Sunday, November 16, 2025

Growing urbanization fuels demand for affordable, easy-to-use construction equipment

By Eyasu Zekarias

Ethiopia’s rapid infrastructure expansion and rising urban population are driving increased demand for domestic construction equipment that is simple, affordable, and easy to operate, according to insights shared at the recent Excon 2025 Roadshow held in Addis Ababa.

The event served as a preparatory platform ahead of Excon 2025, South Asia’s largest construction equipment trade fair scheduled for December 9 to 13 in Bengaluru, India. Industry leaders, policymakers, and stakeholders gathered to explore avenues for technological collaboration and to strengthen bilateral cooperation in construction and infrastructure development between Ethiopia and India.

In his opening remarks, Shri Anil Kumar Rai, the Indian Ambassador to Ethiopia, highlighted the shared vision of sustainable growth and urban modernization between the two countries. He noted Ethiopia’s status as one of Africa’s fastest-growing economies and its ongoing indigenous economic reforms aimed at shifting the growth engine towards private sector-led investment alongside crucial public infrastructure projects.

The construction sector, currently contributing some 20% to Ethiopia’s GDP growth, is experiencing transformative opportunities through government-backed urban infrastructure initiatives, especially in Addis Ababa and various designated “corridor” cities. With approximately 30% of Ethiopia’s population expected to reside in urban centers within the next five to seven years, the need for affordable housing and infrastructure puts a spotlight on lightweight and cost-effective building materials and construction equipment.

Ambassador Rai urged Indian manufacturers, ranked as the world’s third-largest producers of construction equipment, to adapt their offerings to meet Ethiopian market needs regarding quality, affordability, and user-friendliness. He further encouraged the introduction of refurbished equipment that complies with environmental regulations to help reduce capital expenditure gaps and widen financing options for projects.

In light of Ethiopia hosting the upcoming COP climate conference, the ambassador stressed a commitment to environmentally responsible technology, emphasizing that no hazardous equipment should enter the market.

Deepak Shetty, Co-Chairman of Excon 2025 and CEO of JCB India Limited, underlined India’s strengths in providing affordable, reliable equipment backed by strong after-sales service and technical training. Notably, Indian manufacturers have begun producing eco-friendly construction machinery, including compressed natural gas (CNG) based and hydrogen-powered tools.

The Excon 2025 exhibition promises a comprehensive showcase of global innovations in soil excavation, material handling, and concrete machinery—offering Ethiopian stakeholders a broad array of solutions tailored to meet the demands of a fast-growing yet price-sensitive infrastructure market.

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