Prime Minister Abiy Ahmed announced that a sample four-storey building (G+3) prefabricated housing project will be unveiled in Addis Ababa within a month, marking a step towards faster and more affordable urban housing.

The announcement was made during the Second Regular Session of the 5th Year Working Term of the House of Peoples’ Representatives held on Tuesday.

The government is adopting prefabrication technology to reduce construction time and costs, while boosting local production of key building materials such as steel and glass. The plan aims to transform resources from ore to finished products, supporting the broader housing initiative.

Prefabricated homes, built from pre-manufactured components assembled on-site, offer a more efficient alternative to traditional construction. The pilot project is designed to demonstrate the viability of this approach in addressing Addis Ababa’s rapidly rising housing demand.

As part of broader economic measures, Prime Minister Abiy highlighted that the government has allocated 440 billion birr to stabilise prices amid inflation. Subsidies cover key sectors including fuel, cement, and public sector wages, helping households cope with rising costs and supporting economic stability.

The prefabricated housing project is part of a wider push by the government to accelerate infrastructure and industrial development. Other initiatives include a new airport in Bishoftu (Debre Zeit) and a fertiliser manufacturing plant with an accompanying pipeline, with an estimated combined cost of 30 billion US dollars. According to the Prime Minister, these projects are expected to transform Ethiopia’s economy considerably.