April 2022 – Launch of Property Tax Pilot in Yirgalem City

In April 2022, an agreement with the Sidama Regional State, the Mayor of Yirgalem, and the Municipality was reached, to undertake a comprehensive update of property assessments and taxation procedures in the city of Yirgalem. Currently, Yirgalem collects only 3% of its potential tax revenue, highlighting the critical need to expand its revenue base to enhance service delivery to residents.

The implementation of a streamlined digital platform for property valuation was proposed, aimed at expediting the assessment process and increasing the number of properties subject to taxation. This simplified assessment methodology was formally introduced in May. Henri ten Broeke  presented the approach to officials from the Sidama National Regional State Government Bureau of Development and Construction, Finance and Economic Bureau, Revenue Bureau, Regional Presidential Urban Development Advisors, Standing Committee Chairmen, as well as Yirgalem City Mayor and City officials.

Participants were briefed on the technical assistance provided by the project to enhance revenue generation in Yirgalem City and to revamp the financial management system, with the ultimate goal of addressing the city’s infrastructure requirements and improving municipal services. The pilot implementation is scheduled for June 2022. Drawing on many successful interventions e.g. in Ghana and Mozambique, the assessment tool will undergo scaling up to additional cities in Ethiopia following its initial deployment in Yirgalem.

The city of Yirgalem will become the early adaptor!