Major Investments in Energy and Logistics Drive Ethiopia’s Industrial Transformation: PM Abiy

Addis Ababa, April 17, 2026 (FMC) — Ethiopia is expanding its energy, transport, and logistics infrastructure as part of a coordinated effort to strengthen industrial capacity and support long-term economic transformation, Prime Minister Abiy Ahmed (PhD) has said.

In the second part of his interview with the Ethiopian Broadcasting Corporation (EBC) under the theme “The Heart of Sovereignty,” the Prime Minister emphasized that industrial development is closely linked to the strength of supporting infrastructure systems, particularly energy supply and transport connectivity.

He noted that industrial parks are being upgraded into special economic zones, a shift aimed at improving efficiency, reducing costs, and integrating services for investment and production. The approach, he said, reflects a broader effort to improve the quality and functionality of industrial infrastructure rather than expanding numbers alone.

The Prime Minister indicated that several previously inactive industrial parks have been brought back into operation, while private sector participation in the development and management of industrial zones has increased.

On logistics, he highlighted ongoing investments in rail, road, and dry port systems designed to strengthen Ethiopia’s trade connectivity. He cited the expansion of the Mojo Dry Port as a key development, describing it as a major logistics hub integrated with rail infrastructure and designed to handle large-scale cargo operations.

He also referenced major transport corridors, including expressway developments and railway infrastructure, as essential components of Ethiopia’s effort to improve access to domestic and regional markets.

Aviation infrastructure is also undergoing expansion, including the development of the Bishoftu International Airport project, which is expected to serve as a major regional hub alongside other airport upgrades across the country.

Energy development was identified as a critical pillar of industrial growth. The Prime Minister stressed that reliable and sufficient electricity supply is fundamental to industrial expansion, noting that Ethiopia is pursuing a green energy pathway centered on renewable sources.

He cited major energy projects, including the Grand Ethiopian Renaissance Dam (GERD), the Koysha hydroelectric project, and wind energy developments, as part of efforts to ensure long-term energy security for industrial use.

He further noted that rising industrial energy demand reflects the increasing scale of production activity in the country, underscoring the need for continuous expansion of generation capacity.

The Prime Minister concluded that infrastructure and energy development must advance in tandem with industrial growth, describing them as mutually reinforcing foundations of Ethiopia’s economic transformation.

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