4.1 Urban Economy and Role of the Town

Arbaminch is administration, tourism, service and trade center. There are 95

manufacturing industries, 82 wholesale trades, 576 retail trade, 423 service

trade, 6 fuel stations and 18 hotels with 800 bedrooms in the town. There are

two government and two private banks, one insurance company, one

government and one private micro finance institutions giving services in the

town. The average annual revenue of the municipality within the 2003/04 –

2007/08 period was 24,185,243 Birr and the major sources of revenue were

tax, rent from shops, and service charges. The per capita revenue within the

same period was 322.99 Birr. The average annual expenditure of the town

within the same period was 24,185,243 Birr. Out of this 40% was capital, 20%

recurrent and the remaining are various expenses. The major investment

potentials/opportunities in the town are: hotel, tourism, aquacultures (fishing,

crocodile), horticulture (fruits, vegetable,) national park and education.

According to the National Population and Housing Census (2007) the

unemployment rate in the town is 21%.Arbaminch has urban-rural economic

linkages with the surrounding areas Hawassa, Shashemene and Addis Ababa.

The town gets grain products, livestock supply, natural resources (fuel wood

and charcoal),  And labor from surrounding areas agricultural inputs from

Hawassa and Shashamane towns manufacturing and commercial products

and some construction materials from Addis Ababa while fish, fruits, and

vegetables are sent from the town to other areas.