Gov’t, private developers sign PPP agreements to boost housing, tourism, and health sectors
Addis Ababa, July 4, 2025 (FMC) — The Government of Ethiopia has signed a series of public–private partnership (PPP) agreements with seven private developers to accelerate investment in affordable housing, tourism infrastructure, and healthcare services.
The agreements, signed today between the Ministry of Finance and the private sector partners, include four affordable housing projects, two tourism destination developments, and one health sector initiative.
Speaking at the signing ceremony, Finance Minister Ahmed Shide said the PPP agreements are part of the government’s broader strategy to mobilize alternative financing for critical development projects. He noted that such partnerships are central to delivering high-impact infrastructure and services in a sustainable and inclusive manner.
The developers who signed the agreements include:
- Ice Home Development and Construction PLC
- Ovid Chaka Housing Development PLC
- Ovid Kings Tower Housing Development PLC
- Ethiopian Construction Works Corporation
- Denbi Lake PLC (part of MIDROC Ethiopia Group)
- Awash Falls Resort PLC (Boston Partners)
- Cerbalancet, ICL, and Pioneer Consortium for the Integrated Diagnostic Service Center Project
According to the Ministry of Finance, the completion and operation of these PPP projects are expected to significantly contribute to Ethiopia’s economic growth and the delivery of essential social services.
The signing comes as part of the government’s ongoing efforts to address housing shortages and improve service access. Earlier today, Prime Minister Abiy Ahmed, in his remarks to the House of People’s Representatives, highlighted the importance of diversifying housing development models, stating:
“To address the housing shortage, we’ve introduced public, private, and public–private partnerships — an approach not used before.”
Over the past five years, around one million homes have been constructed across the country, with more than 265,000 currently under construction. The government has also launched rural corridor projects to ensure access to quality housing in rural areas.
The Office of the Prime Minister reiterated that efforts to expand housing access — both in urban centers and rural communities — will continue as part of the country’s national development priorities.
Ethiopia’s PPP framework is guided by Proclamation No. 1076/2018, which formally established a legal foundation for public–private partnerships. The proclamation recognizes the role of the private sector in driving economic growth and enhancing the delivery of public services, particularly in infrastructure.