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Ethiopia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

Publisher GlobalData
Published May 29, 2025
Length 42 Pages
SKU # GBDT20168174

Description

Ethiopia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

Summary

GlobalData expects the 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.

GlobalData’s Construction in Ethiopia - Key Trends and Opportunities to 2029 (H1 2025) 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 (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 GlobalData's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Table of Contents

42 Pages
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
7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
8 About GlobalData
9 Contact Us
List of Tables
Table 1: Construction Industry Key Data
Table 2: Ethiopia, Key Economic Indicators
Table 3: Ethiopia, Commercial Construction Output by Project Type (Real % Change), 2020–29
Table 4: Ethiopia, Top Commercial Construction Projects by Value
Table 5: Ethiopia, Industrial Construction Output by Project Type (Real % Change), 2020–29
Table 6: Ethiopia, Top Industrial Construction Projects by Value
Table 7: Ethiopia, Infrastructure Construction Output by Project Type (Real % Change), 2020–29
Table 8: Ethiopia, Top Infrastructure Construction Projects by Value
Table 9: Ethiopia, Energy and Utilities Construction Output by Project Type (Real % Change), 2020–29
Table 10: Ethiopia, Top Energy and Utilities Construction Projects by Value
Table 11: Ethiopia, Institutional Construction Output by Project Type (Real % Change), 2020–29
Table 12: Ethiopia, Top Institutional Construction Projects by Value
Table 13: Ethiopia, Residential Construction Output by Project Type (Real % Change), 2020–29
Table 14: Ethiopia, Top Residential Construction Projects by Value
Table 15: Ethiopia, Key Contractors
Table 16: Ethiopia, Key Consultants
Table 17: Ethiopia, Construction Output Value (Real, $ Million)
Table 18: Ethiopia, Construction Output Value (Nominal, ETB Billion)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: Sub-Saharan Africa, Construction Output (Real % Change), 2023–29
Figure 2: Ethiopia, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
Figure 3: Ethiopia, Risk Summary
Figure 4: Ethiopia, Risk Regional Comparison
Figure 5: Ethiopia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
Figure 6: Ethiopia, Construction Output Value, by Sector (Real, $ Million), 2020–29
Figure 7: Ethiopia, Construction Projects Momentum Index
Figure 8: Sub-Saharan Africa, Construction Projects Momentum Index
Figure 9: Ethiopia, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
Figure 10: Ethiopia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 11: Ethiopia, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
Figure 12: Ethiopia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 13: Ethiopia, Infrastructure Construction Output by Project Type (Real, $ Million), 2020–29
Figure 14: Ethiopia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 15: Ethiopia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020–29
Figure 16: Ethiopia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 17: Ethiopia, Institutional Construction Output by Project Type (Real, $ Million), 2020–29
Figure 18: Ethiopia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 19: Ethiopia, Residential Construction Output by Project Type (Real, $ Million), 2020–29
Figure 20: Ethiopia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 21: Ethiopia, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 22: Ethiopia, Headquarters of Key Consultants (% of Total Project Pipeline)

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