Women’s Federation Building Residents Appeal to Prime Minister’s Office Over Rent Increase

Residents and business owners who rented apartments in the nine-story building located opposite St. Stephen’s Church around Meskel square are to appeal to the Prime Minister’s Office over what they describe as an excessive rent increase.

Residents and business owners have rented a total of 28 and 16 units, respectively, in the building owned by the Ethiopian Women’s Federation.

Established in February 2013, following its first general assembly in Adama town, 99 kms southeast of Addis Abeba, the Federation, led by Azeb Mesfin – widow of the late Meles Zenawi – aims at uniting the various women’s associations and increasing their voice. It also serves as a lobbying power.

Following the announcement of the increase in early October, residents and business owners appealed to the Federal Ethics & Anti-Corruption Commission (FEACC) only to be told that the latter could not look into the case, as EWF is not a governmental organisation. Thus, they are now going to take their cases to the Ethiopian Human Rights Commission (EHRCO), as well as the Institution of the Ombudsman.

Business centres, which used to pay 60,000Br, have seen their monthly rent leap overnight to 120,000Br. In a similar fashion, the cost of studios soared up to 9,030Br from 2,005Br. But none were as shocking as the increase introduced on two-bedroom apartments. The prices for these rooms skyrocketed to   20,370Br from 3,495Br.

“It is so odd,” lamented a resident. “I have never heard of an increment like this in the city.”

The residents got confused when the announcement came on October 1, 2013, after three months of silence on the administrators side.

Previously, the residents and business owners renewed their rental contract in early July. This year, however, renewing of the contract was delayed following the arrest of the then administrator, Haimanot Tesfay (Col) – wife of Gebrewahid Woldegiorgis. The latter headed the law enforcement directorate within the Ethiopian Revenue & Customs Authority (ERCA), before his arrest on May 10, 2013. Both have been charged in connection with high level corruption.

Following the announcement of the increase on October 11, 2013, for frustrated residents terminated their contracts altogether, Fortune learnt.

Some of the business owners have, however, opted to renew their contract. This is given that they are expected to bring the contract agreement with their working sites, in order to renew their business licenses. This renewal is scheduled to be completed within the coming month.

“Whether we like it or not, we have no option other than to renew the contract, at least for the coming year,” a businessman told Fortune.

A notice, circulated and posted on the walls of all nine floors last week, demanded that those who cannot renew their contracts should leave the apartments before December 30, 2013.

“The deadline is too tight to decide either way,” said Tsehaye Mengistu, a resident who has been living there and sending five of his children to a nearby school. “The fact that we are settled makes it tough on us.”

What makes Tsehaye’s condition precarious is that if he leaves, he will have to send his children to another school.

“But this is not possible, as they have already started the second semester,” he said sullenly.

The Federation has five other branches, all of which generate money through training women and retail.

The building, which was erected back in 1974 by Princess Tenagnework Haile Selassie – daughter of Emperor Haile Sellassie – was, however, meant primarily to commemorate women who contributed to the country.

After the coming into power of the Dergue regime, however, the building was nationalised and placed under government rental houses.

In the late 1990s, the Ethiopian Women Development Fund become the new owners and started charging about 250 Br for studio. In the process, the price a square metre has been on the rise, but not by more than 500 Br for the last 10 years. The current increase, however, is the highest ever witnessed. In the case of residents, the price a square metre of the rooms, has gone up to 200 Br and 450 Br, for units that are rented for business purposes. There are also 12 cottages on the ground that charge up to 120,000 Br for monthly rent.

For the administrators, however, the increase is nothing more than a measure taken to reverse prices, which they consider too low.

“The previous prices were not fair,” argues Asfaw Kidane, the newly appointed administrator, who replaced Haimanot. “The previous rent prices were too cheap.”

The average prices for a single room in similar apartments in the city, however, fall between 2,000 Br to 4,000 Br.

 

 


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