Urbanization in Ethiopia has accelerated rapidly over recent decades, leading to significant demographic shifts and changes in urban governance structures. The research employs a mixed-methods approach combining qualitative interviews with quantitative data from administrative records. Informal settlements in Addis Ababa account for approximately 70% of the city’s population, with significant disparities in access to basic services such as water and sanitation. The findings highlight the challenges faced by social welfare systems in providing equitable services to all urban residents, particularly those living in informal areas. Policy recommendations include strengthening community participation mechanisms and integrating informal settlements into broader urban planning strategies. urbanization, Addis Ababa, social welfare, Ethiopia, informal settlements