
Addis Ababa, Tuesday — Ethiopian Prime Minister Abiy Ahmed told parliament on Tuesday that the government is actively pursuing a nationwide initiative to construct 1.5 million housing units in the coming years, describing the target as ambitious but still insufficient when measured against the country’s vast housing needs.
Addressing lawmakers during today’s parliamentary session, the prime minister emphasized that rapid urbanization, population growth, and years of accumulated shortages have created a housing gap that cannot be resolved by a single program alone.
“We are actively working on a national initiative to construct 1.5 million housing units over the coming years,” PM Abiy said. “While this target is ambitious, it remains modest in relation to the country’s vast housing demand.”
The prime minister noted that the housing program is part of a broader reform agenda aimed at improving living standards, boosting employment, and stimulating the construction and manufacturing sectors. He acknowledged, however, that affordability, access to finance, and land management remain critical challenges that must be addressed alongside construction targets.
PM Abiy also called for stronger coordination between federal and regional authorities, as well as increased participation from the private sector, to accelerate delivery and ensure equitable access to housing across urban and peri-urban areas.
The remarks come amid growing public concern over rising rents and housing shortages in major cities, particularly Addis Ababa, where demand continues to outpace supply.
Observers say the government’s admission that the 1.5 million-unit plan is “modest” reflects an awareness of the scale of Ethiopia’s housing crisis, while underscoring the need for sustained, long-term policy commitment beyond headline targets.
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