Chinese construction companies and political leaders arrived in Addis Ababa this week to enhance their cooperation with private Ethiopian construction companies.
The team, led by Hunan province governor Xu-dazhe, signed Memorandum of Understandings (MoU)s with businesses from Ethiopia.
During a conference, held at Hilton Addis last week, giant multinational construction companies from the province shared their experience with their Ethiopian counterparts and discussed challenges the industry is facing.
Hunan province which is 1300 km from Beijing had a GDP of 330 billion USD in 2017 has become the world’s major destination of prefabricated construction materials. The province has become the base of more than 1,000 construction companies which have a presence overseas according to governor, Xu-dazhe.
“Ethiopia appreciates any help to achieve its economic plans,” said Engineer Aisha Mohammed, Minister of Construction during her opening remarks.
She also added that the China’s experience will help the Ethiopian construction sector overcome its quality safety, on-time delivery, and management problems.
The minister said the Ethiopian construction industry which has been consuming 50% of the nation’s capital budget for the last decade is expected to become fifth globally.
Among the Hunan based delegates makers of construction machines and vehicle producers also showed an interest in participating in industry and held talks with Ethiopian businesspeople.
Chinese construction companies, construction machine makers, vehicle producers and real estate companies all are expected to stay in Ethiopia for a few more days and explore opportunities.
The governor also invited the attendants of the summit for the fourth edition of the Investing in Africa forum which is going to be held after a year, in June.
The Ministry of Construction arranged this summit in collaboration with Hunan Province after its visit a few months ago. It was sponsored by Flintstone Homes.
Among the opportunities presented to the delegates are the Public-Private Partnership Projects, and mining areas. Tax holidays, the availability of a large trainable labor force and infrastructure expansion plans have were highlighted as opportunities.
Members of the delegation said, in addition to the large population and natural resources, Ethiopia is a major strategic country for Chinese investors to reach the region and the continent.
Chinese, Ethiopian construction companies hold forum
Seventeen thousand 40/60 condos to be transferred soon
Studios to be rented to civil servants
The Addis Ababa Saving House Development Enterprise is in discussions with the Commercial Bank of Ethiopia (CBE) to transfer 17,000 40/60 condos which are on the verge of completion in Gerji, Bole Bulebula, Hayat, Meri and Summit.
Right now the Enterprise is completely responsible for finishing the entire home including what is termed as ‘finishing work’. However, many of the homes need work done on them, for example doors and windows need fixed as well as toilets and kitchens and ceramic floors. To speed up the process, the Enterprise wants the new home owners to be responsible for those finishing works. Hopes are that the condos can be transferred within a month. Sources at the Enterprise told Capital that first opportunity will be given to people who save can pay the entire amount of the home.
“There is some delay in delivering the houses and the Enterprises is now thinking that it is better to leave the finishing works to the beneficiaries by drawing a lottery, the idea will be attempted if CBE and municipal can agree on this issue .’’
When the 40/60 condo housing schemes began in 2013, AASHDE set the price at 2,289, 3,300 and 3,860 birr per square meter for one, two and three bedrooms respectively. But the price of the 17,000 condos will be revised when they are delivered soon.
Capital’s effort to get CBE to comment on the issue was not successful.
When the 972 houses were delivered last year ASHDE raised the prices from 3,200, birr to 4,918 birr per square meter which meant that a 124sqm two bedroom condo cost 609.8 thousand birr, and a 150sqm three bedroom 737.7 thousand birr and a 168sqm four bedroom 826.2 thousand birr.
Then CBE told winners to add the interest rate price from the previously increased price which meant that one bedrooms buyers paid 701,270 birr while the two and three bedrooms paying 847, 650 birr and 950,000 birr respectively.
Currently 39,000 houses including the nearly completed 40/60 condos are under construction.
In other related news more than 1,500 houses of 20/80 condo houses will be rented to the government workers who earn less than 2,000 birr per month.
The houses will be rented to the workers in the draw which will be expected to be held very soon. The rental price is expect to be 350 birr per month. The studios are coming from the recent counting and are illegally occupied by some people.


