(Dec 16, 2012, Daily Monitor)--When you walk on the streets of Addis Ababa in Ethiopia, it
feels like the city is one big building site. Anyone with some money to
invest is clearly putting it into property in this growing urban centre.
Construction can be a good sign in a developing country. Not only does it provide employment in the short term but infrastructural development supports the growth of other economic sectors in the long-run. While it may be argued that property is a safe bet in an uncertain economy, the boom in construction in Ethiopia is mainly driven by infrastructure development objectives.
Addis Ababa is devoting $1.3 billion (about Shs3.4
trillion) annually to infrastructure, which is 10 per cent of its GDP.
As a share of GDP, Ethiopia’s spending on infrastructure is by far the
highest on the continent. At a more basic human level it is a sign of
optimism and hope for the future.
Ethiopia has ambitious plans to improve the
infrastructure available for its 85 million people. There are large
power plants being built by Chinese and European companies. The Growth
and Transformation Plan sees energy and transport infrastructure as
priorities. The energy sector presents the greatest infrastructural
challenge to Ethiopia. Read more from Daily Monitor »
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