4.1 Urban Economy and Role of the Town

     The city serves as administration, industry, trade, conference and weekend recreation center. There are 370 manufacturing industries, 6808 wholesale and retail trades, 4981 service trades, 8 fuel stations, 73 garages in the city. Concerning financial institution, there are one government and 13 private banks, and three micro finance organizations. The economic activity rate for both sexes is 58.2% and 66.8 % for males and 49.8% for females, while unemployment rate is 21.4% for both sexes 16% for males and 28.4% females. The average annual revenue of the municipality within 2007- 2011 period was 428,527,581 Birr. The main sources of revenues were taxes, land lease and rent, and service charges. Adama city has major potential for industry, agro- industry processing and recreation area.

Adama city has economic linkage with several regions and towns. The city is destination for agricultural inputs and manufacturing and commercial products from Djibouti port. The city gets grain, livestock supply from Arsi, Bale and Borana while Kereyu and Afar were the main supplier of natural resources (fuel wood, charcoal). Oromia, SNNPRS and Amhara Regions are the main surplus labor supplier for the city. 

 4.2 Social and Municipal Services

Social services

Education

There are ninety two private kindergartens; six government and thirty four primary schools; twenty five  private and sixteen government junior secondary school and seventeen high school including preparatory, one TVET,  ten private university colleges and one university in Adama city. The student teacher ratio was known to be 1:53 for kindergartens 1:39 for primary school and junior secondary schools. Senior secondary school had 1:40 students to teacher ratio. On the other hand, the student to class room ratio was 1:56 for kindergartens, 1:54 for primary school, 1:61 for junior secondary and 1:67 for senior secondary schools.