Unbundling Land Administrative Reform: Demand for Second Stage Land Certification in Ethiopia

Ethiopia has implemented one of the largest, fastest and cheapest land registration and certification reforms in Africa. While there have been evidences of positive impacts of this land reform in terms of increased investment, land productivity and land rental market activities, the government is now piloting another round of land registration and certification that involves GPS measurement and computer registration. This ‘Second Stage land registration’ is expected to replace the registration from the first round that used field markings in combination with memory of the neighbors to identify plot borders. We use panel data from 600 households in two regions (Oromia and SNNP) to investigate household perceptions and demand for such a Second Stage reform. Our study has revealed a relatively low demand and WTP for Second Stage certificates. The WTP also decreases significantly from 2007 to 2012 while the value of land increases dramatically in the same period. Households with larger land holdings and male-headed households whose First Stage certificate contained only the husband’s name are especially less interested in a new registration. Households who attended a meeting on land registration are more interested and willing to pay for Second Stage certificate. The demand for Second Stage certificates comes primarily from the Land Administrations as it can provide a better basis for Land Administration and produce public documentation of land-related affairs.