An Investigation of the Factors Underlying Informal Settlement Growth : Evidence from the City of Burayu, Ethiopia

Developing countries continue to see informal settlements proliferate in their cities. Burayu city is no exception to this trend. Realizing why informal settlement exists and persists is critical to addressing its challenges. But, there is a paucity of a pluralist perspective to investigate the factors of informal settlement growth in the case study area. Based on institutions, structural agencies, and social non-compliance frameworks, this paper investigates the process and triggering factors for informal settlement growth. The study used primary data collected through questionnaires, key informants, interviews and observations supplemented with secondary to obtain the empirical data. The study shows local informal institutions play a crucial role in informal settlement growth by using an informal written contract of sale supported by social networks. Moreover, the study identifies rural-urban migration, speculation, locational choice and lack of good governance as precipitating factors for informal settlement growth. Furthermore, actors also use formal institutional loopholes to engage in informal buildings. Therefore, along with government structure ineffectiveness, informal actors are identified as important, though commonly neglected, factors of informal settlement growth. This calls on the city government to give space to informal actors in city land management and to include their positive contributions in policy formulation