves. The

farmers equate the loss of land with the loss of life as they have economic, social, cultural

attachment with land.

270

One of the writers on this aspect has explained the importance of land as “Land represents

different things to different people. To some it is a commodity that can be traded; to others

it is a symbol of security, patrimony that can be passed on from generations to generations;

still to others it is a communal resource which is for everyone’s benefit. Others also explain

land as a vehicle of social and economic organization system (Source n.d).

From the above views it is possible to infer that the importance of land is explained by

everyone the way they are using and the views are often not complimentary leading to conflicts

over the use of land.

Land, especially in cities and fringe areas is highly demanded by different category of

people than ever. The growing size of population in cities demands land for settlement and to

carry out their daily business routines. Land is very much required as it is the single natural

resource on which other activities rely. Even any billionaire has nothing to do with the liquid

money without accessing land in one way or another. The importance of land for the rural

community is more than it is for others. While population growth is increasing tremendously it is

difficult to increase the size of land in proportion. This is leading to fragmentation in size and

deterioration in quality of land almost all over the world. What is really happening to land

resources in the study areas?

The study areas chosen for this analysis are located in the fringe of Finfine city, where land

transformation from agriculture to other activities is a hot issue for the last six years. The change

in land use has an impact on change in livelihood source of the population. Regional government

of Oromia has turned attention to scrambling of land for settlement through land allocation,

leasing land for real estate and other investment ventures. Land holding size drastically

deteriorated for every household as agricultural land and grazing land including some open

spaces have already been taken for other purpose. Some of the land is now used for housing,

industries and real estate. In fact, much of the land is still fenced both by the government and

some investors who still did not start any work on the land acquired from farmers three to four

271

year so. There is no doubt that such land is in the hand of speculators, even in the knowledge of

government officials who are waiting for land price hike than the purpose it is taken for.

Figure 6.10: Land leased to investors five years back but kept idle, Galan town, SZOSF

Source: Photo taken during Field work (July – September 2012)

In order to analyse the reduction in landholding size, data on land holding size before and

after expropriation is collected from the farming households the study areas and is presented in

table 6.13 below.

Table 6.13: Landholding (Before and After Expropriation)

Land holding size Land holding size after expropriation

Total

Less than 0.5

Hectares

0.5 - 1.0

Hectare

1.0 – 1.5

Hectares

Land Holding

size prior to

expropriation

< 3 Hectares 97 4 0 101(24.9)

3-6 Hectares 146 56

0 201(49.6)

6-10 Hectares 39 52 5 96(23.7)

> 10 Hectares 1 5 0 6(1.4)

Total 283 117 5 405(100.0)

272

The above table depicts that average landholding size of sample households is decreasing

to the extent that they are not able to exist or not able to subsist with. Therefore, because of land

expropriation and fragmentation for other purposes than agriculture, agriculture no more seems

to continue in this area. Those households who love to continue with agriculture opted to enter to

sharecropping or purchased another farmland in the remote rural areas. Data analysed and

presented in the table reveals that majority (almost half of all the farmers interviewed) who had

three to six hectares of land before the expropriation are left with agricultural land less than one

hectare. In the same token many of the farmers who had land holding size of six to ten hectares

before the expropriation (about 24 per cent of the households) reported that they have lost much

of their land and now left with a land less than 1.5 hectares. There are also farmers who had land

less than or equal to three hectares before the dispossession and have surrendered most of their

land and left with a hectares or less size of agricultural land (25 per cent). In sum, there is no

household who possessed agricultural land more than 1.5 hectares as the data collected reveals.

As a decrease in land holding size of the farming community has direct implication on the

amount of productivity and produce from the land. To proof this issue data regarding amount of

crop produced before and after land expropriation is used as indicator and is presented in the

following table.

Table 6.14: Amount of crop production in Quintals (Before and after land expropriation)

Amount of crops produced After expropriation Total

1-20

quintals

20-40

quintals

40-60

quintals

Before

Expropriati

on

Less than 20 quintals 6 0 0 6(1.5)

20 - 40 quintals 126 11 0 137(33.8)

40 - 60 quintals 127 36 2 165 (40.7)

60 - 80 quintals 36 27 1 64(15.8)

80-100 quintals 13 16 0 29(7.2)

More than 100 quintals 0 4 0 4(1.0)

Total 308 94 3 405 (100.0)

Source: Household survey (July – Sept. 2012)

273

As can be seen from table 6.14 above, 127 farm householders who had been on the average

producing 40-60 quintals of crops are forced to produce only less or equal to 20 quintals after

expropriation and the largest share of the interviewed households fall in this category. In this

category only two households are producing the same amount of crops before and after

expropriation. Probably these two households are among those who have farm land from other

places.

In general, a decline in land holding size leads to a decrease in the amount of crop

production and a decrease in per capita food production which in turn also tips a decrease in

agricultural income (loss of livelihood in extreme cases). Such a situation results in extremely

small sized farms neither cannot be productive even with improved technology as Samuel (2006)

has also clearly indicated in his study.

An attempt is also made to probe into the major problems the dispossessed households

encountered due to reduction in farmland or due to abandoning agriculture as a livelihood source.

Table 6.15: Major Problems Encountered by Households after Land Expropriation

Household survey (July – September 2012)

A survey result from the study areas presented in the table above (Table 6.15) reveals that

the farmers who have previously been producing enough for their consumption and for the

market now suffering from shortage of food crops. This is quite amazing for the farming

communities who were producing enough from the land that was taken by the government. Some

Major problems

households encountered

Multiple Responses

Number Per cent (%)

Shortage of food crops 361 35.3

Decreased amount of income 310 30.3

Unemployment and poverty 315 30.8

Others 38 3.7

274

of the households explained that a decrease in income though they are getting some cash every

day from low paid works, has created a problem. There are a number of unemployed adults and

youth who are simply wondering around groceries and hotels in order to search for drinks. This

raises a question of what is going to happen in the near future, a situation in which the former

farmers are displaced from their regular work and becoming unemployed today.

One of the most important types of natural capital in such fringe areas is water resource.

The Special Zone of Oromia is the permanent source of drinking water for the entire city

residents and the population in fringe of Finfine. There are four major sources of drinking water

for the city of Finfine all located within less than 35 - 40 kilometres (Gafarsa, LagaDadhi, and

Dirree dams), as discussed under chapters four and six in this research. This water resource has

been serving the community in the city than the local population around the water sources as the

water is directly taken from the sources to the city with a pipe and there is no such infrastructure

stretched for the local community. There is an increasing pressure on the existing water sources

to the existent of encroaching to the ground water resources. On the other hand, the fringe area of

Finfine is becoming a receiving zone of all the solid and liquid wastes which may affect the

surface water and the ground water quality in the study areas.

There are a number of resources like forests and stones which are now being extravagantly

been used extracted and used by the different government and private organizations and those

people who feel no responsibility for environmental degradation. Soil and related resources are

being exposed to erosion and pollution from chemicals and in fact there is no more usage of soil

for agriculture in these areas.

B) Impact on Physical Capital

Physical capital refers to the basic infrastructures that can be accessed and includes the

producer goods or production equipment that is needed to support the livelihood of the

population.

275

One among the most important and of course, one of the basic human needs is shelter or

simply housing. Ownership of housing is not only the sign of pride but also is a basic

requirement people at all economic and social classes and categories need to have. Perhaps, the

quality and the size of housing vary from person to person. Data collected regarding access to

land and what has happened to the quality of their houses after the land expropriation shows that

in terms of the quality which means the material used for housing, there is an improvement made

because it is not possible for them to stay in the former, village huts. There is a positive influence

of the expansion of the city to the area in helping them improve their housing standard either

using the compensation money or other sources. The following table presents housing condition

of respondents before and after land expropriation. For the sake of convenience the housing

quality and monetary value is estimated for both periods in order to make some comparisons.

Table 6.16: Housing Ownership of Respondents

Housing assets Asset - Housing (ETB) After

expropriation

Total

N (%)

less than

50000

51000 -

100000

101000

-150000

More than

150000

Asset-

Housing

(ETB)

Before

expropriati

on of land

Less than 50000 2 7 6 0 15(3.7)

51000 -100000 4 99 94 28 225(55.6)

101000 -150000 2 6 109 45 162(4.0)

More than

150000

0 0 0 3 3(0.7)

Total 8 112 209 76 405(100)

Source: Field Survey (July – September 2012)

Information presented in the above table shows housing asset (capital) of the respondents

before and after expropriation of properties. Housing asset is indicated in monetary value based

on the estimated market price (latest market price estimate is used). The data presented reveals in

general that households owned a better housing condition after the expropriation of their land

which could probably be because of the improvements they made using the compensation

276

money. Knowing that the value of agriculture is no more worth, some of the farming community

started to construct some additional rooms for rent as a source of income thereby they improved

the quality and the size of their house. For example, there were about 6 households whose

housing was estimated to cost less than 50,000 ETB including the land before land expropriation.

For the same households the standard of the housing is improved to be valued at more than

100,000 Ethiopian Birr after expropriation. It is also found from the data that households who

were living in the house that worth between 50000 – 100000 ETB before the land expropriation,

have retained the same quality (99 households), improved their housing to be valued at between

100000 and 150000 (94 households) and in the same category those who have improved their

housing to more than 150000 ETB (28 households). This category of households overall make 56

per cent of the total interviewed households (see Table 6. 16 for more details). This trend shows

that for the majority of the households, since they are not displaced from their houses, there is

improvement or at least no negative effect on the condition of residents after expropriation. In

fact, there are also some households who did not make any improvement even though they have

received compensation money like the others.

However, the above finding does not mean that in all other places the same positive impact

has been happening in Ethiopia. There were households who were displaced from the city centre

because of inner city redevelopment. Such household became displaced and made to stay in

shared apartments (condominium houses). The best example for such developments is the

residents who were displaced from Arat Kilo area of Finfine to the new fringe settlement called

Tafo and Jamoo sites since two years back.

Physical assets of the respondents also include other household level assets which support

their livelihood in many ways. Livestock and land are the two major sources of income for rural

farmers. In this connection, the dispossessed households in the study areas were endowed with

these resources before the government expropriated their land. The existence of livelihood is

directly dependent on the availability of land (grassland and pasture lands).

277

The Special Zone of Oromia, like the other zones in the region has abundant livestock

population and income from the sale of livestock (cows, oxen, goats, sheep, and poultry) is

important for the family to purchase other consumable items and even for the payment of fees.

Dispossession of farmland and grazing land put all these assets and income sources at stake.

Unlike it was before, now only few of the households in Lagatafo, Galan and Burayyu are

keeping either one or two or none of these domestic animals with them. The major and serious

shortage in this regard is the grassland, which the government confiscated as open fields and

common property resources. For example, in Lagatafo area there is a 20 hectares plus field that

was both agricultural land and grazing land of the farmers before couple of years but the

government later took the land and sold it out to one Ethio-Italian investor. The investor claimed

that she took the land for investment but still did not put anything on it. The government officials

also claim that they have leased it out for investor so that no farmer is allowed to use it. But still

the land is kept empty and in that way land is put to unproductive and speculative purpose in

many of the places I visited during data collection. There is a very bad experience of corruption

happened to such open lands from lower to top level officials bribing money from the investors

for not starting operation in the stipulated time.

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Figure 6.11: Land leased out to an Ethio-Italian investor waiting for Development

Field survey (July –September 2012)

C) Impact on Human capital

Human capital refers to the quality of population of a given locality measured by the level

of education attended and the skills of the population in making a living. The education of an

individual in a family alone cannot guarantee the whole family to qualify for non-agricultural

works which may need minimum level of basic education. In a household, the head(s) of the

family, the number of school going children and other family members must be considered to

determine the literacy level at the household level. The literacy level of a household or an

individual is positively correlated with the acquisition of non-farm activities in the industries and

other companies.

In this connection, the data collected from households in the study area as presented in

table 6.17 below shows that the majority of the family representatives contacted during data

collection (52.4 per cent) reported that they have no education and hence are uneducated. In this

competitive world it is very easy to imagine how much it is difficult for these households to

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compete for job as their original source of livelihood is abandoned. One of the extremely

disappointing negative impacts of land expropriation from farmer households is that the

government blindly expropriates the single source of livelihood of such family without at least

giving them skills and training on how to find employment opportunities in non-agricultural

activities in the area. Very small number of the households contacted during data collection is

found to have tertiary level education (1.2 per cent).

Table 6.17: Educational (Literacy) Status of Respondent Households

Educational status

of respondents

Respondents by study area Total N (%)

Galan Lagatafo-

LagaDadhi

Burayyu

Illiterate (uneducated) 78 60 74 212(52.4)

Only read and write 15 6 6 27(6.7)

Primary (1-6) 23 55 32 110(27.2)

Junior secondary (7-8) 9 7 15 31(7.9)

Secondary 7 6 7 20(4.9)

Tertiary (above 12) 3 1 1 5(1.2)

Total 135 135 135 405(100.0)

Household survey (July – Sep.2012)

In addition to educational status of heads of the families, education of children or the

number of school going children plays an important role in evaluating the quality of the

population and their prospect in their future on getting adequate skills and training at least with

basic education. Education is vital for equipping anyone with necessary skills whereby that

person is able to use the education for employment opportunity. In line with this premises when

evaluating the number of children of the dispossessed households in the study area who are going

to school, the result of the analysis shows that for the three study areas selected for the study only

half of the children of the family are attending some level of education (48.4 per cent). The

number of families sending all of their children to school is very small. Only 12 per cent of the

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farmers are sending all of their children to school, which is very small. More than 10 per cent of

the households in the study area never send any one of their children to school. From the

households interviewed about 30 per cent of them send only some of their family members

(children) to school.

Such trends show that in the future while agricultural works which do not need any

educational level is disappearing, the fate of these children is blurry and it will definitely be

challenging for them to survive in this competitive world in the future. The new employment

opportunities being created in the area these days require some level of education at minimal. It

is, of course, difficult to conclude that the dispossession of the family has created such problem

of sending children to school. But it is clear that from this time onwards unless they go to school

and get some form of education the pressure brought by the new developments will put them in

problem in competing and getting employment.

Table 6.18: Distribution of Households and their Commitment in Sending their Children to School

Number of children

attending school

Respondents (families) Total

Galan Lagatafo-

LagaDadhi

Burayyu

All 10 33 4 47(11.6)

Half 59 69 68 196(48.4)

Only some 47 27 47 121(29.9)

None 19 6 16 41(10.1)

Total 135 135 135 405(100.0)

Household survey (July – September 2012)

In the study of human assets, some of the researches consider the health status of the

household. These researches indicate that the physical health and ability of the population in

order to work and secure a living. Others write about health aspect of human capital as the

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community’s access to basic services such as safe drinking water and sanitation and adequate

food for people living in rural, urban and peri-urban areas. The lack of either of these basic

requirements for human health means there an impact or a problem. Even if there is hardly

adequate data concerning the health status of residents in the study area, there are some of the

respondents who reported that due to improper disposal of solid waste and liquid waste, the

pollution of rivers and the environment has caused serious health problems to the downstream

residents especially those living in the Akaki district of SZOSF (See chapter six for the details on

this issue).

Chemical discharge to drinking water sources from Flower farming is one of the major

health threats in the study areas. The chemicals used for the flower farm drain to streams and the

same streams are used for drinking purpose for both human and their animals. This is one of the

deadly health problems that have killed a number of animals and caused skin problems and

cancer to the residents in the study area who are living and working around the flower farms.

D) Impact on Social Capital

Social capital is a very complex term which is difficult in most cases to define and that is

why many authors on this issue put it as a debatable one. However when assessing the definitions

given for this term from different sources, except the scope the definitions are not as such far and

different from one another. For instance, some define the social capital as the social structure.

Still others define it as the social resources upon which people draw the pursuits of their

livelihood objectives; it can be networks, different associations and other group relationships

such as shared values, trust and other cultural practices.

In Ethiopian experience social capital is very rich and is reflected in the form of an

informal associations like ‘idir’, ‘iqub’, ‘mahber’ and others as it has also local names in

different regions (for example idir is known as ‘afoosha’ in Afan Oromo in Oromia region).

Such informal associations play a pivotal role in promoting social relationships in different strata.

It is more than a social issue and is a means of mutual self-help among the members. They have

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financial contribution to their association on weekly or monthly basis which they use it to help

each other when one of the members faced with some personal problem. Such informal

associations have grown to big institutions in many part s of the country.

When studying the situation in my study area the same type of practice is there. Almost

every community is intertwined to each other with at least one of the informal associations. In

many cases such associations are formed among people of the same religion followers, people

living in same neighbourhood and people who trust each other and committed to help each other

during the time of need or help. I have tried to approach the community in the study area by

simply asking ‘is there any association in your locality where you are a member?”. The response

of every community member was strong as they have love and affectionate for such associations.

Some of them even explain that there is nothing the government did for us but the association.

There is a moral obligation for each member to help one another during major sickness and

bereavement. Some members who have no relatives but member of such associations is insured

by default that the members of the association themselves are relatives and in such cases it really

plays one of the most important mechanisms of helping very poor and weak people. In this study

attempt is made to examine whether there is disturbances happened to such associations after the

expropriation of land and other properties are destabilizing the community in Galan, Lagatafo

and Burayyu areas. The responses are presented in (Table 6.19) below.

As can be seen from the table, almost all the respondents replied that there is an association

in their locality for the question “Is there any association in your area?” Only one per cent of

the respondents replied that there is no association in the area. These respondents may have been

withdrawn or may not belong to the associations.

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Table 6.19: Availability of Informal Associations in the Study Area

Membership in informal Associations Frequency (N) Per cent (%)

Yes 401 99.0

No 4 1.0

Total 405 100.0

Household Survey (July – September 2012)

The other important thing, which of course the major subject of this study is assessing

whether there are any disturbances, happened to such associations because of recent urban

development in the area and land expropriation practiced by the government. It is clear that the

community is agrarian in livelihood and agriculture and livestock are the only source of income

for them. Their response for such questions is also indicated in the figure below.

Figure 6.12: Percentage Distribution of respondents on whether there is disruption to their

Association

Household survey (July – September 2012)

Yes

(30%)

No (70%)

Disruption to existing Associations

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Information indicated in figure 6.12 above reveals that the majority of the respondents

(nearly 70 per cent) have argued that there is no that much major disturbances happened to their

association due to the recent land expropriation taking place in their area. The remaining group

of farmers reflected that there is a disturbance caused by the recent developments going on in the

area mentioning that the social relations are not as strong as before. They also added that people

are now worried about what to do next as their land is taken. Everyone is thinking in himself and

runs after his/her own plan in order to design an alternative means of survival once the major

source of livelihood is taken. This has affected the strength of the association. May be if such

spirit of togetherness is getting weaker and weaker through time all the community may

experience individualistic way of living and thereby disarticulated after some time. Such kind of

signs have so far been seen in some places because of the fact that there is a high volume of new

comers who are settling in the area which may, in the future affect the pattern of social

relationships.

One of the respondents (Asnake, 29) who explained his view that there is no disturbances

on the association so far because of recent developments in the area, explains the importance of

being member of any association like theirs by saying that;

These social institutions (Idir, Ikub, mahber) are still important for responding to the

problems imposed on affected farmers by land expropriator because if any problem like

shortage of food, crisis and others like death happens to anyone or their family, they are

supported by the members. There is money we contribute, save and use for such

occasions and we need it to exist in the future (Asnake, 2012).

Another important approach used to study the situation of social relationships in the

study areas is investigating the nature of interaction between the indigenous community

who are native to the areas and the new comers who either come from the city or from

other urban centres and from rural areas.

285

Figure 6.13: Nature of Interaction between the Indigenous and New settler community

Household survey (July –September 2012)

According to the responses of the indigenous community in the three study areas, majority

(about 64 per cent) of them explained that the interaction they have with the new comers is not

good. There are also significant number (25 per cent) of households interviewed who responded

that there is good interaction between them and the new settlers and themselves. About 11 per

cent of the respondents replied that they do not have interaction while 0.5 per cent of the

respondents reported that they do not know anything about it. These settlements are currently

hosting a number of new comers with whom they have no or limited social affairs. The area is

developing a cosmopolitan character as people from all corners of the country with different

culture, language and ethnic backgrounds are occupying spaces.

Another variable or indicator used to probe into whether there is any meaningful social

problem in the study areas among the indigenous and new comers is asking them if there is any

conflict between them. Thus, more than 80 per cent of the respondents explained that there is

Good Not good No interaction Do not know

Per cent (%) 24.9 63.7 10.9 0.5

0

10

20

30

40

50

60

70

Nature of Interaction

286

conflict between the new comers and the indigenous residents on different issues. The remaining

20 per cent off them responded that there is no conflict between the two groups.

Table 6.20: Potential Barriers to Interaction between the Indigenous residents and new settlers

Potential Barriers to

interaction with new settlers

Frequency(N) Per cent (%)

Language barrier 72 17.8

Cultural differences 105 25.9

Lack of any get-

togetherness opportunities

166 41.0

Class difference

(rich/poor)

62 15.3

Total 405 100.0

Household survey (July – September)

Based on the response of households presented in table 6.20, it is found that lack of any

chance of get-together opportunities or lack off any occasions bringing these categories together

has affected the interaction between the native or indigenous (41 per cent of the respondents

belong to this group) and about 30 per cent of the respondents mention that cultural differences

between the two groups is the cause for potential barrier for interaction. There is obviously

language difference between majority of the new settlers and the indigenous residents (that is

why about 18 per cent of the respondents indicated that it could be one of the potential barriers to

easy interaction between the two groups).The other factor is related to the relationship between

the those who use the cheap labour of the poor in the villages (the real estate developers and

industry owners) and the family of the dispossessed households. The lack of interaction in this

case is explained as the master – servant relationship between the investors and the labourers.

This kind of relationship usually develops into conflict when the investor is not in a position to

provide employment for those group of people (15.3 per cent of the respondents indicated this

287

one as the main potential factor for lack of interaction between the two). Some literatures

indicate that the existence of heterogeneous community or population in such fringe areas causes

gradual erosion of traditional authority and community structures and weakening of the existing

social network. In such cases, sometimes conflicts may happen between the indigenous and the

new comers.

Table 6.21: Conflicts between the Indigenous and new settlers in the study area

Conflict between the

indigenous and new settlers

Frequency(N) Per cent (%)

Yes 326 80.5

No 79 19.5

Total 405 100.0

Household survey (July – September 2012)

As the reason for lack of such strong interaction between the new comers and the

indigenous should be known, the respondents are asked for why there is no good interaction

between the two groups of residents now living in the same locality in a newly growing urban

neighbourhood. Analysis of the responses is given in table 6.22 below.

Table 6.22: Potential Reasons for Conflicts in the study areas between the Indigenous Residents and

the new settlers

Reasons for

Conflict

Respondents (N) Per cent (%)

Conflict on land

Plot (boundary)

94 28.8

Landownership related 126 38.7

Ethnic clash 30 9.2

Resource use 76 23.3

Total 326 100.0

Field survey (July –September 2012)

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The above table shows that both the above groups who said there is conflict and those who

said there is no conflict between the indigenous and the new settlers. All the respondents are

asked to indicate potential conflicts that could rise in the near future between the indigenous and

the newcomers including some form of conflicts that have already prevailed and resolved or

unresolved. In this regard about 29 per cent of the respondents replied that the problem is related

to plot (land parcel) boundary between neighbouring residents, one being the new comer and the

other being the native resident there. Many of the native residents are already in their nervous

mood because of their land loss. There is also serious conflict prevailing between those who

informally bought land from farmers under informal land market and the land seller (the

responses of the majority of the households belong to this category i.e.39 per cent). Some of the

land sellers reclaim their land ownership for which once they have sold it out they are not entitled

to claim. Indigenous farmers in many cases plot conflict with the factory owners over resource

use especially those investors who bought land for investment but keep the land unused for some

years. The farmers trying to use such lands for grazing of their cattle as that much of land is

expropriated from them has deprived them of accessing other resources even.

The indigenous residents are almost all in all the Oromo community and the settlers are

largely from out of Oromia who are not interested to speak Afaan Oromo (the language spoken

by majority of the population of the country) but prefer to live in Oromia. Many of the ethnic

Oromo who have been living in the area for lifetime are not good in the Amharic language and in

such cases sometimes conflicts may arise in the form of ethnic clash. That is how about 9.2 per

cent of the respondents explained the situation.

In my opinion, from the thorough observations I made during data collection I found that

given the current situation, the future major sources of conflict will be on resource use. The way

the new settlers are using every form of resource available there does not comply with the wise

use which may lead to degradation. From the site selection of the government for urban

289

development planning to the expropriation of the land for investment, resources have

irresponsibly been used by different groups.

E) Impact on Financial Capital

Financial capital refers to the financial resources that people use to achieve their livelihood

needs. It includes saving, credits, income from work, remittances and other liquid assets. Some

others define financial resources from the point of view of people’s access to relevant financial

services which can help saving and loaning money. In line with the above definition and in the

context of the study area in Ethiopia this financial assets of the population denotes people’s

access to financial institutions like microfinance institutions which are important to give loan to

the affected community during such massive crisis so that they work and earn and save in order

to sustain their lives. Thus, financial capital shows how much people have physical access to

financial institutions. For example access to banks, saving and credit institutions ranging from

the informal and traditional ones (through ‘ikub’, credits and saving in the local level) to the

formal microfinance institutions.

In connection with this an important element to this financial capital is people’s access to

money either in the form of income from work or other sources like remittance and from sale of

properties. Before their land was expropriated farmers had abundant number of properties which

can be converted to monetary value to purchase whatever is important for them. At the moment

both the advantages they used to get from the land and from the livestock are decreasing and

their access to capital is limited and deteriorating from time to time. Currently the liquid money

they have is highly deteriorating as majority of them are using it for daily consumption purpose.

The money they are getting (if any) from the non-farm activities could also be very small and

may not be enough to save it for the future. Much of their money is now spent on food purchase.

The current cost of living and inflation, another factor worsening their destiny, creates much

difficulty to the people to have access to financial resources.

290

Municipal officials of the three towns explain that they are organizing both the landless

peasants and those who obtained compensation money under Micro and Small Enterprises

whereby they can work and earn their living. Focus group discussion conducted in Lagatafo town

on the contrary reveals that there is nothing the government has made practical. To the worst they

even explained that the government collected about 30000 ETB from some households to

organize them under stone quarry activities but they furiously explained that more than two years

have passed since they made the last contact with the authority that did collected the money from

them. They asserted that the government always declares on media that all these facilities and

follow-ups are there for the marginalized and poor households though the reality is different.

II. The Struggle for Alternative Livelihood Strategies

What are the livelihood strategies designed because of land conversion due to urbanization

and land expropriation for investment?

With the continuous expansion of urban areas and growing interest of the government in

land conversion, livelihood transformation is becoming inevitable. This condition dictates the

transformation in the urban fringe and rural economy from predominantly rural agrarian

economy to predominantly urban. Transformation in the livelihoods of people who formerly

depended on natural resources to survive implies that the urban fringe community now have to

develop a range of survival strategies to cope with the changes. The options open to households

in the communities vary according to sources of livelihood and access to livelihood resources.

These strategies are not different from those adopted in other areas and these are discussed

according to the classification by Scoones (1998) on the basis of sources of livelihood (major

income). Households may adopt farm strategies, non-farm strategies or a combination of the two

or even other options to cope with the changing aspects of the area.

In light of this in the study area evidences reveal that there is a significant impact that

urban development and land expropriation by the government is putting on the livelihood assets

of those dispossessed households. People’s natural, human social, financial and physical assets

291

are disrupted causing a number of stresses and lack of confidence for having sustainable earning

and leaving. The importance of agriculture is declining and even disappearing with the

continuous land expropriation whereas the farm community in the study area, the majority of

them being uneducated are not having the skills and capabilities to immediately shift to non-

agricultural activities. Though this is the reality and the limitations that the farmers in the fringe

of Finfine are having, they cannot sit and die but struggle to survive through searching some

alternative means of survival.

Therefore, an assessment of some of the opportunities or livelihood strategies designed by

the community in the study area is briefly presented below.

According to DFID (1999), livelihood strategies refer to the range and combination of

activities and choices that people undertake to achieve their livelihood outcomes. These

strategies could be related to natural based activities or others like remittance and different

source of income. In rural areas and in peri-urban areas, the most commonly known strategies

households opt for are agricultural intensification, livelihood diversification and rural enterprise

and if these options fail migration to cities or other rural areas.

Due to the loss of the basic source of livelihood, agriculture and other related assets,

households in the study area have to choose from only two major options; to continue with

farming or the search for non-farm activities or combine the two.

a) Farming

Previously, farmers in the study area used to cultivate different types of cereals, crops and

raise livestock both for household consumption and for market. Because of their proximity to

urban centres including the main city, Finfine, they used to benefit much from the sale of the

cereals and domestic animals like cattle. But, currently the land they have been using is taken for

other purpose and the livestock and other domestic animals are sold out because of the lack of

grazing land. They are now unable to produce for consumption let alone for the market.

292

Experiences from other countries show that when such problems happen the remaining

agricultural lands are worked on more intensively than before in the form of urban agriculture. In

doing so at least for some time, like until the family members adapt to non-farm job opportunities

and income earning mechanisms, they depend on the amount of produce made on small size of

land. In the same manner, there are some households who have some of their land not taken

because they have some plots from other places. Such households are relatively advantageous to

have some amount of crops produced for consumption at least for some months. Despite this

when intensification experience is seen in the study area, there is no kind of additional or special

farming system they use to increase their production nor do they have experiences and training

on how to engage in intensive agriculture on limited amount of land. The amount of produce has

considerably decreased from before as the size of the land decreased. They no more plan on

agriculture except that there are few farmers who bought some land informally from rural areas

and work on it for some time until they are again forced to quit agriculture. Based on the reality

in hand and the future plan of the government, farmers now realized that their living by

agricultural activities is almost deterioration. In this regard in order to know much about what

they are planning for in the future, their comment on the commitment they have for agriculture is

asked through household survey method and in the focus group discussion.

Table 6.23: Reflection of Dispossessed Farmers’ Commitment on Agricultural activities in the

future

Study Sites Dispossessed Farmers’ Commitment to agricultural

activities

Yes No

Number Per cent (%) Number Per cent (%)

Burayyu 59 14.6 76 18.8

Galan 26 6.4 109 26.9

LagaTafo-LagaDadhi 44 10.9 91 22.4

Total 129 31.9 276 68.1

Household survey (July – September 2012)

293

As the response of the farmers is presented in this table (Table 6.23), majority (68.1 per

cent) of the farm communities in the study area have indicated that they have no that much

commitment for agriculture in the future as land is already under government’s investment plan

in the non-agricultural activities. The remaining 31.9 per cent of them only have strong

commitment and hope to continue with agricultural activities amidst dwindling chance of

accessing land for agriculture.

Therefore, agricultural practices and intensification is not at its best for the households in

the study area. The lack of adequate know-how of working intensively on limited amount of land

has affected their determination for quitting agriculture. But, it is advisable that urban agriculture

and other agro-based activities is still the best way out for managing such livelihood crisis.

b) Livelihood Diversification

The other strategy they look forward as alternative livelihood opportunity is the non-farm

activities which are in general diversified economic activities as the source of income for the

poor. The non-farm activities which are sometimes known as off-farm activities in literature

include various occupations of primary, secondary and tertiary (the service sector). The primary

off-farm activities are very rare (mining and quarry activities, fishing and some others). The

secondary economic activities and job opportunities are dominant and include various types of

activities. The service sector is one of the opportunities in which people could be engaged to earn

income provided that some sort of skills and training is required as many of the works are

professional in nature.

In the study area there is huge investment in manufacturing industries and different

construction works. In connection with such activities stone quarrying became one of the most

important sectors where a number of poor people including the farming community are engaged

in. The stone quarry activity is providing an input for construction projects going on in the fringe

294

areas of Finfine. The sites are actually very limited and employ limited number of people.

However, it is one of the sectors of getting some financial source for people in the fringe areas

including the dispossessed farming community. I have no actual figure of the number of people

engaged in that activity. I have visited one of the largest quarry sites in Galan town and it is even

claimed to be one among the major cause of environmental and resource degradation in the area.

Figure 6.14: Quarry sites in the fringe of Finfine city, SE of Finfine city

Source: GoogleEarth image (2012) of the quarry sites in the study area.

The secondary economic sectors where the households take advantage of off-farm income

are largely the informal sector works. There are activities and small scale transactions which are

conducted along roadsides in Ethiopia. These activities are largely associated to petty trading,

hawkers, vendors, fast food producers and stall traders. There are also significant numbers of

youth who are working in cobble stone project, in which these days the majority of unemployed

youth including university graduates who are awaiting jobs are engaged in. There is, in fact, the

most diverse, widely known job opportunity which people may opt in the absence of any

alternatives - the daily labour work. It is really unavoidable job opportunity where the poor is

always source of profit for the industrialist or the rich in general. The wage labour work is the

295

backbone of the construction sector investment as it employs huge number of people for cheap

labour. Female are working in small cafeterias and tea stalls which are flourishing in the fringe

areas. Some are in fact working as housemaids in the houses of the newly settled rich

households. There are many household heads of the dispossessed farmers who are now working

as guards of the company owners. All family members are searching for some source of income

with which to survive. There is a blatant family disintegration created by such activities. All the

above mentioned temporary source of employment is not sustainable and lack consistency. In the

form of a general approach where minor job categories could be organized under each type of

alternative strategies the interviewed farmers in Galan, Lagatafo and Burayyu towns have

designed is presented in the table below.

Table 6.24: Occupational Diversification in response to shrinking future of Agricultural fortune

Livelihood Strategies designed

By the affected farmers

Multiple Responses

Number Per cent (%)

Continue with agriculture 58 5.0

Shift to high value crops through intensification 57 4.9

Purchase another farmland 267 22.9

Migrate to other places 139 11.9

Engage in Business activities( own business) 328 28.2

Employment in private companies as daily labour

worker

316 27.1

Household survey (July – Sept. 2012)

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Figure 6.15: Livelihood Diversifications in the Study Areas

Table 6.24 and figure 6.15 above depicts that there are so many livelihood strategies

sought by the interviewed farmers in the study area. Some of the farming community still prefer

to continue with their former agricultural work. Respondents are given chance of alternative

responses in case they are combining different strategies of livelihood. Some of them report that

even if land is still a problem to get they hope to continue with farming as they are not interested

or are not qualified to join one opt the off-farm activities while others are determined to search

for alternative livelihood strategy. According to their responses analysed and presented in the

above table the majority of the respondents (28.2 per cent) wish to be engaged in business

activities of their own than thinking about agriculture. There is also larger number of farming

community who are prefer to get some form of employment opportunities in private companies

in the area as daily wage labourers (27 per cent). As already mentioned above, those households

who want still to continue with agriculture represent significant number (those farmers who

prefer to farm on the remaining land (5 per cent) and those who wanted to purchase another

farmland from rural areas (22.9 per cent). Those who want to shift to the production of high

5%

5%

23%

12% 28%

27%

Alternative livelihood strategies designed

Continue with agriculture

Shift to high value cropsthrough intensification

Purchase another farmland

Migrate to other places

Engage in Businessactivities( own business)

297

value crops than cereals and other type of crops represent the smallest percentage of the

interviewed farmers (5 per cent).

There are also some who want to migrate to other places in search of other source of

livelihood (12 per cent). Migration to the city includes young boys and girls who are may be

forced to drop out from school in search of employment. They are the ones who are denied job

opportunity in the companies and industries working in their locality. Factory and other

manufacturing industry owners do not want to hire the local people for the reason that they lack

skills and education to work. They rather prefer to bring human power from the Finfine or from

elsewhere. This situation is now causing series of conflicts between the factory owners and the

local community. The other migration route is towards rural areas. The dispossessed households

have at least residential houses in the newly urbanizing area and when they are interested to

continue with farming, especially those who have got the chance to purchase farmland from the

rural areas either seasonally shift to the rural area or give the land to sharecroppers. In my

opinion such people are physically living in the town but occupationally they have migrated to

rural areas. Under every category of strategies designed, there are a number of specific livelihood

strategies opted by the dispossessed households in the study area.

In general, when the livelihood option of the community in the study area is evaluated it

seems that after they abandoned agriculture, they are individually busy in thinking what job

opportunities are there in the market. They are contemplating how to lead their future livelihood.

In this regard many of them tried couple of options and it seems that they are not as such

successful and others are still in confrontation and struggle with the new livelihood search. They

try to diversify their source of income but structurally there are some gaps that are created on the

side of the government for it should have arranged opportunities for households before

expropriation takes place and before farmers are displaced from their jobs. The government even

fail to enforce the investors to meet the promise they made before getting the land. They have

submitted their proposal incorporating that there are ample job opportunities that can be given to

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the affected family. But, practically they are importing the labour force from other places than

using from the locality.

III. Livelihood Outcomes

Livelihood outcomes refer to the achievement of or output of livelihood strategies (DFID

1999). The word “outcomes” is used instead of “objective” in the DFID framework because

outcomes is regarded a neutral term that reflects the aims of both DFID and its clients, whereas

the term “objectives” could imply top-down intent (Carney 1998 quoted in Tetteh, 2011).

The various livelihood strategies available may be chosen by different people depending on

their wish to the situation forcing them to go for one or couple of strategies available. People

may not be eligible to take part in all the available opportunities as there are a number of limiting

factors. The basic objective of dealing with the outcomes helps to understand and evaluate the

output of the strategy that a person opted for. For close investigation of such issue focus group

discussion has a paramount importance in order to know the overall picture of how successful the

people are in their choice. In real sense it is very difficult to measure the level of well-being

which is indicator of the effectiveness of livelihood outcomes. As the strategies used by each

household greatly vary, livelihood outcomes are also not same for all households. There is

variation in the feedback of their involvement in different sectors of work including farming

which they are accustomed to even before.

The outcome also depends on the determination of each individual. There are some

households who tried to save their compensation money in the bank and who have been working

in other sectors until they are well enough to invest their money in productive work. Some of the

farmers who have got compensation for large area of land taken from them have opened

construction materials retailing shops. I have also encountered a limited number of households

who constructed additional rooms for rent and who started to get some amount of income.

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The majority of the farmers are in fact very lenient in handling the compensation money

which indicates that they became hopeless and hence not invested in a worthwhile investment

and now became careless and drunkards. The very problem is giving cash asset for farmers who

do not have the know-how of handling such liquid money.

In evaluating the impact of the on-going land expropriation, it is fair to group the impacts

on outcomes in to positive and negative as observed from the households’ responses in the fringe

of Finfine city. When any project commences at certain locality, whether big or small, three are

two inseparable but contradiction situations happening; one being those who benefit from the

project and the other one is the one which losses something due to that project. Based on such

reality the current study presents the benefit (positive outcomes) of the policy of expropriation

and the loss (negative outcomes) encountered by certain group in the study areas.

a) Negative Impacts on Livelihood Outcomes

As it is discussed under the livelihood strategies section above, when evaluating the

livelihood options in the fringe area of Finfine from the responses of the households, it seems

that there are diverse livelihood options in the study area. But in reality, it does not mean that all

the respondents have already achieved such promising alternatives. During the focus group

discussion some of the discussants indicated that the vast majority of the households in the area

are in state confusion in that they are interested to go for some businesses but soon they realized

that they do not have enough starting capital, especially for the formal business works. They also

do not have anyone to consult regarding in which sector they have to be engaged. More than the

amount of capital they need, they require follow-up from government side as the government has

already promised to help them in any circumstance. But all the households explained that there is

no follow-up and assistances they received from the government.

The poor are not able to compete with the high business class (new settlers) in purchasing

food and others properties and that is partly caused by lack of enough income to buy food and

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other consumables and inflation and rising cost of living in the area and in the country at large.

Whichever employment opportunities are obtained for a section of the community, such works

usually lack sustainability and permanence due to the fact that daily labour works in construction

sectors and other projects are temporary than permanent. Problems will be severe when the

projects which gave daily labour work opportunities for some of the people phases out.

Respondent households are asked on how they evaluate their livelihood after getting

compensation and started working in some of the available options. Their responses reveal that

their living style and livelihoods are worsened since they surrendered their agricultural land.

Only 7 out of 405 respondents have replied that their livelihood is improved from before as their

income shows increase day by day (1.7 per cent of the respondents fall in this category).

Table 6.25: Livelihood Status of households after Dispossession

Livelihood status after dispossessed and

compensated

Responses

Number Per cent (%)

Improved 7 1.7

Not improved(worsened) 385 95.0

No change 8 2.0

Do not know 5 1.3

Total 405 100.0

Source: Household survey (July – Sept. 2012)

Those households who responded to the question that their livelihood status after

dispossession is improved are those who got the opportunity to invest their compensation money

on worthwhile investment such as hotels, restaurants and other small scale agro-based

commercial activities. The data also shows that 95 per cent of the respondent households

reported that their livelihood status and living condition is deteriorating and even worsened.

There are few respondents (2 per cent), who replied that they have observed no any change in

their livelihood, while 1.3 per cent of the households explained that they do not know even what

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is going on. Like in many similar studies conducted in other parts of the world while some of the

groups are the ‘beneficiaries’ from such kind of policy implementations and changes, the vast

majority i.e. the farmers who are victims of dispossession and loss of livelihood basis are always

the ‘losers’.

One of the residents in Lagatafo-LagaDadhi town (name to remain anonymous) who is

working in investment office explains the saddest observation he has regarding the impact of

land expropriation and displacement of farmers from their permanent jobs” and he has to say the

following;

As a major sign of lack of hope in the new mode of life and occupation, drunkenness

becomes a common behaviour and complete change in working behaviour. They prefer to

go around hotels and groceries than attached to their work. This is how displacement of

farmers from their livelihood is explained in the study area. There seems also complete

frustration by the family due to lack of permanent source of income and intermittent

income sources are not the one they are accustomed to. Now they are becoming strange

to what is going on and really are confused (Anonymous, 2012).

b) Positive Impacts on the Livelihood Outcomes

When normally discussing the role of urbanization and expansion of investments for such

countries as Ethiopia where there is excess human labour and resources, it has some positive

contributions and is a vehicle to see the future growth directions. Urbanization and investment in

different land based investment leads to creation of non-agricultural employment and income

generating opportunities in the fringe areas. A lot of wage employment and self-employment

opportunities in different industrial, commercial and service sectors. There are also some group

of people who benefited from the activities and developments underway in the area. The benefits

do not go to everybody but only few people may catch it.

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It is found from the interview and focus group discussions with some of the selected

residents that some of the dispossessed households benefited from new employment and income

either as daily labour works or from involving in the informal market such as petty trading along

road sides, opening up small tea stalls and vending some fast foods. They argue that there is an

income which they get on daily basis as wage or from sale of some of the locally produced items

and food. They honestly speak that the money they get from such sources looks good in amount

and now everyone is serious in handling the money. Women complain their husbands are not

working hard and earn. The male household heads are blamed for inappropriately using the

compensation money. So far the income they are getting is only used for subsistence and there is

no enough amounts for saving. Almost all of the households have improved their residential

houses and started adapting to an urban life with the importance of rental houses in drawing

incomes being increasing in the area. It is obviously clear that those households who sold out

some of their land on informal market have got some cash and are early aware of the importance

of shifting their livelihoods from agriculture to others. On the other hand, those households who

manage to save their compensation money are able to invest in worthwhile businesses and

became just an urban resident with adequate income and living than before. The success story of

one of the residents in Lagatafo is the case in point.

Case narration:

Mr.Teshome, 38, is one of the residents in Lagatafo-LagaDadhi town. He was born and brought up in the

same village. He belongs to a family who had very large acres of agricultural land found in three different locations.

His parents are now not able to work as they are aged. He actually is not the only Son of the family but he is the one

who is taking care of the family. The family’s lost almost all of their agricultural land to the CCD real estate which

is stretched over more than 20 hectares of land in the heart of the town. Mr. Teshome is studying for his Bachelor

degree in the evening program and in the meantime he took the responsibility of managing the compensation money

given for the expropriated land. He immediately stopped his studies for a while and started a business operation

(opened a hotel, entertainment centres, car parking lots, car rental centres) and now became one of the successful

persons when immediately invested the compensation money into worthwhile business, as he happily told me his

stories.

As it is already mentioned in the above paragraph, one way of assessing the positive

contribution of the changing socio-economic characteristics in the study areas is through

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identifying who are the ‘beneficiaries’ from the presently undergoing land expropriation and

dispossession of farm households. In this context the government, the investors and some of the

‘actors’ discussed under chapter four above are in one way or another, the most beneficiaries

from the project. Those who took control of the various types of livelihood assets using the

government policy as an opportunity are among those who benefited very much (investors, local

and foreign including the diaspora, politicians and government agents such as officials at local,

regional and top levels belong to this category).

6.2.5.2. Reflections on the overall Impacts of land expropriation socio-economic

changes in the study areas

When evaluating the impact of the land expropriation and urban development projects at

the cost of agricultural land conversion, the change in the livelihood strategies and livelihood

outcomes due to the new means of finding a living, it needs closer investigation of what is really

going on in the area through personal observation. Thus, it may not be fair to rely only on their

responses. Thus, I tried to assess the situation in line with what ‘security’ the Constitution of the

country and the government has given for such community. In my personal observation and in

fact, coupled with their responses, I have come to conclude that even if proclamations and laws

are prescribed for land expropriation is set in the Constitution of the FDRE, the procedures are

not well managed and implemented when evaluating its implementation in the special zone of

Oromia for the last couple of years. Expropriation should not be confused with confiscation. If

land is really required for public purpose where the public is consulted very well, expropriation

should not be carried out through deceiving the innocent community rather it has to be

implemented as per the law. In this chapter an attempt is made to evaluate the law of

expropriation with what is carried out in the special zone of Oromia. Land is diverted to the

benefit of the few capitalists by depriving the right of the mass whose obviously have no

alternative but agriculture.

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Therefore, it is found from the survey that the community repeatedly explained that they

lost their livelihood source for the development that is not making them part. This has a very

stern implication. The following points are some of the major negative impacts of land

expropriation in the study area as per the response of the households and researcher’s personal

observation;

- Unemployment and declining household income due to economic displacement of

farming (response from the majority of the households

- Households’ food insecurity becoming an obvious sign of poverty as they are

transforming from food producers to food buyers

- The available job opportunities in the development ventures going on in the area are

usually taken up by the migrants who come to the towns in chains and the local

community whose livelihood is displaced could not get the opportunity to work and

earn and as a consequence majority of youth are neither working not in schools.

- There is no follow-up by the government whether the affected community is

reconstructing their livelihood or not. The government officials rather declare from

time to time that there will be further expropriation in the remaining rural areas

threatening those farmers who accessed farmland from rural areas and farm to at

least support their family until they adapt to the urban way of life.

Respondents are given the opportunity to rate the major socio-economic problems they

are facing since the onset of land expropriation. As can be seen from table 6.28 below,

multiple answer options are given for that purpose as many of them might have faced couple

of problems.

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Table 6.26: Major socio-economic problems faced by dispossessed households in the study area

Major socio-economic problems

Currently prevailing

Responses (Multiple)

Number Per cent (%)

Shortage of food grains for family

consumption

372 26.9

Lack of skills to adapt to urban way of

life

215 15.5

Lack of competence for job opportunities 347 25.1

Discrimination by investors in hiring for

job

219 15.8

Lack of orientation on how to use and

invest the compensation money

230 16.6

Household survey (July – Sep. 2012)

The importance of land for the farmers is unquestionable as it is all about their living. In

the preceding subsections information gathered through different sources witnessed that due to

land acquisition through expropriation policy of the government much of the land in the study

areas is converted from agricultural to non-agricultural purpose. There is a sizable reduction in

the proportion of agricultural land means the per capita food production for consumption and the

market also decreases and with the limited and declining compensation money given to the

households, it is inevitable that they will be facing shortage of food and at worst poverty (27 per

cent of them ranked the shortage of food as their main problem they are facing during this study

period, other problems being equally worrisome). Farm households are changing from producers

to consumers of food grain from market which they had never experienced before. This is one of

the dimensions of social and household crisis felt by the farmers who value having adequate food

grains at home according to the culture. Lack of priority for employment opportunity has highly

affected their stability and it seems that they are still in frustration on what to do and how to

sustain their living in the future. That is how larger number of households (25.1 per cent)

reported as the major problem they are facing in addition to other problems. The dispossessed

households also remark that due to sudden change from agricultural and village community to

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urban residents under forced transition, they are not able to easily adapt to the urban way of life

where there is heterogeneity of culture, language and way of life (15.5 per cent).

One of the most important trends that needs emphasis when discussing about the impact of

the policy of the living of the dispossessed farmers is about availability of employment

opportunities in the locality and the mechanism of being employed. The government and the

investors in their proposal indicated that the community in the area who lost their properties due

to land expropriation would be benefited from the employment to be created there. Contrary to

what is proposed, the chance of employment of the dispossessed farm households is very little or

absent due to so many factors they mention (see under the appendices table 6.5) the proposed

employment opportunity in one of the study areas and the actual jobs provided by different

industries) . Unless they get alternative employment and means of earning from the locally

available opportunities, the outcome of such dispossession will be very disastrous to them. I,

therefore, tried to approach them and asked their overall participation in employment, especially

in industries and other sectors in the study areas. The responses are presented in tables 6.27 and

6.28 below.

Table 6.27: Distribution of Respondents regarding whether they participate in employment in

industries in their localities

Source: Household survey (July – Sept. 2012)

Participation in

Employment in industries

Study sites Total

Galan Lagatafo-

LagaDadhi

Burayyu

Yes 24 31 12 67 (16%)

No 111 104 123 338 (84 %)

Total 135 135 135 405 (100.0)

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The majority (84 per cent) of respondents in Galan, Lagatafo-LagaDadhi and Burayyu

towns have explained that they have no participation in obtaining employment opportunities in

their localities. Each of them has his/her own reasons for why they are not involved in

employment in industries and companies located in their farmyards. They were very much

furious while I asked them this question because they were in a sort of protest with the local

officials regarding this issue (especially, those at Lagatafo-lagaDadhi town). Only 16 per cent of

the interviewed households replied that they have got some kind of job opportunities in the local

industries.

In addition to commenting on whether they are participating in employment opportunities

in the industries in the area, respondents are also asked to reason out why in the presence of

abundant number of industries in their locality they are not able to get employed.

Table 6.28: Problems of Employment in the Industries in the Study Areas

Problems of

employment in

industries

Study Sites Total

Galan Lagatafo-

LagaDadhi

Burayyu

No relevant job

opportunities

13 7 15 35 (10.4%)

Lack of skills and

education

42 59 56 157 (46.5%)

Discrimination in

employing

48 34 46 128 (37.8%)

Not interested to

work

8 4 6 18 (5.3%)

Total 111 104 123 338 (100%)

Household survey (July –September 2012)

This table shows respondents’ opinion regarding major problems related to employment in

the industries found in their locality. As it is shown in table 6.27 above that the number of local

population employed in industries is very limited (24 out of 135 in Galan; 31 out of 135 in

Lagatafo, and only 12 out of 135 in Burayyu have explained that someone from their family is

getting the opportunity to be employed). Table 6.28, on the other hand, presents the major

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reasons or problems related to the lack of chance of employment in the industries. According to

the respondents 46.5 per cent of them indicated that the lack of skills and education (training in

some technical aspects) is the major problem that hindered them to be employed in the industries.

Significant number (about 38 per cent) of them also indicated that discrimination by the owners

in hiring employees is the major problem they have observed. They added on this issue that many

of the industry owners and their coordinating personnel prefer to employ people from their own

birth place or friends working elsewhere than employing the local population. My personal

observation also testifies the same.

Given the above negative impacts of urban expansion and land expropriation for

investment activities, what are the positive impacts such developments bring to the fringe?

When urban areas are expanding onto the surrounding agricultural lands and the

countryside, there are associated new developments that accompany this process. The

developments in one way or another are responsible to change the existing landscape and socio-

economic as well as the environment setting of the areas. The lifestyle of the community in

particular is a point of interest among various scholars like Yasin et al (2013) who have tried to

categorize the views towards the impact of urbanization on livelihood of the community in the

fringe areas. In fact, everybody agrees that there is an inevitable and direct impact of urban

related activities and processes on agricultural land conversion. The negative impacts have been

assessed under the livelihood outcomes and in the above paragraphs. This subsection highlights

some of the positive impacts that the changing relationship of urban and rural areas brought is

assessed from the experience of the study areas in the fringe of Finfine city.

The expansion of Finfine city to the surrounding areas, apart from its negative impacts, has

some positive contributions in many regards. One of the most important things is facilitating

access to market of the farming community whereby they might have access to information on

the demand side of the city and supplying the necessary items for them in manner in which the

price of their produce is not as such affected by the middlemen. This, on the one hand, is

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facilitated by the expansion of social and physical infrastructures between the two regions which

further bridges the gap between rural and fringe areas and urban Finfine. The expansion of such

as roads, electricity and other social amenities which are very essential for attracting investors to

the areas has indirectly benefited the rural residents to have access to such infrastructures and

services even if access to services is may also be determined by other factors, too.

Given the above realities for cities of the developing counties in general, the view of

respondents is gathered using focus group discussion and questionnaire interview regarding the

positive contribution of developments undergoing in the study areas that are resulting from the

expansion of urban activities and different investment activities. Accordingly, the diverse

responses (multiple responses) are grouped into four major response categories and are presented

in the table 6.29 below.

Table 6.29: Positive contribution of urban growth and expansion of investment to the study areas

Positive Contributions Response (Multiple responses)

Number Per cent (%)

Infrastructural expansion 346 39.8

Job/employment

opportunities

218 25.1

Improvement (diversified)

income sources

239 27.5

No positive impact 63 7.2

Do not know 3 0.3

Household survey (July –September 2012)

Rural and urban fringe areas are usually known for lack of at least the basic infrastructures

and services that connects them with the nearest urban centres. This has affected the linkage

between rural and urban areas. However, when new developments like urban expansion projects

or expansion of investment is introduced it necessitates the construction of infrastructures like

roads and important services like water supply, electricity, telecommunication and others. In light

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of this reality, information gathered from the households affected by the recent land

expropriation in the fringe of Finfine city shows that they, to a varying degree, have benefited

from the services and infrastructures stretched to the study areas. Not only infrastructures and

services but also there are some positive impacts brought to the areas due to investment and

urban expansion projects. Table 6.29 above contains different response categories regarding the

positive contributions and the respondents are made to respond to more than one option

according to their own ranking (if it applies). Analysis of the data presented in the table shows

that about 40 per cent of the respondents ranked infrastructural and services expansion as the

major benefit obtained. More than half of the respondents (25.1 per cent and 25.5 per cent,

respectively) indicated that job opportunities created and thereby the improvement in income

sources are the major benefits the community has got from the recent changes taking place in

their locality. On the other hand, households who still argue that they did not see any positive

contribution of the government’s urban and investment expansion whether it is the essential

services like telephone, financial credit, or any other account for 7.2 per cent of the total

respondents. Less than on per cent them have responded that they do not know.

In general, this chapter dealt with the socio-economic changes and transformations taking

place in three urban fringe settlements in the neighbourhood of Finfine city. The changes are

driven by two major forces operating simultaneously: Urban settlement expansion caused by a

number of driving forces and government’s land acquisition for investment and development.

The three settlements chosen are among the highly transforming ones located in close proximity

to the main city in less than 25 kilometres. The growth of settlement due to the combined effect

of local circumstances and external factors like migration of people from cities and rural areas to

this region has put pressure on the surrounding agricultural areas.

More than the natural cause of urbanization it is the land acquisition through expropriation

policy of the government that is largely transforming the physical and socio-economic conditions

in the area. The government has the determination of snatching landholdings rights of farmers in

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the fringe areas that is a Constitutional right of them, and selling out land to foreign and domestic

investor who need hundreds and thousands of hectares for their investment. Government’s

introduction of lease policy facilitated things for the investors who primarily came up with

brilliant and promising proposals for investment in order to convince the government to give

them land. The government also selected target areas for such purpose, one of those target areas

being the Special Zone of Oromia Surrounding Finfine (SZOSF). That is how the agricultural

lands surrounding Finfine city became a melting pot among different interest groups be it

because of its proximity or other parameters.