Construction & Building Materials

The sector’s contribution is greater in the case of developing countries including Ethiopia and the industry has been playing a crucial role in sustaining country’s rapid and equitable socio-economic development and changing the livelihood of millions of peoples. The construction sector has made immense contribution in urban development whilst benefiting low-income citizens by providing cost-effective and modern houses.

Ethiopia set a vision of becoming a middle-income economy by 2025 and the realization of the vision partly depends on the existence of a reliable and competitive local construction industry that could deliver quality services. Taking in to account the role expansion of infrastructure (railways, roads, telecom, power, irrigation) for the realization of Growth and Transformation Plan and other goals, the current government has allocated huge budget to the industry.

Ethiopia now has one of the highest gross fixed capital formation (GFCF) ratios globally, spending 40% of its GDP in 2014 on land improvements, equipment purchases, the construction of roads and railways, social, commercial and industrial buildings.

The Ethiopian Finance Minister has however indicated that Ethiopia will need to invest US$50 billion by 2020 in order to meet its development goals, of which US$10 billion – US$15 billion is anticipated to be provided by foreign investors.