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Abstract The rapid expansion of informal settlements poses significant challenges to urban ecosystems and their services, a pressing issue that this study addresses by examining its impacts in Addis Ababa. This study delves into the impact of informal settlements on ecosystem services in Addis Ababa, comparing them with formal settlements. Utilizing geographic information systems (GIS) and remote sensing, it employed Landsat imagery, aerial photography, and base maps to track spatiotemporal changes and analyze trends. Through a GIS overlay approach, informal settlements and associated land use changes were identified, while the benefit transfer method assessed ecosystem service values. The findings revealed a significant increase in informal settlements on the city’s outskirts, expanding from 77 ha in 2009 (2% of the total area) to 765.6 ha in 2023 (21% of the total area). Nearly half (48.5%) of these informal settlements were established on previously natural land covers through encroachment. The research highlighted the ongoing conversion of agricultural land, forests, and urban green spaces into informal settlements, particularly on the city’s outskirts, leading to significant encroachment on these areas. This transformation caused an annual loss of $1,665,033.7 in ecosystem services from 2009 to 2023. Significant impacts were identified on food production, climate regulation, and habitat ecosystem services. Overall, the annual loss in ecosystem services due to land use changes amounted to $1,933,320.08. Informal settlements accounted for 86.1% of this total loss, highlighting the urgent need for targeted interventions to mitigate their disproportionate effects on ecosystem services. The study underscores the urgency of addressing the impact of informal settlements on ecosystem services through effective urban planning, sustainable land management practices, prevention of encroachment on natural land covers, and promotion of sustainable ecosystem management and utilization. |
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