The economy and land-use patterns of Addis Ababa are largely based on semi-subsistence agriculture and foresting. Woodlots and plots of cultivated land can be found on any vacant lot within and immediately surrounding the city. Forests and farms near the capital are tended and harvested by residents of the city who transport their surplus goods to the urban markets by foot or on the roofs of cars and trucks.
The most notable feature of the agricultural zone surrounding Addis Ababa is the Eucalyptus forest which by 1964 covered 45 square kilometers of land in the region. The forest provides both a limit to urban expansion and a commercial and recreational resource for the people of the city which has been called, 'Eucalyptopolis.'
In 1969, Ronald J. Horvath published in the Annals of the American Association of Geographers, a comparison of Addis Ababa, Ethiopia with Van Thunen's Isolated State model for near-city agriculture: The model hinges on four basic requirements for the definition of an isolated state:
Several factors in particular differentiate Addis Ababa from the 'Isolated State' referred to above:
The distribution of agricultural land-uses in and around the city match the predicted patterns of the model well. Van Thunen suggested that the market center would be surrounded by six different land-use zones in concentric circles surrounding the city. Land-Use in each zone would theoretically reflect its distance from the market center (i.e.. the most cost-effective crop would be produced depending on cost of transport to market) (Horvath 308). The first zone would be dominated by vegetable and milk production, the second, forests and woodlots for fuel and building materials, and the next three zones would be used for field crops. The sixth zone would involve mostly ranching operations (Horvath 308).
Unlike the model, Addis Ababa is immediately surrounded by a mixed zone of woodlots and vegetable and dairy farms. Most of this land is owned by Amhara and Galla peoples while the Gurage plant, harvest, transport and market the Eucalyptus wood and agricultural products. Because the transport time to the city is greatly reduced when transport of goods on the roofs of vans, cars and trucks is available, this mixed agricultural/ woodlot zone is extended outward from the city along the major roads.
This correlation between woodlot location and proximity to major highways is limited by terrain and soil factors. Of the six major routes radiating from Addis Ababa, the Dessie Road, Jimma Road, Awash Road and Ambo Road are lined with Eucalyptus forests up to 15 miles from the market center (Horvath 314-315). Development of Eucalyptus forests and perishable foods agriculture is limited north of Addis Ababa along the Blue Nile Road by the steep slopes of the Entotto Mountains, and southeast of the city along the Debre Zeit Road by infertile black volcanic soils (Horvath 314-315).
The Eucalyptus forests both in and surrounding the city are interspersed with small plots farmed by Gurage for vegetable production. In some particularly fertile areas, the Gurage have managed to maximize their use of the land and plant vegetables and trees on the same plots (Horvath 316). These urban/rural horticulturists grow foods for the traditional Ethiopian diet including cabbage, shallots, pumpkins, peppers and asparagus (Horvath 316).
In a wide ring, roughly encircling Addis Ababa and itıs forests is a zone of mixed-use agriculture, 50% cultivated, which is primarily farmed on a semi-subsistence basis by Galla and Amhara people (Horvath 319). Much of this land is devoted to grasses for thatching, weaving, animal feed and floor decoration (Horvath 322). Matching the pattern of development of the forests along transportation corridors, the type of farming done varies depending on distance from the market center and roads. Closer to roads, land is owned in larger plots by residential farmers who sell produce at urban markets.
Subsistence farming is more common in less accessible areas. The bulk of transportation of goods from this mixed farm zone to the city markets is operated by merchants from the city who buy farmersı surplus and transport products by truck and by individual haulers, most often Gurage women, who carry goods on their backs as far as 14 miles (Horvath 319).
Milk and dairy farms, which prior to 1950 mirrored the Van Thunen Modelıs predicted distribution in and immediately surrounding the city have been revolutionized in recent decades. Because proximity to the market (within 5 hour walk) was required to keep products fresh, most cows were grazed in the city and surrounding forests. However, a major UNICEF project in the 1950ıs established 60 milk collection centers along roads leading from Addis Ababa, mostly on the Blue Nile Road because it leads to the cool zone where other crops do not grow well (Horvath 321). From the centers, milk is taken daily by truck to the markets, greatly reducing the distance farmers in inaccessible areas have to carry their fresh products.
An attempt by the socialist government in 1974 to nationalize all agricultural land in order to increase productivity was a miserable failure. Officials overlooked the value of the Eucalyptus forests and destroyed many of the seedling farms along the Awash river to make way for agriculture on tilled land. In addition, the socialist economy provided less capitalist incentive for lower class Gurage to grow, harvest and transport the wood and other agricultural products. During the late 1970's, 32% of the cityıs forests were destroyed with little attempt at reforestation or much gain in tilled farm production (Ellis 681).
Read on about Housing Conditions in Addis Ababa