Ethiopia Launches Construction Sector Overhaul to Cut Import Reliance, Lift Quality

By Mintesinot Nigussie
Published on 08/13/25

Ethiopia has unveiled the Construction Industry Transformation Initiative, a 25-year programme designed to modernise the sector, improve quality and competitiveness, and cut reliance on imported materials.

Launched Tuesday, the strategy is tied to the government’s 2021–30 development framework and will run from 2025 to 2050. The construction sector employs over 10% of the workforce and contributes about 20% of gross domestic product, according to the ministry.

Chaltu Sani, Minister of Urban and Infrastructure, outlined key pillars of the strategy, including the adoption of technology-driven services, recognition for high-performing professionals, enhanced public-private partnerships, and initiatives to reduce dependence on imported materials. She highlighted that more than 20 local contractors are already positioning themselves to compete beyond Ethiopia’s borders, while domestic firms are actively engaged in corridor development projects across more than 70 cities.

Deputy Prime Minister Temesgen Tiruneh described the programme as both a continuation of Ethiopia’s long construction tradition and a corrective to current shortcomings. He said the goal was to make the industry “quality-based, creative, far from corruption, inclusive and able to showcase our civilisation and wealth.”

The government’s diagnostic review cited three drivers: global growth in technology-driven construction, national economic expansion and urbanisation, and entrenched industry inefficiencies including weak collaboration and dependence on imports.

CITI will focus on four pillars aimed at creating a globally competitive, resilient and inclusive industry. The government says it will shift the sector from fragmented, outdated practices to a transparent, professional and investor-friendly model.