A surge in infrastructure-oriented investments

Since 2010, the Government of Ethiopia has made massive investments in the energy, transport (road and rail) and telecommunication sectors. The construction of a modern tramway in Addis Ababa, funded and assembled by Chinese companies, is probably one of the most impressive projects. The inauguration of the tramway, in September 2015, greatly helped to de-congest the capital city.

Railways

The Ethio-Djibouti corridor

The port of Djibouti is strategic for Ethiopia’s economy: more than 95% of shipments coming from and going to the country pass through the Ethio-Djibouti corridor. The recent opening of an electrified railway line linking Djibouti to Modjo —the dry port of Addis Ababa— has reduced travel time. Currently, from Addis Ababa, it takes 12 hours to reach Djibouti by rail. Cargo trains operating on this rail network have a capacity of 4,000 tons of freight.

Expansion of the rail network

A 391 km long railway line from Awash to Weldiya and 216 km rail line from Weldiya to Mekelle are currently under construction. These railway lines will link the Central and Eastern parts of the country with Northern Ethiopia by connecting to the Addis Ababa-Djibouti Railway at Awash.

Road transport

Ethiopia’s road network is continuously improving. In 2016, there were more than 110,000 kilometers of all-weather roads. The road network should be expanded to 220,000 kilometers by 2020.

In order to improve connectivity between industrial parks and transport corridors within Ethiopia, significant investments in building expressways are also being made. For instance, the entry into service of the Addis Ababa-Adama expressway greatly improved the connectivity between the Adama industrial park and the rest of the country.

Electric power

Due to rich water resources, electricity in Ethiopia is relatively cheap (0.03 USD per KWH). A number of dams being currently under construction, the power generation capacity will significantly increase in the next few years. The Grand Ethiopian Renaissance dam will notably add a capacity of 6,000 MW.