4.1 Urban Economy and Role of the Town

Aleta Wendo town is administration and trade center.  As to the industrial development, the town has one flour factory, four coffee hullers, 21 grain mills, 26 metal and wood works as well as one blocket production center. In the town, there are five medium standard hotels, 11 bars, 27 restaurants, six breakfasts, three pensions, eleven groceries, 42 boutiques, two leather product shops, five soft drink distributers, 25 grain stores and 10 coffee businesses. Mainly coffee business and other agricultural trade activities take place in the town.

In the town there are two governmental financial institutions (Commercial Bank and Ethiopian Development Bank and there are two micro financial institutions (Omo and Sidama Micro finances) giving services in the town. There are no any insurance institutions that prove service in the town.

The average annual revenue of the municipality within the 2006/07– 2010/ 2011 period was 2,142,496.87. The revenue collected compare to the potential of the town is so small and direction was given to the leaders to change the current revenue status of the town.

Aleta Wendo is popular at the international level due to the presence of famous Sidama coffee and in addition to that there are active business activities. A large number of coffee products come to the town which latter on transported to the central market. Other agricultural products are also stored at this town from the neighboring peasant association. Industrial and commercial products are distributed to the neighboring small towns and peasant association from this city.

Regarding Micro and Small Enterprises, there is one enterprise organized for the production of Hollow Concrete Block, one enterprise involving in metal and wood work, one enterprise involved in catering and one enterprise involved in fruit and vegetable businesses as well as trade activities. These Micro and Small Enterprise have provided job opportunities for 1209 people while they got a loan amount to 3.1 million birr as per the information of municipality.

In Aleta Wendo town there are 39 investment projects with a total capital of 88,244,490 Birr capital that are already operational. 59 investment projects with the capital of 152,152, 490 are in the process of construction. In addition to these 20 investment projects with the capital of 154,482,490 have already taken investment licenses. In general, the 59 investment projects which are operational and under the process have registered a capital of 240,396, 980 birr as per the information of the town administration. Investment promotion and preparation of investment facilities is not to the extent expected and it has been agreed with the leaders to make more efforts.