BY TEWODROS KASSA
Building materials are the backbone of the construction sector. Construction steel is among the leading materials that Ethiopia imports from abroad investing high amount of foreign exchange. These construction materials imported from abroad cost the country high foreign exchange. In addition, when the government allows construction materials to be imported duty-free, it takes into account the long-term economic benefits of the country. Sadly, the TPLF tied private investors have been illegally given the opportunities to grow their business through exploiting the country’s resources for the past 27 years. This situation has exposed the country to the loss of finance in trillions in the sector. The shortage and price hike in building materials, especially cement, sand, gravel, steel, and others, have challenged performance of the country’s construction of mega projects. Using the imported construction materials for the unintended purpose by illegal practitioners in the sector is believed to be the cause of the shortage of steel and cement.
The Ethiopian government has announced that the terrorist TPLF has been improperly stored and used the construction inputs that the country imported with expensive foreign exchange. The TPLF itself being engaged in conglomerated business has controlled the sector to be carried out solely by its affiliates and supporters.
Owner and General Manager of Sisay Gesesse General Contractor, Sisay Gesesse told The Ethiopian Herald that when he started his construction work with a business license, his initial capital was only one million Birr and employed sixty temporary workers. Currently, the capital of the company has grown up close to six million Birr and the company is undertaking construction projects worth up to 100 million Birr.
He has recently been recognized at the federal and Addis Ababa city administration levels for his commendable works and contribution in the construction sector. He has acquired knowledge through experience and training and has participated in construction projects in various parts of Addis Ababa. All these efforts have paid off today and he has set up his general construction contractor struggling with the corrupted and mal-administration leadership during the terrorist TPLF regime.
Sisay said that his company can hire up to 80 people. He believes that the more his organization grows, the more it will be able to hire. Currently, the company is undertaking a six-story complex construction project that worth about 100 million Birr aimed to serve consumers’ association around the British Embassy. He is also undertaking other buildings construction in different sites. His timely and effective accomplishment of the project has witnessed his success.
He is eager to further develop his company and serve his country through implementing latest construction technologies. In particular, he has a comprehensive plan to increase the capacity of construction machinery such as excavators, mixers, dump trucks, etc. He further said that the construction sector is crucial for the country’s economic development.
“Of late, the construction sector is growing rapidly. The sector needs remarkable number of trained human resource so that its contribution to the country’s economy should be supported professionally. Those who are in this field also need to improve their knowledge constantly. Likewise, the government on its part needs to do more to create educated and trained human capital in the sector. The sector still has ample market opportunities and many have the opportunity to help others directly and indirectly if they participate in the sector. In this case, I believe the sector is not just a random business, but rather needs a time-consuming construction experience,” he underscored.
According to Sisay, the construction sector had been trapped with different mal-practices during the leadership of the TPLF. One of the problems in the construction sector is financial bottleneck. The sector could vastly create employment opportunities to numerous youths being graduated from the universities and would become a source of income for millions in the country.
He noted that many construction companies were unable to complete their contract in time due to lack of finance, adding he said that the government should provide financial support in this regard.
However, he pointed out that the country’s foreign exchange earnings have been wasted illegally in the sector. This has led to more damage than expected. The way the steel is imported, stored, and looted have led the country to unexpected wastage which resulted in delay in the construction of numerous mega projects in the past such as sugar projects, housing construction, road infrastructure and the Grand Ethiopian Renaissance Dam (GERD) among others.
Managing and leading the sector will flourish in the best interests of the future. Currently, the shortages and price hikes of cement, steel, construction machinery, and other construction inputs’ prices pose unbearable challenges on the contractors and the sector in general. Hence, the government should fulfill its responsibilities in identifying the legal contractors from the illegal ones to solve the resource damages in the sector. The government should stabilize cement prices as cement prices continue to hike. Companies engaged in the construction sector need to work in combination with cement factories, he recommended.
Moreover, Sisay suggested that the sector should be led by well-trained and experienced personnel to fix the past problems. Doing so will reinvigorate the sector to contribute a lion’s share in the country’s ambitious move towards prosperity by creating more jobs for the youths. To this end, all the sector practitioners and stakeholders should work hand in hand by respecting the construction integrities to clear the sector challenges and stimulate a more conducive construction environment in the country.
Recently, Sisay was awarded a level-five contractor status from the Addis Ababa City Administration Investment Bureau for his outstanding contributions in the construction sector through executing projects timely. It allows him to further contribute his part in the sector through importing various construction materials and machinery duty-free.
Accordingly, the government has been taking various measures after the reform to improve the shortcomings of the construction sector and promote the construction materials availability. In this regard, the government should take legal actions against those who are involved in the illegal market chain and other illegal activities to stabilize the sector by boosting its competitiveness and contribution to the national economy.
THE ETHIOPIAN HERALD AUGUST 24/ 2021
