2 July 2017

Ethiopia: Mckinsey Studies Hawassa's Housing Problems

McKinsey and Company, an American management consultant, is undertaking a study aiming to come up with low-cost housing development opportunities related to workers at the Hawassa Industrial Park (HIP).

After about three months of study, McKinsey submitted its proposal on June 21, 2017, and indicated its initial plans about the research monitored by the Ethiopian Industrial Parks Development Corporation (IPDC).

McKinsey was advised to take wider perspectives so that it can point solutions usable even for other industrial parks. At its full capacity, HIP expects 60,000 workers and currently has 10,000 employees.

A similar attempt was made previously using about 50 million Br as loan support for locals who built residential houses in the city and rented them to workers at HIP. The rental was mandatory upon borrowing the money.

Similarly, HIP constructed 1,000 apartments for expatriate workers inside the park. For domestic workers in the manufacturing process, housing has been a tough issue though, since workers coming to the city face housing challenges given the small amount of salary they receive.

When this study is completed, it is expected to indicate solutions for the workers and create housing investment opportunities on the other side.

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