Ethiopia Construction Market Size, Share, Trends and Forecast by Sector and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A42510

Ethiopia Construction Market Overview:

The Ethiopia construction market size reached USD 8571.80 Million in 2024. The market is projected to reach USD 13161.52 Million by 2033, exhibiting a growth rate (CAGR) of 4.88% during 2025-2033. The market is driven by rapid urbanization activities, government infrastructure investments, industrial park development initiatives, and increasing foreign direct investment (FDI) in construction projects. Besides this, the growth of the energy sector is creating opportunities for specialized building companies, thus contributing to the expansion of the Ethiopia construction market share.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 8571.80 Million
Market Forecast in 2033	USD 13161.52 Million
Market Growth Rate 2025-2033	4.88%

Ethiopia Construction Market Trends:

Infrastructure Development and Urbanization Drive

The government's ambitious infrastructure development initiatives and the nation's growing urbanization efforts are driving significant growth of the Ethiopian construction market. As a key component of the programs for economic change, the Ethiopian government is making infrastructure development a top priority, which has resulted in significant investments in urban projects and transportation networks. Major projects include the expansion of road networks connecting rural areas to urban centers and the building of affordable housing complexes to accommodate the growing urban population. The country's strategic location as a gateway to Africa has attracted international investors and development partners, further boosting construction activities. Urban centers like Addis Ababa are witnessing unprecedented construction boom with commercial complexes, residential towers, and modern infrastructure facilities being developed to meet the demands of a growing middle class. Key players are wagering on construction activities, thus contributing to the economy’s development and enhancing the market reach. In August 2025, in an agreement signed by AfDB and the Ethiopian Airlines Group, the African Development Bank (AfDB) was designated as the mandated lead arranger and coordinator to raise almost USD 8 Billion of the USD 10 Billion required for the proposed Bishoftu International Airport (BIA) construction. The bank would offer USD 500 Million in funding for the project, set to be situated 40 Kilometers south of the capital, Addis Ababa.

Rising Foreign Investments and Manufacturing Sector Expansion

Increasing FDI and the manufacturing sector expansion are propelling the Ethiopia construction market growth. International companies, particularly from China, Turkey, and European nations, are establishing manufacturing facilities and industrial complexes, driving the demand for specialized industrial construction services. The government's industrial policies are creating numerous industrial parks and special economic zones, requiring extensive construction of factories, warehouses, and supporting infrastructure. In December 2024, the United Nations Development Programme (UNDP), in collaboration with Ethiopia’s Ministry of Industry, launched the Timbuktoo ManuTech Hub, an industrial park. The project aimed to assist African startups by providing funding, mentorship, and enhanced technical resources. Ethiopia's competitive labor costs and strategic location have attracted textile, leather, and agro-processing industries, each needing customized construction solutions. The energy sector expansion, including hydroelectric projects, is creating opportunities for specialized construction companies in energy and utility construction.

Ethiopia Construction Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on sector.

Sector Insights:

Commercial Construction
Residential Construction
Industrial Construction
Infrastructure (Transportation) Construction
Energy and Utility Construction

A detailed breakup and analysis of the market based on the sector have also been provided in the report. This includes commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utility construction.

Regional Insights:

Addis Ababa
Oromia Region
Amhara Region
SNNPR Region
Tigray Region
Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Addis Ababa, Oromia Region, Amhara Region, SNNPR Region, Tigray Region, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Ethiopia Construction Market News:

In September 2025, Ethiopian Prime Minister Abiy Ahmed revealed details of a USD 30 Billion infrastructure project, featuring the construction of a nuclear power plant, an oil refinery, two natural gas facilities, and an airport. The nation plans to run two nuclear reactors from 2032 to 2034, each having a capacity of around 1200 MW.
In June 2025, Ethiopia re-released plans for a monumental skyscraper that would be the tallest in sub-Saharan Africa. The USD 445 Million skyscraper would transform Addis Ababa's skyline and function as the new headquarters for Ethiopian Electric Power (EEP). The design and oversight of construction were assigned to Beirut-based consultancy Dar Al-Handasah (Shair & Partners), a company known for its expertise in intricate engineering projects throughout Africa and the Middle East.

Ethiopia Construction Market Report Coverage:

Report Features	Details
Base Year of the Analysis	2024
Historical Period	2019-2024
Forecast Period	2025-2033
Units	Million USD
Scope of the Report	Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: Sector Region
Sectors Covered	Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, Energy and Utility Construction
Regions Covered	Addis Ababa, Oromia Region, Amhara Region, SNNPR Region, Tigray Region, Others
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

How has the Ethiopia construction market performed so far and how will it perform in the coming years?
What is the breakup of the Ethiopia construction market on the basis of sector?
What is the breakup of the Ethiopia construction market on the basis of region?
What are the various stages in the value chain of the Ethiopia construction market?
What are the key driving factors and challenges in the Ethiopia construction market?
What is the structure of the Ethiopia construction market and who are the key players?
What is the degree of competition in the Ethiopia construction market?

Key Benefits for Stakeholders:

IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Ethiopia construction market from 2019-2033.
The research report provides the latest information on the market drivers, challenges, and opportunities in the Ethiopia construction market.
Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Ethiopia construction industry and its attractiveness.
Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

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Ethiopia Construction Market