THE ENIGMA OF INFORMAL RURAL LAND DEALS IN ETHIOPIA: EVIDENCE FROM PERI-URBAN AREAS OF HAWASSA CITY

Abstract

The 1995 FDRE Constitution and all statutes pertaining to the land law regime of Ethiopia
either prohibited or strictly regulated the transfer of rural land use rights. However, land
transaction has been going on informally against prohibitions or strict requirements for
the transfer of rural land use rights. Thus, this study investigates nature, manner, and status of
informal rural land deals vis-à-vis formal statutes, court decisions, and expert views of key
informants. The focus of this article is on peri-urban areas where transfer is made mainly
for the construction of dwelling houses (squatting). In addition, acquiring land for other
uses like farmland and small businesses (poultry, dairy farms, for planting perennials etc.)
are considered. Consequently, informal rural land deals are defined in this paper as any
transactions in land except those allowed by law. The nature of informal rural land deals
includes transferring land use rights through donation and inheritance without fulfilling legal
conditions related to family members, minimum holding size, and willingness to live on
agriculture by the transferee, and in a manner that does not displace the landholders. It also
includes sale and mortgage in any manner, and rent without following preconditions such
as minimum holding size, rent period, consent of the family, registration, and writing
contract. Hence, informal land transition is found to be rife in the study area. The formal
laws and institutions are unable or incapable to control it and in effect, the rule of law is
being undermined. The government is well advised to study the matter and bring order by
paying attention to the realities on the ground