At dawn in Dire Dawa, Ethiopia’s second-largest city, the daily rhythm is set by freight trains and activity at the Qafira bazaar. Once a railway town connecting Addis Ababa to the sea, Dire Dawa has become a logistics and manufacturing hub on the Addis–Djibouti trade corridor. The city, with about 1.3 million residents, now features a free-trade zone, dry port, and industrial park.
Dire Dawa’s growth illustrates how improved connectivity can lower transportation costs and attract investment. Wholesalers expand storage, retailers diversify their offerings, and transport operators add routes as reliability increases. However, increased connectivity does not automatically ensure that local residents benefit from new job opportunities.
In the bustling Qafira bazaar, commerce thrives through close relationships and trust among merchants who rely on mobile phones for transactions. This informal economy supports thousands of families in Dire Dawa.
Nearby, automation is changing the nature of work at facilities like the Dire Dawa Industrial Park’s yarn factory. Here, machines handle much of the production process with only a few technicians overseeing operations—a sign that fewer workers are needed even as output remains high.
The article asks: “Where will the jobs of the future come from in cities where automation is standard?”
Factories are increasingly seen not just as employers but as platforms that support broader economic ecosystems. They create demand for suppliers, repair services, logistics providers, packaging companies, certification agencies, and designers—generating employment beyond their own walls.
For cities such as Dire Dawa to maximize these benefits, three areas require investment:
- Developing skills tailored to new technologies through practical training programs.
- Building networks of local suppliers who have access to credit and reliable infrastructure.
- Improving urban logistics so goods and workers can move efficiently across the city.
Reliable infrastructure—such as timely public transport and stable power supply—enables businesses to plan ahead and households to invest in their futures. A well-managed city reduces uncertainty by making time more predictable for exporters, workers, and traders alike.
The article notes that Africa’s employment challenge will largely be addressed in medium-sized cities like Dire Dawa rather than major capitals. By 2050, nearly half of Africa’s urban growth is expected to occur in such cities along key trade routes.
The World Bank is focusing its efforts in Ethiopia and across Eastern and Southern Africa on supporting these secondary cities through integrated programs that link infrastructure development with vocational education and business ecosystem support.
As stated: “The World Bank’s work in Ethiopia and across Eastern and Southern Africa increasingly focuses on cities as job creators—through integrated programs that link infrastructure, land use, skills, and municipal finance.”
This feature was written by Abhas K. Jha, Manager for Urban Development and Disaster Risk Management for Eastern and Southern Africa at the World Bank.
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