The Dynamics of Urbanization and Its Effects on Rural Livelihoods: Evidence from Adama City and Adama Rural District, Ethiopia

Rapid urbanization in cities brings about both opportunities and challenges for national development. This study focuses on investigating the dynamics of urbanization and its impact on livelihoods using land use/land cover change in Adama City, located in the Oromia Regional State. Various datasets from the U.S. Geological Survey (USGS), including Landsat Thematic Mapper (LTM), Landsat Enhanced Thematic Mapper Plus (ETH+), and Operational Land Imager (OLI), were utilized. Geographic Information System (GIS) and remote sensing tools were employed to extract relevant information from these datasets for years from 1986 to 2022. In addition, findings pertain to the impact of urbanization on income diversification and the overall welfare of farm households near Adama City was aligned with the study. The findings reveal that built-up areas and agricultural land exhibit the most significant changes over the examined period. However, these changes occur in opposite directions. The built-up area has experienced a substantial increase of 60% from 1986 to 2022, while agricultural land has decreased by 40% during the same timeframe. The conversion of farmland to built-up areas negatively impacts farm households by reducing farming activities and increasing reliance on non-farm activities, resulting in lower consumption expenditures for rural households near urban areas compared to those farther from the urban center. The result underscores the need for policies that promote appropriate land management and a well-planned urbanization process to ensure sustainable urban development. Furthermore, it is vital to enhance understanding of the spatial and temporal dynamics of urban growth and its impacts on farm households residing near urban areas. By addressing these issues, sustainable food security and poverty reduction objectives can be better achieved in peri-urban areas of the region.