ADDIS ABABA – The Ministry of Urban and Infrastructure has expressed concern over the construction sector’s limited financial and technological capacity despite significant government funding.
This concern was highlighted during a discussion with construction companies yesterday, where the focus was on industry opportunities and challenges.
Urban and Infrastructure Development State Minister Fenta Dejene emphasized the need for the private sector to improve efficiency and meet national development goals. While acknowledging the sector’s growth potential, he pointed to deficiencies in financial, technological, and human capital.
“Amid growing competition from foreign firms, the private sector must prioritize policies that support local businesses,” Dejene stated.
The construction sector is a major economic driver, consuming over 60% of the capital budget and contributing 20-22% to GDP. However, reliance on imported construction materials significantly impacts the sector’s costs. Developing domestic manufacturing and financial capabilities is crucial to address this challenge.
Yetim Asrat, also a State Minister at the Ministry, highlighted the government’s efforts to empower the local private sector through training and financial incentives.
The Ethiopian Construction Authority Director Mesfin Negewo emphasized the private sector’s responsibility for improving industry performance, which currently faces cost overruns and delays. He noted that Ethiopia’s young population and government policies favoring privatization and technological advancements offer significant opportunities for both local and foreign construction companies.
The government has consistently prioritized the construction sector through substantial budget allocations and by making essential minerals and natural resources readily available to domestic manufacturing industries.
BY YESUF ENDRIS
THE ETHIOPIAN HERALD THURSDAY 26 DECEMBER 2024
