The Opportunities And Challenges Of Implementing Special Economic Zones In Ethiopia: The Case Of Gada Special Economic Zone In Adama, Oromia

Abstract

Special Economic Zones (SEZs) are vital for economic growth, especially in developing countries, by offering incentives to attract investments. In Ethiopia, SEZs aim to boost industrialization, improve infrastructure, and create jobs. The Gada Special Economic Zone (GSEZ) in Adama, Oromia, is a key initiative in this strategy. For the purpose of this study, mixed-method both qualitative and quantitative approach and descriptive research design were used. The study was adopted the stratified random sampling technique to select respondents from Gada SEZ. Sample size was determined using the formula of finite sample size and 77 respondents were selected for the purpose of data collection. Data were collected from employees through closed-ended and open questionnaire. Descriptive and inferential statistics were used to analyze the data. The responses were analyzed using descriptive statistics (mean and standard deviation) to summarize perceptions of the opportunities and challenges if GSEZ implementation. The findings indicated that the Gada Special Economic Zone is contributing to the economic development of the regional state by attracting foreign direct investment, skilled labor, and technology transfer. The study identified that the main operational challenges to the successful implementation of the Gada Special Economic Zone were the following: a lack of a suitable regulatory and policy framework; the availability of inadequate infrastructures; a shortage of skilled labor; community resistance and political instability and economic implications. The thesis concludes that the successful implementation of Gada SEZ can assist the region's economy through job creation, FDI attraction, skill transfer, technology transfer, and infrastructure improvements. Finally, the researcher recommended for the Gada Special Economic Zone Authority and the Oromia Regional State to collaborate with the Federal Ethiopian Invetment Commission in order to attain the Gada Special Economic Zone's objective. Key words: Special Economic Zones, Opportunities and Challenges, Gada Special Economic Zone, implementation