1. ETHIOPIAN CIVIL SERVICE UNIVERSITY
COLLEGE OF URBAN DEVELOPMENT AND
ENGINEERING
DEPARTMENT OF HOUSING DEVELOPMENT AND
MANAGEMENT
The Factors Contributing For the Expansion of Informal
Settlements: A Case Study of Haramaya Town, Oromia-Ethiopia
BY: Getahun Zewdu
ID.No: ECSU/1400880
Advisor: Mr. Henock Adamu
A Thesis Submitted to College of Urban Development and Engineering,
Ethiopian Civil Service University, in Partial Fulfillment of the
Requirements for the Award of a Master Science Degree in Urban
Housing Development and Management
January, 2017
Addis Ababa, Ethiopia

2. i | P a g e
Declaration
I, Getahun Zewdu registration number ECSU-1400880 do hereby declared that this thesis
is my original work and that is not submitted partially or in full by any other person for an
award of degree in any other university or institution.
Name of participant Getahun Zewdu Signature __________ Date _____________
This thesis has been submitted for examination with my approval as a University
supervisor.
Name of advisor Mr. Henock Adamu Signature __________ Date _______________

3. ii | P a g e
Approval
The undersigned certify that they have read and hereby recommended to the Ethiopian
civil service university to accept the research submitted by Getahun Zewdu and entitled
“The Factors Contributing For the Expansion of Informal Settlements, in Haramaya
Town” Impartial fulfillment of the requirements for the award of a masters degree in
Urban Housing Development and Management.
Name of supervisor Mr. Henock Adamu Signature _________ Date____________
Name of internal examiner ___________________Signature _______Date ___________
Name of external examiner __________________Signature ________Date ___________
Name of head of department ________________Signature_______Date ___________

4. iii | P a g e
Abstract
This study was undertaken to assess the causal factors that contribute to the expansion
informal settlement at Haramaya town. The objectives of the study were aimed to examine
trends of informal settlers, identify causes of informal settlement and analyze methods of
land acquisition by informal settlers in the town. For broader understanding and an in-
depth insight on the issue at hand, different kinds of literature were reviewed. The study
applied descriptive research design using both qualitative and quantitative research
approaches. A total of 145 (134 households, 8 officials and experts, 3 farmers/inhabitant)
respondents have involved a simple random sampling technique; and from the non-
probability sampling, a purposive sampling technique was used to select the concerned
officials and experts from different offices and stakeholders. The result of the study
indicates that informal settlement caused by extremely fast growth of Haramaya
populations which is highly aggravated the problems of access to the land followed by
long process of municipality to access land, Shortage of income, far more deficits in
housing supply and high rent, high rising of land market in lease competition and fear of
lease interest which is forbidden by Muslim religion, lack of alternative ways to have
owners of house rather than competition of lease and fear of dispossessor from their plot
that encroached to urban were the major factors that contribute to the expansion of
informal settlement. Thus, based on the findings of the study the town administration
should assure good governance, provide adequate, flexible and affordable land for
housing by participating stakeholders, Facilitate allotment manner of urban land to highly
discriminated groups, create strong urban-rural linkage and strength local administration
and increase the supply of land for urban dwellers were recommended.
Key Words: Informal settlement, Squatting and Expansion

5. iv | P a g e
Acknowledgement
The success of this research work is the cumulative output of the contributions of different
individuals, who must be acknowledged. First and foremost, I thank my God. Then I wish
to address my heartfelt appreciation and gratitude goes to my thesis advisor, Ms. Henock
Adamu, for his comfortable academic supervision and constructive comment.
I would also like to thank my whole family. My wife W/ro Genet Bitew deserves special
thanks for her continued encouragement without her patience and timeless assistance.
Your patience, understanding, and concern will always be remembered with warmth.
My thanks goes to Haramaya town administration office particularly Haramaya town
mayor office and municipal office for their willingness and cooperation in responding to
the data collection instruments.
Finally, I would like to acknowledge all individuals those assisted me in the course of my
study and all my friends, and other relatives who were sharing my pain up to the end of the
work.

6. v | P a g e
Table of Content
Content Pages
Declaration.............................................................................................................................i
Approval................................................................................................................................ii
Abstract ............................................................................................................................... iii
Acknowledgement................................................................................................................iv
Table of Content....................................................................................................................v
List of Table...................................................................................................................... viii
List of Figure........................................................................................................................ix
List of Annexes .....................................................................................................................x
List of Acronyms .................................................................................................................xi
Chapter One: Introduction.....................................................................................................1
1.1 Background of the Study.............................................................................................1
1.2 Problem Statement ......................................................................................................2
1.3 Objectives of the Study ...............................................................................................4
1.3.1 The General Objective of the Study .....................................................................4
1.3.2 The Specific Objectives of the Study Area...........................................................4
1.4. Research Questions ....................................................................................................5
1.5. Significance of the Study ...........................................................................................5
1.6. Scope of the Study......................................................................................................5
1.7. Description of the Study Area ....................................................................................6
1.7.1. Location of the Study Area..................................................................................6
1.7.2. Foundation ...........................................................................................................6
1.7.3. Demographics ......................................................................................................6
1.7.4. Topography..........................................................................................................6
1.8. The Limitation of the Study .......................................................................................7
1.9. Organization of the Study...........................................................................................8
Chapter Two: Review of Related Literature .........................................................................9
2.1. Nature and Conditions of Informal Settlements and Squatting..................................9
2.1.1 Definition of Informal Settlements.......................................................................9
2.1.2. Characteristics of Informal Settlers/Squatting...................................................11
2.2. General Characteristics of Informal Settlers/Squatting............................................11
2.2.1. Physical Characteristics.....................................................................................11

7. vi | P a g e
2.2.2. Social Characteristics.........................................................................................12
2.2.3. Legal Characteristics..........................................................................................12
2.3. Establishment and Expansion of Informal Resolution.............................................12
2.4. Causes of Informal Settlements and Squatting.........................................................13
2.5. Settlement Upgrading...............................................................................................18
2.6. Research Gap............................................................................................................21
2.7 Operational Definition of Terms ...............................................................................21
Chapter Three: Research Methodology ..............................................................................22
3.1 Research Approach................................................................................................22
3.2 Research Methods..................................................................................................22
3.3 Sample Design...........................................................................................................22
3.3.1. Population of Universe ......................................................................................23
3.3.2. Sampling Frame.................................................................................................23
3.3.3. Sampling Unit....................................................................................................23
3.3.4. Sampling Technique ..........................................................................................23
3.3.5. Sample Size........................................................................................................24
3.3.6 Sample ................................................................................................................25
3.4 Source of Data...........................................................................................................25
3.5 Data Collection Instruments......................................................................................26
3.6 Data Analysis and Interpret.......................................................................................26
3.7 Data Presentation.......................................................................................................26
3.8 Methods of Ensuring Data Quality............................................................................26
3.9 Limitation ..................................................................................................................27
3.10 Ethical Considerations.............................................................................................27
Chapter Four: Data Analysis and Interpretation .................................................................28
4.1 Introduction ...............................................................................................................28
4.2 Response Rate ...........................................................................................................28
4.3. Socio-Demographic Profile......................................................................................28
4.3.1 Age Level and Sex Ratio of Respondent............................................................29
4.3.2. Educational level of Respondents......................................................................29
4.3.3. Respondent‟s Employment Condition and Monthly Income Level ..................30
4.3.4. Respondent‟s Marital Status and Family Size...................................................31
4.4. Result and Findings..................................................................................................32

8. vii | P a g e
4.4.1 The Trends of Informal Settlers in the town.......................................................32
4.4.1.1 Examine the Supply of Land for Informal Settlements?..............................32
4.4.1.2. Opportunity to Equal Access to Land for the Informal Settler‟s ................33
4.4.1.3 The Root Causes of Discrimination for an unequal Opportunity in the
Informal Access of Land..........................................................................................33
4.4.2. Causes of Informal Settlement...........................................................................34
4.4.2.1. Respondents Alternative to Legally Access Land in the Study Area. ........35
4.4.2.2 Occupancy Area of Informal Settlements....................................................36
4.4.2.3 Housing Condition of Informal Settlement:.................................................36
4.4.3 Methods of Informally Land Acquisition by Informal Settler............................37
4.4.3.1 The Year Respondent‟s had Built their Houses in Haramaya Town ...........37
4.4.3.2 The Place Where Respondent Lived before Informally Settled...................39
4.4.3.3 The Respondents Reasons, why they Choose to Settled on an Informal Way
..................................................................................................................................39
4.5 Interpretation and Discussion....................................................................................41
4.5.1. Examine the Trends of Informal Settlers in the Town.......................................41
4.5.2. Causes of Informal Settlement...........................................................................43
4.5.3. Methods of Land Acquisition by Informal Settlers. ..........................................45
Chapter Five: Conclusion and Recommendation................................................................48
5.1 Conclusions ...............................................................................................................48
5.1.1 Examine the Trends of Informal Settlers in the Town........................................48
5.1.2 Causes of Informal Settlement............................................................................49
5.1.3 Methods of Land Acquisition by Informal Settlers ............................................49
5.3 Recommendations ...................................................................................................50
References...........................................................................................................................52
Annexes

9. viii | P a g e
List of Table
Table Page
Table 3.1: Sample Size and Sampling Techniques ..................................................................25
Table 4.1: Respondent‟s Age level and Sex Ratio:..................................................................29
Table 4.2: Marital Status and Family Size of Respondent:......................................................31
Table 4.3: Equal Access to Land for all Groups of the Respondent.......................................33
Table 4.4: Alternativeness of Land Access for the Household in the Town ...........................35
Table 4.5: Occupancy Area of Informal Settler Housing in m2 ..............................................36
Table 4.6: Housing Condition of Informal Settlement.............................................................36
Table 4.7: Distribution of Household Heads by Reasons for Informally Settled ....................40

10. ix | P a g e
List of Figure
Figure Page
Figure 1.1: location Map of Study Area.....................................................................................7
Figure 4.1: Respondents Educational Status............................................................................29
Figure 4.2: Informal Settlers Distribution of Employment and Monthly Income level ..........30
Figure 4.3: Examine the Supply of Land .................................................................................32
Figure 4.4: The Root Causes of Discrimination to access land ...............................................33
Figure 4.5: Reason for Informal settlement .............................................................................34
Figure 4.6: Method of Acquiring the Plot by Informal Settlers...............................................37
Figure 4.7: Distribution of Households heads by the Year they Informally Settled................38
Figure 4.8: Place where Respondent lived before Informally Settled .....................................39

11. x | P a g e
List of Annexes
Annexes - 1
Appendix A: A Questioner to be Filled by the Households of Informal Settlers.
Appendix B: Interview Questionnaire to be answered by the Municipality and Kebele
Manager.
Appendix C: Interview Questionnaire to be Answered by Land Administration and
Development .
Appendix D: Interview Questionnaire to be answered by Farmers/Inhabitant
Annexes- 2: Sample Images of Informal Houses in Haramaya Town.

12. xi | P a g e
List of Acronyms
BPR Business Process Reengineering
CA Cellular Automata
CSA Central Statistical Agency
GIS Geographical information system
GTP Growth and Transformation Plan
ISGM Informal Settlement Growth Model
PPP Public Private Partnership
SAPs Structural Adjustment Policies
SPSS Statistical Package for Social Studies
UN United Nations
UNDP United Nations Development Programme
UNESCAP United Nations Economical and Social Commission for Asia and the Pacific
UNHSP United Nations Human Settlements Programme

13. 1 | P a g e
Chapter One: Introduction
1.1 Background of the Study
On a global scale, informal settlements are a significant problem, especially in third world
countries. In Ethiopia, the informal settlement is socially, politically and economically
growing problem. Informal land settlement usually refers to residential areas where a
group of housing units has been constructed on land to which the occupants have no legal
claim, or which they occupy illegally (UN-habitat, 2006:109). The rapid rates of
urbanization and unplanned expansion of cities have resulted in several negative
consequences, particularly in developing countries. Most cities in developing countries are
expanding horizontally and the population is moving to unplanned settlements on the
peripheries at the expense of agricultural lands and areas of natural beauty (Lowton,
1997).
Informal settlements are characterized mostly by the low-quality houses and the lack of, or
inadequate infrastructure and social services. Informal settlements also referred to as
squatter housing or shanty towns are dense settlements built and occupied illegally on
lands. They are impermanent, but safe alternatives of shelter for the urban poor who are
denied access to housing. Informal settlements occur when the current land administration
and planning fails to address the needs of the whole community. These areas are
characterized by rapid, unstructured and unplanned development (Gondo 2009:32).
Informal settlements are established due to various reasons and common throughout the
cities of World countries. First, the large influx of people from rural to urban areas.
Second, the financial limitation of the national and municipal governments to provide
planned urban houses to the majority of urban people. Third, the high cost of even housing
for the urban poor. Fourth, the marginalization of urban land requests of the poor through
unaffordable land lease policies. Finally, high population growth is the other major reason.
Squatter settlements are, thus, often the only affordable option used by the majority
inhabitants of many cities of developing countries (UNHCR, 1999:60).
Informal settlements can be categorized along the legitimacy of land use into two main
groups: Firstly squatter settlements on illegally occupied plots without the right to use the
land at all, and secondly settlements on land which is not allocated for dwelling purposes
but is legal or at least semi-legally possessed by its owner. The definition of a squatting
varies widely from country to country and depends on a sort of defining parameters. In

14. 2 | P a g e
general, it is considered as a residential house in an urban locality inhabited by the very
poor who have no access to the tenured land of their own, and hence "squat" on vacant
land, either private or public (Srinivas 1999:11).
A squatter is one who resides on a property to which he or she has no title, right or leases a
person who settles in or occupies the property with no legal claim to the property.
Squatting is generally linked with or affected by factors such as increasing of rural-urban
migration, the high cost of the formal land market, a cheap land market with farmers,
economic status, social conditions, custom, traditions, governmental and local urban land
and housing policies and geographical conditions. Hence, a concerted and integrated effort
of different concerned sectors including the occupants is necessary for an effective
housing program and improvement (Dwyer, 1975:7).
There is no single theory that can fully explain the emergence and the expansion of
informal settlements. Yet, within developing cities it is usually argued that informal
settlements are the outcome of a compounding of factors such as poor management,
especially failed urban policies, poor administration, corruption, inappropriate regulations,
dysfunctional land markets, social insecurity, poor economic performance and lack of
political will (Ashenafi, 2015:2)
Haramaya town is characterized by high expansion of informal settlements because of
different factors. Therefore, this study was aimed to assess the factors contributing to the
expansion of informal settlement in Haramaya town and based on research findings
attempt to recommend all possible solutions for the future development.
1.2 Problem Statement
Informal settlements are described as illegal and spontaneous shantytowns lacking decent
services and infrastructure. The improvements in housing that are important to improving
the quality of life among the poor often do not receive the attention from policy makers
(Bahiru, 2008). As mentioned by Lamba et.al (2005), the urban land administration, which
is empowered with the issuance of the development permit, shall ensure that the applicant
has a legitimate right to the land to which she/he applied for. This means the requirement
of a legitimate building are basically two: one the land on which the development activity
(building) is going to be erected must be acquired through legal means (such as a
government grant, lease contract) as per the existing laws; second, in order to affect the
building activity, it needs a building permit development authorization. This authorization

15. 3 | P a g e
is needed not only for the erecting of new buildings but also for modifying and
demolishing them as well.
Therefore, informal settlements partially could result because of the requirements and the
inability of the poor to fulfill them. If this continues, the establishment of squatter
settlements will become major problems in the town. Likewise, in Haramaya town,
squatter houses were commonly known as “moonshine houses” since people squat on the
land during the dark hours of the night. As mentioned in Ethiopian Proclamation no
574/2007, under article 25 (1), “no development activity may be carried out in an urban
center without a prior development authorization”. According to article 24 of same
proclamation “development” means the carrying out of the building, engineering works,
mining or other operations on or below ground, or the making of any substantial change in
the life of any structures or neighborhoods.
Haramaya town is one of the urban centers with the fast growth of informal settlements in
the country which is caused by fast population growth. Since Haramaya town is located on
between DireDewa and Harar, which is in the export-import corridor, investment is
increasing from time to time. As a result, people migrate from rural and urban areas in
search of jobs. This migration supported by fast natural growth lead to increasing
population in the town. In addition to this, the development of informal settlement is
increasing because of its being the trade and park center of East Hararghe Zone. The
majority of the government employee and those that have a housing problem prefer to live
in Haramaya town which creates access to the land is too difficult for the urban poor, far
more deficits in housing supply and high rent for decent accommodation have left the poor
with limited choice which includes squatting illegally on private or public land.
(Haramaya town Administration GTP one Report, 2015)
According the structural plan of Haramaya town, the population growth of Haramaya town
is extremely fast which doubled itself between 1994 to 2007 E.C. This created shortage of
housing supply and a shortage of land supply for settlement. This aggravated the problem
that resulted in a fast growing of the informal settlement. Most of the residents live in the
peripheral area are established on agricultural land informally purchased from farmers and
from the landowners of Haramaya town of the study areas. In addition to these poor
migrants from the bordering rural kebele‟s migrate to the urban. The poor migrants cannot
involve informal land market rather they build overhead shelter informally. The life
conditions of the informally settled people are getting worst from time to time. Provision

16. 4 | P a g e
of different infrastructures such as light, water and the health service is getting worst for
these informally settled dwellers. Hence, to minimize the expansion of Informal
settlements and squatting, this study explored the causes behind such practices and
proposed possible solutions to concerned government bodies and other stakeholders
particularly in Haramaya town.
To overcome these problems the government formulated policies, improved housing
provision and creation of jobs to the poor. Even though efforts were made to overcome the
fast growth of informal settlement still the problem prevails in Haramaya town. These
problems need to be assessed.
Even though there were efforts in studying the major factors that contribute to the
expansion of informal settlement in the case of Haramaya town and its surrounding area,
there were no so far comprehensive studies conducted to assess the root cause for the
current alarmingly increase of informal settlement in the study area.
Therefore, this study identified the major factors for the expansion of informal settlements
in Haramaya town. Moreover, it is an important area to be researched and the appropriate
answer must put forward because, no research is conducted regarding the root cause of
informal settlement in the study area. All these currently existing situation of the
Haramaya town and other housing conditions were initiated to conduct this study. To fill
this gap, assess and find a solution to the following basic questions were set.
1.3 Objectives of the Study
1.3.1 The General Objective of the Study
The main aim of this study was to understand the major factors that contribute for the
expansion of informal settlement in the Haramaya town.
1.3.2 The Specific Objectives of the Study Area
The specific objectives that were attained by the research are:
 To examine the trend of informal settlers in the town.
 To assess factors that contributes to the expansion of informal settlement.
 To investigate how urban land is illegally captured by squatters for housing
purposes.

17. 5 | P a g e
1.4. Research Questions
Based on the background of the study and a statement of the problem, the following
research questions were addressed.
 What are the major factors that contribute for the expansion of informal
settlements in the town?
There are sub-questions that originate from the main question that also seeks to address in
order to arrive at an informed conclusion:
 What is the status of informal settlements in the study area?
 What are the factors that contribute to the expansion of informal settlement?
 How the informal settlers do captures the urban land informally?
1.5. Significance of the Study
Housing is one of the basic necessities that human beings want to satisfy their physical,
social, economic and psychological needs. Even though the informal settlement solves the
prevailing shelter problems, they also have a socioeconomic, political and environmental
impact on both houses and the environment. Generally, the result of this research is
expected to have the following contribution: Create awareness among the municipal
officials, provisional officials and societies about factors of informal settlements in
Haramaya town; the finding of this study can help or assists the administrators of the
Haramaya town, policy makers and the society in the designing intervention strategies and
to provide information for the further researchers about deepest problem of illegal land
owner‟s; it can have great impact of reference and give feedback for the current situation;
the result of the study may motivate the stakeholders and it can innovate the governmental
and Nongovernmental organization towards participating on social, economic and political
problems of the community related to urban land administration.
1.6. Scope of the Study
The scope of the study is restricted to identifying the causes of informal settlement of
Haramaya town and forwarding recommendation to promote legal ground of settlement
and reduce informality. In other words, this study focused on assessing the causes behind
the expansion of informal settlements which were established in the border (unplanned)
area of the Haramaya town and hence it did not focus on the old town area or planned to
house in the town center. It mainly focused on the description of the condition of the
dwellers.

18. 6 | P a g e
1.7. Description of the Study Area
1.7.1. Location of the Study Area
This study was carried out in Haramaya town which is located in East Hararghe zone in
the Oromia Regional state at a distance of 495 km from Addis Ababa along the main road
that stretches from Addis Ababa/Adama to Harar, Jigjiga and it is connected with the
Somaliland, Barbara border, and also located in between Dire Dewa 32 km East and Harar
17km west. This makes a trade center and adjacent or disjunction town and investment
center.
1.7.2. Foundation
The name Haramaya is taken by the words of Oromo language that combine Haroo and
Maaya, The prefix-Hara means in English lake, Maya is the Oromo man used to live near
the Lake since the time of immemorial. So the name Haramaya is the combination of Hara
and Maya. Haramaya was found estimated in 1880E.C. (Haramaya town structure plan
2015, by Oromia planning institute.)
1.7.3. Demographics
The total population of Haramaya town is estimated by 2014/15, 64,223 which of 46.7
percent were estimated to have been males and 53.3 percent females. 12,530 additional
households 343 housing backlogs with the area of 2186.5hectares, Population density
132p/km2 (Haramaya town structure plan 2015, by Oromia planning institute)
1.7.4. Topography
Haramaya Town has ups and downs (undulation features). In its topography the average
altitude of built able area is about 2005m – 2150m meters above sea level. And the
longitudinal location of the town is 90
23‟ 50‟‟N, 420
00‟30‟‟E. (Haramaya town structural
plan by Oromia Urban Planning Institution, July 2015)

19. 7 | P a g e
Figure 1.1: location Map of study Area
Source: Extracted from Ethio GIS raw data modified by the researcher using GIS software, 2016.
1.8. The Limitation of the Study
In the way of conduction of this Research, since the study concerned with factors that
contributing to the expansion of informal settlement, the researcher comes across many
problems. There was a lack of organized and adequate data in the Haramaya town
concerning informal settlement. Respondents from the office were not willing to give
necessary information so as the issue was more sensitive to solve this problem. Related to
the data collection, in the case of the questioner, some respondent cannot able to read and
write the question correctly. There was threaten of respondents to supply accurate
information and also they were not willing to respond accordingly because feared of
eviction by the city administration. Political instability of the study area was also a
constraint.
To mitigate those shortcomings, the researcher made clear the objective of the study to the
respondents and stakeholders. Additionally, the researcher explained how much their
input would be helpful for the research study.

20. 8 | P a g e
1.9. Organization of the Study
These are organized into five Chapters. Chapter one deals with the introduction of the
study, statement of the problem, the objective of the study, a significance of the study,
scope and limitation of the study, the definition of key terms. Chapter two present the
review of related literature. The third chapter details the methods to accomplish the
research. Chapter four deals with results interpretation, Chapter five present conclusion
and recommendations.

21. 9 | P a g e
Chapter Two: Review of Related Literature
The literature review contains two parts-theoretical and empirical literature reviews. The
theoretical part of literature review asses‟ definition, basic theories and concepts of
Informal Settlement. Empirical literature review indicates draw a lesson about Factors
that contribute to the expansion of informal settlement from international and local level
experiences. The purpose of this literature review is to show basic theories and concepts
of the research obtained from different sources. The researcher has utilized books, reports,
previous studies, websites, and other materials for organizing the research.
2.1. Nature and Conditions of Informal Settlements and Squatting
2.1.1 Definition of Informal Settlements
A clear definition of informal settlement is hardly available. Many synonymous words
have been used in literature to refer to informal settlements. These include spontaneous,
irregular, unplanned, marginal, and squatter settlements (Lamba 2005: 2). Some literature
have used the term slums and informal settlements interchangeably (UNHSP, 2003).
While a clear definition for informal settlement is still elusive, some organizations have
given a description of informal settlements and slums.
The UN-Habitat categories informal settlements into two, one is settlements where land
and/or building have been occupied without the permission of the owner. The other is
Illegal land development settlements where initial occupation is legal but where
unauthorized land developments have occurred (e.g. Change of land use that breach
zoning plans, building extensions without building permit, subdivisions without regard to
services and infrastructure, etc.) Informal settlements (often referred to as squatter
settlements, slum areas, or shanty towns) are dense settlements comprising communities
housed in self-constructed shelters under conditions of informal or traditional land tenure.
They are common features in developing countries and are typically the product of an
urgent need for shelter by the urban poor. As such they are characterized by a dense
proliferation of small, makeshift shelters built from diverse materials, degradation of the
local ecosystem and by severe social problems. In Ethiopia, they are known as illegal
settlements or commonly “moonshine houses” since people squat on the land during the
dark hours of the night (UNDP, 1998:119).

22. 10 | P a g e
The informal settlement has never been well defined in Ethiopian laws. However, one can
gather its nature from the reading of the current Urban Planning legislation. Proclamation
574/2007 that concerns with urban planning, under article 25(1), provides “no
development activity may be carried out in an urban center without a prior development
authorization.” And according to article 24 of same proclamation “development” means
the carrying out of the building, engineering works, mining or other operations on or
below ground, or the making of any substantial change in the life of any structures or
neighborhoods.
The urban land administration which is empowered with the issuance of the development
permit shall ensure that the applicant has a legitimate right to the land to which she applied
for. This means the requirement of a legitimate building are basically two: one the land on
which the development activity (building) is going to be erected must be acquired through
legal means (such as government grant, lease contract) as per the existing laws; second, in
order to effect them building activity, she needs a building permit development
authorization. This authorization is needed not only for the erecting of new buildings but
also for modifying and demolishing them as well (Daniel, 2011:37). Hence, based on this
premise we can conclude that informal settlement in Ethiopia covers houses which are
built on government, communal or privately held land against the will of the holder and/or
without having a development authorization building permit. While the former focuses on
the absence of a right to the bare land on which the house is built, the latter focuses on the
need of proper planning and building permits. Based on this working definition, therefore,
the whole forms of informality are divided into two major groups:
Group 1: includes those informal settlements which have been occupied and built without
having any legal basis or evidence accepted by the law (such as title deed/ book and
building permit). These settlements are commonly called as “squatter settlements” and
mainly found in the expansion areas of a city.
Group 2: includes settlements which are partially illegal/informal. The illegality comes
from so many sources. For example, they can have the legal right (title deed/ book) but not
building permit or having both the title deed /book and building permit but built, expand,
upgrade, change the shape and size without the proper legal procedures/permit. Such
settlements are mainly found in the inner part of a city (Stien et.al, 2003:12).
As mentioned by the federal and state lease laws of Ethiopia, there were four means of
urban land acquisition: auction, negotiation, assignment and lot. Now, since most of them

23. 11 | P a g e
open a door for corruption, the law recognizes tender (auction) and allotment (land lease
transfer without auction) as the only two basic means of leasehold right transfer from
government to citizens. As a matter of principle, every land needed for residential,
business (agriculture, industry, or service), and others will be transferred by tender.
Bidders will use the minimum lease price mentioned above as a base to offer their price.
However, as an exception, city municipalities may give land by allotment to selected areas
of paramount importance to society such as government offices, religious institutions,
public residential housing programs, diplomatic mission and so on. Besides a person, who
is displaced from his house as a result of urban renewal (like in the case of expropriation),
shall get land by allotment. All except the last would pay lease price based on the
benchmark set by the city. (Ashenafi G., 2015:59).
2.1.2. Characteristics of Informal Settlers/Squatting
As Srinivas (1999), a squatting is defined as residential houses which have developed
without legal claims to the land and/or permission from the concerned authorities to build;
as a result of their illegal or semi-legal status, infrastructure and services are usually
inadequate. There are essentially three defining characteristics that help us understand
squatter housing: the physical, the social and the legal with the reasons behind them being
interrelated.
2.2. General Characteristics of Informal Settlers/Squatting
It has essentially three defining characteristics that help us understand it; these are the
Physical, the Social and the legal with the reasons behind them being interrelated
(Srinivas, 2005).
2.2.1. Physical Characteristics
An informal settlement, due to its inherent (non-legal) status, has services and
infrastructure below the adequate or minimum levels, such services are both network and
social infrastructure like water supply, sanitation, electricity, road and drainage, school,
health center, market place etc. Water supply, for example, to the individual household
may not be afforded. Yet, few public or community stand by pipes may have been
provided, utilizing either the City networks or a hand pump itself. On the other hand,
informal networks for the supply can be applied if water may available (Srinivas, 2005).

24. 12 | P a g e
2.2.2. Social Characteristics
Informal settlement households belong to the lower income group, either working and
wage earning or in various sector enterprises. On average, most of them earn at or near
the minimum pay level. Family income level can also be high due to perhaps income earn
and part-time jobs. Informal settlers are predominantly migrants, rural, urban or urban-
urban; but may also be second or third generation informal settlers (Srinivas, 2005).
2.2.3. Legal Characteristics
The key characteristic that delineates informal settlement is the lack of ownership of the
land parcel on which they have built their houses. These could be vacant government or
public land when the country is not under productive use by the proprietor; it is
appropriated by the informal owner for building houses (Srinivas, 2005).
2.3. Establishment and Expansion of Informal Resolution
Mechanism of land acquisition through inheritances and gifts in most cases is normal,
and in some systems they are legal and it is the right of the original owner to act thus.
Even though the nature of Subdivision of land for inheritances and gifts appear to be slow
their contribution to the establishment and expansion of informal settlements is high. The
other mechanism of land airing is through organized way of urban land invasion, this
scheme is obviously illegal from the outset and they produce their own urban informal
neighborhoods on both suitable and unsuitable sites they occupied. This mechanism often
depends on situations like conflict over the ownership of land, but it is not common in all
urban centers. For example, land encroachment in an informal settlement in Egypt took
place as soon as land tenure was in question. During the transaction of land, property
among various governors, the shift of the economic system or regulation takes place
when the national or local election is conducted inside the country, Solomon (2004, cited
in Gossaye, 2007). The other one is the most complicated mechanism of acquiring land,
which is an informal land market. Its complication is because of three major reasons; I)
Land can be bought directly from the original owner and transferred to many other
owners, II) It is the second stage and way of land transfer from lands acquired through
inheritance, gifts, and land obtained through invasion to new owners as stated by Payne
then later, these processes became commercialized and entry was only possible at a cost
determined by the informal market. III) It is fast and unpredictable. Therefore, many
sources put informal land markets first for the formation and expansion of informal
settlements.

25. 13 | P a g e
2.4. Causes of Informal Settlements and Squatting
Literature shows different causes for the creation of informal settlement. It is true that
informal settlements occur when the current land administration and planning system fails
to address the needs of the whole community. When the system fails to address social
housing needs, then people use their own paths in settling on somebody else‟s land. Such
settlements are the critical factors affecting the formation of informal settlements are
notably related to several major interrelated challenges. Studies show that rapid
urbanization and the influx of people to the urban area, lack of development control
mechanisms, inadequate formal land distribution, lack of resources, poverty and social
cultural factors are major causes of informal settlements (Goz, 2005). Similarly, in regions
of Europe, Africa, Central and South America or Asia insufficient planning and unrealistic
zoning regulation, inconsistent and complex legislation, unnecessary bureaucracy for land
development and permitting, marginalization, poverty and lack of financing mechanism
For affordable housing, illegal subdivision and construction on agricultural lands, political
reluctance to confront the situation and lack of important spatial information is the
common for informal settlement. However, informal settlements do not have the same
characteristics for the formation and expansion everywhere. However, some major Causes
of Informal Settlements and Squatting are:
1. Population Growth
A century ago, only 4% of the world‟s population was urban. Today, cities are home to
half of its inhabitants. The explosive growth of urban populations in developing countries
over the past several decades can be attributed both to natural increase and to migration.
Population growth and increased migration from rural to urban areas in developing
countries have far surpassed available urban housing facilities for middle and low-income
citizens. City authorities are unable to solve such problem based on the demand of land by
the people. The result has been that a variety of types of squatter colonies have grown up
on vacant lands in the central areas and on the outskirts of major cities (Manaster 1968:
23).
It is urbanization that causes the expansion of informal settlements. Urban areas attract
people from different places of the country due to, employment and living condition to
escaping from poverty. In support of this, Kassahun, S. et al. (2010) identifies, fast rate of
urbanization followed by various socio-economic factors, such as employment, housing

26. 14 | P a g e
shortage, low level of income and poverty are responsible for the formation of informal
settlements. This condition increases the accommodation of people at the urban center.
The provision of infrastructure and services including a plot of land and housing did not
meet the demand and pressure of the people because the urbanization is far higher than the
Provision of accommodation. Therefore, migrants and natural residents from the informal
settlement to meet their demand for housing. In support to this, UN-HABITAT (2002)
identifies migrants together with the newly formed young families of the urban people
from the informal settlement. This implies informal settlement is the result of demographic
growth both through migration and natural increase in urban population. Therefore,
urbanization, migration, natural increase and newly created young family are the causal
factor for the emergence and expansion of informal settlements.
2. Insecurity of Land Tenure
While the upper classes in cities value their homes as the most valuable investment assets
they have owned with top class services, residents of informal settlements‟ assets are
discounted to explains tenure as „the legal right to live in a house or use a piece of land‟. It
provides conditions under which land or buildings are held or occupied either by an
individual or a community. Hardoy et al (1990) assert that the rising of irregular informal
settlements in cities in developing countries often indicates disparities in the share of
wealth and resources. This has also led to many urban populations living in informal
settlements without any formal security of tenure and poor access to infrastructure, if
available. There is surely a firm decline in the tenure status and housing conditions of the
urban poor households. Despite initiatives of reduction of poverty and safety net
programs, the number of inhabitants living in informal settlements is still rising faster than
the urban population. This expansion of informal settlements is attributed to the increased
structural adjustment policies (SAPs), privatization of urban basic services and massive
state disengagement in the housing sector. This has forced the urban poor to rely on the
informal land for access to land and shelter. The failure of markets to recognize the
valuable demand for land and housing solutions for the majority of informal settlements‟
dwellers has largely led to urban poverty and exclusion. Residents are also incapable of
accessing financial assistance from the banks as banks do not recognize their irregular
legal status. This urban crisis together with the informal settlements is a challenge to good
governance (CSA 2007).

27. 15 | P a g e
3. The Failure of Governance
According to the UN-Habitat report on the global human settlement, slums and urban
poverty are not just a manifestation of a population explosion and demographic change, or
even of the vast impersonal forces of globalization. Slums must be seen as the result of a
failure of housing policies, laws and delivery systems, as well as of national and urban
policies (UN-Habitat, 2003:5).
4. The Lack of Governance
The concept of good governance can be described as the set of policies, functions,
responsibilities, and procedures that an entity establishes to guide and direct how it is
going to achieve its goals. United Nations Economic and Social Commission for Asia and
the Pacific (UNESCAP, 2009) defines good governance as a process of decision-making
and procedures by which those decisions are implemented or not implemented. Good
governance is characterized by eight important principles participatory, consensus
oriented, accountable, transparent, responsive, effective and efficient, equitable and
inclusive as well as the application of the rule of law. While the main principle of good
governance is to minimize corruption practices, good governance must be responsive and
not a reactionary (Stien et al 2001). Although good governance is perhaps difficult to
apply holistically, these principles seek to ensure that the needs of communities are allied
in terms of sustainable service delivery. They must be based on viable targets within the
scope of the municipality. Any attempt to prefer one principle over another is liable to
prompt discontent among the urban poor and likely to result in strings of service protests.
While the urban poor has detailed knowledge of their problems and their needs, effort to
solve problems by themselves are thwarted by municipalities which are mainly „dominated
by engineering-led, capital intensive works and staffed by administrators and technical
professionals who find the concept of community irrelevant‟ (Samuel 2006:15).
If there is a great red tape value bureaucratic situation in delivering of land, the people
forced to occupy open land illegally. In many poorer cities, spatial forms are largely
driven by the efforts of low income households to secure land that is affordable and in a
location close to employment and other sources of livelihood UN-Habitat (2010).
A key problem is that most of the rapid urban growth is taking place in countries least
able to cope, in terms of the ability of Governments to provide or facilitate the provision of
urban infrastructure; the ability of urban residents to pay for such services; and resilience

28. 16 | P a g e
to natural disasters. The inevitable result has been the rapid growth of urban slums and
squatter settlements UN-Habitat (2010). Other scholars identified that the regulatory
framework governing the delivery of planned residential land puts in place bureaucratic
procedures, standards and regulations that make planned land unaffordable and
unavailable to low income households, thereby leading to the formation and development
of informal settlements Kironde (2006). Similarly, Kassahun, S. et al. (2010) also
identified that failure of the institutional system and malpractice are responsible for the
proliferation of informal settlements in Ethiopia. Therefore, proximity to employments,
institutional area, the inability of governments to provide land and bureaucratic procedures
to deliver planned residential land were a causal factor for the formation and expansion of
informal settlement.
5. Means of Livelihoods
Livelihoods are central in the broad understanding of how urban poor households earn
their living; how the urban environments impact on food security and the ability of poor
households to take care for their households under resettled areas. Livelihoods are defined
as assets, capabilities (comprising of material and social resources) and activities needed
for a means of living (Daniel, 2011).
6. Institutional and Legal Failure
The urban poor are trapped in an informal and illegal world in slums that are not reflected
on maps, where waste is not collected, where taxes are not paid and where public services
are not provided. Officially, they do not exist. Although they may reside within the
administrative boundary of a town or city, their local authority may well be a slumlord or
mafia leader, rather than city council staff, who often no longer attempt to assert their
jurisdiction or even enter the slums. residents, many of these slum dwellers have no
property rights, nor security of tenure, but instead make whatever arrangements they can
in an informal, unregulated and, in some respects, expensive parallel market (Azilinor,
2009:20).
7. Informal Actors Roles and Corruption
Land governance is fundamentally about understanding power and the political economy
of land. It involves the „rules, processes and structures through which decisions are made
about the use of and control over land, the manner in which the decisions are implemented
and enforced, and the way that competing interests in land are managed‟. Land governance

29. 17 | P a g e
encompasses different decision-makers, processes and structures, including statutory,
customary and religious institutions. When taken together as a system, land governance is
ultimately centered on how people use and interact with land (Transparency International,
2011).
The corruption that occurs in public administration and government services is a common
feature in the land sector. It can take the form of small bribes that need to be paid to
register property, change or forge titles, acquire land information, process cadastral
surveys, and generate favorable land use plans. Such bribery is facilitated by complicated
processes and limited information about available services and any applicable fees. For
example, a recent World Bank study on land administration in Vietnam found that
incomplete and unclear information about administrative procedures was made available
to the public. It also noted that the processes for issuing property rights and certificates
were complicated and expensive (Stien et al 2001).
8. Inadequate Formal Land Distribution
Throughout the history of the existence of the informal settlements, one of the major
causes has been failure or inability of the responsible institution to provide residential
plots to the ever-increasing urban population. While official applications for residential
plots in Zanzibar Town have been steadily increasing, the supply of the same is
staggeringly inadequate, an average of between 20 and 30 percent per year (DOLR,
various files cited Ali and Sulaiman, 2006).
9. Poverty
Informal settlement as the result of poverty and manifestation of social injustice have
covered a wide range of low quality housing conditions: in particular slums (formal
buildings dilapidated due to age and neglect) and squatter settlements (settlements
characterized by unauthorized land occupation, lack of building permit and/or a violation
of building and planning regulations). In Nepal, 30,381 people were identified as landless
family and 41,035 were identified as informal settlements (landlessness solution high level
commission, 2000). The incomes of informal settlers are mostly too low for formally
regulated markets to provide them with any kind of permanent housing. One of the
inhabiting factors is that the poor have a low propensity to save and hence a low
propensity to borrow money from lending institutions (Daniel: 2011). Poverty is the center
of informal settlement, majority of the squatters categorized as extremely poor. To

30. 18 | P a g e
construct a house in a planned area one needs to have enough money to buy a plot and
build a “decent house” (Ali and Sulaiman: 2006).
Additionally, studies show, when the monthly incomes of informal settlers household
heads in the study area are compared to those of the residents of the town as a whole, it is
evident that informal settlements in the study area are not inhabited only by the low-
income groups or the urban poor. Economically strong or higher income earning
household heads are also found in the informal settlements of the study area. Hence,
informality in the study area, especially in the recently emerged informal settlements, is
not poverty driven (Minwuyelet M. 2005:17)
2.5. Settlement Upgrading
Upgrading of informal settlements means transforming illegal structures into legal ones,
thus improving the housing statistics has correctly pointed out, upgrading also requires the
recognition of three conditions: „the property rights, the property values and physical
attributes of the underlying assets, and their impact on each other‟. Beyond the legal
dimension upgrading usually addresses improvement of services (Asmamaw 2010:139).
Informal settlements are home to millions of the urban poor households across developing
countries and largely represent the only solution for millions of these families. Most of the
households in these cities are hopelessly poor while their urban conditions and facilities
replicate their own and their country‟s poverty and inequalities. In addition to the wicked
living conditions, there is a very strong shared and reinforcement relationship between
housing, poverty and the environment. (UNCHS, 1999)
Moreover, another benefit of settlement upgrading is that members of informal settlements
have invested their time, skills and money already in the informal housing construction.
Upgrades cost less to execute than the eradication of informal settlements (UNESCAP,
2009). Settlement upgrading can provide urban poor households with access to land tenure
and some or all the tools depicted in where the value parts being the provision of key
infrastructure.
A study of Ethiopia informal settlements, for instance, showed that the combination of
economic recession and urbanization can always lead to the spread of informal settlements
whereas „even more planned areas will continue to deteriorate into‟ informal settlement.
Given the inability of developing countries in providing serviced land for housing,
informal settlements will remain popular enough to invite extra settlements. Surely,

31. 19 | P a g e
informal settlements reflect local housing markets and are also here to stay „and are not
marginal anymore‟. Therefore, it has been argued that the government needs to come up
with a housing strategy that allows the existence of informal settlements. It now seems that
the only choice is to continue with more settlement upgrading. (Molla, 2009: 35)
Azilinor (2009), also identifies the main five key benefits of settlement upgrading: (a)
health reason in order to minimize risks of epidemics, (b) economic reasons to empower
local communities, (c) applicable socially to develop social amenities like clinics, (d) legal
tool to provide secure tenure for the urban poor residents, and (e) upgrading of housing
processes where the state commits resources.
Classic upgrading schemes „provide footpaths and latrines, street lighting, drainage and
roads, often water supply and limited sewerage‟. Settlement improvement involves
regularization of the rights of land, housing and upgrading of the existing basic services.
However, it does not necessarily consist of a home construction but it „offers loan options
for home improvements‟ as well. Upgrading often involves other actions such as the
removal of environmental hazards, empowering communities through maintenance and
the building of communal facilities such as schools and clinics. (UN-Habitat, 2006:22)
The issue of security of tenure and access to basic services and decent housing, the
settlement upgrading and incorporation into the overall structure of the city is a necessary
step towards more equitable and livable cities. This means that upgrading efforts are not
only shown to have the ability to construct new models and paradigms of urban inclusion
and planning, but upgrades also need to be seen as a sensible mode to face the challenges
of urbanization and poverty eradication across the cities of developing countries. There is
also an assumption that upgrading would alleviate the constraints on community efforts
and offer the necessary support to improvements, without disrupting social or economic
links. This has been noted by many international entities such as the United Nations (UN)
as giving the government an authority to detect bottlenecks and coordinate the upgrading
process via the provision of subsidies. (UNCHS, 1999)
It is critically vital to offer land titling or formalization of informal settlements, the
legalization and distribution of titles to urban poor households so that the results of
upgrading are instant, highly visible, and make a major variation in the quality of life of
the urban poor. Tenure formalization by offering full titles always ensures the urban poor
families opportunities to obtain freely or at a nominal cost, an asset which can command a

32. 20 | P a g e
high price in the formal land market (UN-Habitat 2003). Therefore, security of tenure
should be made available to all poor households.
Bahiru (2008) argues that during settlement upgrading municipalities should be very alert
not to allow privatization of service provision as it limits service delivery to low income
households. Instead, it will be worthwhile for municipalities „to prevent unregulated
privatization from resulting in the exclusion of the poor from urban services, on the basis
of simple economic‟. There is a need for municipalities to support vulnerable communities
and provide them with a proper platform for decision-making in order to prevent laissez-
faire attitudes. It is believed that these attitudes often have potential to block real
integration of the urban poor into the urban mainstream, thus add other problems to the
urban poor (ibid.).
Lamaba (2005) highlights the importance of the process of decision-making during the
settlement upgrading. If the government has planned to provide for tenure security to
informal settlements‟ inhabitants, it is also vital to take protective measures at the initial
phase against the inevitable influx of residents. This can be done by using low-level aerial
photos indicating the existing informal settlements to prevent conflicts. In most of
developing countries such as Ethiopia, settlement upgrading approaches are yet to be
executed. Little notice is given to detect the root causes such as poverty, unemployment,
and low salaries. Instead, these countries have focused mainly on the physical
improvement of dwellings in townships. UNHCR (1999) have identified four main groups
of constraints to settlement upgrading:
1. Legal framework: Accessibility to secure tenure by the urban poor is difficult as the
land is declared for completely different socio-economic situations.
1. Urban planning frameworks and regulations: Inappropriate planning standards and
construction regulations prevent the urban poor from affording services, thus creating
low-cost housing shortages.
2. Land markets: Land markets are traded in active commercial markets thus excluding
the urban poor.
3. Knowledge and information: Physical and financial challenges posed by informal
settlements have not been sufficiently developed. Available information on settlement
upgrading is uncoordinated (ibid.).
The problem with the formalization of informal settlements can be the attraction of
economic investors into informal settlements. This trend can lead to the expulsion of

33. 21 | P a g e
traditional residents to peripheral sites, thus deeply jeopardizing the key aim of poverty
mitigation and integration (Wayatt et al, 2002). Limited studies have been undertaken to
effectively demonstrate how these factors and theories can be incorporated into a
framework to simulate and model the dynamic expansion of informal settlements. This
paper present how Geographic Information Systems and Cellular Automata are integrated
to propose an Informal Settlement Growth Model (ISGM). The application of the
proposed ISGM has the potential to improve the urban planning and decision-making
processes in developing countries cities.
2.6. Research Gap
After summarizing major empirical literature and discussions of causes of informal
settlements and squatting, the researcher identified the following gaps. Most previous local
researchers argue that the causes of informal settlements and squatters are a shortage of
income and have not gain proper attention for the poor‟s, excluded that participate in
preparing policies and the program of a country. They also concluded that all the existing
informal settlers are low income groups and poor immigrant people. The previous
empirical studies did not consider the long process of the municipality to access land and
weak administration of land. Thus this study was expected to fill the previous research
gaps by identifying the root causes of informal settlements and squatting in the case of the
study area.
2.7 Operational Definition of Terms
 Informal settlements are dense settlements comprising communities housed in self-
constructed shelters under conditions of informal or traditional land tenure.
 Squatting be defined as a residential house which has developed without legal claims to
the land and/or permission from the concerned authorities to build; as a result of their
illegal or semi-legal status, infrastructure and services are usually inadequate
 Expansion: - informal settlements constructed in the year 2002E.C-2008E.C and newly
constructed houses in the periphery and within existing settlements is said to be expansion.

34. 22 | P a g e
Chapter Three: Research Methodology
3.1 Research Approach
The research was conducted using both quantitative and qualitative methods (mixed
method) because a mixed method of research approach attempted this study to maximize
the attainment of objectivity and generalization of findings typically interested in briefly
justifies the issue that was collected the data‟s from the respondents and through
observation of the sample areas. So by integrating both approaches, the mixed methods
can frequently describe as deductive in nature that leads to general inferences about
characteristics of the entire population. The quantitative and qualitative research approach
also appropriate for this study because it helps to collect diverse types of data that provide
the best information on deep understanding the respondents and the research with that of
the problem in order to generalize results to the whole population by asking both open-
ended and closed-ended questions supplemented with interviews and observation.
3.2 Research Methods
A descriptive research type was chosen to be used for this study; because it was the most
appropriate one to achieve the objective of the research. Since the topic of the research
focus on the factors contribute to the expansion of informal settlements in the study area;
descriptive research was a suitable type of research to describe events, and phenomena‟s
and then to report the realities observed. Also, descriptive research type was the
appropriate type of this particular research that uses both qualitative and quantitative data
through the application of survey method and observation for data collection. But due to
the deductive nature of the study, the quantitative approach was used more dominantly and
as a supportive to it, a qualitative method was used so that more reliable findings was
reached from the analysis of both quantitative and qualitative data. Also, the system of
data collection was more flexible in order to permit the consideration of many different
aspects of the problem. To do this, interview and other informal ways of gathering
information were included.
3.3 Sample Design
In this study, it was difficult to conduct all the total population under this investigation.
Therefore the representative samples were taken from the population to conduct the study
that would end up with efficient results.

35. 23 | P a g e
3.3.1. Population of Universe
It refers to the unit that we were observing, explaining, and describing in the study area
(i.e. the total population not the sample). Therefore, for this particular study, the
population of the universe was informal settlers of the town. According to the structural
plan of Haramaya town 2015 report, the total informal settlers are 682 (Haramaya town
structure plan, By Oromia Urban Planning Institution, July 2015).
3.3.2. Sampling Frame
The sampling frame of this study was lists of all informal settlers of the town: Haramaya
town municipality and kebele administrative, land administrative and development agency
manager and expertise, Haramaya town farmer and inhabitant, were included in the
sampling frame.
3.3.3. Sampling Unit
The sampling or unit of analysis for this study was the informal settlers of Haramaya town
mainly supplemented by the managers and experts of municipality, kebeles, and land
administrative and development agency, Haramaya town farmer and inhabitant association
representatives.
3.3.4. Sampling Technique
The selection of the techniques of sampling can be determined by various factors. By
taking the nature of the research problem and the extent of which it covers into
consideration. The Probability sampling techniques were preferably selected. The main
reason that this technique was chosen is to address all the population through equal
opportunity to be selected by using simple random sampling technique. It was primarily
used in quantitatively oriented and involve a relatively large number of units from a
population and in a simple randomly selected where the probability of inclusion for every
member of the population had an equal chance to be selected. As a result of using this
technique, there was high reliability so as to identify the factors contribute for the
expansion of informal settlement. Finally, in this situation, it supposed to achieve
representativeness which is the degree to which the sample accurately represents the entire
population for generalization because data was collected by interviewing and structured
and non-structured questionnaire which was distributed to representative respondents
selected by purposive non-probability sampling technique.

36. 24 | P a g e
There were three (3) kebeles at Haramaya Town from this all informal settlers were
selected, from this town totally 682 informal settlers. (Haramaya town structure plan, By
Oromia Urban Planning Institution, July 2015) From these 134 households (informal
settlers) was selected and the questionnaires was procedurally addressed and conducted.
(Haramaya town structure plan 2015, by Oromia planning institute).
3.3.5. Sample Size
The sample size for the questionnaire was determined statistically by using formula.
Kothari‟s formula was used to scientifically determine sample size and to get appropriate
and representative sample size from a study population of 682. 93 percent confidence was
used. The 93percent level of confidence was preferred; since increasing the level of
confidence increases the sample size that beyond the control of researcher in relation to
the constraint of current political instability in the study area, time and budget. Beside this,
it was difficult to manage the large size of the sample. These problems were minimized as
an interview of key informed person were used for in-depth information. Kothari (2007)
explained the following formula to calculate the sample size and it was used to calculate
the sample size for this study.
𝑛 =
𝑧2
𝑝 𝑞
𝑑2
N= the study Population size
Z = the standard normal variable at the required confidence level or Z statistic (93 %)
P= the proportion of the target population estimated
q =1- p, non-estimated characteristics of the target population
d = Level of statistical significance or margin of error (7%)
The researcher was used the above formula to get the desired sample size (n) when N
greater than 10,000 with 93% confidence level, if there is no estimated characteristic of
target population, 50% used then, P= 0.5 and q = 1- p = 0.5. And the Z statistics is 1.81
(93% confidence level) and the desired accuracy at the 0.07 level of significance.
Therefore, based on above explanation the sample size is computed as follows
𝑛 =
𝑍2
𝑃𝑞
𝑒2
=
(1.81)2
∗ 0.5 ∗ 0.5
(0.07)2
= 167.15 ≅ 167
But, the target population for this study is less than 10,000 i.e. 682. Therefore, this formula
was used to get the sample size which then helps to get the sample size for this particular
study by using the formula

37. 25 | P a g e
fn =
𝒏
𝟏+
𝒏
𝑵
=
𝟏𝟔𝟕
𝟏+
𝟏𝟔𝟕
𝟔𝟖𝟐
= 134.15≅ 134
Where: fn= the desired sample size when the target population is less than 10,000 which is
134
n= the sample size when the population is greater than 10,000, which is 167 at 93%
confidence level. N= target population size accordingly, n= 167, N= 682.
Therefore the total sample size of the study was 134 individuals.
Table 3.1; Sample Size and Sampling Techniques
No Source of data
Total
househo
ld
Sampl
e size
Method of
data
collection
Sampling
method
1 Informal settlement of the town 682 134 Questionnaires Simple random
2 Town municipality managers 1 Interview Purposive
3 Kebeles managers 3 Interview Purposive
4
Urban Land development and
administrative agency manager
1 Interview Purposive
5
Urban Land development and
administrative agency expert
3 Interview Purposive
6 Local farmers and inhabitant 3 Interview Purposive
Total 145
Source: Prepared by the Researcher, 2016.
3.3.6 Sample
For this study the sample were 145 in which 134 was the sample size of households
(informal settlers) living in the town, 11 were from Town municipality manager, kebele
manager, Urban Land development and administrative agency manager, Urban Land
development and administrative agency expert and Local farmers and inhabitant
association representatives.
3.4 Source of Data
Both primary and secondary sources of data for this particular research proposal topic
were used.
Primary data sources: through both closed and open ended structure questioners; it
assists to get more information. Both structured and semi- structured personal interviews
by using structured questions; it helps to get depth information. Field observation by

38. 26 | P a g e
using checklists; it avoids subjectivity, and helps to capture what is happening now in the
study area.
Secondary data sources: from a Structural plan of Haramaya town, published and
unpublished materials like books, Journal‟s literature review, FDRE Policy documents,
UN- Habitat Reports, ECSU electronic library, Internet sources, research papers of
professionals and reports.
3.5 Data Collection Instruments
Questionnaires: Structured questionnaires were used to collect primary data from
selected households.
Observation: - The observation was a help to gather first-hand data and to identify all the
necessary information such as the existing housing quality, infrastructure, and social
services in the expansion areas.
Interviews: - Interviews was used to collect data from key informants such as government
experts, administration and stakeholders.
3.6 Data Analysis and Interpret
To analyze the data both quantitative and qualitative analysis methods was employed.
Quantitative data which were a help to generate from household survey was analyzed
using simple descriptive statistical tools like frequency, and percentages and they operate
with Statistical Package for Social Studies (SPSS) and Microsoft Excel. The qualitative
data collected using Key Informants Interview and personal observation was also analyzed
through description, narrating and interpreting.
3.7 Data Presentation
The data analysis was presented using percentage, tables, graphs and charts to describe
quantitative data, graphs to compare, percentages to make comprise and discussion. And
the data that would have been collected through interview was analyzed using non-statics
or manually or descriptive way.
3.8 Methods of Ensuring Data Quality
The reliability and validity of the outcome of this research was ensured as much as
possible by taking the following precautions. The insights obtained from the combined use
of quantitative and qualitative methods simultaneously increase the strength of the
conclusion.

39. 27 | P a g e
Consulting knowledgeable persons (experts, development agents, researchers) on issues
that require expertise and crosschecking information obtained through interviewing with
information gathered from public records and published materials on the issue.
3.9 Limitation
In the research process of data collection and interviewing stage, some limitations are
observed. There were inadequate reading materials that were recently published about an
issue related to cause of informal settlement and level/trend of squatters in the town.
Besides to these, respondents fear of eviction by the city administration due to this they
were not willing to respond accordingly and very few municipal experts were not willing
to give responses for interview, in addition to these some of the officials were outside
from their offices for political works and some of them were newly appointed from other
fields of works due to this they were no informed detail.
To overcome such limitation the researcher use all supplementary primary and secondary
data from various sources to strengthen the research and to overcome inadequate reading
material and the researcher tried to minimize fear of eviction by the city administration
towards willing to respond accordingly by convincing the academic purpose of the study
and its confidentiality to the respondents, and they suggested freely what they think
explains the existing factors that contributing to the expansion of informal settlements at
their residential area.
3.10 Ethical Considerations
For this particular study, as a researcher ensured that the participants were protected from
physical or psychological harm, select appropriate methodology, respect the culture and
norm of the community and respondents, give credit worth of other‟s work, submit my
work on time and present my task as per the university program.

40. 28 | P a g e
Chapter Four: Data Analysis and Interpretation
4.1 Introduction
This chapter presents comprehensive analysis and discussion of the results from, both
closed and open-ended structure questionnaires, both structured and semi-structured
personal interviews by using structured questions, field observation by using checklists
and by referring different existing document where design of the analysis elaborates and
summarizes the answers to the study questions that were in chapter one. Each research
question was answered by presenting and discussing the results obtained from the data
analysis appropriate for each particular question.
4.2 Response Rate
For this study, 134 questionnaires were distributed to informally settled households. All
the questionnaires were completed and returned. Additionally, 11 officials, who have a
direct concern with the subject under the study, were interviewed. To analyze the
level/trend of informally settled households referring and discussing different existing
document were employed to strengthen the reliability of the study. For presenting data
illustrations include tables and graphs.
4.3. Socio-Demographic Profile
As indicated in Table 4.1 bellow a total of 134 informal settlers were involved in the
survey making the result response rate 100 percent. The analysis was based on 134
informally settled households.
Respondent‟s socio-economic information was a key element of the study to observe the
socio-economic variability among sampled households in the study area. Indeed
demographic data concerning the age level, sex, educational status, employment
conditions, marital status, family size and income level of unit of analysis were gathered
from the surveyed elements to visualize their socio-economic variation.

41. 29 | P a g e
4.3.1 Age Level and Sex Ratio of Respondent:
Table 4.1: Respondent’s Age level and Sex Ratio:
Characteristics Values Frequency Percentage
Age of
respondent
20 – 30 14 10.4
31 – 40 62 46.3
41 – 50 47 35.1
greater than and equal to 51 8 6.0
Total 131 97.8
R777 (missing value) 3 2.2
Total 134 100.0
Sex of
respondent
Female 28 20.9
Male 106 79.1
Total 134 100.0
Data Source: Field Survey Result, 2016
Age wise, the highest percentage lies between 31-40 years which account 46.3 % of the
total informally settled households. Concerning sex, the male group was the dominant one
that accounts 106 which was 79.1%, while the female groups that participate in the
informal settlement were 28 in number that resulted in 20.9%, which shows that not only
male groups but also females participated in an informal settlement in the study area.
4.3.2. Educational level of Respondents
Figure 4.1: Respondents Educational Status
Data Source: Field Survey Result, 2016

42. 30 | P a g e
As depicted in Figure 4.1 above the educational status of informally settled respondents
range from illiterates to first degree and above graduates. The illiterates constitutes 15 in
number that accounts 11%, those that can read and write 16 in number, that holds 12%,
elementary school completed 24 settlers which account 18%, secondary school completed
which was the second largest that holds 27 in number which accounts 20%, college
diploma holds the largest number which was 41, that holds 31% and first degree and
above constitutes 11 in numbers, accounts 8%.
4.3.3. Respondent’s Employment Condition and Monthly Income Level:
Respondent‟s employment condition and income level are an important socioeconomic
parameter. In this study, it was considered as an indicator of household‟s capacity to
acquire the plot and to examine the affordability of the supply of land for respondents in
their residences. Employment status and monthly income level of informal settlers was
depicted in the bar graph below.
Figure 4.2: Informal Settlers Distribution of Employment and Monthly Income Level
Data Source: Field Survey Result, 2016
Concerning employment status of informal settlers, from those the largest share covered in
Public servant, which was 52 in number which account 38.8%, Farmers those participated
in the informal settlers also the second largest share, which was 31 in number which cover
23.1%, business and self employed each cover 16.4%, per time buyer and other cover
3.7% and 1.5% respectively.

43. 31 | P a g e
As shown in figure 4.2 above, Concerning level of monthly income of informal settlers
relatively the dominant group that covered the largest share in the locality was the middle-
income groups which their monthly income level was 1001-5000, out of the total informal
settlers, 70 in number which covers 52.3%, the second largest group that informally settled
were relatively high-income groups which their monthly income level was 5000 and above
account 53 in number that accounts 39.6%. Finally, the least dominant groups that
informally settled were relatively low income groups which were their monthly income
level was below 1000, 11 in numbers that cover just 8.2%. According to the analyzed
results of the sample survey showed, the middle incomes groups cannot afford the plot
provide by legal form but they can afford informally. High-income groups were afforded
both legal and illegal land provision. Whereas, the low income groups cannot afford the
plot neither illegally nor legally provide by the municipality in the study area.
4.3.4. Respondent’s Marital Status and Family Size:
Table 4.2: Marital Status and Family Size of Respondent:
Characteristics Values Frequency Percentage
Marital status
of respondent
Married 116 86.6
Single 10 7.5
Divorce 1 0.7
Widowed 7 5.2
Total 134 100.0
Family size of
respondent
1-4 97 72.4
5-9 36 26.9
10-15 1 0.7
Total 134 100.0
Data Source: Field Survey Result, 2016
Concerning marital status as shown in the table majority of informal settlers were married
which was 116 in number that covers 86.6%, on the other hand only 7.5%, 7% and 5.2%
were single, divorced and widowed respectively. Regarding the family size of informal
settlers that was shown in the table, the largest portion lies in the range of 1-4 families
which is 97 in number that accounts 72.4% of the total households of informal settlers.
The second largest family size of the households lays in-between 5-9 families which were
36 in number that holds 26.9% of the total households of informal settlers. The highly
extended family size was those that have a family size of greater than nine families which
covers 7% of the informally settled households.

44. 32 | P a g e
4.4. Result and Findings
This section of the topic includes the presentation of data and the presentation of the
results of the study in a meaning full way. It describes the obtained data; the result used
the appropriate statistical analysis tools and illustrations presenting the data. The
illustrations include tables and graphs.
4.4.1 The Trends of Informal Settlers in the town
4.4.1.1 Examine the Supply of Land for Informal Settlements?
Figure 4.3: Examine the Supply of Land
Data Source: Field Survey Result, 2016
The above illustration shows that regarding of the adequacy of land supply for the
informal settlement, 6% of respondent were agreed to adequate, whereas 83.6% of
respondent replied to agree on inadequate supplied of land for informal settlement.
Concerning flexibility, 73.2% of respondent agreed to flexible whereas only 9.7% of
respondents replied to the inflexible supply of land for informal settlement. Concerning of
Affordability only 6.7% of respondent agreed on affordability whereas the majority,
75.3% of respondent replied to agree on the unaffordable supply of land in the informal
settlements.
4.5
33.6
7.5
4.5
1.5
23.1
1.5
47
65.7
5.2 5.2
52.2
16.4
11.2
17.2
11.9
29.9
23.1
49.3
7.5 6.7 5.2
36.6
1.5
28.4
0.7
3
23.1
26.9
0
0
10
20
30
40
50
60
70
Adequate Inadequate Flexible Inflexible Affordable Unaffordable
Strongly
Agree Per.(%)
Agree Per.(%)
Fairly Agree
Per.(%)
Disagree
Per.(%)

45. 33 | P a g e
4.4.1.2. Opportunity to Equal Access to Land for the Informal Settler’s
Table 4.3: Equal Access to Land for all Groups of the Respondents
Is there equal access to land for all groups of informal settlers?
Frequency Percent
Yes 7 5.2
No 127 94.8
Total 134 100.0
Data Source: Field Survey Result, 2016
The above table 4.3 shows, From 134 people responded to the questionnaire, 7 people
selected ‟yes‟ and the remaining 127 selected „No‟ response this means that 94.8% of the
sample elements shows there is no equal land access among all groups of informal settlers.
4.4.1.3 The Root Causes of Discrimination for an unequal Opportunity in the
Informal Access of Land
Figure 4.4: The Root Causes of Discrimination to Access land
Data Source: Field Survey Result, 2016
As shown in the above figure 4.4 in response, out of 127 respondents those replied there
was a discriminated group against land acquisition, civil servant was the major
discriminated groups that about 51 respondent confirm by the shortage of capital,
following ideology, fear of law and attitude replied by 7, 2 and 1 respondent respectively
were root cause for civil servant discrimination against land acquisition in Haramaya
town. Extended family was the second major discriminated groups against land

46. 34 | P a g e
acquisition, 36 respondents were verified due to the shortage of capital, following
ideology and fear of law replied by 2 and 1 respondent respectively were the root cause for
extended family discrimination against land acquisition in the study area. Business men
were the third discriminated group, 10 respondents were verified due to the ideology,
following fear of law and attitude replied by 2 and 1 respondent respectively were root
cause for the business men discrimination against land acquisition in Haramaya town.
Finally, as shown in figure 4.4 field survey results, politician and official were the lists
discriminated groups against squatters on the study area.
4.4.2. Causes of Informal Settlement
People compete to full filling their basic need like food, cloth, and shelters as well as for
economic and natural resources due to increasing in demand for natural resources and
economic growth. The following figure summarizes factors that of respondent‟s push
towards the illegality
Figure 4.5: Reason for Informal Settlement
The Factors that Push you to Informally Settled
Data Source: Field Survey Result, 2016
Figure 4.5 above shows, about causes of informal settlements. The analysis was based on
134 informally settled households‟ respondents who completed the questionnaire on the
causes of informal settlement. Concerning the factors that push the residents to informal
settlers that explained in figure 4.5, long process of the municipality to access land
constitutes the highest number that was of total respondents 53 (39.6%) of the informal
settlement were due to the long process of the municipality to access land. On the other
hand, those informal settlers due to a shortage of income, 29 in number which accounts
22%
39%
13%
16%
10%
shortage of income
Long process of municipality to
access land
High rising land markets
Lack of residential house
Others (encroach of their plot to
urban, inadequate land provision
and Lease has interest)

47. 35 | P a g e
21.6%. Households that pushed to informal land because of high rising land markets, 17
in number that account 12.7%, those who informal settlers due to lack of residential house
account 21 in number that holds 15.5% and those that informal settlers due to other
problems accounts 14 in numbers that hold 10.4% those were including the interest of the
lease, encroach of the plot to urban, and inadequate land provision accounts 8.2%, 1.5%
and 0.7% respectively.
The officials agreed on their interview responses concerning the causes of informal
settlement; population growth due to migration and natural increase in the town, weak
housing delivery, lack of providing serviced plot of land to the residents because of the
government stopped new land allocation system for the residential purpose. Concerning
allocation of budget for residential land development, the city manager replied that no
budget allocated except for those expropriated in the case of public purpose. On the other
hand, brokers played a significant role through misleading the peripheral farmers to sell
their farm land to informal settlers with low cost because of the city administration
confiscate their farm land. Additionally, absences of managing the peripheral urban land,
lack of registration and control of public vacant land are the main causes for expansion of
informal settlements in the locality.
The kebele managers stated that majority of an informal settlement located on the
periphery of the town because of the farmer's sell their farmland informally by subdividing
to informal settlers for the reason that the farmers did not compensate for their land as part
of the structural plan of the town.
4.4.2.1. Respondents Alternative to Legally Access Land in the Study Area.
Table 4.4: Alternativeness of Legal Land Access for the Household in the Town
Have alternative land Access Legally for a house in the town?
Frequency Percent
Yes 85 63.4
No 49 36.6
Total 134 100.0
If yes, How did you hold the land Legally
Frequency Percent
through lease 37 43.5
Inherited from family 17 20
Purchased from farmer 31 36.5
Total 85 100.0
Data Source: Field Survey Result, 2016

48. 36 | P a g e
As regards to the settlers have alternative land for houses in the town 85 respondents
which were 63.4% replied that there was an alternative to land access for housing in the
town out of this, through the lease, 37 in number which accounts 43.5%, inherited from
family, 17 in numbers that holds 20% and purchased from farmers, 31 in numbers that
holds 36.5% from 85 respondents, the rest 49 respondents which are 36.6 % replied that
they have no alternative to holding land legally for housing in the town.
4.4.2.2 Occupancy Area of Informal Settlements:
Living space is the key indicator measuring the adequacy of the basic human need for
shelter. The following table summarizes occupancy area.
Table 4.5: Occupancy area of informal settler housing in m2
Data Source: Field Survey Result, 2016
Concerning the area of land captured, those who hold below 150 meter square constitute
21 households which were 15.7%, those that hold 150 - 200 meter square account 71 in
number that covers 53%, 201 - 250 meter square caught by 30 settlers which was 22.4%,
251 - 500 meter square caught by 8 settlers which was 6.0%, greater than 500 meters
square occupied by 4 households that covers 3%.
4.4.2.3 Housing Condition of Informal Settlement:
The material in which the housing is made up of was determining the structural aspects of
informal settlements.
Table 4.6: Housing Condition of Informal Settlement
Frequency Percent
wood and mud 98 73.1
cement and bricks 36 26.9
Total 134 100.0
Data Source: Field Survey Result, 2016
Concerning housing condition 134 houses which was 73.1% built from wood and mud and
26.9% built from cement and bricks without having any building and planning rights.
Area Frequency Percent
below150m2 21 15.7
150 -200m2 71 53.0
201 - 250m2 30 22.4
251 - 500m2 8 6.0
greater than 500m2 4 3.0
Total 134 100.0

49. 37 | P a g e
4.4.3 Methods of Informally Land Acquisition by Informal Settler
People acquire land in the legal and illegal way, this includes, in the form of purchase,
invade the open public land, inherited and publicly. The following figure summarizes the
way of acquiring land.
Figure 4.6: Method of Informally Acquiring the Plot by Informal Settlers
Data Source: Field Survey Result, 2016
The informal settlers hold residential land in different ways. Among these, 82 dwellers
which was 61.2% purchased from farmers, 21 households which were 15.7 % inherited
from their family, the remaining 9.7%, 9%, 2.2% And 2.2% of respondent replied transfer,
adjudication, allocation by state /community and Invention respectively the methods
which they acquired the plot.
The officials agreed on their interview responses concerning the informal settler‟s
mechanism they used to transfer the plot were they make a fake contract of the gift of a
plot because they know selling of land is illegal according to Ethiopian law and perform
hidden merchandise to escape from legal prosecution.
4.4.3.1 The Year Respondent’s had Built their Houses in Haramaya Town
The urbanization strategy increases people to the urban area and increases competition for
land resources while the provision of residential land in the urban authority of Haramaya
town was minimal. The following figure summarizes the year when informal settlers built
their houses.
0 50 100 150
Purchase
Inheritance
Allocation by state
Transfer
Invention
Adjudication
61.2
15.7
2.2
9.7
2.2
9
Frequency
Percent

50. 38 | P a g e
Figure 4.7: Distribution of Households Heads by the Year they Informally Settled
Data Source: Field Survey Result, 2016.
The analysis was based on 134 informally settled households‟ respondents who completed
the questionnaire on when informal settlers built their houses. Concerning the year when
respondents were built their house and informally settled question as the figure 4.7
depicted, only 6.7% were built in the year 2002 and before, 7.5% were built in the year
2003, 5.2% were built in the year 2004, 9% were built in the year 2005, 12.7% were built
in the year 2006, 20.9% were built in the year 2007 and 38.1% were built in the year 2008.
This implies the expansion of informal settlements in Haramaya town increasing at an
alarming rate with time to time.
The officials agreed on their interview responses concerning the informal settler expansion
that show over past five years in the area, it was increasing at an alarming rate because
demand for the shelter had been growing while the provision of shelter especially land
provision was unable to satisfy the demand of a growing population.
6.7 7.5
5.2
9
12.7
20.9
38.1
0
10
20
30
40
50
2002
E.C and
before
2003
E.C
2004
E.C
2005
E.C
2006
E.C
2007
E.C
2008
E.C
Percentage
Percent
Years of Settlement

51. 39 | P a g e
4.4.3.2 The Place Where Respondent Lived before Informally Settled
Figure 4.8: Place Where Respondent Lived before Informally Settled
Data Source: Field Survey Result, 2016
Figure 4.8 shows, informal settlers reside in different areas before they informally settled.
51% of the respondents were lived in private rental houses, 26% of respondents came from
neighborhood rural kebeles and woredas. 18% of respondents were lived with their parents
in one courtyard. 5% of respondents were lived in narrow and dilapidated kebele rented a
house, this implies the majority of informal settlers was lived in private rental house,
Neighborhood Rural kebeles and woredas, with their parents in one courtyard and in
narrow dilapidated kebele rented a house.
4.4.3.3 The Respondents Reasons, why they Choose to Settled on an Informal Way
Life decision of informal settlements depends on a different factor. Among these, the
economic cost of living and social, economic was the leading factors. The following tables
summarize reason informal settler‟s preferences to live in Haramayaa town.
51%
26%
18%
5%
In private rental
house
Neighborhood Rural
kebeles and woredas
with my parents in
one courtyard
Here in narrow
dilapidated kebele
rented house