Urban expansion may involve both horizontal and vertical expansion of the physical structure of urban areas which result in loss of peri urban agricultural lands all over the world. Urban development in Ethiopia lead to several of socio-economic impacts and the basic problem is that urban growth causes displacement and loss of agricultural farmlands. Different studies identified the causes and consequences of urban expansion. Therefore, urban expansion, expropriation and compensation program that may be proposed in the future needs policy directions about post expropriation rehabilitation and continuous support for dislocated peri urban households which adequately involve the peri-urban community.
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