Ethiopia Construction Industry Report 2025 Output To Register An AAGR Of 7.7^ During 2026-2029, Driven By Investments In Transport, Renewable Energy, And Industrial Development Projects

(MENAFN- GlobeNewsWire - Nasdaq) Ethiopia's construction industry is poised for a 9% growth in 2025, driven by investments in transport and renewable energy sectors. The government's record ETB1.5 trillion budget underscores this momentum. Despite challenges like inflation and security concerns, long-term growth averaging 7.7% from 2026-2029 is projected. Notable is the MoU with ATIDI to boost foreign investment in sustainable energy. Discover key trends and opportunities with our in-depth report, covering growth prospects, industry trends, mega-projects, and market insights, helping stakeholders assess risks and seize market opportunities.

Dublin, July 10, 2025 (GLOBE NEWSWIRE) -- 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

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Ethiopia, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

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

• Outlook
• Construction Projects Momentum Index
• Latest news and developments

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
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