Output to Grow by 9% in Real Terms This Year, Driven by Investment in Transport Infrastructure and Renewable Energy Projects - Forecast to 2029
The 'Ethiopia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)' report has been added to ResearchAndMarkets.com's offering.
Construction industry in Ethiopia to expand by 9% in real terms in 2025, driven by investment in transport infrastructure and renewable energy projects.
Previously, in August 2024, the government allocated a record ETB1.5 trillion ($11.3 billion) in spending, as part of its fiscal year (FY) 2024-25 (July 8th, 2024-July 7th, 2025) budget; this includes significant funding for capital projects and key sectors such as education, defence, health, agriculture, and energy. However, the industry faces short-term risks from currency depreciation, high inflation, and project delays due to security concerns.
One such example is the termination of the Ethiopian state-owned industrial enterprise, Metals and Engineering Corporation's (METEC) ETB235.8 billion ($4 billion) contract for the Nile River dam project in August 2024, due to constant delays; this highlights the broader infrastructure challenges Ethiopia faces, including persistent security issues and systemic inefficiencies.
Ethiopia's construction industry is expected to grow at an average annual rate of 7.7% from 2026 to 2029, driven by investments in transport infrastructure, renewable energy, and industrial development projects, alongside the government's ten-year strategic development plan (2020-2030), which aims to expand electricity coverage from 44% in 2019 to 100% by 2030. In February 2025, the Ethiopian government signed a Memorandum of Understanding (MoU) with the African Trade Insurance Agency (ATIDI) to attract foreign investment in renewable energy.
The agreement aims to strengthen power purchase agreements and improve Ethiopian Electric Power's creditworthiness by using ATIDI's Regional Liquidity Support Facility. The MoU aims to support Independent Power Producers and Public-Private Partnerships by reducing financial risks. The MoU is part of Ethiopia's strategy to diversify its hydropower-heavy energy mix with wind, solar, and geothermal sources, making the energy sector more resilient and investor-friendly.
Scope
Reasons to Buy
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/8yrnbt
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KEYWORD: AFRICA ETHIOPIA
INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY
SOURCE: Research and Markets
Copyright Business Wire 2025.
PUB: 07/18/2025 12:38 PM/DISC: 07/18/2025 12:38 PM
http://www.businesswire.com/news/home/20250718124376/en
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