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  • on 01.12.2014
  • at 03:36 PM
  • by evelina

Where will huge state investments lead Ethiopia? 0

From thousands of kilometres of railways and highways to mega dams to tens of thousands of partially government-sponsored houses to cobblestone roads, Ethiopia is a nation under-construction.

About a fifth of the 10.3 per cent growth registered in the 2013/14 budget year was attributable to construction activity, according to the World Bank. Over the same period, the total investment rate rose from 32.1 per cent of GDP to 40.3 per cent.

Some $1.5 billion from the $8.5 billion budget of the country this year is earmarked for construction of roads. In addition to the government, there is huge investment by the private sector in real estate.

For the 13th most populous country in the world, with 90 million plus people, of which the majority are young, the huge investments by the government in infrastructure and construction by private sector are the major source of jobs.

Today tens of millions of Ethiopians are working on various construction sites.

“Ethiopia is indeed a nation ‘under construction,’ the construction boom is increasingly supporting economic growth,” said Lars Christian Moller, lead economist and programme leader at the World Bank Ethiopia office, which is currently involved in 25 projects in Ethiopia with $6 billion in commitments, making it the largest country programme in Africa.

Continue reading on: The East African

by Andualem Sisay Gessesse

Photo credit: Andualem Sisay Gessesse

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