The Challenges of Public-Private-Partnership in Local Economic Development in Ethiopia: the Cases of Some Selected Municipalities in Oromiya National Regional State

Abstract

This research seeks at investigating the constraints to public-private partnership and assesses the extent of participation of stakeholders in designing Local Economic Development planning in the selected municipalities of Oromiya National Regional State. The study employs a cross-sectional case study design and both quantitative and qualitative (mixed) approaches were used. Primary data collection was undertaken mainly through questionnaire, key informant interview and observation. Out of a total number of 350 business enterprises, 100 or (28.5%) were selected to collect data through questionnaire. In addition, about 48 interviews were conducted with key informants. In order to select samples out of the total population, both probability (i.e. simple random sampling technique particularly lottery method) and non-probability (subjective sampling) methods of sampling techniques were applied. The following major findings were identified :(1) Lack of trust and political will ;(2) Inadequate capacity and skill to coordinate stakeholders; (3) Lack of the necessary support regarding land, credit, and training; (4) Lack of transparent bid opportunities by the city administration; and (5) the Forum meetings usually focused on temporary political issues than long terms development issues With the view to mitigate the above mentioned constraints, the following recommendations are forwarded.(1)Local Economic Development plans should be designed, implemented, and evaluated by the participation of all stakeholders (2) there should be a legal framework and policy on public-private-partnership and areas of potential collaboration.