MERKATO: A
challenge for government and investors
By Tamiru Geda and
Groum Abate
Merkato, the biggest open market in Africa, has been the main focus
for the Addis Ababa City Government and the business community,
following the introduction of free enterprise in the country. Both
government and the business communities have a common interest as far
as developing the area is concerned, but they differ in the manner and
pace of development of this vast commercial area.
In a meeting held Wednesday at Hager Fikire Theater, between City
Government officials and business stakeholders from all over Addis
Ababa to discuss the development of Merkato, investors voiced their
concern about the large sums of money they have blocked in the banks
as per the City’s requirement to lease the land they already occupy.
Business people, particularly those who came from one of Merkato’s
areas, commonly known as Military Terra voiced their grievances
strongly.
The businessmen representing over 643 members from the Military Terra,
complained that they were supposed to have acquire plots of land in
Merkato since the time Ali Abdo was in office, but are still awaiting
for a decision six years later.
“We have deposited more than Birr 17 million for purposes of acquiring
land and asked the City to provide us with a plan for the area, and
informed it that we are ready to construct.” But, the investors
complain, “we have yet to be given the green light from the City
Government for reasons unknown to us.”
Another investor representing a group of business people in Merkato,
had an interesting story to tell. He claimed that after depositing a
total of Birr 8 million, blocked at the bank as required by the City
for the acquisition of a plot of land, they were later told that the
City has no record whatsoever of their case and file. “We felt very
much cheated,” he said angrily. However, he said, “in the last few
days, we were given hope that they will consider our case”
Many present at the meeting complained that their money has been tied
up for the past 8 years or so, without interest and in the meantime
the cost of construction has escalated.
Ato Abebe Zelul, head of Land Administration Agency with the City
Government of Addis Ababa, who was chairing the meeting, declared that
the City has decided that anyone who acquired plots of land for
construction purpose in the city must commence construction within the
next 12 months.
He stressed how serious this decision is by informing the participants
that there will be penalty fees for those who fail to do so on time,
and it would even go to the extent of the city taking back the land.
“We do not want to argue with you in every forum” responded an angry
investor, “what we are seeking is a constructive response from you.”
Another investor told an intriguing story. Planning to invest in the
city in partnership with foreign investors, he said they were given a
plot of land estimated to cost Birr 100,000. Though they asked for the
site plan, they were not given by the City government. Soon, they were
evicted at gun point from the plot by some so called Kebele officials
who claimed that they owned the land. “Such a misunderstanding has
nearly cost me my life, and now I am crying for justice,” he recounted
his tale to the astonished listeners. This investor however is still
undefeated and still wants to invest over one million birr on the
controversial piece of land.
On the other hand, some investors appreciated the activities
undertaken by the present City Government officials. “We cannot deny”,
they said, “the progress that has been achieved lately”, but they
insisted, “we believe there should be a more transparent system and
trust from the City Government towards the local investor. More work
should be done to bring faster development in our city”, concluded the
investors. |
Tuesday
March 30' 2004
