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Assessment of investment potential of the Afar regional state, Ethiopia
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Keywords

Investment Potential
Afar Regional State
Pastoralist
Lowland Region
Marginalized

Categories

How to Cite

Bodaya, A. M., & Sharma, P. . (2025). Assessment of investment potential of the Afar regional state, Ethiopia. South India Journal of Social Sciences, 23(3), 37-41. https://doi.org/10.62656/

Abstract

The investment potential of Ethiopia's Afar regional state, a historically neglected lowland region with vast untapped resources, is assessed in this study. To assess investment potential in the region, the study employed a Qualitative research approach and necessary data collected through field observation, focus group discussions, and interviews. Purposive sampling was applied to choose district and community leaders from 49 woredas who could offer perspective into investment potential, local economic prospects, and conditions of the region. The study findings show that Zones 1 and 3 have promising chances for commercial farming, whereas Zones 1, 3, 4, and 5 show substantial potential for livestock. Despite having abundant salt and mineral deposits, including gold and potash, Zone 2, especially Baracle, Afdera, and Dallol. This sector is still underdeveloped because of logistical and environmental limitations. Furthermore, the area's vast solar and geothermal energy potential is still mostly unexploited. Recommendations include modernizing agricultural and livestock practices, enhancing infrastructure, promoting sustainable mining, and developing ecotourism. Aligning investments with community priorities and improving governance mechanisms are crucial for fostering sustainable economic growth in Afar.

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