Ethiopia Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Ethiopia Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Summary

The construction industry in Ethiopia is expected to grow by 2% in real terms in 2022, following an expansion of 6.6% in 2021. The industry’s growth is being support by the government's success in attracting new foreign investment, coupled with the start of major industrial, transportation, and energy infrastructure projects. According to the Ethiopia Investment Commission (EIC), the country received ETB246.6 billion ($3.1 billion) in foreign direct investment (FDI) in the Ethiopian Financial Year (FY) 2021/22, which runs from July 8, 2021 to July 7, 2022. In February 2022, the Ministry of Transportation and Logistics announced that it had identified 44 transportation projects for development, with private partnerships in domestic air transportation, cross-country public transportation, and urban mass transportation. However, the conflict between the government and rebel Tigrayan forces, along with macroeconomic instability, could weigh on the industry's growth in the coming quarters, given the increased risk of project delays or suspensions and cost overruns.

The Ethiopian construction industry is expected to expand by 5.6% next year, supported by the government's allocation under the FY2022/23 Budget to support economic recovery. The government approved the FY2022/23 Budget in July 2022. It includes a spending of ETB786.6 billion ($13.7 billion) in the current financial year. Of the total, the government allocated ETB345.1 billion ($6 billion) to general expenditure, ETB218.1 billion ($3.8 billion) to the capital budget, and ETB209.4 billion ($3.7 billion) to finance the regional states that make up the federal republic.

GlobalData expects the industry to register annual average growth of 8.9% during 2024-26, supported by investment in tourism, roads, and industrial park projects. In August 2021, Ethiopian Electric Power (EEP) announced plans to build 71 power projects by 2030 at a cost of ETB2.3 trillion ($40 billion). Furthermore, in September 2021, the Ministry of Transport and DP World-a multinational logistics company based in Dubai-agreed to invest up to ETB57.4 billion ($1 billion) over the next ten years in developing supply chain infrastructure along the corridor, including -warehouses, cool and cold chain depots, dry ports, container yards, silos, freight forwarding, and clearing activities

The report provides detailed market analysis, information and insights into the Ethiopian construction industry, including -

• The Ethiopian 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 the Ethiopian 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 (2017-2021) and forecast (2022-2026) 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.