Ethiopia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Ethiopia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData expects Ethiopia’s construction industry to grow by 5.6% in real terms in 2023, supported by rising foreign direct investment (FDI), coupled with the re-start of projects and investment decisions that were halted during the worst of the civil war. In May 2023, the Ethiopian Investment Commission’s (EIC’s) Deputy Commissioner reported that the interest of foreign investors to engage in Ethiopia has been increasing, following the recent peace agreement to end the war in the northern part of the country. In early May 2023, the EIC reported that the country had attracted ETB152.3 billion ($2.7 billion) in FDI over the first nine months of the current Financial Year (FY) - which runs from 8th July 2022 to 7th July 2023 - marking a year-on-year (YoY) growth of 10%.

The improving economic and political situation in the country is also expected to support the industry’s growth over the coming quarters. In May 2023, the Netherlands reported that it will restart investment and development projects in the country that were halted due to the war. Moreover, in March 2023, China approved a loan worth ETB35.1 billion ($622 million) for 14 construction projects in Ethiopia, after being withheld for two years.

The industry is expected to register an annual average growth of 8.9% from 2024-27, supported by investments in transport, electricity, and industrial park projects. In April 2023, the Chinese construction engineering company Sinoma International Engineering signed a cooperation agreement with the Sino-Ethiopian joint venture, National West Industrial Holding (NWIH) Building Materials Holding Co, to undertake development of the ETB33.9 billion ($600 million) Melka-Jebdu Industrial Park Development project in the city of Dire Dawa, in eastern Ethiopia. Previously, in August 2022, the City administration of Addis Ababa signed a ETB7.7 billion ($136.5 million) agreement with two Ethiopia-based private construction firms - MCG Construction Plc, and TNT Construction & Trading - to build an industrial park in the capital

The report provides detailed market analysis, information and insights into the [Country Name] construction industry, including -

• Ethiopia’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Ethiopia’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

Scope

This report provides a comprehensive analysis of the construction industry in Ethiopia. It provides -

• Historical (2018-2022) and forecast (2023-2027) 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.