Poverty Profiling in Addis Ababa and Dire Dawa City Administrations, Ethiopia

This paper has tried to investigate the general poverty profile of the three project sites in Ethiopia. In addition, its objective is to generate poverty maps for the sites. Data from 5,619 households were collected and analyzed to determine the poverty level and income inequality problems in the area. Two of the project sites were in Dire Dawa while one was in Addis Ababa. One site is rural in nature while the other two are urban. Some of the core indicators used to identify or investigate poverty profile are: health and nutrition, housing detail, sanitation and water supply, education and social engagement. The results and discussion of all these indicators are presented in tabular, map and model output forms. This paper has used the Foster Greer and Torbek (FGT) poverty analysis model to determine the percentage of poor and non-poor in the areas. Further Gini coefficient and Lorenz curve were also utilized to check the presence of income inequality. Although other indicators show mild problems, the indicators related to housing, toilet facility and social engagement indicate that the project areas have severe problems. Meanwhile, policy recommendations have been made to address these specific problems. Some of the recommendations include the following: pro-poor rural development income distribution intervention for urbanites, social capital inducement, and investments in housing and sanitation facility.