Beyond Connectivity: Assessing the Impact of Corridor Development on Business Enterprises in Addis Ababa

Abstract

This article examines the impact of corridor development projects and associated displacement on business enterprises in Addis Ababa. Using a mixed-methods approach, the research combines quantitative survey data with qualitative interviews of affected business owners, supplemented by secondary data from official reports. A total of 150 businesses displaced from the Piazza area, 4 Kilo, and along the corridor from 4 Kilo to Megenagna were selected through simple random sampling to ensure diverse representation. Data were analyzed using descriptive and inferential statistics by using SPSS version 26. Findings indicate significant impacts on businesses enterprises, including financial losses, revenue declines, and high relocation costs. Owners reported difficulties accessing resources, disruptions in customer relations, and asset losses, alongside dissatisfaction with compensation. Supply chain disruptions led to delays and increased costs, while employee displacement affected morale and productivity. Uncertainty surrounding the projects hindered long-term business planning and investment, and regulatory challenges strained stakeholder relationships. The study concludes that corridor development projects can profoundly affect local businesses and recommends measures to mitigate these impacts, including fair compensation, improved public consultation communication with government agencies, policies fostering business stability, and enhanced support for workers and supply chains.