DUBLIN--(BUSINESS WIRE)--The "Ethiopia Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2020-2025" report has been added to ResearchAndMarkets.com's offering.
The Ethiopian construction industry is expected to shrink by 4.9% in real terms in 2021 - down from a growth rate of 9.9% in 2020. In 2020, construction activities held up relatively well, despite the outbreak of the COVID-19 pandemic, with the authorities encouraged to continue construction works during the crisis.
However, a conflict between the federal government of Ethiopia and the armed rebel group of the Tigray region that erupted in late 2020 transformed into a civil war in November 2021. The worsening situation in the country has severely impacted the economy, and the construction industry has also been affected directly and indirectly by a decline in consumer and investor confidence. The outlook remains highly uncertain, but assuming that the political situation does not deteriorate further, the country is expected to rebound in medium term.
In July 2021, the Ethiopian Council of Ministers approved a 2021/2022 budget that is 18% higher than the previous budget and is expected to support the economy amid ongoing uncertainty. The budget amounted to ETB561.7 billion (US$12.8 billion) for the Financial Year (FY) 2021/2022, which runs from July 8, 2021, to July 7, 2022. The government allocated ETB183.5 billion (US$4.2 billion) to capital expenditure, which marks an increase of 14.5% compared to the previous fiscal year's allocation of ETB160.3 (US$4.6 billion). Moreover, the government allocated ETB1.2 billion (US$27.4 million) to rebuild Tigray, the northern region that has been ravaged by conflict since November 2020.
The country attracted Foreign Direct Investment (FDI) of ETB170.6 billion (US$3.9 billion) in 2020/2021 - a 56% increase from FY2019/2020 - and the government's aim to generate ETB393.7 billion (US$9 billion) revenue from exports by 2030 will require significant investment in new plants and infrastructure. Therefore, GlobalData expects the industry to register annual average growth of 8.2% during 2022-2025, supported by investment in tourism, roads, and industrial park projects. Construction output in the forecast period will also be supported by energy projects. In August 2021, Ethiopian Electric Power (EEP) announced plans to build 71 power projects by 2030, at a cost of ETB1.7 trillion (US$40 billion).
Scope
This report provides a comprehensive analysis of the construction industry in Ethiopia. It provides -
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Ethiopia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-A-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Covid-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest News and Developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project Analytics
- Latest News and Developments
4.3 Industrial Construction
- Outlook
- Project Analytics
- Latest News and Developments
4.4 Infrastructure Construction
- Outlook
- Project Analytics
- Latest News and Developments
4.5 Energy and Utilities Construction
- Outlook
- Project Analytics
- Latest News and Developments
4.6 Institutional Construction
- Outlook
- Project Analytics
- Latest News and Developments
4.7 Residential Construction
- Outlook
- Project Analytics
- Latest News and Developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/yn0kyc
