Addis Ababa Embraces Smart Parking with U.S. Firm USP Holdings

A Public-Private Partnership between the Addis Ababa City Administration and USP Holdings is set to digitize parking across the capital with a set of automated solutions. The Company, with nearly three decades of experience in providing parking solutions in the US, is rolling out at least 10 digital parking hubs in the coming weeks. These include sites around Stadium, Kasanchis, Arat Killo, and the new Addis International Convention Center (AICC) locations, while several other locations are currently in progress.

In Addis Ababa, parking has long been managed in a fragmented system, with youth associations taking the lead under the certification of the Traffic Management Agency (TMA). Despite the city being home to 60% of the country’s vehicles, the revenue from roadside parking remains strikingly low. Parking fees can soar to 100 birr per hour on certain streets, yet the returns don’t reflect the scale. The Agency, which claims 20% of the fees, pocketed just 1.8 million birr over nine months in 2021, highlighting the system’s inefficiencies.

While attempts to modernize Addis Ababa’s parking dynamics by the City Hall go back nearly a decade, successfully onboarding the private sector has remained elusive. The 15-floor facility, built for 150 million birr and fitted with smart traffic tools, is one of the handful of successes. Transport authorities had identified around 60 locations back then suitable for off-road parking solutions. More recently, TMA had announced plans to digitize parking, along with other traffic management operations like traffic fines, by the end of 2025 to source increased revenue for the city and streamline the fragmented management. The new system, developed by USP Holdings, will be integrated into this broader plan.

Ben Tesfaye, Managing Partner of USP Holdings, considers parking services to be an untapped sector capable of generating millions in revenue. He says a lack of seriousness around the potential of parking solutions has hindered any significant progress.

Recent reports estimate that the size of the global smart parking market is valued at around $8.13 billion, with annual growth expected to reach around 40.79 billion in a decade. Cities like Nairobi, Kenya, generate nearly 3.3 million dollars from parking fees in a single quarter, signaling a source of untapped revenue for other African metropolitan areas.

“Parking is a real estate in itself,” the managing partner told Shega.

USP began its operations offering a 30-slot parking facility in Washington, D.C, in 1998, charging $2 per car. The Company has now expanded with a portfolio of parking assets in premier airports, stadiums, and entertainment venues. Its suite of parking solutions in Addis Ababa import features like automated access control, cashless payments, and real-time space monitoring. 

“The parking lots in Addis will be fitted with the latest technology,” Ben says.

A standard QR code will be displayed at the entrance of the parking lots, which assigns parking slots, starts the timer, and collects information about the car. As drivers exit, they will be able to make digital payments from any financial institution integrated into the Santim Pay gateway. Drivers without smartphones can access the service through a USSD push facilitated by standby employees at the parking lot gates.

The system will enable the centralized collection of revenue into an account managed by City Hall and TMA. Ben says wages to parking officers will be paid from the account, which also offers incentive-based bonuses.