Sustainability practices in special economic zones and their challenges to sustainable local community development in Ethiopia

Abstract

Ethiopia’s special economic zones (SEZs) sustainability practices are aimed at achieving the country's sustainable development; however, their failure has resulted in repercussions for sustainable local community development. This study analyzed the repercussions on the sustainable development of local communities resulting from the failure of SEZs' sustainability practices, focusing on three SEZs: Eastern Special Economic Zone (ESEZ), Bole Lemi Special Economic Zone (BLSEZ), and Dire Dawa Free Trade Zone (DDFTZ). The study employed a mixed research approach with an exploratory sequential design in which the qualitative phase was carried out and analyzed using content and thematic analysis, followed by the quantitative phase using descriptive analysis and a multivariate multiple linear regression. The study found that SEZs' sustainability practices negatively contributed to the local community’s sustainable development in economic, social, environmental, and peace perspectives. The multivariate multiple linear regression results show that economic sustainability practices significantly influenced social and economic development challenges, while governance sustainability practices significantly influenced the environmental sustainability and sustainable peace of local communities. To this end, it is suggested that systemic measures should improve the sustainability practices of SEZs as they minimize the negative impacts of SEZs on the local communities' sustainable development.