Ethiopia’s Capital Problem – Ethiopia Insight
Finfinnee is a Potemkin city—and an unjust one at that
Ethiopia, often regarded as a rising African power, gives the impression of being on the threshold of transformational change. But closer scrutiny discloses that such change is largely confined to the capital, Finfinnee (Addis Ababa), and characterized by structural inequalities, deepening social cleavages, and exacerbation of historical injustices.
On my trip to Finfinnee in January, I witnessed firsthand the speed of the city’s growth, which is in contrast to the decline of the rest of the country. I saw a city—and a country—trapped in a farce of glittering facades and growing desperation.
The cranes building luxury skyscrapers in Arat Kilo and the neon signs adorning Churchill and CMC streets are just a veil for a story that is marked by systematic exploitation, violent displacement of Oromo farmers from their land, and a government that clings to power through repression and spectacle.
As opposed to the rapidly developing capital city, much of the nation is suffering and decaying. According to a July 2024 World Food Programme report, approximately 13 million people in Ethiopia are in desperate need of humanitarian food assistance, while active conflicts in Amhara and Oromia, along with a fragile Tigray peace deal, continue to threaten stability.
Legacy of Blood
The Ethiopian state has a long history of suppressing the Oromo people, which has intensified over the past decade. According to Amnesty International, between 2011 and 2014, at least 5,000 Oromo were arrested. From 2014 to 2018, more than 6,000 Oromo youths were murdered while protesting the government’s Master Plan, which sought to incorporate surrounding Oromo farmlands into urban sprawl, forcibly displacing Oromo farmers from their land.
The protests culminated in the rise to power of Prime Minister Abiy Ahmed in April 2018. He undermined the TPLF, the dominant force in the ruling EPRDF coalition, which he eventually recast into the Prosperity Party.
Ironically, Abiy’s administration, which rode to power on the wave of the four-year-long Oromo protests, has intensified these policies.
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Forced displacements of Oromo farmers have increased as their lands were sold to the settler elites. Meanwhile, PP operatives, flush with profits from these transactions, squander the proceeds on sumptuous lifestyles, flaunting their wealth in Finfinnee’s upscale bars and brothels, while displaced families languish in slums.
Such a betrayal underscores the administration’s prioritization of economic gain over social justice, further deepening grievances among the Oromo people. Despite having an Oromo leader, the Ethiopian state continues its brutal suppression of the Oromo. Abiy promised justice, democracy, and rights—but delivered only more eviction notices.
Finfinnee’s Facade
In recent times, Finfinnee has seen a rapid construction boom. Neighborhoods are being widened to improve access for pedestrians, bicycles, and vehicles. Older structures are also getting replaced at an astonishing rate. Neighborhoods such as CMC Road, Churchill Road, and Piassa taunt newly finished roads while German Square, Gerji Sefer, and Goro square remain under construction.
The rapid development of the city has led to the displacement of established communities, with neighborhoods like Piassa and Mekanissa being bulldozed to make way for new buildings catering to the upper-class. Such constructions, driven by the pursuit of high foreign investment, are carried out without full consideration of their ramifications.
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The government focus is on modernizing the capital at the expense of marginalized groups, including the urban poor, and most notably Oromo farmers, who are dispossessed without fair compensation or resettlement.
Lights On, Power Off
Per capita energy consumption in Ethiopia is among the lowest in the world, according to the International Energy Agency’s report. Despite claims of economic progress, Ethiopia ranks 183rd globally in energy usage per person.
Commercial areas of Finfinnee shine with lights all night long, while most of Ethiopia stays in the dark. The Ethiopian government focuses on appearance rather than equitable development, as more than 70 percent of the population lacks dependable access to electricity.
Ethiopia might appear prosperous if success was measured solely by quick changes in its capital city. However, the so-called development exists only on the surface, favoring only a wealthy few while leaving the majority of people in poverty. Government propaganda about economic expansion fails to conceal the extensive poverty, systemic corruption, and regional neglect.
The gap between the privileged few and the dispossessed majority is staggering. The rich, consisting of political elites, corrupt officials, and their cohorts, amass fortunes at an alarming rate, while the poor—especially Oromo farmers and politically alienated groups —sink deeper into poverty.
The ongoing centralization of wealth and power in Finfinnee has effectively transformed Ethiopia into a city-state to which the rich from various regions migrate to, further aggravating regional economic neglect.
Daily Struggle
The market for luxury items is booming, yet many residents struggle to make ends meet on limited incomes.
The majority of people cannot afford basic necessities due to severe economic constraints. A basic macchiato costs between 60 to 120 birr, while shiro is priced at 370 birr, and a kitfo meal at a mid-range restaurant like Yohannis Kitfo exceeds 1,100 birr.
Rent prices have similarly soared. A one-bedroom apartment outside the city center, such as Summit, requires a minimum monthly rent of 15,000 birr, despite most workers earning less than 3,000 birr per month.
Meanwhile, the financial support provided to pensioners remains insufficient, averaging just 2,000 to 5,000 birr. According to a 2018 HelpAge Study, citizens above 60 are not covered by any public or private pension plans.
Multiple Authorities
Finfinnee is reeling under four competing authorities: the federal government, the Oromia regional administration, the Finfinnee municipal government, and the powerful Ethiopian Orthodox Tewahido Church (EOTC).
This overlap not only drives disproportionate economic and developmental surge but also ensures better security than any other region, attracting the rich and well-connected from all regions. The city’s population has surged to six million, a 2.3 million increase since 2018.
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The result of this fractured arrangement is paralyzed decision-making and unbridled corruption. The EOTC has become a force to be reckoned with, leveraging religious influence to expand its presence. By transferring a tabot to a new location, the church in effect establishes a place of worship, which can lead to claims of ownership or dominion over the surrounding area
This practice has been contentious, especially when it conflicts with local populations or government, as it not only displaces Oromo farmers from their lands, but also allows the church to seize prime land and operate as an empire without any accountability. Moreover the Church has also been accused of discriminating against the Oromo.
The Mississippi Paradox
The state-controlled media make a lot of noise about economic growth under PP. However, international economic indices tell a different story.
According to the CIA World Factbook, Ethiopia ranks 199th out of 222 countries in GDP per capita. Comparison to Mississippi, the poorest state in the U.S., and Haiti, often cited as the poorest nation in the Western Hemisphere, illuminates Ethiopia’s economic stagnation.
Ethiopia’s GDP per capita ($1,272 in 2023) remains 36 times lower than that of Mississippi ($46,040). Despite Ethiopia’s population of 124 million vastly outnumbering Mississippi’s 2.93 million and its land mass being more than nine times larger, economic progress remains stunted by corruption and elite resource capture.
Even Haiti, long plagued by instability and natural disasters, has the same per capita GDP as Ethiopia, casting doubt on the Ethiopian government’s claims of significant development.
City-State
The government appears to be in control of Finfinnee, but the rest of the country is in disarray. Armed conflict, lawlessness, and ransom kidnappings are prevalent outside the capital.
Not even high-ranking officials, always accompanied by an entourage of well-equipped security forces, dare to travel outside Finfinnee after dark. Ambo, Bishoftu, Debre Berhane, Waliso, and Selale towns have become high-risk areas. Security agents are suspected to be involved in extortion and kidnap-for-ransom schemes.
This is how Ethiopia has become a de facto city-state, where central power is largely confined to Finfinnee, while the countryside remains in disputed control and the government’s sovereignty is effectively limited to the capital’s borders.
Outside this enclave, kidnapping has grown into a lucrative industry. In a pattern that repeats with near impunity, armed groups abduct travelers near cities such as Ambo and Bishoftu, receiving ransom payments deposited into accounts at state-run banks. This collusion between criminal enterprises and government officials highlights Ethiopia’s descent into a predatory security state where the government acts as both arsonist and firefighter.
On the Brink
The current trajectory is unsustainable. Prioritizing urban development over rural communities, widening economic inequalities, and untrammeled powers of religious institutions are all signs of a looming crisis.
The displacement of Oromo farmers, rising corruption, deepening economic disparities, and widespread insecurity beyond the capital expose the fragility of Ethiopia’s so-called prosperity.
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As Addis Ababa is the federal capital and Oromia needs its own hub, there is a glorious solution to the dangerous Finfinnee debate.
This manic urban makeover cannot camouflage the nation’s broader implosion. The mirage of developmental leap has been created through stolen land, rigged markets, and brute repression by the so-called Prosperity Party. As foreign investors and diplomats remain hypnotized by the capital’s glitter, Ethiopia stands at the precipice.
To achieve true stability and progress, Ethiopia needs to address its structural injustices, most notably the chronic marginalization of the Oromo people and other oppressed groups.
As long as equitable economic policies, land reforms, and a commitment to national development are overlooked in favor of capital-based development, Ethiopia’s perceived progress will remain an illusion—one built on its citizens’ misery.
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While this commentary contains the author’s opinions, Ethiopia Insight will correct factual errors.
Main photo: Finfinnee, Ethiopia, December 2024.
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