Urbanization is changing Africa’s landscape at a very fast pace. Rapid urbanization amidst increasing urban poverty will challenge Ethiopia’s capacity to meet the economic, social and infrastructural needs of its urban population unless better urban planning, policies, and programs to spur job creation and provide basic services for the growing urban population are implemented. Other negative effects of the urbanization trend include an increase in the number of slums where current infrastructure is inadequate, and higher rates of poverty and inequality are observed. Ethiopia like other countries has realized the potential of cities as engines of economic development, thus the need to adequately plan and manage their growth. The emphasis on the role of cities in the national economy is clear in the recently approved 2nd Growth and Transformation Plan (GTP II). Already more than half of Ethiopia’s Gross Domestic Product (GDP) is produced in cities, making the city a very important part of the nation. With this understanding, the focus is shifting from the idea that urbanization is difficult to manage, to how to re-position urban areas guided by an integrated urban policy and strategic framework.
As Ethiopia strives to become a middle-income country by 2025, the government's ability to transform the country into an industrial society will be determined by the capacity of its urban areas to improve their efficiency and productivity. This can be achieved through well-planned quality infrastructure, developing the human resources in the fields of science, technology, entrepreneurship and development management, the maintenance of a 'hospitable business environment' for boosting investment, and sustaining a vibrant economic growth and job creation[1]. In order to achieve the objectives of the GTP II, the government has set aside several strategic and policy documents including the need to proactively manage the on-going rapid urbanization to unlock its potential for sustained rapid growth and structural transformation of the economy and building a climate resilient green economy, among others. So far Ethiopia’s urbanization trends point to the need to not only ensure proactive management, but also facilitate long-term planning.
[1] World Bank (2012), Light manufacturing in Africa: Targeted Policies to Enhance Investment and Create Jobs, Washington DC, USA.