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The Impact of Industrial Investments on Land Use and Smallholder Farmers’ Livelihoods in Ethiopia

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  • Debela, Diriba Dadi
  • Stellmacher, Till
  • Azadi, Hossein
  • Kelboro, Girma
  • Lebailly, Philippe
  • Ghorbani, Mehdi

Abstract

This study analyzes industrialization-induced agricultural land conversion (ALC) and its impact on land use change, food crop production, and the livelihood of smallholder farmers in peri-urban Gelan and Dukem, Oromia Region, Ethiopia. The study was carried out using a mixed method approach, i.e., qualitative and quantitative methods. Data were collected through various methods, e.g., household survey, expert interview, field observation, and focus group discussions method. Furthermore, a total of 223 interviews with farmers were conducted in Gelan and Dukem. Results show that large-scale industrial investments in the case study area led to substantial land use change, an appropriation of agricultural land, and an increase in the number of landless farmers, as well as farmers with small farmland holding sizes of less than one hectare. At the same time, the total crop production in the area decreased. The ‘development pace’ of the investments is often very slow. Only 28% and 37% of the licensed projects in Gelan and Dukem had entered their operational phases by the end of 2014, respectively. The study concludes that if the incomes of smallholder farmers are not enough to meet the needs of their families, they will need to create some income alternatives. Thus, considering the population growth and limited farmland, it is necessary to support various income-generating activities in order to improve farmers’ livelihoods rather than depending entirely on low productive methods such as traditional agricultural activities and non-mechanized production tools. It is worth mentioning that the results of this study will enhance the positive impacts of ALC and minimize the negative ones through land use planning and management tools. Furthermore, the main findings allow us to specify the gaps in access, utilization, and coverage due to wrong policy priority and institutional and technological variables.

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  • Debela, Diriba Dadi & Stellmacher, Till & Azadi, Hossein & Kelboro, Girma & Lebailly, Philippe & Ghorbani, Mehdi, 2020. "The Impact of Industrial Investments on Land Use and Smallholder Farmers’ Livelihoods in Ethiopia," Land Use Policy, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s0264837720300235
    DOI: 10.1016/j.landusepol.2020.105091
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    References listed on IDEAS

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    1. Bekele, Adugna Eneyew & Drabik, Dusan & Dries, Liesbeth & Heijman, Wim, 2021. "Resilience of agropastoral households affected by large scale land investments: The case of Ethiopia," 2021 Conference, August 17-31, 2021, Virtual 315087, International Association of Agricultural Economists.
    2. Kumar, Pankaj & Kumar, Parveen & Garg, Ramesh Kumar, 2021. "A study on farmers' satisfaction and happiness after the land sale for urban expansion in India," Land Use Policy, Elsevier, vol. 109(C).
    3. Fituma Lemessa & Belay Simane & Aseffa Seyoum & Girma Gebresenbet, 2023. "Development-Induced Impacts on the Livelihoods of Displaced Communities: The Case of Bole Lemi Industry Park, Addis Ababa, Ethiopia," Sustainability, MDPI, vol. 15(13), pages 1-19, July.
    4. Kongsen Wu & Dongyan Kong & Xinjun Yang, 2023. "The Impact of Rural Industrial Development on Farmers’ Livelihoods—Taking Fruit-Producing Area as an Example," Land, MDPI, vol. 12(8), pages 1-21, July.
    5. Bekele, Adugna Eneyew & Drabik, Dusan & Dries, Liesbeth & Heijman, Wim, 2022. "Resilience of Ethiopian Agropastoral Households in the Presence of Large-Scale Land Investments," Ecological Economics, Elsevier, vol. 200(C).

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