SOCIO-ECONOMIC AND ENVIROMWNTAL IMPACT OF BREWERY INDUSTRY: THE CASE OF ZABDAR BRIWERY SHARE COMPANY, WOLKITE TOWN, GURAGE ZONE CENTERAL ETHIOPIA REGION

Abstract

This study examines the socioeconomic and environmental impacts of the Zabdar Brewery in Wolkite Town. It aims to analyze both the positive and negative effects of the rapidly growing brewery industry on the local community. The research specifically assesses the brewery's socioeconomic contributions and its environmental impacts.The study also aims to analyze community perceptions of the brewery's effects on their lives and the environment.A mixed-methods approach is adopted, combining quantitative surveys with qualitative interviews. Data is collected from locals, brewery employees, and management to ensure a holistic view of the impacts. Zabdar Brewery generates substantial economic advantages by creating jobs and stimulating local business. Nevertheless, its operations raise significant environmental concerns, notably water scarcity and problems with waste disposal. The findings reveal that a significant majority of respondents perceive the brewery positively: 78.5% believe it creates employment opportunities, 75.15% see it involved in social infrastructure development, and over 70% acknowledge its community donations (71.52%) and training programs (72.12%). These perceptions align with existing literature highlighting the positive contributions of industrial operations to local economies and communities. A substantial 73% of respondents believe the brewery is safe for the community. However, a notable limitation exists in the brewery's local raw material sourcing, with only 33.33% of respondents indicating it utilized local materials, highlighting a missed opportunity for deeper local economic integration. Additionally, while 58.48% of respondents have savings accounts, suggesting positive financial inclusion trends, a considerable 41.5% still lack access, suggesting a need for enhanced financial literacy and inclusion programs. This research underscores the brewery’s positive social contributions while also pinpointing areas for targeted improvements to enhance its overall local impact based on specific survey outcomes. This study recommends that Zabdar Brewery focus on several key areas to foster sustainable growth and community well-being in Wolkite. These include: strengthening the local economy by prioritizing local sourcing of raw materials and building robust supply chains; empowering the community through transparent CSR initiatives, financial inclusion programs, and tailored training opportunities; and fostering trust and open communication through regular engagement and addressing safety concerns. Simultaneously, the brewery should commit to environmental sustainability by investing in renewable energy, waste reduction, and efficient water management. By acting on these recommendations, Zabdar can operate more effectively, positively impact the community, and establish itself as a responsible corporate entity