Oromia Unveils SEZ Led Urban Plan for Shaggar, Bishoftu and Adama

By Mintesinot Nigussie
Published on 01/12/26

Oromia’s regional government has unveiled a new development framework centred on Shaggar City, Bishoftu and Adama, placing special economic zones at the heart of its urban and investment strategy, according to The Reporter.

The initiative comes as Oromia continues to consolidate its position as Ethiopia’s largest and most populous regional state, with agriculture contributing an estimated 66 percent of regional GDP and employing more than 89 percent of its population. The region produces over half of Ethiopia’s crop output and nearly 44 percent of its livestock, while serving as a major source of the country’s coffee, gold and khat exports.

The development blueprint includes the establishment of the Gadaa Economic Zone near Bishoftu and assigns distinct economic roles to the three cities across trade, industry, finance, administration, services, housing, tourism, green development and special economic zones.

Infrastructure projects form a key pillar of the plan. These include railways, industrial parks, manufacturing zones, large cargo and passenger terminals, museums and convention centres. Shimelis Abdisa, Oromia’s regional president, said parts of the programme are already under way.

The master plan also proposes zoning within Shaggar to organise boroughs by economic activity. Koye Fiche is earmarked as a trade corridor, while Gelan is designated for industrial use. Officials say the programme will also help curb land sprawl and will be supported by an endowment fund aimed at mobilising resources.

The framework incorporates the ten billion US dollar airport being developed by the Ethiopian Airlines Group near Bishoftu, intended to replace Addis Ababa’s Bole International Airport as the carrier’s main operational hub, although construction has not yet begun.

According to Shimelis, the overall goal of the programme is to position Shaggar, Bishoftu and Adama as key centres of economic development and social progress within Oromia.