The Ministry of Urban and Infrastructure Development affirmed that Ethiopia is moving away from isolated construction projects toward building integrated systems and a strong national construction industry to drive long term development.

Speaking at the Ethiopia Italy Construction Infrastructure and Development Forum in Addis Ababa, Urban and Infrastructure Development State Minister Yetimegeta Asrat said that infrastructure remains central to the country’s economic transformation and long-term vision.

The forum brought together senior officials including Addis Ababa Mayor Adanech Abiebie, Finance Minister Ahmed Shide, Irrigation and Lowlands Minister Abraham Belay, Italy’s Deputy Minister of Foreign Affairs and International Cooperation Maria Tripodi, and Italy’s Ambassador to Ethiopia Sem Fabrizi.

Yetimegeta elaborated that the country is transitioning toward interconnected infrastructure systems capable of supporting sustainable and inclusive growth.

“We are not merely building projects, but fundamentally building systems and a construction industry that can build a nation,” he said, adding that infrastructure serves as the lifeline of the economy.

Ethiopia’s financial system remained stable and resilient during the 2024/25 fiscal year, supported by improving macroeconomic conditions despite a challenging global environment, according to a new report by the National Bank of Ethiopia.

The central bank’s third Financial Stability Report, covering the period from July 2024 to June 2025, provides a comprehensive assessment of risks, vulnerabilities and sector performance, offering insights for policymakers, investors and other stakeholders.

The report indicates that the review period was marked by external headwinds, including slower global growth and broader uncertainties. Nevertheless, Ethiopia recorded notable macroeconomic improvements, with stronger economic growth and declining inflation contributing to a more stable environment for financial institutions. These developments also supported the transition to positive real interest rates and improved the effectiveness of monetary policy.

Fiscal performance also strengthened during the period, with lower budget deficits and more sustainable public and domestic debt levels helping to ease macroeconomic pressures and reinforce financial stability.

The Industrial Parks Development Corporation (IPDC) has announced expanded financial access for investors operating in Special Economic Zones (SEZs), a move aimed at boosting investment and enhancing competitiveness.

The reform is intended to improve service delivery and create a more enabling business environment within the zones.

A half-day consultation workshop was held to strengthen banking services and enhance coordination among investors, financial institutions, and relevant government entities operating in the SEZs.

Speaking at the event, IPDC Chief Officer for Operations and Park Management, Fitsum Ketema, said financial services in the zones had previously been limited to the Commercial Bank of Ethiopia, but are now open to all banks to improve access and competition.

He noted that the government has invested over 1.5 billion U.S. dollars in developing the zones, which have attracted investments worth billions, contributing to foreign exchange generation, job creation, and technology transfer.

Fitsum added that the initiative aims to promote broader private sector participation across manufacturing, agriculture, trade, and services, while attracting foreign direct investment and supporting the development of economic clusters.

Ethiopia and Italy have reaffirmed their commitment to expanding cooperation in investment and infrastructure development, as senior officials from both countries highlighted growing opportunities for deeper economic ties.

The Ethio-Italy Construction and Infrastructure Forum, convening high-level government officials and business leaders, is underway in Addis Ababa with the goal of enhancing collaboration in strategic sectors.

The opening session brought together key dignitaries, including Finance Minister Ahmed Shide, Irrigation and Lowlands Minister Abraham Belay, Addis Ababa Mayor Adanech Abiebie, State Minister for Urban and Infrastructure Development Yetimegeta Asrat, Italy’s Deputy Minister of Foreign Affairs and International Cooperation Maria Tripodi, and Italy’s Ambassador to Ethiopia Sem Fabrizi, among others.

During the forum, officials emphasized the expanding potential for strategic partnerships, noting that strengthened collaboration could accelerate investment flows and infrastructure development in Ethiopia.

Finance Minister Ahmed Shide highlighted that ongoing macroeconomic reforms are creating a favorable environment for investment and sustainable growth. He noted that Ethiopia has embarked on comprehensive reforms aimed at stabilizing the economy and enhancing private sector participation, while Italy’s bilateral and multilateral support has played a constructive role.