Addis Ababa, November 13, 2026 (FMC) – Prime Minister Abiy Ahmed has outlined the broader economic and development foundations of Ethiopia’s five-year commitment to build 1.5 million houses, emphasizing that meeting the country’s enormous housing demand requires more than construction: it calls for expanded domestic manufacturing, accessible housing finance, public-private partnerships and sustained national effort.
Speaking following a visit to housing developments in Addis Ababa, the Prime Minister explained that a country undergoing extensive development generates substantial demand for infrastructure and essential services, including roads, electricity, water supply and housing.
He described the housing programme as one of the major national initiatives announced at Guba, conceived alongside measures to address the resources and systems required to deliver it.
He noted that the scale of the undertaking requires substantial financial resources and construction inputs, including steel, glass and ceramics.
Accordingly, strengthening Ethiopia’s domestic capacity to manufacture these materials was considered an integral part of the programme from the outset, with the aim of reducing dependence on external supplies while expanding local production.
The Prime Minister identified housing finance as another essential pillar, explaining that the availability of houses alone would not enable citizens to own them unless appropriate financial arrangements were established.
The government is therefore working to mobilize housing funds, engage banks and develop mortgage financing mechanisms that allow people to acquire homes and repay their costs through manageable arrangements.
He also emphasized the importance of implementing the programme through government investment, private-sector participation and public-private partnerships, describing this approach as a central component of the national housing initiative.
Reflecting on the progress in the capital, Abiy noted that more than 100,000 houses had been launched in Addis Ababa, with much of the work advancing well. He cited the developments inspected during the visit, pointing out that some of the construction had been completed in less than a year, while other sections were approaching completion.
He expressed confidence that the programme could be expanded further once the current 100,000-home undertaking in the capital is completed.
The Prime Minister also drew attention to the wider significance of the housing initiative, particularly its potential to transform living conditions in communities where inadequate housing remains a major challenge.
Referring to the Ketel Tera area of Addis Ababa, he noted that the newly developed homes had replaced structures in which people had previously lived under difficult conditions.
He explained that many substandard houses in the surrounding areas would also require replacement as resources become available, adding that the government intends to continue improving housing conditions in line with its capacity.
Abiy stressed that Ethiopia’s housing needs extend far beyond the current urban construction projects, with millions of homes required across the country.
He described the conditions facing many rural households, where farmers continue to live alongside their livestock, and pointed to ongoing initiatives to explore improved rural housing models.
He added that significant housing challenges also persist in urban areas, where some residents lack basic facilities such as toilets, adequate sanitation, clean water and electricity, and live in shelters covered with plastic.
Addressing these conditions, he observed, requires not only financial resources but also technical knowledge, appropriate designs, skilled human resources and sufficient construction materials.
The Prime Minister emphasized that Ethiopia must pursue housing development with greater intensity while ensuring that the houses built are durable and capable of serving residents over time.
He cautioned against construction that delivers short-lived results, stressing the need for quality, sustainability and coordinated effort.
He further framed the housing programme within the government’s broader understanding of national prosperity, arguing that development has little value if it does not improve the lives of the poorest citizens.
“Prosperity has no value if it does not touch the life of a poor mother,” he stated, emphasizing that wealth creation should continue while its benefits reach citizens across different economic levels.
The Prime Minister said the housing developments in Addis Ababa offered an encouraging beginning, but stressed that further effort and investment would be necessary.
He noted that similar initiatives were being undertaken in cities and rural areas across the country and that their results would contribute to fulfilling the national commitment to build 1.5 million homes through government-led initiatives, private investment and public-private partnerships.
He added that the government intends to consolidate the progress, learn from implementation gaps and make necessary improvements as the programme advances.
The next phase, he indicated, would focus on expanding the work, transforming urban centres and improving citizens’ living conditions.
Drawing on his recent three-day visit to Türkiye for COP31, where he observed various development projects, Prime Minister Abiy expressed confidence in Ethiopia’s prospects, noting that the progress already being made across the country demonstrates Ethiopia’s potential to achieve comparable levels of development in the coming years.
He maintained that sustained work, collective commitment and perseverance remain essential to transforming the country, expressing firm confidence that Ethiopia can build a more prosperous and developed future through continued effort.