Twenty percent of Ethiopia’s population is urban dwellers; and the urban expansion rate has reached 4.6 percent due to the primary reason that towns are considered as economic and political engines, according to a data from the Ethiopian Central Statistical Agency.
The rapid economic growth of the country is the other basic reason why the cities are expanding leading to the increment in the number of rural-urban immigration. Hawassa, the capital of the Southern Nations, Nationalities and Peoples State, is one of the fastest-growing cities of the country. The city’s infrastructures are adequate and well-kept, and are known for being the center of industry and tourism. Its administration is also undertaking developmental and good governance activities aimed at benefiting the city.
Similarly, various data show that the city’s investment activities have grown rapidly in the last decade (from 2008 to 2018). Despite the decreases in the number of new investment projects in various fields, the projects are being carried out successfully, with significant changes in the city’s social and economic development.
And investment is expanding in the city’s large-scale construction area, allowing the urban view to be transformed, increasing its revenue and providing dwellers with job opportunities.For example, the Hawassa Industrial Park, the first of its kind built in the city, has greatly changed the landscape of the city. It created jobs for both the city’s dwellers and other citizens during construction and operation. And it has created a range of business activities in the surrounding areas and in the city.
Including all these, City Administration Deputy Mayor, and Finance and Economic Development Department Head, Geletaw Geremew said that the city administration is working with a wide-ranging vision. He said that investment expansion has an irreplaceable role in the development of both the city and the country. Hawassa has also been focusing on investment in the recent years and has achieved the current status.
At this point in time, the city competes with not only the local cities but also with East-African and other regional and international trade, industry and tourism hubs. It is envisioned to be an industrial and a tourist attracting city like Dubai.
According to the Deputy Mayor, the city is led by the principle of ‘Hawasa will resemble Dubai’ by 2030. In order to upgrade the city to that level, there must be investment that initiates the economic development. “And, if there is investment, there will be saving and vice versa.
Hawassa is located in a relatively accessible area, making the transportation of goods to and for the city affordable and manageable. It is a city of natural and man-made resources surrounded by a lake, mountains and conducive climate which makes it best alternative for investment.
Investors engaged in service, manufacturing and other sectors in the city are doing their job efficiently, reducing the number of urban unemployment and contributing to the development of the city in particular and the country in general. “We have been introducing various sites to promote our city. The city’s infrastructures are well under way with good governance. This can be a lesson for other cities, “ Geletaw said.
As investors become successful, the city’s growth also increases. “The city is not budgeted by the central government; it collects its own revenue and finance itself. It is also built on its own infrastructure. Therefore, supporting the investors is not an option but a must,” Geleta added.
Instability, investment
The government has been focusing on the stability and security of the city. The problem has been resolved and other resolutions have been made. Hawassa is very stable and the security is reliable.
According to the Deputy Mayor, “the cause of instability and insecurity is a bit of a force for disrupting the change. As a result, the trade and investment activity is being intensified. The flow of investment is also reflected in the increase in current investment.” He indicated that the investment demands are being made towards which the city administration is working.
Some parties are releasing fake news in the social media, but this does not necessarily represent Hawassa. The investors are becoming more profitable than any time in the past. This is a demonstration of the peace and stability in the city; and investment request are also increasing.
Furthermore, Geletaw said, “we attempt to capture investors’ profits by calculating the tax they are paying. The profit indicates the effectiveness of the businessmen. On this basis, the business community is moving on its own, guaranteeing its profitability.”
Investment week, city’s active participation
The city administration has enabled the investors, government service delivery entities and other business owners to take part in the Ethiopian Investment Forum organized by Addis Ababa City Administration Investment Commission. This is due to its strong desire to expand investment. Government bodies have also been found to participate in the forum, Geletaw noted adding, and “we support the business closely.”
In addition to this, he said, “the investors participation on the forum proves that we are committed to expand investment and work collaboratively with the private sector.” He also explained that investors’ participation in the investment week could be practical evidence.
He continued saying, “We came up with a good hotel experience in the hotel industry as a result of the commitments of the hotel owners. That’s the reason why we believe in investment. We have come up with the best results in the sector.”
And those investors who invested in the agricultural sector have been successful; he furthered that “It is worth exploring the accessibility of the investors to bring a successful investment to the forum.”
The city administration took part in the forum on the basis of the government offer like the other towns; he explained noting, “We want investors to know the potential of the city as they come to the forum. We have sponsored some of these cafes, such as city pubs, and some of the jobs in the forum and doing other things. We have no more options than attracting investment.”Likewise, he noted that the investors’ participation on the forum is a tangible evidence for the stability and security guaranteed in Hawassa.
Therefore, currently there is no security problem rather than usual peaceful and inviting business environment in the city as the investors and businessmen are highly committed with community and the government to protect them. It is more reliable if the investor speaks. Investors are not showing signs of security. Through this, media agencies also want to help us.
Readiness-to-accept investment projects, infrastructures
One of the basic investment infrastructures is standard road. And Mojo-Hawassa highway is under construction which is great opportunity for the city. It also has a standard airport and huge park. These all will increase the flow of investment and the city is well prepared to welcome any kind of community need based investment.
The deputy mayor even showed the government’s commitment by saying, “Indeed, we’re very much prepared to bear more. The city’s model indicates this. The model shows what the current status of the city is and what it will be after five or ten years.
In fact, when it is said Hawassa may become synonymous with Dubai by 2030, does not mean through building high story towers. “What made Dubai has its current international standard is its own account that makes it unique. And Hawassa will be made unique by its natural and man-made resources,” Geletaw stated.
It may be made a more tourist destination if it is based on what other cities of the country are not aware of or not paying attention to. The number of tourists and investment coming to the city will increase boosting its development.
Specifically, said Geletaw, “That is our vision which enables us to deal with the investment and tourist flows to the city. We have developed our own techniques to achieve the vision. One of these is participating on various investment and similar forums to introduce the city’s options. The other is using the opportunities those come for the country. There are those who make us the ones we own.”
There are three basic needs for an investor to invest. These are land, labor power and financial institutions with infrastructure. In terms of financial institutions, the city has a lot of financial institutions.
The Development Bank of Ethiopia is one of the financial institutions the city works with very collaboratively. “The bank is working with our investors and business owners. The other critical investment stakeholder institution is electric power utility which is working hand in hand with the city. And we have made the necessary preparations on water supply, investment sites identification and road.”
There is enough labor power from daily laborer to professionals. It is a city where people can find the kind of human power they want. In general, Geletaw says, “Hawassa is a complete and clean city. We are working to fully welcome the investors and tourists who come. We are ready to bear the investment.”
The Ethiopian Herald, May 31/2019
Translated by Dirriba Teshome
