Regional and Local Development Studies

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Browsing Regional and Local Development Studies by Subject "Addis Ababa"

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    Assessment of Private Domestic Investment Challenges and Prospects in the Service Sector in Addis Ababa Ethiopia
    (Addis Ababa University, 2024-02) Buraka Tujuba; Andualem Goshu (PhD)
    This study aimed to examine the landscape of domestic private investment in Addis Ababa, Ethiopia, by focusing on the challenges and Prospects. The study used mixed study design. The data was collected from 298 investors operating in Addis Ababa. Among the significant challenges were issues related to macroeconomic stability, with concerns over access to foreign currency and fluctuations in exchange rates standing out prominently. The dominance of micro and small enterprises in certain sectors such as transport, waste management, and media were noted, contrasting with larger firms' prevalence in the real estate, health, and hospitality industries. High loan costs posed another substantial obstacle, alongside challenges stemming from inflation, an unreliable electricity supply, and contraband activities. While taxation and corruption were perceived as manageable, policy uncertainty and political instability emerged as growing concerns. Despite these challenges, key service industries like finance, education, and ICT were identified as holding potential for private investment, albeit with access barriers. Moreover, Prospects for expansion in credit extension and insurance were noted, albeit modestly. The quality of public infrastructure, particularly in power, water, and telecom reliability, was deemed in need of improvement. Workforce gaps, especially in skilled labour availability and raw material access, were also highlighted. Challenges in Addis Ababa's investment landscape include macroeconomic instability, high loan costs, and infrastructure deficiencies, while Prospects lie in key service sectors like finance, education, and ICT. Addressing these challenges and capitalizing on Prospects requires stabilizing the macroeconomic environment through comprehensive reforms and targeted initiatives across strategic sectors to foster a conducive ecosystem for inclusive growth and job creation.
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    Public-Private Partnership: An Innovative Financing Strategy for Affordable Housing in Addis Ababa City Administration
    (Addis Ababa University, 2025-05) Girma Birhanu; Teshome Tafesse (PhD); Tesfaye Zeleke (PhD)
    The challenges associated with providing housing in urban centers have turned in to an overwhelming burden due to the lack of financing capacity of local governments. Nowadays, countries have considered the private sector’s involvement to finance housing provision through Public-Private Partnership arrangement. In Ethiopia the efforts of affordable housing provision exacerbated by the financing shortage and the soaring inflation which requires policy attention. Whereas, the increasing demand for housing due to rapid urbanization and population growth made the efforts of housing provision a difficult task. Although, Addis Ababa City Administration has been trying to tackle housing shortage over the past twenty years through Integrated Housing Development Program the achievement was far behind the target set by the city. Recognizing this drawback, the city has decided to engage the private sector in the efforts of housing provision through the Public-Private Partnership arrangement. The study adopted a pragmatic philosophical approach. Moreover, sequential mixed explanatory approach was utilized to get into the insights from the large number of respondents through surveys, allowing for a comprehensive understanding of the theme through qualitative data. The findings of the study shown the project initiation, resource allocation, and signing of the contract document were areas of good performance. However, lack of participatory risk identification, failure in clearly identifying the deliverables, and the delay in starting the construction were weakness observed. Moreover, private partner’s engagement shown lack of transparent competitive procurement which fails to reflect the true offering of the market. On the other hand, the partnership effort faced challenges like funding constraints, lack of targeted incentives, weak institutional capacity, and the private sector’s inability to raise the initial 30% of the project cost. Likewise, with regards to finance and risk sharing Public-Private Partnership appears a feasible financing option. Finally, the research recommended the implementation of Transparent Land Based Housing Financing Model. To achieve efficiency in the public-Private Partnership implementation ensuing competitive procurement, enhancing institutional capacity and participatory risk sharing strategy are emphasized.