Industrial development and urban spatial planning practices: The case of Galan and Dukem cities in Ethiopia

Urbanization in developing countries like Ethiopia is taking place at an unprecedented rate. This, coupled with the rapid industrialization process, puts enormous pressure on preparing and implementing city spatial plans. As a result, most development in many cities is taking place without clear planning guidelines and lacks the institutional capacity to realize effectively the urban spatial plans. Galan and Dukem cities, located near the capital Addis Ababa, have attracted substantial industrial development investment in recent decades. This article examines the nexus between urban spatial planning and industrial development by analyzing the current urban structure plans of the two cities using institutionalist and political economy approaches. The research methodology involves key informant interviews, an expert survey, personal observation, and reviewing secondary sources. The data were analyzed using descriptive statistics and multivariate Exploratory Factor Analysis (EFA). The EFA identifies three latent variables that affect urban spatial planning performances, including the level of institutions' and actors' involvement, the state of spatial plan implementation, and the lack of public participation in planning and implementation processes. These three dimensions explain 75% of the total variations, with each accounting for 35%, 24%, and 16% respectively. The study argues that the lack of planned investment allocation and poor urban spatial plan-making and implementation hinder sustainable urban development and result in haphazard development. The successful implementation of urban spatial plans requires the involvement of various actors and strong institutional support. Therefore, urban spatial decisions need to receive policy attention to ensure efficient and sustainable urban and industrial development.