Environmental Management Challenges of Emerging Industrial Firms: Evidence from Addis Ababa City, Ethiopia

In developing economies like Ethiopia, emerging industries are primarily subject to state protection, as the primary rationale articulated by Hamilton (1791). However, they are less responsive to environmental health degradation caused by their effluent. In this paper, Akaki River pollution in Addis Ababa city is thought-out to understand how those industries aligning the river bank pollute the environment and how local policy is responding to regulate it. By using secondary information, focus group discussion, and critical informant interviews, this study describes that Ethiopian environmental policy, which addresses state and market approaches, is silent in protecting the pollution. However, the societies in the catchment areas, which lack proper property rights of the river, are seriously vulnerable to family health since they use the polluted river water for smallholder farming, drinking, and other domestic activities. Moreover, the weak performance of this policy is a burden for other sectoral policies such as health and agriculture. Empirical studies on river pollution impact are further needed.