January 26, 2026
By Zinash Ledamo
Awassa has been the face of unity, diversity, and common development for the southern part of Ethiopia for decades. It served as the capital city of the Southern Nations, Nationalities, and Peoples (SNNP) Region of southern Ethiopia. The development of Awassa was made possible through the collaboration, investments, and aspirations of various individuals living in southern Ethiopia and across Ethiopia. The development of Awassa into a major urban center has taken place through the combined investment of both private sector and public sector funds as well as by a diverse population from within the region. The shortsighted and hasty decisions that occurred as a result of the dismantling of the former SNNP region changed the trajectory of the development of Awassa. After the formation of the Sidama National Regional State and Awassa being named as the capital, Awassa has entered into an uncertain time with an economic, social, and institutional decline.
Eight Years of Systemic Decline
During the past eight years, the quality of urban living in Awassa has declined dramatically in many different ways due to a slowdown of growth in the economy, which has created an atmosphere of systemic corruption at the local level of government as well as a breakdown of legitimate good governance practices. Because of the continued slow-growth economy, there have been increasing numbers of individuals filling these positions who lack the requisite education, experience, and/or technical capability to effectively manage a complex urban center that is rapidly evolving. Therefore, as a result of this fact, the ability for the public to receive adequate public services continues to decline, the way that decisions regarding large-scale projects are being made has become political and opaque, there is a state of neglect and decay in relation to the existing infrastructure of the city (including roads, sewer and water systems, and public buildings), and consequently there is a lack of accountability and erosion of the mechanisms in place to ensure the accountability of public officials and to foster a culture of systemic corruption. As a result of the continued decline in infrastructure and systems, the level of investor confidence in the Awassa area has also decreased dramatically, and as such, many professionals and skilled entrepreneurs have chosen to relocate from Awassa.
Economic Collapse and Social Fragmentation
Awassa’s economy had relied heavily on regional institutions that have now deteriorated following its loss of capital status as the seat of SNNPR. The decrease in the amount of economic activity associated with administrative services, conferences, and regional trade will continue to impact the growth of several businesses. Awassa was one of the premier tourist destinations before being impacted by ongoing political unrest and lack of governance, resulting in decreased tourism because of the view that the city is unsafe and unwelcoming. The level of social cohesion in the city has also decreased. Awassa was established through contributions from the southern Ethiopian people and people of all walks of life throughout Ethiopia, using common resources and common skill sets to build the city, but due to the nature of the current resident population, many of the older generations feel increasingly alienated by the current community composition. Because the current structure of government is based on identities and practices of alienation, the level of social cohesion is declining throughout the city, investments are being discouraged, and the long-term viability of the city continues to decline.
Federal City Status: Restoring Governance and Accountability
Establishing Awassa as a federal city is not just a political decision. It is a requirement for a governing body that holds itself accountable to the public. The establishment of a federal city will take Awassa’s governance out of the control of the regions and allow for a professional and non-political style of management (i.e., accountability, transparency, and inclusion). A professional, non-political style of management will give Awassa:
• A timely and effective urbanized governance Structure and professional urban management. Decreased corruption and increased oversight.
• A requirement that the city be managed by qualified professionals and not politically connected, unqualified, or unprepared people. A guarantee of equal rights, protection, and economic opportunity for all residents of Awassa regardless of region or ethnicity. The federal government has the authority and responsibility to move forward decisively. Trying to make corrupt ethnic politicians happy or trading political support for the safety and welfare of the people of Awassa is intolerable. The undermining of the institutions, economy, and social stability of Awassa by any group for their own narrow political agendas will endanger the city of Awassa and the national interest.
Economic and Fiscal Benefits for the Nation
The federal government of Ethiopia is recognizing Awassa as a major contributor to federal revenue by granting it federal city status. The establishment of this designation allows the federal government of Ethiopia to utilize Awassa’s strategic location and advantages (i.e., Industrial Park, agribusiness, and potential tourism) to generate significant levels of tax and other revenues through logistics, the manufacturing sector, & services. In addition, federal administrations in Awassa will provide a highly predictable, dependable regulatory environment that encourages confidence among domestic and international investors in the city of Awassa. Therefore, it is expected that Awassa will once again become a gateway to Southern Ethiopia and contribute to a thriving economy for the region as well as for the federal government of Ethiopia.
Expanding Awassa Airport: Unlocking Tourism and Regional Growth
Few aspects of the revival of Awassa have received as much attention as the expansion of its airport and the introduction of direct international flights into Awassa. These improvements will transform tourism and stimulate growth for Awassa and surrounding areas. With enhanced airline access via an international airport in Hawassa, there will be increased movement of tourists both entering and leaving the city, as well as:
-Revitalize the tourism industry of Hawassa by providing travelers with access to Lake Hawassa, Southern Ethiopia’s cultural heritage, and other natural attractions that are in the vicinity.
– Decrease the time and cost of international travel for visitors, investors, and members of the diaspora.
– Create new jobs at hotels, in the transportation industry, in trade, and in other service-related industries.
– Give Southern Ethiopian residents increased access to the global marketplace and more opportunities to connect with businesses and consumers in other countries. With the assistance of the federal government, the expansion of the airport in Hawassa can be done according to national aviation, tourism, and investment strategies, ensuring secure, efficient, and sustainable operations for years to come. Awassa has the potential to be an important Southern Ethiopian gateway to the rest of Ethiopia; it could complement the existing airport in Addis Ababa, rather than compete with it.
Relieving Pressure on Addis Ababa
Due to rapid urbanization in the city of Addis Ababa, there is currently a critical shortage of housing, unemployment, traffic congestion, and a high cost of living (and growing), all contributing to an unsustainable population explosion within the greater region. Furthermore, developing a federal city like Awassa would alleviate some of the pressure caused by this rapid growth within the capital. In creating a federal city and providing jobs, affordable housing, and international access or connectivity to Awassa, potential residents could consider Awassa instead of moving to Addis Ababa, promoting a more balanced level of urbanization across the country and relieving pressure from the already stressed infrastructure systems in and around the capital.
Corridor Development: Infrastructure Needs Institutional Reform
While the corridor development project in Awassa is an important government investment and will improve the physical environment of the city, no amount of infrastructure improvements (corridors) will overcome negative or corrupt governments or provide for those citizens who are excluded from society. This type of infrastructure project serves no purpose if there are not institutional reforms; if not, corridor development will simply be visible and not economically or socially impactful or sustainable. When combined with the federal city designation, inclusive governance, additional strategic investments (such as an airport expansion), and the rule of law, the power of corridor development can serve as the foundation for a complete and sustainable revitalization of urban environments.
The corridor also hides underlying social challenges. In this area, thousands of residents of this municipality suffer from extreme poverty, locked into dilapidated government housing with poor standards of sanitation. Some streets in the city are congested by slum-originated illegal settlements, making the roads impassable through illegal occupation. The area has poor employment prospects, leading residents into petty theft offenses against property, impacting the perception of Awassa as a potential tourist hub.
A sustainable solution entails the development of affordable accommodation in other places away from the congested city center, as well as providing gainful employment. This way, the dignity of the poor in the city will be upheld, as well as public health and security, instead of mostly favoring the tourism sector at the detriment of the majority. Thus, in concert with federal city status, inclusive governance, and strategic investment in opportunities such as expanding existing airfields, corridor development can be at the heart of an overall urban revitalization plan. Indeed, without any real steps toward improving the quality of life of citizens, so-called corridor development is essentially meaningless, equivalent to putting lipstick on a pig—an attempt at beautification without any effort at fixing or rectifying existing issues.
Conclusion: A Decisive Moment for Awassa and the Nation
Once a radiating city to Ethiopians and a dream destination to those in the diaspora, Awassa has over the last eight years morphed into a neglected ghost city. It is from this era, therefore, which has shown conclusively that Awassa is a city at a crossroad and is suffering from a defective governance architecture that has economically, institutionally, and socially diminished the city over the years. The longer it takes to act and grow out of political compromises, the faster it is headed to disintegrate. Making Awassa a federal city would therefore be the most realistic way to reverse this trajectory. Federal city status would allow for capable and responsible governance, reduce corruption due to unbridled power in the hands of one authority, bring income to the federal government, restore tourism with the advent of better international transport connections, take a load off Addis Ababa, and restore Awassa to its position in the national identity of Ethiopia.
For these reasons, the federal government must take strong action to develop Awassa. Trying to please a few ethnic politicians—who serve neither the people they claim to represent nor the nation—is a miscalculation. Awassa’s future must be based on meritocracy, accountability, and inclusiveness, not on corruption and incompetence or exclusive governance.
Editor’s Note : Views in the article do not necessarily reflect the views of borkena.com
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