Socio-economic Effects of Large-Scale Plantation on Local Community: The Case of Arjo-Didessa Sugar Factory, Western Ethiopia

Abstract

Large-scale agricultural activities have a serious impact on local economic development, incomes and the environment. This study was conducted in Arjo-Didessa Sugar Factory with the objective of examining the socio-economic effects of large-scale plantation on local community. To carry out this research, qualitative and quantitative methods (mixed method approach) were employed. Descriptive research design was used for detailed description of the effects of the factory on the local community. Data were collected from household survey through questionnaire, interviews, focus group discussions and observation with all concerned household heads, government officials, factory officials and local elders. A sample of 186 was obtained from households via systematic random sampling technique. Respondents were selected purposively for focus group discussion and interview based on their long years of existence in the area. Quantitative data were analysed through descriptive statistics whereas as qualitative data via text analysis. The finding revealed that the factory has given inadequate consideration to the local community. The plant has negative effects on the local economy in terms of loss of grazing land, crop land, lack of proper compensation and relocation. Besides, the expansion of the factory has had negative impacts on the economic and social life of local community. Based on the findings, it is recommended that the government needs to safeguard the interests of the local communities, and enforce the factory to allow the participation of the local community in all stages of the project to minimize socio-economic risks and compensate for the loss of their land.