Looking ahead to the rest of 2023 in Ethiopia

By Eamonn Ryan

Concrete Trends recently interviewed Ethiopian businessman Endale Shiferaw –a PMB. B.Sc. multiskilled professional with a track record of managing complex construction projects in various environments.

he discussed the current state of the con struction, cement and concrete industry in Ethiopia, as well as the key macroeconomic challenges and growth opportuni ties in the region.

Shiferaw acknowledged the impact of high inflation and the ongoing conflicts in ukraine and his own country on the construction industry in 2022. he noted that while Ethiopia has a high production capacity for cement, the industry is still struggling with shortages and high prices.

“the war in ukraine and the unrest in our country, severely created a direct negative impact on the construction industry. there has been high inflation, particularly on major construction inputs such as reinforcement bar, cement and construction chemicals. the wounded construction industry has not yet healed fully. Even if there is high production of cement in my country Ethiopia, the fake shortage and high price is still disrupting the industry,” says Shiferaw.

looking ahead to 2023 and beyond, Shiferaw identified high inflation and security concerns as still being the major macroeconomic challenges facing Ethiopia. however, he also highlighted the numerous investment opportunities available in the country, including in agriculture, construction, mining and tourism.

“honestly speaking, there is a high investment opportunity in all parts of the country in different sectors such as agriculture, construction, mining, tourism and so on. the only thing needed is continuous effort from the government in stabilis- ing the security situation, so that more local and foreign investors will be attracted to invest in the country.” egarding the role of local cement and concrete associations in Ethiopia and the horn of frica region, Shiferaw emphasised the importance of collaboration with international investors and experts to drive innovation and adopt state-ofthe-art technologies in the industry.

“East african countries are rich in natural resources, and it is known that cement and concrete are major inputs for the construction industry. associations are working extensively to bring and adopt state of the art technologies to the region by working collaboratively with international investors and experts of the industry,” says Shiferaw.

Finally, when asked about the competing interests of maintaining national standards for cement while also promoting free trade, Shiferaw expressed support for localisation programmes, while also emphasising the need for international collaboration to transfer knowledge and build capacity.

“I have a strong belief that by working in collaboration with international firms it is possible to reach that capacity through experience sharing and knowledge transfer.”

In conclusion, Shiferaw’s insights highlight the challenges and opportunities facing the construction, cement and concrete industry in Ethiopia, as well as the broader macroeconomic landscape in the region. despite these challenges, Shiferaw remains optimistic about the potential for growth and investment in Ethiopia, as long as the government continues to prioritise stability and security. n