Socio--economic effects of urban expansion on peri- urban communities: case study of Nebelet Town and its peri-urban areas, Central Zone of Tigray, Ethiopia

Abstract

Rapid urban expansion has become one of the defining socio-economic and spatial transformations in Ethiopia, bringing both opportunities and challenges for peri-urban communities. In Nebelet town, this expansion has intensified in recent years, driven by population growth, infrastructure development, and increasing demand for residential and commercial land. While such transformations can enhance urban services and create new livelihood opportunities, they often disrupt traditional farming systems and expose vulnerable groups to land dispossession and economic insecurity. Against this backdrop, the central problem addressed in this study is how the urban expansion of Nebelet town has affected the socio-economic well-being of surrounding peri-urban households. The overall objective of the research was to assess the socio-economic impacts of urban expansion on peri-urban communities in Nebelet town, with particular attention to land-use change, livelihood transformation, and equity in the distribution of benefits and costs. A mixed-methods research design was employed. Data were collected through household surveys, key-informant interviews, focus group discussions, and GIS-based land-use analysis. Quantitative data were analyzed using descriptive statistics and regression models, while qualitative evidence was examined through thematic analysis. Findings indicate that rapid conversion of farmland and communal areas into residential plots, roads, and business establishments has reshaped the local economy and livelihoods. On the positive side, some households benefited from improved access to services, increased land values, and new income opportunities in trade and construction. On the negative side, many farmers experienced reduced farmland, tenure insecurity, rising living costs, and social disputes. The effects were unevenly distributed: wealthier and well-connected households gained more, whereas smallholders and female-headed households faced significant losses. Factors such as land tenure security, access to serviced land, education, and proximity to infrastructure were decisive in determining household outcomes. The study concludes that without inclusive and participatory planning, urban expansion in Nebelet risks undermining peri-urban livelihoods and widening social inequality. It recommends strengthening land administration systems, ensuring fair and timely compensation, safeguarding productive agricultural areas, and promoting livelihood diversification through skills training and enterprise development. Participatory governance and effective grievance-redress mechanisms are essential for making Nebelet’s growth more inclusive and sustainable.