Abstract:
Foreign direct investment plays a pivotal role to boost the socio-economic development
of one country. The objective of this study is assessing the role of Dangote cement factory
to enhance the socio-economic development. In the study, both quantitative and
qualitative research approaches were employed. The research design applied was
descriptive survey type; to realize the intended objectives relevant data were collected
from the totals of 149 sample respondents; whereas the sampled respondents were
selected by using simple random sampling technique. Both primary and secondary
sources of data collection were employed. Tools such as key informant interviews, from
woreda experts and the factory managers, questionnaires to the factory workers and
focus group discussion from residents were utilized. The secondary data were published
and unpublished articles, journals, books were used for related literature. The finding of
the study reveals that the factory, since its establishment has been contributing its role
more effectively to enhancing the socio-economic development of the local community.
The positive effects have related with a creation of job opportunity; an increment of real
wage; transfer of knowledge and technology. As the analysis indicated, the wage
difference between skilled labors, and absence of fair treatment to employ local labors
and increasing the values of commodities were associated factors related to the factory.
From the findings the researcher concluded that Dangote cement factory has mainly
positive impacts for the local community .The study recommended that the company
should give services fairly for all the factory workers and reduce wage differences among
the skilled workers. The researcher further recommended that the factory manager
should respect the investment rules and regulations in order to serving all community
fairly and ensure their contributions in the economic development and take corrective
measures on their agencies.
