Journal of Cultural and Social Anthropology Volume 1, Issue 3, 2019, PP 1-22 ISSN 2642-8237

Challenges and Opportunities of Investment to the People of Town, Regional State

Kebede Lemu Bekelcha* Lecturer at Bule Hora University, Bule Hora, *Corresponding Author: Kebede Lemu Bekelcha, Lecturer at Bule Hora University, Bule Hora, Ethiopia, Email: [email protected]

ABSTRACT This study deals with the challenges and opportunities of investment to the people of Sebeta town. Currently, countries throughout the world are intensifying investment activities in African countries. Ethiopia is one of them. The developing countries are in need of heighted investment activities for employment and income generation. Despite its positive impact pertaining to employment, investment also brings challenges to the community. The focus of this study is to investigate the challenges and opportunities of investment to the people of Sebeta town of Oromia Regional State. To achieve this objective, both primary and secondary data was used. For this purpose, informants selected from the displaced people, government officials, workers of different investment types and selected residents of the town were participants of focus group discussions, interview (semi-structured), observation and case study. In such away, 141 individuals were directly involved in this study. In anthropological studies, analysis is an instrument to extract meanings from the information obtained during the field work. In such a manner, data were presented in a qualitative type. The result of the study showed that local communities lost their land, which used to serve for farming and residential purposes with inadequate cash compensation, rivers were contaminated by waste released from companies, labor exploitation and number of workers in several companies were disabled, and instability in the town. Investment also brought several opportunities for local people as source of income, skills and technology transfer. Local communities used daily labor, self-employment informal sector to sustain their livelihood. Based on the findings of the research, some alternatives were forwarded that could solve the problem and capitalize the opportunities available. In this regards, implementing proclamations and regulations of the country, prioritizing people in decision making and reconstructing the livelihoods of displaced household‟s need emphasis by the concerned bodies. Keywords: Investment; Challenges; Opportunities; Livelihood; Sebeta.

INTRODUCTION leads to infrastructure expansion, creates more jobs and skill, increases the domestic food Flow of investments in developing countries supply, increases access to market and foreign may seem to be a fairly recent phenomenon. exchange reserve and these contributes to However, such operations have a long history in “sustained” and “broad based development” many countries. During colonial times, foreign (World Bank, 2010). But Andersson and powers established large plantations in Asia, Robertson signaled the dangers associated with Africa, and Latin America. They use local investments in Africa such as, natural resource populations for labor and host country degradation, loss of indigenous practices and populations benefited little (Vhugen, 2012). increasing food insecurity and conflict Since 2008, what appeared as a new boost of (Andersen & Robertson, 2010), because, neo-colonial resource exploitation in Africa by government authorities give away land to investors from more-developed countries, led to investors without consulting land holders or heated debates on land grabbing in the media, their communities (Mesfin, 2013). Hence, the and created concern among civil society and views are mixed whether investment brings international organizations, as well as development meaningful benefit to the local community or agencies and researchers (Kaarhus et al, 2010) not. However, the expropriation of millions of Scholars have long debated the impact of hectares of arable land by foreign investors took investment on the economies of developing place in developing countries which caused countries. Many argue that investment is development agencies and researchers to be beneficial for the receiving country (host) which concerned about it due to its environmental,

Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 1 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State political and socio-economic impact on the host countries (World Bank, 2010; Geary, 2012). A countries and contribution to improve the public debate among international organizations, development aspects of the host countries researchers and environmentalists is developing (Desalegn, 2011). Currently, worldwide countries regarding opportunities and threats of are intensifying investment activities in Africa investment in Africa by investors. and most African countries attempted to create Investment brings good opportunity to enabling environment in recent decades. Like developing countries and for investors as well. other African countries, Ethiopia designed own But, it also has its own drawbacks if not handled investment policy, in order to attract investors to well. The most frequently noted negative impact invest in Ethiopia (Dejene, 2014). Ethiopia has of investment on local communities was received foreign and domestic investors, and reduced access to land (Vhugen, 2012). blamed for investments not carried out in a Particularly, investment has contributed to manner that safeguards the environmental, employment creation, foreign exchange and social, cultural, and food needs of local people. transfer of technology, skills and knowledge in In the course of reviewing findings of some to the economy (Isabelle, 2015). On the other previously conducted studies, it has been hand, it has risks such as releasing wastes to the indicated that many recent investments have environment of local community, displacing entailed the dispossession and displacement of households and dismantling their normal households, damaging their local livelihoods, livelihood (Songwe and Deininger, 2009). food security and access to key resources. For Abbink (2011) states that, Ethiopia is in the instance, plantations in the lower Omo River and forefront of handing out land. More than Lake Turkana have pushed out local inhabitants 180,000 hectares of land along the Omo River in (Hodbod et al, 2019). Such investments entail southwest Ethiopia has been given for negative impacts particularly on the local communities, who see their livelihood hampered investment where various agro-pastoral peoples by land acquisitions. (Bodi, Me‟en, Mursi, Hamar, Karo, Nyangatom,), who survived there for centuries and use the Thousands of people have been displaced from area intensively. Consequently, protests broke their ancestral land due to investments in out by local people and were suppressed by Ethiopia and have failed to feed their families government militia forces. afterwards (Oakland Institute, 2011). This is the forcing of communities and individuals out of Concerning the area under study, a lot of their home, often also their homelands, for the changes have taken place since 2004, a period purposes of economic development (UNHD, when establishment investment projects in the 1990). Such failure of investment created lose- town and thousands hectares of land given to lose-lose situation for investors, host countries investor(s). As the main development corridor and local communities. of Oromia, the trend of investment in Sebeta town is enormous. However, the impact of this However, employment is one key factor for situation has not been studied wisely. For conveying the effects of investments and local example, Dejene (2016) studied impact of urban people often identify jobs as the most important sprawl on farm lands, the case of Sebeta town. and immediate benefit of investments. Investors Fayera (2005) conducted research on impacts of often claim a commitment to bring technology, expansion on farming community create jobs and an adequate infrastructure in the on peripheral area. Teshome (2014) wrote his recipient country. In general, beside its PhD dissertation on The Transforming Power of opportunities, investment has many risks to Urbanization: Changes and Uncertainties among local communities and their environment. In the the Farming Community in Laga Xafo-Laga same manner, people of Sebeta town are Dadhi Town. From the themes of these studies, encountered a number of investment related we can see that none of them has dealt with the problems alongside its benefits. overall challenges and opportunities of investment projects on the livelihood and STATEMENT OF THE PROBLEM environment of the people rather than the Studies have been conducted in a range of expansion and power of urbanization on the countries to document and analyses investment farming community. In addition, Ermias (2009) projects and their impacts on local communities. studied prospects and challenges of real estate Governments and corporations have been development on livelihood of rural communities: acquiring large tracts of land in developing the case of Lega Tefo Lega Dadi. Kuma (2012)

2 Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State studied performance, challenges and prospects  What are opportunities investment bought to of private investment in Sebeta town. These people of Sebeta town? studies are failed to give emphasis on all  What are the major changes and challenges investment projects and their opportunities that occurred due to the investments in rather than focused on real state and private Sebeta town? investment alone respectively.  How do inhabitants of Sebeta perceive The area is also believed to have high potential investment? for the growth of investment due proximity to  What are the coping strategies of the local capital city, relatively availability of basic people to overcome the challenge of infrastructure and favorable landscape. investment expansion? However, there are complaints against investors as majority of them did not develop land they SCOPE OF THE STUDY have been allotted for investment purposes. This study was delimited geographically, Studies suggest that some projects are carried thematically and methodologically. out without consultation with local communities Geographically, the study was conducted on and without their knowledge (Getnet, 2012). Sebeta town where large numbers of investment Moreover, there are grievances on certain activities are taking place. Thematically, the companies due to releasing wastes to rivers and study focused on challenges and opportunities open field land areas of local community of investment to people of Sebeta town. This without proper treatment. Thus, on certain study covers investors/managerial staffs, companies, local people complain about bad workers of selected companies, people who lost smell, health problem. Untreated wastes also their land due to investment purpose and damages animal health and generally affects the affected people by investment projects and living and non-living things in the environment. youths of the town. Methodologically, this study In light of this, the study was initiated and used a qualitative approach and the methods aimed to examine the challenges and used in the collection of data were interview, opportunities of investment to the people of focus group discussion, observation and case Sebeta town. study. OBJECTIVES OF THE STUDY THEORETICAL FRAMEWORK General Objective Theory/model is/are mainly used to see how The general objective of this study was to things work and to test our data whether it is examine challenges and opportunities of valid/invalid or applicable/not. Accordingly, investments to the people of Sebeta town, during the course of my fieldwork, I found out Oromia regional State. that the on-going investment activities in Sebeta Specific Objectives town can be reflected through two extremes. These are „development‟ thesis and „culturalist‟  To identify the opportunities that investment anti-thesis. The „development‟ thesis contends brought to people of Sebeta town. that investment will foster development and lead  To explore the major challenges that to technology transfer while its „culturalist‟ anti- occurred due to the investment in Sebeta thesis emphasizes the fact that investment town. alienates small-holder agriculturalists and  To examine how people of the town perceive indigenous communities from their traditional the investment. rights to land, thus endangering domestic production and food security (Lay & Nolte,  To examine the coping strategies of the local 2011). Therefore, challenges and opportunities people to overcome the challenge of investment expansion in the study area. of investment to people of Sebeta town can be addressed via these two theories. RESEARCH QUESTIONS Moreover, „basic need approach‟ is also The research questions proposed for this important for the problem at hand. In the mid- research were originated from the practical 1970s, the „basic need approach‟ was problems that initiated this study. The following popularized by the International Labor research questions developed for this research Organization (ILO) and subsequently by the are based on the statement of the problem as World Bank (WB) (Seers, 1970; Streeten et al., follows; 1981). This approach argued that development

Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 3 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State projects should give priority to increasing the Dima (05), (06), Sebeta (07), Kerabu (08) welfare of the poor directly through projects and 09 Kebele (Furi Gara Bollo). targeted at improving food security, education, housing, health and so on. To do so,the three HISTORY OF THE TOWN pillars of sustainability (economic, social, and According to data obtained from the environment) need to be incorporating one municipality of Sebeta town, Sebeta and another and Ethiopian government need to Alemgena had emerged before the Italian compel to an „integrated approach‟ that fully invasion in 1935 and it has got municipal status considers the interest of people of Sebeta town. in 1954. Formerly Sebeta (the current 01 kebele Generally, the sustainability paradigm rejects and 07 kebele), Alemgena (the seat of the the imbalance among its three pillars current 02 kebele) and Woletie (the current 03 (environmental, social and economy. Instead, kebele and part of 04 kebele) had been sustainability is a paradigm for thinking about a developed separately following the road from future in which environmental, societal and Addis Ababa –. The informant also told economic considerations are balanced in pursuit me that regardless of its location at the border of of development and an improved quality of life Addis Ababa city administration and along the (Mckeown, 2006). In this way, the Ethiopian road from Finfinne (Addis Ababa)-Jimma, government‟s strategy, Agricultural Development Woletie has shown urban character in 1990s and Led Industrialization (ADLI), can be successful has become part of Sebeta. A record from (achieve its goals) and Ethiopian people can be Sebeta municipality shows that the town was alleviated from food insecurity and poverty. formally given the status in the year 2005, Therefore, Ethiopian government‟s strategies although the area (Sebeta town) was under the are on the verge of falling unless integrated administration of „Aanaa Sabbataa Awaas‟ approach is not implemented (Azeb, 2017). (Sebeta Awas district) of south west shewa zone. RESEARCH SITE One of my informants among local elders told me about the nomenclature of the town as Sebeta town is one of the urban centers in follows; Oromia special zone surrounding Finfinne (Addis Ababa) situated at about 24 km on the The town gained its name „Sebeta‟ from south western direction of the capital city of different assumption, which of course results no Ethiopia along Finfinne (Addis Ababa)-Jimma basically changes of its meaning. The name road. Oromia special zone surrounding Finfinne „Sebeta‟ (Afan Oromo in origin) literarily means (Addis Ababa) was established in 2005 by a scarves like textile mostly women used for combining some parts of the north shewa, east wrist betting, with collared at both ends. One of the ancient ruling kings of Jimma, namely Abba shewa, south west shewa, and west shewa zones. Jifar, on his way travelled from Jimma to Addis At present, there are eight towns including the Ababa, named several towns on the way and at present research site that fall under the last arrived at Sebeta Town. Since his followers administration of this special zone. Therefore, in on the travelling exhaustively tired of the long all directions the administrative center of the zone is journey, to encourage his followers and for Finfinne (Addis Ababa). Sebeta is dominated by demonstration, they approached to Addis Ababa different chains of mountains including city, Abba Jifar, the accompanied ruler, Wochocha, Mogle, and Furi Mountains. instructed verbally “Sabbata keessaan Regard to relative location, it shares common jabbeeffadhaa” meaning make strong your back bone by traditional belt known as „Sabbataa‟ to boundaries with Addis Ababa in the north, north encourage his followers when they were close to east and east, town in the north, and Addis Ababa. Then, it has assumed the local rural villages of district to the people, since then, began to call the area as north and west (Atkure and Ahmed, 2013). Sebeta, and thus remained the favorite common Astronomically, Sebeta town is located within name of the town. (Source: Interview, April, 10, an approximate geographical coordinates of 80 2019, Alemgena). 53' 38.50" N- 80 59' 58.17" N latitude and 380 35' 11.91" E- 380 39' 33.75" E longitude on the According to the data obtained from Sebeta globe and its average elevation is 2365 meters town municipality, the current total population above sea level (OUPI, 2007). Currently, the is 336,975, of 139,131 men and 197,844 town has eight Kebeles which include Sebeta women. The total area of the structure plan of (01), Alemgena (02), Walete (03), Furi (04), Sebeta town prepared by OUPI in 2008 was

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9827 hectares. The area of the town increased to which the subject or interviewee gives the 17,503 hectares in the structure plan revision of required information orally in a face-to face 2018 by OUPI. The area increased by 7676 situation (Teshome, 2014). In this study, I used hectares in 2018. The town has shown semi- structured interview methods. Thus, issues tremendous physical growth of 78.1% towards concerning the subject under study were collected southwest, east and northeast directions though through developing interview guideline that almost all activities are concentrated along the contains a series of open ended questions. In highway to Waliso and highway to Butajira such way, interview was conducted with (OUPI, 2018). government officials (Investment Office, Labor and Social Affairs Office, Land Administration, RESEARCH METHODOLOGY AND DATA Environmental Protection Office, Urban Job COLLECTION METHODS Creation and Food Security Agency and Culture The research methodology in this study is more and Tourism) in various times to understand of a qualitative type. Additionally, the quantitative their views and concerns about investment and approach is used to supplement the qualitative its impacts on the individuals‟ life. data by providing quantifiable evidences that Moreover, displaced people were selected for reveal the impact of investment on the town as a interviews to express their views regarding the result of the investment projects expansion in investment process in their locality and the the study area. In order to collect the necessary resulting outcomes. Accordingly, 31 displaced qualitative and quantitative data, a combination people were interviewed. Workers from of instruments is used so as to make every data different investment sites were selected by complement each other. considering their sex, marital status and age and Qualitative approach has been used to collect interviewed on the impact of investment. Hence, the perception and attitudes of people in the 36 workers from different investment sites were study area regarding the socio-economic interviewed. Investors/managerial staffs of some changes and challenges and opportunities of selected investment projects based on their investment activities. In addition, this approach magnitude of impacts to people of the town has been used to explore the opinion of the were also participants of the interviews informants from the people regarding the level conducted at various time. Accordingly, 12 of participation in planning and implementation companies‟ managers were interviewed. of investment activities in their locality. In general, informants were selected by To do so, interview (semi-structured interview), considering their diverse experience in terms of focus group discussion (FGD), observation and their experience, age, work, position and gender. case study were employed to generate data from FOCUS GROUP DISCUSSION different sources. In addition to the primary data, secondary data was used. A focus group discussion was conducted to facilitate the discussion among a small group of Purposive and Snow ball sampling were used to the entire. In this study, focus group discussion select the participants for the qualitative data was used to produce information on topics that where informants were selected based on their require group viewpoints and sometimes experiences. They were also selected based on consensus or disagreements. It helped to capture age and sex characteristics to capture the view and understand challenges of investment on of various community members. Participants local people, the impact of losing land to working in different government institutions investment on households, the changes observed were purposively selected based on the on environment after the advent of the responsibilities they have in their respective investments and opportunities of investments to institutions. In such away, 141 individuals were local people. Based on the above rationale, I directly participated in this study. On the used this method by organizing four focus group process of the interviews, there were situation in discussions including of 8-10 participants were which some informants informed me to other conducted. informants who had better understand of the situation. The first FGD was held among displaced people. It constituted nine displaced people. The INTERVIEW second two FGD were conducted with group of Interview, in most qualitative research, is taken men and women workers of some selected as a process of communication or interaction in investment projects which constituted eight and

Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 5 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State ten members respectively. The fourth was were drawn in the due process of the interview conducted with the youth selected from the town in the field work and incorporated into results depending on their awareness of the situation I and discussions section. was interested in. Accordingly, nine youths were participated in focus group discussion. SECONDARY DATA In general, a total of four focus group Primary data need to be supported by previous discussions were conducted to gather the data research and other documents in order to make for this study. I undertook the discussions by this research richer in data and strengthen the preparing checklist for focus group discussion argument for its accomplishment. Hence, I used and at suitable time and place selected depend secondary data such as available books, on the agreement of the participants. Generally, proceedings, research reports, journals articles, the purpose of focus group discussion was to newspapers, electronic materials, Proclamations, generate and cross check data gather from Constitution of the Country (Ethiopia), Investment individual informants and to gain general Contractual Agreement, Ethiopian Investment information about the challenges and opportunities Policy, Ethiopian Environmental policy, and of investment in the areas. other relevant literatures. OBSERVATION DATA ANALYSIS Observation provides an opportunity to get Data analysis is one of the most important beyond people‟s opinions and self-interpretations of stages of any research. It is a step-by-step their attitudes and behaviors towards an examination of issues and their connections. In evaluation of their actions in practice (Gray anthropological studies, analysis is an 2004:238). In carrying out this study successfully, I instrument to extract meanings from the negotiated and made relationship with the information obtained during the field work people, government officials, investors and (Teshome, 2014). Any researcher has the workers for observation activities after I responsibility of analyzing data to meet his/her explained my objectives and presented the objectives as well as to make the findings ready reference letter from the University to them. In for scholarly consumption. The analysis was the course of fieldwork, I observed, manufacturing, guided by the research questions and objectives. agro-industries, flower farms, real states and Therefore, after data collection completed for others which are under construction projects and this study, I copied information from tape record occupied land by investors and fenced for a long and gave meanings. In general, the qualitative period of time. Most of the observations were data was presented in a descriptive form chance-based to cross check if the data I throughout the writing in such a way that it collected through other techniques match with helped for further interpretation and the making what is real on the ground. In such away, I took of meanings. photograph to support the personal observation. This helped me to see what are on the ground RESULTS AND DISCUSSIONS regarding investment activities in Sebeta town. After relevant information was collected, data Hence, I was in research site in order to presentation and analysis are the necessary step. carefully observe what is going on from the Hence, this chapter includes results and beginning to the end of the field work. In discussions of data that were collected through general, observation was so important for me to primary and secondary sources. Interview, focus capture the practical occurrence on the ground to group discussions (FGD), case study and strengthen the data obtained through interview, observation were techniques employed to collect focus group discussion and case study. primary data on challenges and opportunities of investment on people of Sebeta town. Secondary CASE STUDY data were also utilized in the presentation and I documented two of actual cases that happened analysis part of this paper. on local people by investments in the study area. These include affected households/individuals OPPORTUNITIES OF INVESTMENT about the effects of losing land to companies on Ethiopian government uses investment as one of their incomes and livelihood in general. So, life the most important and effective strategies for histories were analyzed and interpreted by economic growth, food security, and poverty examining the subjective experience of reduction in the country (Azeb, 2017). Major individuals. Therefore, life histories of individuals sectors of investment created thousands of

6 Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State temporary and permanent of job opportunities. creation, investment also has own crucial role in As the town is very close to the national market technology transfer. and major international and national outlets, For instance, Ayka Addis Textile and investments especially manufacturing industry Investment created job opportunities for about dominates comparing to the other economic 10,000 Ethiopians. It also uses raw materials sector. Hence, the main opportunity of such as cotton from domestic market creating investment in the study area is expanding of linkage for local economy. Furthermore it livelihood options for local people through job benefited the country by generating foreign creation. Getting a job can increase local currency. Partial view of the factory is seen in standards of living and help employees to the following photo that was taken by the manage their ways of lives in a good condition. researcher during field observation. For some, investment came up with several opportunities. As obtained data from interview with TM, he stated his success history as follows; Case1 Mr. TM was one my informant among displaced people. Mr. TM was totally evicted from his farm land 4 years ago. Now, he is living in Furi Gara Bollo (09) kebele of the town. Mr. TM, after obtaining a compensation payment, he built 11 rental rooms in his residential Figure1. Partial photo of Ayka Addis textile and compound. As he said, “each of the rooms now Investment (May, 07, 2019) is rented with 600 hundred ETB per month.” It means he earns 6,600 ETB; it is equivalent to 231.57 USD per month. As he describes in terms of cash, he earns much more than in the past. As to him, now he is able to buy 2 laptops for his 2 children who learn in and Universities. He is able to cover his home and his children‟s monthly expenses. In fact, Mr. TM noted before he spent the money elsewhere, his sons advised him to build a rental houses. As he said “my first plan was to buy a cart for local transportation purpose but lately my sons advised me and turned me to this business. Figure2. Employment opportunity created by the investments in the town (Source: Sebeta town JOB CREATION administration investment office, May, 2019) Thousands of people get jobs in investments Manufacturing sector is the leading in number activities from daily laborer to a highly of firms, amount of capital, occupied land area demanding professional job. A number of in hectares and employment opportunity. Flower people‟s live have been changed as a result. firms and commercial firms are the two According to data gathered from investment investment sectors creating large employment office of the town, there are around 782 opportunity next to the manufacturing sector, investment projects. These investment projects (2,974) and (2,837) respectively. opened job opportunities for more than 60,124 people, out of these, 50,123 created by the TECHNOLOGY TRANSFER AND COMMUNITY manufacturing sector. Town with high economic SERVICE growth attracts potential investments and creates One of the objectives of attracting investment is employment opportunities. From the economic to foster the transfer of technical knowledge, activities of the town, manufacturing sector is skills required for the progress of the country. the one in which many job seekers get job Technology transfer, diffusion and skills opportunities. However, still many rural training should be taken as one among the key migrants and newly graduated students are in competence areas of industrial investment to be search of jobs in the town. Not only job competitive in their products.

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Accordingly, there are investment projects helping the vulnerable and orphan children perceived positively by most community (Raphi Soap detergent) are few. members interviewed because of making the The company like (e.g. Best Plastic Factory) is people beneficiaries through providing training perceived positively by most community for locals on bee farming (Soziit honey and wax members interviewed because of making the agro-industry), pure water (Tal flower farm), local people beneficiaries through providing sponsoring local events and building recreation various services such as pure water, and uses center (Meta Abo Brewery), digging and significant proportion of raw materials from building public toilets (Huda Construction), local sources.

Figure3. Water provided by Best Plastic Factory for public (Source: Picture taken by the researcher during field observation on May, 2019). MAJOR CHALLENGES OF THE INVESTMENT trend of investment in the town is enormous. A number of manufacturing plants and associated Initially farming was the mainstay of the service and related factories are established. As inhabitants in the study area. Through time, socioeconomic features started changing mainly a result, some challenges have been occurred to from farming to daily labor, petty trade and people of the town. These challenges are micro and small enterprise. Now, high discussed as follows; investment in the area resulted in high job INVESTMENT RELATED CHALLENGES opportunities most of the residents are working in industries about 60,124 individuals, mainly as The establishment of investment projects is a daily laborers or semi-skilled professional. increasing in Sebeta town. However, there are Data obtained from interview show that there basic hindering challenges. Firstly, some of the are two major socioeconomic changes; investment projects (for example, HAFDE, Balazaf Alcohol Factory) are nominal and do  Location shift of farming practice from sub- not invest trust-worthily. Some others start urban areas to more peripheries. building and stop after a certain period; others  Changes of livelihood from farming to petty fence and rent the land rather than the intended trade/own business and daily labor. purpose which the case is getting worse as the concerned authority did not took immediate With regard to economic changes, mainly measure for such occurrences. agricultural production and productivity changed in the study area. In addition to that As Vhugen (2012) stated, investment has risks high migration due to economic and investment such as loss of land, conflict and social unrest, activity increased over the past one decade unsustainable resources use and environmental attracted people from different parts of the degradation. At the beginning, I have been to country. Areas that were previously cultivated Dima (05) where I observed many socio-economic changed to industrial areas. Farmers in the problems related with displacement for investment periphery changed their land to other forms, like purpose such life after displacement and their sold for others, houses constructed, take over by access to social services. The problems of investment activities. In the past one decade, households displaced from their land overlooked more specifically in the past five/six years, the in the name of development.

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LAND EXPROPRIATION their land, which sometimes leads to violence, death and destruction of property (e.g. burned Government of Ethiopia is providing land for factories in Sebeta like Sygen Dima). investment with a variety of incentives such as repatriation of profits, hiring expats, custom In Sebeta town, as in other parts of the country, duty exemption, income tax exemption and etc. the attention focuses on allegations that people It believes that investment is a crucial way to are being displaced from their land in order to fight poverty among other approaches, is to make space for investment. Though it is known make use of available natural resources. to be an autonomous town, these days, it is However, this exercise is not positively viewed almost difficult to find a spatial boundary of this in all corners and which benefits investors at the town with neighbor towns and rural kebeles. expense of the people. Hence, it ignores the This has happened as a result of the culture and identity of local people and is being establishments huge investment projects like implemented through displacing of local from flower farms and manufacturing industries.

Figure4. Total Investments by number of firms, capital registered and land size (Source: Sebeta town administration investment office, May, 2019). As illustrated in figure 1, above, manufacturing plastics), etc. Polluting the environment is a takes the major share in number of firms; capital serious problem in Sebeta town. During the field registered and land area in hectares. Accordingly, visit, I observed that animals drink Sebeta River the manufacturings are 418 in number (53.45%) which carries wastes of factories alongside to by registering about 19.1Billion ETB (88.84%) the river. One informant during focus group and occupying the land area of 364.015 hectares discussion said that “I lost one milking cow in (45.50%). Trades take the second part in number 2018. It drank this river and passed away”. of firms (129, 16.49%) and 5th and 6th in Other participant of the interview also share this capital and land area coverage. Next to the problem and added that, had it not been the manufacturing, the largest hectares of land situation improving we could have lost many occupied by flower firms and real estate, (217, animals. 27.12%) and (95.86, 11.98%), respectively. On Most of the high water consuming industries in the other hand, like as the largest amount of the Awash basin area draw water for production capital and hectares of land occupied by purposes from water supply sources and manufacturing industries, the largest number of discharge their by-product wastes in to streams employment opportunity also created by this and rivers without any kind of treatment. sector (50,123; 83.37%). Besides this, there is no restriction on industrial plants discharging their waste water into the ENVIRONMENTAL POLLUTION rivers and water courses. The below photo was Some industries generating liquid wastes, solid taken during field observation. It was the waste wastes (especially the under composed materials, releasing from Ayka Addis to the river.

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hasn‟t used because of power shortage. Due to this, the company ordered not to use the molasses and that releasing to the environment so far (Source: Interview, April 10, 2019, Sebeta). The above response show that the waste released from the industry has harmful effect on the environment. Untreated wastes also damages animal health and generally affects the living and non-living things in the environment. Hence, it has adverse effect on the environment and human if it is not properly managed. Figure5. Liquid wastes discharging to the river (Source: Photo taken during field observation on In the same manner, the office of Environmental May, 2019). Protection and Greeneries stated the impact of Meta Brewery that, although the factory One of the participant of the focus group improves many things such as environmental discussion said that, “we sometimes use the conservation, reducing amount of wastes, but polluted water for irrigation, we have no another the liquid waste is not eliminated at all. The option but it will affect our health, i.e. resulted water, polluted with this liquid wastes released in itching of our leg and feeling of discomfort from the factory, is not good or suitable for on our health. We will farm it when the rain is drinking and for other usage. These imply that coming at least it decreases its pollution effect”. the factory discharges their wastes into nearby According to data obtained from interview with water bodies and open land with little form of town‟s Environmental Protection and Greeneries treatment. This implies that the implementation office, some investment projects became of the policies especially to penalize industries environmental challenges. For instance; Haffede who does not follow the rules and discharge Tannery Industry has been built on the side of waste without treatment to river is slight. the river and Finfinne (Addis Ababa) to Jimma main road. It discharges liquid wastes to the Again, as the data obtained from interview with river without proper treatment. Due to this, Environmental Protection and Greeneries office decision to close taken over it in 2017. However, shows that Gedeong Garment, capacity of the sister company (garment) inside it still on working treatment plant built by the factory and amount of water it release not match. The town‟s Again, according to the data obtained through administration environmental protection and interview from the office, Haffede Leather greenery office advise them to reduce the Industry is one of the major export earnings in released amount of polluted water discharged to the manufacturing industry in Ethiopia. However, Atabala River. A year ago, the factory was there is a challenge in tapping its economic closed since it did not bring any changes from benefits with minimizing its pollution effects to this regards. However, now a day the factory on the environment. It becomes delicate to maintain works showing some improvements in reducing practically both keeping the environment pollution of water. But, it does not able to sustainable and growth of the industry. This shows eliminate all in all released polluted water to that implementing environmental policy of the Atabala River. Hence, the release of waste has country in harmony with the required growth of not been regulated until this data collected. leather industry becomes a difficult task for the Another factory that was contributing to government. Another factory that damages the environmental pollution is Blue Nile Factory. environment in the town is Balazaf Alcohol As the expert of office of Environmental factory. The environmental protection and Protection and Greeneries told me that Blue Nile greeneries office‟s expert stated it as follows; Leather Factory…First of all it was not built at Balazaf Alcohol factory had released „Terefe the right place. The factory was built at River Mirt‟ (left output) to the river against the side and existing in the residential area and environmental protection rules and regulations. school side. The factory built tertiary treatment Farmers and their production both livestock and plant; however, it was not successful. Due to cereals were affected by this „wastes released this, the factory is still closed. The question here from the industry‟. The factory built treatment is closing can be the end solution? Because, plant costs around 80 million ETB, although it there is no measurement taken over such

10 Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State factories than closing. Now, there is no what from within. But, this day the factory is re- they were contributing to the town‟s or country‟s instigate as it imports machine from abroad and development. able to retain the dusts within. As I observed during field work, the Flower Generally, as the above examples show that farms also releasing the polluted water to the some investment projects in the town seem like farmers‟ farm. I asked the Environmental Protection irresponsible investment for environment. Also, and Greeneries which is a responsible for this industries established along the river side and issue. As the interview with Environmental main road and industries mixed with the Protection expert revealed that the flower farms residential houses and releasing wastes to river owners claim that they belong to the federal streams should be relocated/must use treatment government. In a sense they, can‟t obey to the plant not to releases even bad odder. As result of town‟s environmental protection and greeneries. this, many rivers and streams are heavily Furthermore, the community has complained polluted as they flow through the town. Hence, over the flower farms as the chemical usage of this study is very limited and not addresses the the farms affecting bee farming. This implies that whole pollution problem in the town. such chemicals threaten human health and According to data obtained from interview with ecosystem function as a whole. one of town resident revealed that the negative According to the data obtained from interview effects of investments are discharge chemical with one informant from member of the waste, labor exploitation and misuse land community stated his ideas as follows; allocated for investment purpose. This issue is Minaye packaging is a factory that contributing raised also in focus group discussion with displaced people. As per the focus group to environmental pollution in Sebeta town. It discussion results, some plants (such as grass) was closed so far for releasing liquid waste to dried, water was contaminated (rivers in the the environment, but now it is on work. We are town) and some trees were severely affected and living here around the factory. Finally we stunted by the chemical waste. However, except collected petition to the town administration few number of investment projects, the Sebeta environment protection and greeneries office town administration did not respond to asking to close the factory. (Source: Interview, community‟s complaints about the investment‟s April 10, 2019, Sebeta). irresponsibility on abuse the environment and This shows that Factories are contributing to the exacerbating the growing tension between loss of the well-being of the society and are one investors and local people. of the causes for the society‟s health problems. As discussed above, certain industries off their In principle, development activities of the normal operation due to measures taken by the country are meant to make the lives of citizens town‟s environmental protection office due to better off. But if the benefits people get out of polluting the environment and river streams. development activities such as the development After measures taken over the selected of industries is overwhelmed by the problem manufacturing industries, the industries cut off they face, it is considered as undesirable to society. all the work forces worked in the industries for As the data obtained from interview with the years, and stop production. The closed industries expert of the office of environment protection neither relocated nor operating. This situation and greenery, another challenge one for the brings significant pressure on the country‟s environment is Plastic producing factories. They economy (trade balance, currency inflow), are over seventy in number in the town. They employment opportunity and psychological and are distributed in the town unevenly. Most of the social impact in general and on the town in plastic factories are not practices recycling the particular. outdated products. Some of the factories undertake the recycling, but factories released In general, lack of environmental impact bad odder while recycling. In the same manner, assessment before land is leased to investors has Capital Cement sometimes releases urine from been one of the most burning issues which their own toilet to the surrounding drainage surfaced in this study. Failure to assess and canal and to the open areas. Furthermore, based implement findings of the environmental on the research result of the town administration impacts assessment of investment project is environment protection and greenery office, the likely to lead to tension among government, factory shutdown last due to the dusts released investors and local people.

Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 11 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State

RESISTANCE AND INSTABILITY Initially, I was a farmer before my land taken out by investors. I have eight children. I have no As land expropriation and forced displacement other experience than farming. My land is for investment purpose continue throughout the Oromia region in general and Sebeta town in already taken by investor last eight years ago particular, local people resisted to land (2011). The government gave me very few birr, dispossession has emerged. As one informant 15,000.00 ETB (526) for three hectare. “Osoon from displaced people during interview elucidated lafa sana sitti agarsiisee dhugaadha hin jettu, that from the very beginning, the oppression of isa waaqni guddaan haa dubbatu” (you don‟t the state has led to opposition of citizens through a believe if I show you that land, I gave my truth variety of demonstrations. Many peaceful to God).”Qe‟een koo humnaan narraa protests have been brutally repressed by police, fudhatame. Akkan dinnicha dhaabee daraaree protest leaders have been arrested and detained jirutti balleessan” (They took my compound and mostly their complaints have been ignored in forcefully. They cleared my immatured potato in the last four years ago. my compound with bull dozer). However, until now they did not invest it. They unable to create Informant told me that the main cause of local people movements is against displacement with job opportunity for us. I unable teach all of my inadequate compensation. Many local people children. Now, three of them dropout of school have resisted to defending their land and fighting (Source: Focus Group Discussion, April, 20, against the government. However, then problems 2019, Dima). remain unsolved. Informants expressed feeling of This response shows that the implementation of hopelessness. “Homtuu kan nuu dhaga‟u hin jiru, rule of law is very slight. Even if the above yoo jarri ammaa kun nuuf dhaga‟e malee” mentioned farmer has no any information how (nobody gave attention for us, we hope the his land compensation is estimated, on the current government give hear for our grievance). purpose of attracting investment into the county Therefore, the best they can do is to facilitate is for job creation, technology transfer and reasoned discourse among the interest groups. currency exchange. However, from the above DISPLACEMENT AND LOSS OF LIVELIHOOD mentioned, land was taken by the investor, but In the study area, the establishment of not serving the local people, government and investor itself. This opinion directly goes with investment projects dispossessed local people the intention of Proc No.455/2005 which from their lands which are their main livelihood dictates that farmers should be informed and be bases. However, a few of them are remaining convinced that their land is going to be with small size lands that are not sufficient to expropriated for development projects. support their families living condition. This is because they were obligated to give up their According to data obtained from interview with land holding thereby loss diversified livelihood informant from investment office of Sebeta activities. town, since 2008, the government has awarded thousands of hectares of most fertile land to Mass numbers of people have been affected by foreign and domestic investors. Despite the fact displacement. More than 1315 hectares of land that local people were displaced and lost their have been transferred from people to investors incomes and livelihoods. Therefore, most of for investment purpose (including operated, displaced people require assistance to be able to under construction and not invested and simply participate in development projects in a fenced land). meaningful fashion. According to one informant from displaced One of local people aged 43 and dweller of the people during focus group discussion explained urban stated the situation as follows; that key actors who involve in displaced us is government in collaboration both domestic and I don‟t know how I tell to you. In the last four foreign investors. They have taken out our land years ago, I had two hectares of land in this through violent force and unlawful process. kebele (04). By the advent of investment, I Displaced people mostly have not received dispossessed my lands and the government proper compensation. This informant also stated handed out to investors. I did not get sufficient what she faced as follows; cash compensation. I was not volunteered to

12 Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State displace from my land. The administrative units Case1 of the town frightened me as I displace with th Ato NE aged 56, educated up to grade 7 during decided cash compensation and told me that Derg regime is one of the displaced farmer from government can take any necessary measurement 02 kebele. He has 8 family members which over you. “As jiraachuf wabii maalii qabna?” dependent and managed under him. Previously, (What is the guarantee we have to live here?). I he owned 2 hectares of lands, animals (cattle have five children. All are dependent and with and sheep) and other developed trees and well me. Then, I rent a house for my family. After six organized rural houses, and he is one of the month, the compensation money becomes model farmers of the kebele. He has received getting low and I employed in one company as a compensation of 18 birr/kaare.sqm for 2 hectare guard. Still now, I am working as a guard and and 300,000.00 birr or (10526 USD) in 2014 for serving my family”. There is no any property other immovable assets and he is not much what I inherent my children than poverty”. He satisfied with compensation given to him added that “Land is everything. What is the comparing with current market value. He is value of money? It is ice, it has gone. If the land criticizing consultation mechanism employed, is with us, we will free from hunger and grievances handling procedures. He has been miserable life. (Source: Interview April 10, severing after leaved their original place 2019, Furi (04)). without any facilitated option. There were no The above response shows that the displacement skill training for him and his family on how to is not depend on the willing of the people. Also, lead his future life. He witness that there is no mechanism deployed by the government for there was no any entrepreneurship training for sustainable livelihood. His sons and daughters displaced households. These people do not are still in search of constant job. He is very know how to use money. Additionally, the much concerned about the future of his and his response show that how much they are attached family life. He believes that local communities to land for their survival. are not yet benefited for investment projects as Another participant of my focus group expected and promised. discussion with displaced people told me new Moreover, in all of the interviews and focus mechanisms of displacing local farmers. He told group discussions conducted with the people, me what he experienced during displacement as their response indicates that all of them had lost follows; their source of income which was based on I am a father of three children. I engaged in farming. As a result of this, the displacees had faced serious challenges to find and engage in farming. I have two hectare of land. Last five other income generating activities since they years, the local government officials ordered me lost their source of income based on farming. to displace and take out land for investment The fact that all the displacees of the investment purpose with very few cash compensation which projects had lost their source of income in the cannot reconstruct my livelihood. Hence, I displacement and faced huge challenge to resisted against land dispossession. Then, the restore their source of income by engaging in government officials take out all land which another activity. surrounding my land gave it for investors. The The following photo was taken during field investors started construction on the land which observation by the researcher to identify is neighbor of my land. My land left inside. investment related challenges in the town „karaa natti cufanii, bahaa fi gala na dhorkani‟ administration. It shows that although some (they locked all direction to me to access to investors have implemented their projects and social service. There is no exit). Later, they the local communities are started to benefit from made me as I displaced. I cannot do anything those investments in a direct or indirect ways, rather than give. (Source: Focus Group but numbers of projects like shown in photo Discussion, April, 18, 2019, Daleti). below started in 2011, it is about eight years old The above response shows that land locked has laid to failed to use the allotted land in spite mechanisms is one way that government of the fact that the developers are obliged to officials and investors displace farmers from operate and make the local people, themselves their land. and government beneficiaries.

Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 13 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State

Figure6. Land taken for investment and simply fended for eight years without expected purpose (Source: Photo taken during field observation on May, 13, 2019). Displacement tend have negative impacts on individuals have tried to submit the complaint to livelihood and employment of affected people. related authorities at both local and national With this regard, one participant of focus group levels to give their land back or at least to grant discussion with local people addressed how he them a new suitable land but there is no positive come to hear for the first time that his land was response until this data collected. There were going to be used for development purpose as once offered an alternative land but it is located follows; in remote area, far distant to places of employment and facilities such as school, road In the beginning, a woman in my neighbor came and other social services. to my home and told me that we are going to be displaced. I was very shocked and I asked her LABOR EXPLOITATION how she came to know about. She told me that Most locals, according to the data obtained from she heard from government officials of the focus group discussion, are employed as daily town. After this, we spent more than two manual labourers and sufferproblems related to months worrying about the fate of our children the problem of their wages including not being after displacement without getting any tangible paid on time. No local community member has information. Finally the government officials been involved in the management or administration called us for a meeting and informed us we will or technical work of the companies. They imported be displaced within less than three months. managers from their country and Addis Ababa. (Source: Interview, April, 27, 2019, Walete). Interviewed employees revealed that they This show that the time given for the displacees is not enough even if decision was made by worked overtime with 5 ETB per hour. concerned government bodies. This fact is also However, the daily working hours of the an indication of absence of the displacees country set on the Labor Proclamation was eight participation in the decision making process hours. But, employees work more than 12 hours regarding an issue which would have a deep per day including the weekend, excluding effect on their life. What the participant Sunday without adequate payment for overtime. indicated in his response “we spent more than Basically overtime is not necessarily problematic if two months worrying about the fate of our it is not excessive; workers are compensated children after displacement” which could panic appropriately and it is chosen freely. However, the displacees and affect their efforts for in most of the cases in investment projects of advance planning about their life after the Sebeta town, it is not voluntary and that workers displacement. are not given the opportunity to refuse in accordance with their rights. Most of the people have become landless and homeless. In many cases, they have lost their Even if the payment is vary across companies, farmland and cannot grow their own food. employees monthly salary did not exceed Furthermore, they have to spend a lot of money 2000.00 ETB. In response to this, employees to build new houses without proper compensation frequently reported to town Administration from the state. This displacement has dismantled Labor and Social Affairs to deal with different the livelihoods of the community. There are also companies on the matter of wages of employees, individuals have not received cash compensation. but none of them negotiated the case. The office Participant of focus group discussion with of Labor and Social Affairs confirmed the case displaced people informed me that these on investment forum held in Sebeta town in

14 Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State

May 14, 2019. I attended the forum and one of operation of different machines. An accident its main objectives was to identify investment caused by machine is common in factories. related problems. Among these problems, Electric shock is also another cause of disability violation of the rights of their workers as well as in several factories. Hence, leg and hand/finger lack of safety among factories is one. are injured commonly with these causative conditions. As a result of these factors causing For instance, Yes Water Factory which is found incidents in different investment projects, in 02 (Alemgena) kebele. It is a factory that disability is suffering the employees of some grievances break out over following removal of companies. The causes of disability in industries 89 factory‟s workers without tangible reason as have been attributed to many factors. These are members of removed workers have been lack of training, heavy chemicals, working interviewed. There is no money they compensated. position standing, working position sitting, However, the managerial staff member of the guarding on machinery, working more than company blamed this case and informed me that expected time are few. One participant of my the removals of these workers were related with interview stated her ideas as follows; disciple rather than something else. The case took one year in court. My disability forced me of the chance to Additionally, as a data obtained from an participate in begging. My hand was cut by interview with one of the workers service Driver machine in the factory. There was no any of Ayka Addis Textile and Investment Company training for new employees I took before was summarized as follows: operating the machine. This made me disable. The factory paid me 29,600 birr as compensation My salary is 1200 Ethiopian Birr per month. three years ago. I have no birr now. Now, I am This was even not enough to feed my family. I sitting here and on begging. (Source: Interview, have three children. Hence, this birr is not April, 17, 2019, Kerabu). sufficient and left from school fees. My land was taken for investment purpose. The last This response show that the occurrence of option is to withdraw the job and search another accident were attributed to lack of knowledge in with bring adequate salary (Source: Interview what employees do during different process of May 1, 2019, Alemgena). production and basic training on machines In the same manner, another, informant from before start. Hence, new employees should be youth also expressed his opinion during interview trained because the more they know is the more as follows: careful they are. I did not see any better benefit the investment LOCAL PEOPLE’S PERCEPTION OF project brought to our community than before. INVESTMENT Some of the displacees are employed in the The second objective of the study was intended company but it is very low level jobs like to identify the local people perception/attitude security guard and janitor. These people were towards investment. Accordingly, the attitude of well to do farmers before the displacement. But the people was partially negative. I gave due currently they are working as security guard and attention to the people response in interviews, janitor earning small amount of salaries. (Source case study and focus group discussions Interview, May 12, 2019, Furi Gaara Bollo). conducted toward investment. I have also asked This above stated ideas implies that the the participants direct questions intended to livelihood of local displaced farmers were better elaborate their attitude towards the investment. before displacement. Because displaced farmers were more familiar in farming than any other REACTIONS AND ACTIONS OF THE jobs in the company. AFFECTED PEOPLE The affected communities are not directly CAUSE OF DISABILITY consulted and as well as putting them as In most studies, abrasions, cuts, burns, puncture decision makers who determine the fate of the and fracture were the common injury types investment projects rather than focused only on among manufacturing industrial works (Adrew clarifying plans and explaining the potential et al, 2011). According to data obtained from benefits to the communities Also, the distribution of focus group discussion with workers of compensation money to the affected communities companies, several manufacturing did not give was mismanaged. There are stills persons who proper training for new employees on the have yet to receive their compensation money.

Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 15 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State

Sebeta town administration admits that there Amma Eessa Dhaabbanna? Where We have been some management problems in the Live Now? disbursement compensation money but appears that no action has been taken to remedy them. In Sebeta town, the contemporary land struggles This unresolved issue factors into the are generally understood and assumed to be disappointment felt by the affected. struggles against dispossession. Significant numbers of them were completely dispossessed, The top to down implementation approach others were displaced and forced to migrate to followed did not give them a room by which fragile setting. they could entertain and meet the demands of the displacees. However, even if the farmers The state owns all land whereas people have were under high pressure, they were resisting only the right to use. For this reason, people until the last hour of the displacement. With this have no say over land give for investment and regard, an informant who was engaged in an hence the government can transfer any land it interview indicated his experience as stated wishes to investors. The concerned government‟s below: local officials had told the local people, the benefits to be gained from the company after I was in my residence until the last day when the expropriation of land was completed. Though, bulldozer/excavator came to my compound and displaced people were not happy with the started demolishing the houses. „Bakakkaa transfer of their land to the investor. bonaa natti ta‟e, waanan godhun wallaale‟ (it This in turn makes local communities voiceless looks me like a winter thunder, unable to do because the ultimate power of deciding on the anything). I could not transport my movable fate of investment land vests on authorities. resources I had in the compound. I wanted to die Consequently, these communities could see in my compound than leaving aside these their livelihoods hampered when land is resources without getting proper compensation. transferred to investors at the expense of their When the bull dozer was demolishing my house, interests. I was sitting on the ground and crying bitterly. My wife fortified me a lot and I finally decided The casual factor for their displacement is to leave the place before engaging in further deliberate that the area is identified as potential dispute with the authorities. (Source: Interview, and conducive are for development projects. April, 9, 2019, Dima). Though, their displacement was spontaneous and unplanned, these displaced people have an The response of the above informant shows that understanding that the purpose of their the displacees‟ strong attachment toward their displacement is not for bad but for good which land their former places of residence and is development. However, any displaced people negative feeling the displacees have. On the from their residing area whether voluntarily or other hand, absence of official information was involuntarily for the cause of development, the cause for what the informant indicated. should have the right to be settled in areas of Though job creations, enhancement of work friendly environment which is clean and healthy culture and technology transfer are seen as and also have right to compensation and positive outcome of the investment, there is a resettlement with the provision of different tension between local people and investors. The government support to lead their livelihood. current tension between the people and the This fact is evidenced by Constitution of Federal investors is the consequences of the failure to Democratic Republic of Ethiopia (1995) article conduct environmental impact assessments 44 as per the following; before leasing the land to the company. There Environmental Rights, all persons have the right was no strong sense of neighborhood between to a clean and healthy environment. All persons investors and people of Sebeta town. However, who have been displaced or whose livelihoods there are also factories working with local have been adversely affected as a result of State people and serve the surrounding community programmes have the right to commensurate through various services like supplying water monetary or alternative means of compensation, and technology transfer. The government including relocation with adequate state officials confirmed that the certain companies assistance (FDRE, 1995). have problems with the locals in terms of its failure to respect the rule, regulation and respect have special attachment to their the values of the community. land. The land is beyond economic value;

16 Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State possession of land is a source of pride and According to data collected through interview dignity in the society. As Teshome (2014) stated, with one of informant among displaced people, Oromo people always use two terms in their many of relocated households for the sake of daily communication. These are „Waaqa‟ (God) investment have been left on the bare land and „Lafa‟ (land). During my interview, many of without direct access to public road and displaced peoples use the expression that connection to water, electricity, sanitation and “Waaqa fi lafatu beeka keenya” (God and land other services. Additionally, the new site is far know our future) to express the difficulty they away from schools and livelihood opportunities. live in. “Koo kana Waaqa fi lafatti kenne” (I One participant of my interview told me his gave it to God and land) to express their honesty ideas as follows; and gratitude. “Lafti jiraa keenyas du‟aa keenyas We joined masses of gatherings. However, we ni baata” (land hold our alive and dead). were helped nothing out of the gatherings. We Moreover, in order to proof what someone has were going to such meetings simply to hear the told, he/she swears by dual terms of „Waaqa fi officials‟ warning since they were not taking lafa‟ (God and land). If he/she swears by the complains we were making. The officials were name of „Waaqa fi lafa‟ (God and land), no one constantly urging us to leave the site within doubts the person‟s truth. If he/she hidden the short period of time and giving warnings to truth, it believed that he/she is commit to a sin. those displacees who were protesting against the Informants also express that „lafti haadha‟ (land idea. (Source: Interview, April, 21, 2019, Dima). is mother) and „lafti lafee keenya‟ (land is our The above response of the informant indicates bone). These expressions imply that land is that such kinds of meetings that the government considered as the second highest respect next to officials and the displacees were having „Waaqa‟ (God) in people‟s value. Therefore, regarding the displacement process was not losing land in the area implies breaking the fruitful, because the officials were calling the people‟s usual way of life. meetings only to displace the locals and to establish development project on their land, LAND COMPENSATION AND LOCAL PEOPLE whereas the displacees were making complaints GRIEVANCES against the displacement. Since there was not As Vhugen (2012) stated in his article, in exchange of ideas in the discussion rather than Ethiopia, land rights holders usually do not manifesting two conflicting interests, the receive adequate compensation for land participants of the meeting and the government transferred to investors. Throughout my data officials could not reach on consensus. There collection, none of my informants reported that was extreme pressure by the government they were satisfied by the rate and amount of officials to make the displacees leave the site compensation. Addition to dissatisfaction with within short period of time. the amount of compensation, this was also a During the interview, a 41 years old woman told serious of awareness in managing and properly me about compensation as follows; utilizing the cash compensation they received. Receiving compensation had appeared with its Our family resisted against displacement own challenges. The informants complain that without sufficient compensation. On that day, the cash compensation was not only sufficient my husband was beaten by police and but does not stay longer, because lack of imprisoned for three month. The government awareness in financial management is also a taken out our land and gave to investors. Hence, serious impact on the people way of using the I cannot sustain our life. My children drop out compensation. Informants told me that nobody their school and today all are daily laborers. had advised them to properly use the money After we lost our land, we became hopeless and they received. There were people who have depressed. Even my husband committed suicide already eaten up all the compensation and because of this reason. (Source: Interview, May became poor. They (concerned government 8, 2019, Furi). body) do not care if someone uses the money as he/she wishes. I also understood this fact in the The response of the key informant indicates that group discussion with the workers in the the displacement process did not take place in a municipality where they admitted that training peaceful manner. They were not willing to was not at all offered for displaced people on provide their land for the intended project. The how to manage their compensation they displacees were even engaged in violence due to received. lack of proper response from the government

Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 17 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State officials. In interviews with displaced people, As to my informant in Sebeta, there is a highly two themes emerged that describe the corrupt administration unit in different time companies-local relations in the context of since the town established. For instance, they investment in Sebeta town: (1) a lack of respect noted that inhabitants who are relatives of was shown to the peoples; and (2) certain government official gained much better payment companies adversely affected the ecological than other inhabitants on the same size balance of the peoples‟ natural environment. landholdings. The estimation of cash compensation is not involved displace people. Another participant also expressed his anger Having said the above, the question which towards the government officials who were should be emphasized is that how the locals are responsible for undertaking the displacement by using the compensation payment? mentioning violation of rights they committed as follows; Data collected shows that inhabitants use the compensation to build houses to rent, bought Even if it is your right to ask for fair carts and cars, start trading under Micro and compensation when there is unfair compensation, Small Enterprises, rent land and engaged in the government officials would label you as farming, others kept their money at banks and organizer of anti-development ideology for others finished in improper way due to lack of doing so. For your shock, there were detained training. The different cases of inhabitants displacees for days simply for complaining indicated that there is a relatively success and a against unfair compensation. It is very irritating failure in diversifying their livelihood using to be mistreated for simply asking for your compensation payment although many of them rights. (Source: Interview, May, 14, 2019, Sebeta). find acclimatizing the new livelihood way The above response of the informant indicates difficult. that one of the factors for the development of One of my informant from sebeta town land negative relationship between the displacees and administration office during interview and who the local government official was the wrong requested anonymity stated that, the issue here methods the officials followed to handle the is land that is being taken away from farmers to displacees‟ complain against the unfair given out to potential investors. While this compensation. The officials were intimidating might be a noble idea in terms of attracting the displacees as they were antidevelopment when investors and enhance development, its the displacees claimed for fair compensations. administration has always controversial. For the sake of development, federal and regional COMPENSATION SCHEME governments in the country take plots of land In return to the lost land and residential spaces away from the farmers with very few cash of Sebeta inhabitants due to the investment compensation and transferred it to investors endeavors, government has adopted compensation with high amount of money. This shows that the payment mechanism to restore inhabitant‟s town has huge potential for investment. But livelihood and residential spaces. The FDRE when looking at the situation, there is the system constitution proclamation No. 455/2005 allows officials (small/big), ways to use their expropriation of landholdings for public purposes position to advance their personal gains and and payment of compensation proclamation satisfy their selfish motives by the name of define compensation as a “payment to be made investment. in cash or in kind or in both to a person for his By the same manner, a 57 years old man who is property situated on his expropriated landholding.” resident of Sebeta town in kebele called Dima; Similarly, in Sebeta, compensation is made he has 8 families‟ members. He lost his either in terms of cash-for-land or land-for-land landholding equivalent to 2 hectares because of reparation mechanisms. Regarding the amount floriculture six years ago has expressed his of the compensation payment I faced a lack of discontent as follows; reliable data from the town administration. According to them, it is because there is a gap in I was paid 120,000 Birr or (4210.5 USD). I recording a reliable data during the different spent some amount of money to celebrate the administrative units. Nonetheless, the land wedding of my two daughters. I spent the administration office expert confirmed that remaining amount for food and other daily basic estimation of land compensation in the town is needs. Now I have left with nothing while my different in each year since the town‟s family is displaced. My sons have been establishment. migrated to Addis Ababa and work on their

18 Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State labor while my daughters have dropped out took them eight months to give us land for from school and work as house maids. (Source: house construction. After that time we asked Interview, April 16, 2019, Dima). them about the services and they replied us the participation and money contribution of The situation of the affected people shows that displacees is mandatory. Our patience becomes the expropriation of the landholdings has caused peak level to wait the government and investors food insecurity. The mismanagement of money for necessary social services. Then, finally, we paid caused displacement of the family and decided to protest the government and remove forced them to lead a devastating life. investors from our land in 2014. Because of this EXPECTATION AND REALITIES reason, many factories were burnt. Later, the government and investors collaboratively free According to data obtained through interview, electricity, water to us. These social services are management staffs of some companies replied not what they gave us as promised than what we that the companies tried to meet the demand of got by percolating our blood. (Source: the local people by expanding their investment Interview, May, 7, 2019, Daleti). services, though it failed to do so because of insufficient foreign exchange and instability in The above response shows that how much the the region. life after displacement is challenging because of lack of social services. Also, it shows the Some companies provide clean drinking water consequence of false promises of the for locals (Best plastic Factory), built houses for government officials and responding the poorer households (Yes Water Factory). Some question of the people in improper way. flower farms give water and electricity freely for the surrounding community of investment site. COPING STRATEGIES OF THE LOCAL All the rest of the promises were left without PEOPLE implementation up to the date of the data collected. Hence, the government just gave This section deals with the fourth objective of moral obligation to the companies to improve the study which was intended to identify the the infrastructure of the local community to coping strategies employed by the affected attract the attention of local dwellers for their people to overcome with the challenges of the investment. Therefore, it was set as the investment. investor‟s moral obligation to the promised I have observed that investment has tremendous infrastructural development for the people of the impacts on local livelihoods. In response to study area. these impacts, people have certain coping strategies to overcome the impacts. Some THE FALSE PROMISES livelihoods diversified their livelihood strategies Prior to displacement of people, the displacees while others strengthened existing ones. For were called meeting several times to discuss instance some farmers who depended on the about compensation and services to be fulfilled land for their livelihood prior to the land transfer and livelihood rebuilding strategies to be have now changed their land uses or even their conducted to reestablish livelihoods of displaced occupation. people. Consequently, the displacees were promised to have necessary social services and The establishment of several investment projects means of income than before. The promised resulted in the alteration of the households' services include electricity, water, road, and modes of life. The affected households have totally or partially lost the assets on which their organizing displacees in varies micro level livelihoods were mainly dependent on. The income earning activities. One informant during affected households have totally or partially lost interview with displaced people also indicated the assets on which their livelihoods were that none of the promised services made by mainly dependent on. Moreover, their rich government were fulfilled. She told me as indigenous knowledge, gained through life long follows; years of experience, is no longer viable to fully Before displacement, the officials told us that all sustain their livelihoods. Necessity, which is an the required services will be fulfilled in the involuntary approach, has forced them to adopt coming few months and then we will have better new livelihood strategies through which they access to the services than we had then. can sustain their livelihoods and fulfill their However, they are kidding us like a child. After household requirements. In this respect, the relocation let alone fulfilling the promises; it livelihood strategies adopted by the displaced

Journal of Cultural and Social Anthropology V1 ● 13 ● 2019 19 Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State households in the study area can be SELF-EMPLOYMENT IN INFORMAL SECTOR characterized as survival or necessity rather than During the focus group discussions, it was having a choice from a number of alternatives. found that the self-employed informal activities As I have seen in the study area, the expansion mainly consisted of making and selling local of investment activities has tremendous impacts alcohol drinks. Some of the interviewed individuals on the local people‟s livelihoods. To overcome also reported to collect and sell fire wood and these challenges, people have adopted some cans. Some women were mainly engaged in the coping strategies in their life to survive. For self-employed informal activities. example, some local people, who depended on the land for their livelihood before the land was CONCLUSION transferred to investor, have now changed their It is revealed that the main purpose of this occupation. The findings of interview, focus academic text is to examine the challenges and group discussions, case study and observation opportunities of investment to people of Sebeta revealed that the displaced households faced lots town. To this end, sustainable development of challenges that investment brought. model and basic need approach have employed According to in-depth interview and focus group to interpret the data. As it is indicated in the discussions, landless and jobless households whose literature, debate on opponents and proponents basic livelihood assets were taken away are of investment particularly for developing countries forced to engage in available nonfarm activities. like Ethiopia, some challenges and opportunities Household„s members engage in available of investment, experience of some selected income earning activities such as guard, daily countries and policy and legal frameworks related labor, trade (producing local liquor (Areke) and with investment were analyzed accordingly. engage in liquor shop on home base, preparing In case of Sebeta town, investment brought food), broker and moving to another places in several opportunities to the people of the town. search of better life. The section below presents Such as job creation, technology transfer and the coping strategies used by the local people in various social services like light and water. order to overcome the challenges they faced However, there are hindering challenges related from the expropriation of land to investors. to it. Accordingly, the study identified that land DAILY LABOR expropriation, environmental pollution, labor exploitation, instability, loss of livelihood and With the thriving of various manufacturing involuntary displacement with inadequate industries and investment projects, various types compensation, escalation of corruption and of job opportunities are created for the displaced households and local people in general. Among injustices were identified challenges. These all the activities the displaced households used challenges emanated from several reasons. Most as coping strategies, daily laborer was an of investment projects did not consult with activity widely used irrespective of the different people and promised community development demographic factors the families had. Most of have not been realized. The establishment of the displaced considered daily laborer work as several investment projects resulted in the coping mechanism. It is a strategy employed by alteration of the household‟s modes of life. The the displaced household members to fulfill their affected households have totally or partially lost financial requirements. The majority of the the assets on which their livelihoods were affected individuals employed in daily labor mainly depend on. In order to overcome these were engaged in works that required no special above mentioned challenges, the livelihood skills. However, very few individuals who could adopted by the affected people characterized as at least read were employed as guards in the survival or necessity rather than having a choice companies. This job type is generally viewed as from a number of alternatives. Hence, people a better job type by the affected and is thus have adopted some strategies like daily labor, preferred. As information gathered indicates, to self-employed informal activities. date, trained jobs, wage labor based works and other employment likelihoods are vacant for the In general, this study discovered the investment inhabitants, thereby inhabitants are involving in has brought more costs than benefit. Hence, in those careers. Data collected reveals that order to minimize these problems, investors conspicuously job opportunities are created dealing with people directly and both government more often for the youth of the area than any and investors ensure investment will have a other age groups. positive impact on local livelihoods.

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RECOMMENDATIONS [5] Azeb, Degife (2017). The Intricacies of Large Scale Agricultural Investment in Gambella Based on the findings of this study, the Region, Ethiopia: Paper Prepared for Presentation following are recommended for the government at the “World Bank Conference on Land and and investors as well. Poverty” The World Bank - Washington Dc, March 20-24, 2017: Ludwig Maximilian  Government should formulate integrated University of Munich (LMU): Germany. guidelines to benefit local communities as [6] Azeb W. Degife, Wolfram, Mauser (2017). well through having share in companies Socio-economic and Environmental Impacts of rather than displacing with compensation. Large-Scale Agricultural Investment in Gambella  In the process of land allocation to the Region, Ethiopia: Journal of US-China Public Administration, April 2017, Vol. 14, No. 4, investors‟ local peoples should be consulted 183-197: Ludwig Maximilian University of and even participated in deal. Munich (LMU), Munich, Germany  Throughout the project, the project managers [7] Dejene, Adugna (2016). Impact of Urban should deal directly with affected communities, Sprawl on Farm Lands: The Case of Sebeta town rather than through a middleman or government (MA Thesis): Addis Ababa University: Ethiopia. agency. Thus, participation of local people in [8] Dejene, Nemomsa (2014). Land Grab in Ethiopia: the investment is key elements to be The Case of Karuturi Agro Products Plc. In Bako successful. Tibe, Oromia (MA Thesis): Trondheim, Norway. [9] Desalegn, Rahmato (2011). Land to Investors:  Special attention should be given to ensuring Large-Scale Land Transfers in Ethiopia: Forum that the legal framework adequately protects for Social Studies, Addis Ababa: Ethiopia. the rights of local people. [10] Ermias, Abera (2009). Urban Development-  Investment Projects of the town are unevenly Induced Displacement: Prospective and distributed. For instance, there are 4 GM- Challenges of Real Estate Development on the Livelihoods of Rural Communities: The Case Furniture, seventy plastic factories established of LegaTafo Lega Dadi (MA theses): Addis at different sites. Therefore, it is better to Ababa University: Ethiopia. relocate such like industries to one area. [11] Ermias, Tamiru (2013). A Study on Impacts of Accordingly, Industry zone should be proposed, Investment Policy of Ethiopia on Rural considering location of resident and river Employment with Particular Reference to streams. Floriculture Industry: Addis Ababa, Ethiopia.  Investor (s) should understand and respect [12] Feyera, Abdissa (2005). Urban Expansion and local conditions, i.e. culture of people where the Livelihood of the Peri-Urban Agricultural they invest. Community: The Case of Addis Ababa (Unpublished MA Thesis): Addis Ababa REFERENCES University: Ethiopia. [13] Geary, K. (2012). Our land, our lives: Time out [1] Abbink, Jon (2011). „Land to the Foreigners‟: on the global land rush: Oxfam policy and Economic, Legal, and Socio-cultural Aspects of Practice: Private sector, 9(2), 1-26. New Land Acquisition Schemes in Ethiopia, Journal of Contemporary African Studies, 29:4, [14] Getnet, A. (2012). Rural Land Policy, Rural 513-535. Transformation and Recent Trends in Large- scale Rural Land Acquisitions in Ethiopia: [2] Adrew, Zewdie; Engdaw, Dagnew; Tadesse, European Report on Development. Takele (2011). Determinants of Occupational [15] Getu, M. (2009), Mizan Law Rev: Ethiopian Injury: A Case Control Study among Textile Floriculture and its Impact on the Environment, Factory Workers in Amhara Regional State, vol.3. Ethiopia: Journal of Tropical Medicine: http://www.ajol.info/index.php/mlriarticle/view Volume 2011. File/54011/42554 accessed 25/10/2018. [3] Andersen, Per Pinstrup; Robertson, Beth (2010). [16] Gray, D. (2004). Doing Research in the Real Global Land Acquisition: Neo-colonialism or World. London: SAGE Publications. Development Opportunity? Springer Science + [17] Hodbod Jennifer, Stevenson Edward, Gregory Business Media B.V. & International Society Akall, Akuja Thomas, Angelei Ikal, Buffavand for Plant Pathology. Pp 271-283. Lucie, Derbyshire Samuel, Elias Alemu, [4] Atkure, Defar; Ahmed, Ali (2013). Occupational Eulenberger Immo, Gownaris Natasha, Kamski Induced Health Problems in Floriculture Workers Benedikt, Kurewa Abdikadir, Michael Lokuruka, in Sebeta and Surrounding Areas, West Shewa, Mercy Fekadu, Okenwa Doris, Rodgers Cory, Oromia, Ethiopia. Ethiop. J. Health Dev. 27(1). Tebbs Emma (2019). Social-ecological Change

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Citation: Kebede Lemu Bekelcha, "Challenges and Opportunities of Investment to the People of Sebeta Town, Oromia Regional State", Journal of Cultural and Social Anthropology, 1(3), 2019, pp. 1-22. Copyright: © 2019 Kebede Lemu Bekelcha. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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