4.1 Urban Economy and Role of the Town

Yirgachefe town is administration, and commercial center. The town has large industrial and agricultural activities. Its coffee is known not only nationally but also internationally. There are 22 coffee hullers, eight hotels, one hotel with one star, four bars, three groceries, six restaurants, four cafes, 123 retail trades, 65 boutiques, 17 grain trades, 13 building materials and 194 butcheries. There are Commercial Bank and Wegegen Bank as well as Omo and Wisdom Micro financial institutions giving services in the town. Considering the trade activities in the town the number of financial institutions is expected to be higher. There are no insurance in the town. The average annual revenue of the municipality within the 2002 – 2010 periods was 1, 704,307.10 Birr.

In Yirgachefe town, there are one flour factory, 18 grinding mills, 14 metal and wood works, one Hollow Concrete Block production and two waving. As to micro and small enterprises, there are enterprises organized in poultry, animal fattening, grain trade, tailoring, construction, metal and wood works, photocopies and the like. These enterprises have given job opportunities for 1789 peoples. There are many coffee hullers, flour factories and other manufacturing in the town. Of the total investors with a capital of 116,202,700 birr are constructing factories while investors with 86,538,000 birr have not yet started any activities. As the town is located on the international road and as it is famous for coffee Arabica, many services must be provided so as to attract more investments.

Yirgachefe has urban-rural economic linkages with the surrounding areas such as Hageremariam, Fisehaganet, Haru, Edadi, Wanago, Gadebe Garba and Dilla. The town gets grain products, livestock supply, natural resources and labor from surrounding areas, agricultural inputs, manufacturing and commercial products from Addis Ababa and other towns while the town serves as store center of organic coffee collected from surrounding areas and it distributes agricultural inputs and commercial goods and services to the surrounding areas and rural kebeles.

4.2 Social and Municipal Services

Social services

Education

There are six KGS, three primary schools; one senior secondary school; one government secondary school including preparatory in Yirgachefe town.