In Ethiopia, an ancient civilization in which inequalities are deeply ingrained, socialrnnorms often prevent women from exercising their free choice and taking full and equalrnadvantage of opportunities for individual development, contribution and reward. Generalrnhousehold characteristics such as income, occupation and education attainments ofrnparents still continue to determine access, attendance, completion and learningrnoutcomes of girls and women from severely disadvantaged communities. This casernstudy conducted in Addis Ababa City Administration with specific reference to AddisrnKetema Sub City investigates why and how adult literacy has played an intrinsic role inrntransforming lives of the urban and marginalized women. To achieve the objectives andrnanswer the research question 60 IFAL women participants 3 woreda educationrncoordinators and 3 IFAL facilitators selected using simple random sampling techniques.rnThe findings revealed that since the introduction of IFAL-programs with an integratedrnmanner, womenâ€™s economic empowerment has been improved. The positive influencernwas measured by the increased contribution on access to and control over assets,rnparticipation in decision making process at household level and over economicrnresources and opportunities and improvement in living conditions. They have improvedrntheir income generating activities, personal saving and credit culture and managementrnand participation in self-help groups community based organizations (CBOs), regardlessrnof educational status, ethnic background and household size. IFAL is also anrnopportunity to build strong groups of diligent and committed women. It should thereforernbe encouraged and reinforced by a more favorable policy strategies and integration ofrnICT and research to sustain and expand women empowerment so that they canrncontribute to the economic growth of the nation. Collaborative efforts amongrngovernment, NGOs and the community need to put in place to alleviate both human andrnnon-human related problems to achieve transformational and sustainable developmentrngoals.