Ethiopia’s construction sector growth to surpass regional peers

18 May 2015

Light Rail Construction – Ethiopia Construction Sector to grow driven by infrastructure investments

Ethiopia’s construction sector will outgrow that of neighbors in the region over the next ten years, according to Business Monitor International. Annual average growth of 11.6% will be fuelled by infrastructure investments in the region.

Although growth is expected to be slower than in previous years because government will be unable to maintain infrastructural spending, it is expected to remain one of the highest in the world over the ten-year forecast.

Ethiopia construction sector attained a 23.7% growth in 2014. Although Ethiopia’s Growth and Transformation Plan (GTP), under which the government is expected to undertake various construction projects in energy and infrastructure, is expected to push investment in the country, BMI Research says that the plan will be less intensive in relation to focusing on physical infrastructure since the country’s fiscal position is set to come under pressure.

Ethiopia has double the infrastructure project investment compared to Nigeria. Kenya’s construction sector growth is expected to be 9% this year and for ten years. Uganda’s growth in 2015 will be 7.3% up year-on-year. Tanzania’s construction sector growth will be below 9.5% per year during 2015-2019.

Apart from government infrastructure investment, other growth drivers include residential and non-residential projects, massive investments in industries and increased entry of Chinese manufacturers.


Read the latest issue

Latest Issue