Beyond Compensation: Assessing Sustainable Rehabilitation of Farmers Displaced by Urban Expansion in Ethiopia

Rapid urban expansion in Ethiopia has displaced many peri-urban farming households, threatening their livelihoods and long-term socioeconomic well-being. This study assessed the rehabilitation mechanisms implemented for farmers displaced by urban expansion in Galan Guda Sub-City, Oromia Regional State. A mixed-methods descriptive research design was employed, combining quantitative and qualitative approaches. Primary data were collected from 399 displaced households using structured questionnaires, complemented by key informant interviews and focus group discussions. Quantitative data were analyzed using descriptive statistics, while qualitative data were analyzed thematically. The findings indicate that government policy was the major driver of urban expansion. Although most affected households received monetary compensation, respondents reported that the compensation was inadequate to restore their livelihoods. Monetary compensation remained the dominant rehabilitation mechanism, whereas land-toland compensation, income capitalization, employment creation, and livelihood training were implemented only to a limited extent. Urban expansion significantly reduced agricultural landholdings and production, forcing many displaced farmers to shift to self-employment and daily wage labor. Limited institutional support and inadequate livelihood restoration measures further increased the vulnerability of displaced households. The study concludes that sustainable rehabilitation requires integrated approaches beyond financial compensation. It recommends combining fair compensation with livelihood restoration, skills development, employment opportunities, effective grievancehandling mechanisms, and participatory planning to enhance the long-term resilience and socioeconomic well-being of displaced peri-urban farming communities.