7.7. Settlement Types and Patterns

7.7.1. Types of Settlement

Settlements are places that are inhabited by people more or less on a permanent basis, as 

distinct for example from camps, and where people carry out a variety of activities such as 

agriculture, manufacturing and commerce. Different settlement types develop mainly in 

response to some physical and human factors.

Settlements are divided into two, namely, rural and urban on the bases of the dominant 

economic activity, population densities and availability of socioeconomic and infrastructural 

facilities. Towns or urban centers have non-agricultural activities as dominant, while rural 

areas are almost totally agricultural. Population densities are generally very high in urban 

area compared to densities in rural areas.

 Rural Settlement

The vast majority of the Ethiopian population still lives in rural settlements consisting of 

hamlets and villages. Rural settlements can be temporary or permanent depending on 

whether there is frequent change in the site of the settlements.

 Temporary / Mobile Settlements

The lowlands in most parts of the Rift Valley and peripheral areas, being generally hot and dry, are characterized by pastoral herding and mobile settlements. The settlements are mobile because pastoralists have always been searching for new sites for water and pasture for their livestock.

The major problem often mentioned about mobile settlements is that of providing social services like clean water, schools, hospitals, electricity etc to the people. These fixed physical infrastructures and services cannot move from place to place like the pastoralists, and to benefit from such services people have to be in permanent settlements. However, it must also be noted that settling pastoralists is not something that can be done in a year or two since it involves change of livelihood strategies, attitudes and value systems. So, it has to be considered as a serious development task that could involve the pastoralist community and governmental and non-governmental stakeholders; and perhaps it could last for generations.

 Permanent Settlements

Settlements are considered as permanent if there are no frequent changes in their locations. 

Most Ethiopian rural highland settlements where crop cultivation is practiced are permanent.

Permanent settlements are of two types. One of them is scattered (also called diffused or 

dispersed), while the other one is known as grouped/ clustered or nucleated.

In areas of dispersed settlements homesteads are separated by relatively long distances which could be associated with individual land tenure and desire of people to live near to their farm holdings. Grouped settlements, on the other hand, are characterized by concentration of large number of homesteads and households at one place as for example for reasons of defense, to provide threshold population to support basic social services as was the case of villagization program during the Dergue.

7.7.2. Urban Settlements and Urbanization in Ethiopia

Urbanization refers to the increase in the percentage of the population living in urban 

centers. It entails the process of becoming urban, moving to cities and changing from 

agriculture to other pursuits of life which are common to towns and, with a corresponding 

change of behavioral patterns.

Urbanization is crucial to sustain the pace of economic development and improve the quality 

of life for both urban and rural populations. Linkage between urban and rural areas could

foster efficiency of value chains in agro-industry, improve agricultural productivity, promote 

service expansion and create sufficient industrial jobs in urban centers to absorb the 

perpetual influx of population from rural areas. However, if the rapid urbanization is not 

properly managed, it is presumed to bring with it a number of development challenges such 

as unemployment, housing shortages and informal settlements, infrastructural and service 

shortages, poverty and social distress.

The major criteria used to classify settlements as urban in Ethiopia are:

i. Minimum of 2,000 people;

ii. Two-thirds of the population engaged in non-agricultural activities;

iii. Chartered municipality;

iv. The presence of social services and amenities

The number of settlements meeting these criteria in 1984 was about 322. These settlements 

had 10.23 percent of the total population of the country and this is one of the least urban 

population sizes in the world. The number of settlements with greater than 2,000 people in 

1994 had increased to 539. These have 12.8 percent of the country's population. In 2007, the 

number further rose to 927. Today, the urban population is about 20 percent of the country‟s 

population.

An overview of the History of Urbanization in Ethiopia

Before the foundation of Addis Ababa as a capital city, the earliest capitals and other towns did not have a permanent population exceeding 6000. These centers were not capable of acting as centers of influence for the life of the population of the rural hinterland in their years of existence. The only prominent urban centers were Axum, Lalibela and Gondar. For many years, in place of a fixed capital, there had been mobile military camps that followed their peripatetic rulers. 

Modern urbanization in Ethiopia is associated with the establishment of Addis Ababa as a capital by Emperor Menelik II in the late 19th century. Unlike earlier capitals, there had been different factors that contributed to the growing and permanency of Addis Ababa as a capital city that are indicated as follows.

 Introduction of the fast-growing Australian eucalyptus tree which satisfied the firewood 

needs of the ever-growing urban population.

 Water supplies improved due to the introduction of wells and reservoirs.

 Introduction of modern schools, hospitals and health centres, hotels, cafes, bars, bakeries, 

butcher‟s shops, cinema, post office, modern cathedrals, telephone and telegraph system, 

bank, printing press etc.

 The construction of roads that radiate from Addis Ababa; and the arrival of the Franco￾Ethiopian railway at Addis Ababa in 1917. 

 The Italian occupation had also intensified the establishment of small-scale industries and  institutions, road construction thereby contributing to the growth of the city. 

Today, Addis Ababa is not only the capital of Ethiopia; it is also the diplomatic capital of Africa. 

Numerous embassies and consular representatives cluster in the mountainous city where the 

Organization of African Unity, now the African Union, and the UN Economic Commission for 

Africa have their headquarters. Addis Ababa is geographically at the very heart of Ethiopia. It 

has a congenial climatic condition. The city enjoys excellent connections with all Ethiopia‟s 

economic zones. It is also connected to the rest of the world via its reputed airlines and various 

international airlines.

For the past several decades, the country has experienced a very low level of urban development, 

despite its high rate of urbanization. Ethiopia is a least urbanized country even by African 

standards. In the words of some writers, Ethiopia is regarded as a „vast urban desert‟. The country‟s low level of urbanization can be attributed to:

 The self-sufficiency of agriculture which reinforced rural peasant life; 

 Low level of industrialization, low level structural transformation and economic development 

 The morphology of the country that hindered transportation and communication 

 The continual warfare for centuries between kingdoms in to which the country is divided; 

and the frequent changes of the royal residence

 Lack of employment, and housing shortage in urban areas that discourage in migration;

 Political instability, ethnic conflict and social unrest during the late 1970s and 1980s;

Drivers of and Opportunities for more Urbanization in Ethiopia

These days, urbanization is proceeding at a much faster rate in Ethiopia. The urban population is growing at about 5% a year, primarily driven by migration to urban areas. The proportion of the urban population of Ethiopia in 2015 (20%) is projected to mount to 37% by 2035.Some of the conditions which have been contributing to expansion of urban areas are (drivers of urbanization):

 The establishment of Addis Ababa as a centre of expansion, and its permanency thereof.

 The construction of the Ethio-Djibouti railway line along which many stations have developed into important towns.

 The five-year Italian occupation which has contributed to road building, the establishment of small-scale industries and service giving institutions.

 The integration of the provincial capitals and major administrative centres found in all directions by all-weather roads radiating from Addis Ababa.

 Political decentralization and provision of administrative status of some urban settlements 

 Proximity to existing cities and main transportation corridors trigger new urban development through agglomeration and metropolisation effects

 High Population density and growth rates in the populous highlands of Ethiopia 

facilitate the emergence of towns

 Presence of new and large commercial farms, mining areas, and agro-industries such 

as sugar factories; as well as mega projects like fertilizer factories, cement factories 

that attract people

 Large infrastructure investments such as airports and highways, and dry ports that 

attract investment and create jobs encourage urbanisation 

 Opening of Universities that support entrepreneurial activity and innovation in their 

local economies

 Tourism assets and attractions such as parks, resort centres, and heritage cities and 

sites contribute to urban expansion. 

 Development of border towns with strengthened inter-country trade

Distribution of Urban Centers in Ethiopia

The distribution of urban centers in Ethiopia shows considerable spatial variation. This 

could be explained in terms of the varying concentration of industries; and services such as 

schools, health institutions, water supplies, electricity, means of transport, etc. Based on 

varying concentrations of urban centers and urban populations, the Ministry of Urban 

Development and Construction identified the following hierarchy of urban centers:

i.The Addis Ababa Metropolitan cluster includes Addis Ababa and its surrounding

towns; and Adama and its surrounding towns

ii.Secondary city clusters consist of: 

 Lake Tana Urban Cluster: Bahir Dar, Gondar Debre Tabour, Debre Markos

 South Rift V. Urban Cluster: Hawassa-Shashemene-Dila; and Hosana-Sodo-Arba Minch

 Eastern Urban Cluster: Dire Dawa, Harar, Jigjiga

 Mekelle Urban Cluster: Mekelle, Adigrat, Shire, Axum 

 Dessie- Kombolcha Urban Cluster.

 Jima Urban Cluster: Jima, Agaro, Mizan, Tepi, Gambella

iii.Tertiary urban clusters include:

 Nekemte Urban Cluster: Nekemte, Dembidolo, Gimbi, Metu, Assosa

 Gode - Kebri Dar oasis city network 

 Semera-Mille – Asaita oasis city network

Like most developing countries, Ethiopia‟s urban population is concentrated in one primate city, 

Addis Ababa. The population of Addis Ababa grew from 1.4 million in 1984 to 2.2 million in 1995, and to 2.7 million in 2007 representing about 29% of the urban population of the country. 

Its current estimated population is over four million.

Growth Rate of Urban Centers 

The annual average national growth rate of urban population is about 5.0 percent. But this being an average, rate of growth of urban population varies from town to town and from time to time. Ethiopia‟s towns are characterized by wide range of growth rates that could be classified into one of the following three broad categories:

i. Declining Towns: it includes towns whose populations are actually declining in absolute numbers because net out migration is greater than natural increase. This could be due to lack of employment opportunities and worsening living conditions. 

Some of the towns that have at least once experienced a decline include, Axum, Goba and Maichew.

ii. Slow Growing Towns: This category is composed of towns that grow at the rate which is less than the rate of natural increase. Towns such as Holeta, Harar and Gore have been indicated to grow slowly in the recent past.

iii. Fast Growing Towns: All towns with growth rates of greater than the natural rate of increase make up this group. These towns pull large numbers of people from the declining or slowly growing towns and rural areas due to the opportunities they offer  associated with expansion in industries, social services or a change in their administrative status as zonal or regional capitals. Given the dynamism, however, it is wise to note that a once declining town could be slowly or even fast growing after sometime and vice versa.

Settlements are categorized as rural or urban based on economic activities and population densities. Rural settlements, where most Ethiopians live, can be temporary or permanent. Temporary settlements are often mobile, particularly in pastoral areas, presenting challenges for social services. Permanent settlements are more stable, with rural highlands featuring fixed locations. Urbanization in Ethiopia is growing due to migration, aiming to improve economic development and quality of life. The criteria for urban classification include population size and economic activity. Addis Ababa, established in the late 19th century, evolved into the capital, supported by infrastructure development. Currently, Addis Ababa remains a significant urban center amid underdeveloped urbanization overall and faces challenges like housing shortages. Urban population is projected to rise to 37% by 2035, driven by various factors such as road construction, industrial growth, and administrative changes. However, many towns experience differing growth rates, with some declining due to insufficient opportunities.